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How the English courts reached breaking point

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An illustration of a judge wearing a wig, black coat and holding a blue and red folder in one hand and a cup of takeaway coffee in the other

In court, it’s usually the defendants who apologise to the judges. But at Snaresbrook Crown Court in east London, the roles have been reversed. 

“I’m so sorry,” Judge Charles Falk tells a man charged with sexually assaulting a neighbour while they walked their dogs together. “I shouldn’t be having to say this, but that’s the position in the court at the moment.” The reason for Falk’s apology is time: the man’s trial will not begin until May 2026, two years after the alleged offence. This is despite the case being designated “high priority”. 

What about cases that are only “medium priority”? A luxury hotel worker walks to the dock, accused of grabbing another man’s buttocks in the toilets of a Canary Wharf shopping centre. It doesn’t seem the most complex matter to resolve, but after pleading not guilty, the defendant is told the earliest available trial date is November 2026. 

“I’m terribly sorry,” Falk says. “I recognise that your life is on hold.” The apology is incongruous, juxtaposed with stern warnings about sanctions for not turning up to trial. The alleged victim is not in court, but the judge asks the prosecution to provide him with all the support possible. 

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So these defendants and victims learn what barristers have said for years: the criminal justice system of England and Wales is blocked and probably broken. Public debate focuses on whether the police will catch criminals and whether the courts will sentence them correctly. But lawyers are increasingly concerned about the bit in the middle, the part of the process that rarely features in TV thrillers: the slow wait for court time. In early 2019, there were 33,000 cases outstanding in the Crown Courts. By the end of 2023, there were nearly 68,000 — a record. 

There are no up-to-date figures because embarrassingly the Ministry of Justice has discovered problems with its data. But almost no one thinks the audited numbers will be better. “We’re drowning in cases. It’s totally unmanageable,” says Max Hardy, a criminal barrister. “The government inherited a crisis in our criminal justice system,” says the Ministry of Justice. 

If justice delayed is justice denied, then English courts are regularly denying justice. And the worst effects may only be felt in the next few years — as prosecutions finally come to trial, only to fall apart because witnesses’ memories have corrupted with time. Barristers told me that defendants are less likely to plead guilty because they see the prospect of conviction as remote. Meanwhile, victims are deciding not to pursue complaints. 

Convincing a jury that a rape victim is telling the truth, and their attacker is lying, is hard enough. It becomes harder if, because of the passage of time, the victim seems less sure of the details. Delays are not just an inconvenience, says the charity Rape Crisis: for some victims and survivors of rape, “there are profound, life-changing consequences”, including the risk of suicide attempts.  

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An illustration of a judge wearing a wig, black coat and holding a blue and red folder in one hand and a cup of takeaway coffee in the other
© Ciaran Murphy

Justice sometimes seems swift: nearly 500 people involved in anti-immigrant riots in July and August have already been sentenced. But those cases were exceptional. The authorities wanted quick justice to help end the riots (it helped that many rioters pleaded guilty). Since 2019, the average time between a crime happening and the Crown Court case ending has gone from 16 months to 22 months

It’s not just the courts to blame. At Snaresbrook, a man appears in front of Judge Falk. He is accused of trying to rape a girl at her 15th birthday party, when he was 16. The alleged offence was in 2018. The girl went to the police in 2019. But this day — in September 2024 — is the first court hearing. 

Somewhere, between the police and the Crown Prosecution Service, the investigation has gone terribly wrong. “Why does a case of this nature take six years?” exclaims Falk. “What’s a jury going to make of something that’s so old?” 

The courts, like in the health service, are seeing a fundamental break with expected standards. Those involved want more funding. Without it, the choice seems to be between stagnation and a radical shake-up. 


Between 2009/10 and 2022/23, the justice budget for England and Wales fell 22 per cent per person in real terms, while overall government spending rose 10 per cent. David Cameron’s pledge to fix the roof while the sun was shining feels especially hollow in a dilapidated court with a leaking roof and no heating. But his calculation was political. Most voters wouldn’t go to a court. And they certainly wouldn’t set foot in Britain’s even more crumbling prisons, as rehabilitation became an ever more distant prospect.

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The Conservatives’ calculation was also technical. As violent crime dropped in the 2010s, in Britain, as across many western countries, there seemed to be less need for criminal courts. The government cut barristers’ fees and sold off court buildings: 43 per cent of courts were closed after 2010. (One of these, Blackfriars Crown Court, was later used to film courtroom scenes for Netflix drama Top Boy.) But the number of cases awaiting trial still fell. 

An illustration of a judge’s wig on top of an open book
© Ciaran Murphy

Before the pandemic, the then Lord Chief Justice Lord Burnett warned that things had gone too far. Ministers disagreed. In early 2019, the backlog started to rise, as Burnett predicted. Then Covid hit, the courts were closed, and the backlog jumped (even though crime also fell during the pandemic). A strike by barristers over pay worsened the situation. 

No one had planned for the pandemic. But ministers also hadn’t planned for the rise in prosecutions of sexual offences, linked to societal outrage at low conviction rates. Such cases strain the courts: they tend to be complex and defendants tend not to plead guilty. For all criminal cases, the percentage of guilty pleas is about 66 per cent. For sexual offences, it’s 39 per cent. For adult rape cases, it’s just 15 per cent. Between 2019 and 2023, the number of adult rape cases awaiting trial trebled to 2,786.

Ministers also failed to plan for prison overcrowding: this year, some prisons such as Wandsworth had 50 per cent more prisoners than they could decently accommodate. The crises in the courts and the prisons are interlinked. An increasing part of the swelling prison population is made up of people awaiting trial. (By law, defendants should be in custody for a maximum of six months before trial; these limits are now routinely extended.)

In 2022, to reduce the backlog, the Ministry of Justice made more cases triable by magistrates — allowing them to sentence people for offences worth up to 12 months in prison, instead of the usual six. In 2023, it suspended the measure because there weren’t enough prison cells for the resulting prisoners. Even so, Labour is expected to revive that measure: the ministry’s models suggest that the prison population will go up slightly, but the new prisoners can be dispersed around the country, in a way that prisoners awaiting trial cannot be.  

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Overwhelmed prisons are also a major source of court delays: they fail to produce prisoners for hearings. At Snaresbrook, I saw the court wait in vain for a prisoner to appear via video from Manchester. “It’s just ringing through. They’re not answering,” said the court clerk, phone in hand. The judge sighed: “It’s a comfort to know that it’s not just Pentonville and Thameside that have problems connecting.” Eventually the hearing was abandoned. “There’s nothing I can do without your client. You can hardly plead guilty on his behalf,” the judge told the defence barrister. 

An illustration of a stack of papers tied in red twine, with a takeaway cup of coffee
© Statistics from the National Audit Office, Ministry of Justice , Rape Crisis England and Wales

262

Days that the Crown Court took to complete a case on average in late 2023, up from 145 days in late 2019

32%

Proportion of outstanding cases that were for sexual offences, as of late 2023

68,000

Cases outstanding in the Crown Courts in late 2023, up from 33,000 cases in early 2019

Judges regularly fume at Serco, the company that is paid £80mn a year to transport prisoners in southern England to court and accompany them in the dock, but that often seems unable to do so. Officially prisoner escort companies meet their contractual obligations 99.93 per cent of the time. Serco and the Ministry of Justice both declined to explain how this is calculated.

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I was told a variety of reasons why prisoners don’t turn up, including: Serco lacks enough drivers qualified for 12-seater vans, so has to use small vans that are less efficient; prisoners refuse to come and inexperienced prison officers don’t know how to cajole them; prison staff aren’t sure where a prisoner is in the jail; and prison overcrowding means prisoners are now scattered in different jails. Serco says it is working “under very challenging conditions”, and is trying to recruit more staff.

One in four trials now doesn’t go ahead as scheduled. A growing reason is a lack of lawyers. In 2019, only 71 trials were cancelled on the day they were due to begin because a barrister wasn’t available for one side. Last year, the figure had risen 20-fold — to 1,436. 

Why aren’t there enough barristers? Crime has long been the worst paid field for advocates. Experienced junior barristers are paid £713 a day for prosecuting a murder (this also covers costs and rent). They earn more doing family cases. If they work on one of the many public inquiries, they can earn £120 an hour. So they switch. Those remaining criminal juniors try to do as many cases as possible: “churn and earn”. 


As lawyers are overstretched, quality drops. “People are turning up for hearings constantly and nothing has been done,” one young barrister told me. Psychiatric reports haven’t been requested, witnesses’ telephone data hasn’t been processed, and so on. That is partly due to cuts to the Crown Prosecution Service and legal aid solicitors. The number of criminal law duty solicitors has fallen by a quarter since 2018. In a recent case, a man accused of raping a woman walking home from a bus stop was allowed out on bail for a year because the CPS had made so many errors in prosecuting; he was later convicted.

In the courts, as elsewhere, cutting budgets can be expensive. The Ministry of Justice now accepts that cuts to legal aid ended up costing the taxpayer because of the wasted time produced by defendants not having early legal advice. Faced with a lack of court space after Covid, the government set up temporary Nightingale courts. To run a normal courtroom costs, on average, £280,000 a year. To run a Nightingale court costs between £440,000 and £1.6mn a year; 18 are still going. 

Under Boris Johnson and Rishi Sunak, the government did pump extra money into the courts, but it has not been enough. “In cabinet, I found myself having to remind colleagues that England and Wales has the second-largest legal sector in the world. It came as a surprise to people who were otherwise very well informed,” says Alex Chalk, justice secretary under Sunak.   

Frustrated criminal barristers argue that the fame of England’s criminal courts underpins the thriving commercial legal industry. One told me that big commercial law firms should be taxed to pay for improvements to criminal courts. 

In a significant way, courts today are different and probably much better: video links, which did not exist before Covid, are now commonplace. Thanks to technology, barristers can hop between different Crown Courts in a single morning, and prisoners don’t have to be taken by secure vehicle at a cost of hundreds of pounds. But these efficiencies have not saved the system.

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What more could be done? Before he stepped down as lord chief justice last year, Lord Burnett pushed for something more radical — removing the right for defendants to have a jury trial for some offences. Currently, there are some offences, such as speeding, that can only be tried by magistrates, and some, such as murder, that can only be tried by Crown Court judges with juries. There are also some, such as minor theft and drug offences, for which the defendant has the right to choose; most of the time, they choose a jury, because juries are much more likely to let them off. (Assault is an offence dealt with by magistrates, but in 2018 parliament made it a specific offence to assault an emergency worker — one for which the defendant can choose a jury. This now makes up a substantial number of Crown Court cases.)

Jury trials are notoriously inefficient. Shuffling 12 people around the building, explaining the basics of the law to them, accommodating their personal commitments — this all adds time. Trying a case in front of a judge and two magistrates might take, say, half as long. “You’d rattle through cases much more quickly,” says Chalk. Everyone should be entitled to a jury the first time they are accused of dishonesty, “but maybe not the second or third or fourth”. (Rape Crisis, the charity, would go further: it wants judge-only trials for rape cases.)

A similar idea was put forward under New Labour, but failed amid an uproar about the sacredness of jury trial. “Trial by jury is a bit of a red line. Just because they’ve run the system into the ground doesn’t seem like a very good reason [to cross it],” says Will Paynter of 15NBS Chambers. Like most criminal barristers I spoke to, he wanted more resources: more courts, open for more days, and more funding for barristers and solicitors to do the work.

The Bar Council, which represents barristers, has called for fees to rise 15 per cent and for the government to match-fund 100 extra criminal pupillages a year. Fixing the courts would cost maybe £2bn a year — maybe not “huge sums compared to other public services”, says its chair Sam Townend. Townend adds that barristers’ mood is “expectant and cautiously hopeful. We have a prime minister and an attorney-general who have been practising barristers.”

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Sir Keir Starmer is said to take a close interest in courts policy. But neither he nor justice secretary Shabana Mahmood mentioned the backlog in their speeches to Labour conference. The mess in prisons has taken priority. Labour’s pledge of specialised “rape courts” has remained sketchy. 

As with other public services, much hinges on this month’s Budget. A key metric for lawyers is sitting days — one sitting day is one courtroom functioning for one day. The Conservative government had agreed 106,000 sitting days this year. To bring down the backlog, judges pushed for the courts to run at full capacity: 6,000 more days, with inevitable extra costs. Mahmood agreed only to an extra 500. In response, the senior presiding judge warned two weeks ago that “a very large number of trials and other hearings that are scheduled to be heard will now have to be rescheduled”.

Meanwhile, at Snaresbrook when I visited, three courtrooms were sitting unused, and Judge Falk would book in a serial offender on drugs charges for a trial — in January 2027. 

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Henry Mance is the FT’s chief features writer

What should it take to convict a criminal?

A black and white photo of images from a door camera featuring a hooded figure and a hand
Staged images taken from a doorbell camera (not the author’s) by the FT

The eviction of an intruder from Janine Gibson’s home was just the start of a long legal battle. Read

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BTC price eyes sub-$65K hurdles as metric hints Bitcoin 'going to rip'

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BTC price eyes sub-$65K hurdles as metric hints Bitcoin 'going to rip'


Bitcoin bulls enjoy more weekend BTC price gains as market cap signals point to a classic bull run comeback.



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The Newest Artificial Intelligence Stock Has Arrived — and It Claims to Make Chips That Are 20x Faster Than Nvidia

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The artificial intelligence chipmaker Nvidia (NASDAQ: NVDA) has amassed close to a $3.2 trillion market cap, making it one of the world’s largest chipmakers. It now consumes more than 6% of the broader benchmark S&P 500 index. Over the last five years, Nvidia has grown annual revenue by 458% and the stock is up an incredible 2,009%. Given the potential for AI to disrupt life as we know it, it’s understandable that investors are so excited about the stock.

But the lure of these kinds of gains is naturally going to attract competition. Now, one of Nvidia’s competitors is planning an initial public offering (IPO) and claiming to manufacture chips that can vastly outperform Nvidia at a fraction of the price. Let’s take a look.

20x better than Nvidia?

Last week, the AI chipmaker Cerebras filed its registration statement with the Securities and Exchange Commission (SEC) with the intent to go public. In a press release from 2021, Cerebras said it had a valuation of $4 billion after a $250 million series F financing round. The company is targeting a $1 billion IPO at a $7 billion to $8 billion valuation.

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In its registration statement, Cerebras cites Nvidia as a competitor, as well as other large AI companies such as Advanced Micro Devices, Intel, Microsoft, and Alphabet. Here is a description of what Cerebras does:

We design processors for AI training and inference. We build AI systems to power, cool, and feed the processors data. We develop software to link these systems together into industry-leading supercomputers that are simple to use, even for the most complicated AI work, using familiar ML frameworks like PyTorch. Customers use our supercomputers to train industry-leading models. We use these supercomputers to run inference at speeds unobtainable on alternative commercial technologies.

Cerebras’ pitch is that bigger is better. That’s because the company has designed a chip that is the size of a full silicon wafer, and the largest ever sold. The company believes that the size advantage leads to less time moving data. Furthermore, Cerebras has a flexible business model in which clients can buy Cerebras products to have at their facilities or through a consumption-based subscription through the company’s cloud infrastructure.

Cerebras clearly wants investors to compare, or at least associate, the company with Nvidia. Nvidia is mentioned 12 times in the registration statement. Cerebras also provides a side-by-side comparison of its Wafer-Scale Engine-3 chip versus Nvidia’s H100 graphics processing unit (GPU), which is considered the most powerful GPU on the market.

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Cerebras Nvidia comparison.

Image source: Cerebras registration statement.

Cerebras CEO Andrew Feldman publicly said the company’s inference offering is 20 times faster than Nvidia’s at a fraction of the price. In 2023, Cerebras generated about $78.7 million of revenue, up 220% year over year. Through the first half of 2024, Cerebras has grown revenue to $136.4 million. The company still hasn’t earned a profit, having reported a nearly $67 million loss through the first half of 2024. These numbers also pale in comparison to Nvidia, which recently reported second-quarter revenue of $30 billion and a profit of roughly $16.6 billion.

Will Cerebras make a splash?

With big publicity from news publications and claims of being 20 times faster than Nvidia, I think it’s safe to say that Cerebras already has and will continue to make a splash.

Depending on the excitement investment bankers can drum up during the company’s road show and market conditions, I wouldn’t be surprised to see Cerebras go public at a higher valuation than expected. AI has been all the buzz and the IPO market has been flat for a few years now, so there could be pent-up demand on Wall Street.

Will Cerebras overtake Nvidia? Only time will tell. Its product offerings are impressive, but it still has a ways to go to get its financial profile in line with Nvidia. Furthermore, there may be some advantages to Nvidia having smaller chips and it remains to be seen whether Cerebras can compete with Nvidia’s software language CUDA — although the company does say that its software program “eliminates the need for low-level programming in CUDA.”

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While everything sounds great, there is likely still a “show me” component to this story. After all, the bulk of Cerebras’ revenue comes from one customer. Nvidia also has a leading market share in the AI chip space and relationships with many large clients. Who’s to say Nvidia couldn’t use its size — and likely resource — advantage to develop a similar large wafer chip? There’s a lot left to play out, but this could be one of the more interesting developments for market watchers to pay attention to.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,266!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,047!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,794!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

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See 3 “Double Down” stocks »

*Stock Advisor returns as of October 7, 2024

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2024 $24 calls on Intel. The Motley Fool has a disclosure policy.

The Newest Artificial Intelligence Stock Has Arrived — and It Claims to Make Chips That Are 20x Faster Than Nvidia was originally published by The Motley Fool

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Every AMD Stock Investor Should Keep an Eye on This Number

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Every AMD Stock Investor Should Keep an Eye on This Number


On some levels, Advanced Micro Devices (NASDAQ: AMD) looks increasingly like a competitor to Nvidia in the artificial intelligence (AI) accelerator market. While almost everyone perceives Nvidia as the dominant player in this market, AMD raised some eyebrows by winning a contract from Oracle.

Still, for all these accolades, AMD is barely profitable, and its revenue growth rate remains mired in the single digits. Also, despite the Oracle contract, AMD is not yet in Nvidia’s league regarding AI accelerators.

Nonetheless, one AMD metric has shown a dramatic improvement. As that figure continues to grow, the semiconductor stock could take its place as a full-fledged Nvidia competitor in the AI accelerator market.

Where investors should look

The important figure is not so much data center revenue as it is data center revenue as a percentage of total revenue. Here’s why: In the second quarter of 2024, AMD’s revenue of $5.8 billion grew by only 9% yearly. But this figure is deceiving. Gaming revenue dropped 59%, while embedded revenue fell 41%.

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However, data center revenue, the segment designing AI accelerators, was up 115%! This is significant because Nvidia’s data center revenue was 88% of the company’s total in the latest quarter. Three years ago, it was not Nvidia’s largest revenue source. Now, the same pattern seems to have appeared in AMD’s financials.

In Q2, the data center was 49% of AMD’s revenue, up from only 25% one year ago. Assuming it is going to follow in Nvidia’s footsteps, AMD’s data center revenue appears on track to continue growing rapidly.

Furthermore, the chip industry is cyclical, meaning the gaming and embedded segments are unlikely to experience revenue declines comparable to the ones over the last year. Both factors should mean that AMD’s overall revenue — and, by extension, net income — are likely to experience dramatic surges, helping to draw more investors into AMD.

Ultimately, market leadership for AMD is unlikely anytime soon. However, as long as the data center segment continues to grow as a percentage of the company’s revenue, it should take its stock dramatically higher.

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Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,266!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,047!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,794!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

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See 3 “Double Down” stocks »

*Stock Advisor returns as of October 7, 2024

Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Oracle. The Motley Fool has a disclosure policy.

Every AMD Stock Investor Should Keep an Eye on This Number was originally published by The Motley Fool

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2 Biotech Stocks That Are Screaming Buys This Month

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2 Biotech Stocks That Are Screaming Buys This Month


CRISPR Therapeutics (NASDAQ: CRSP) and Moderna (NASDAQ: MRNA) have much in common. They’re both innovative biotechs working in relatively newer niches of this booming industry.

However, they’ve moved in the wrong direction this year. CRISPR’s shares are down by 27% year to date, and Moderna’s are down by 41%. Regardless of their performances so far in 2024, both stocks are worth investing in this month. Read on to find out why.

1. CRISPR Therapeutics

CRISPR Therapeutics recently hit a breakthrough point when it earned approval for its first product, Casgevy, a therapy for sickle cell disease and transfusion-dependent beta-thalassemia. Casgevy is also the first medicine on the market that uses the famous CRISPR gene editing technique. Given this significant milestone, why is the company underperforming the market?

Here are two potential reasons. First, after Casgevy’s approval, some investors decided to take some profits. Second, it will take time before Casgevy contributes meaningfully to CRISPR Therapeutics’ financial results. Ex vivo gene editing medicines like Casgevy require that patients’ cells be collected and used to manufacture the treatment before it’s reinserted into them. The process takes a while and can only be done in qualified treatment centers.

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Though it’s impossible to ignore these factors, investors may be undervaluing Casgevy’s prospects. CRISPR Therapeutics partnered with biotech giant Vertex Pharmaceuticals to develop and market it. As a result, the medicine earned approval in places a midcap biotech by itself may not have targeted: Saudi Arabia and Bahrain. These markets alone have some 23,000 eligible patients. The partners estimate an addressable market of 35,000 people in the U.S. and Europe.

Casgevy, at a price of $2.2 million in the U.S. — and very little competition to speak of, at least for now — could easily vastly exceed the $1 billion in sales milestone. Yes, it might take a little longer than it would if Casgevy were an oral pill, but patient investors should bide their time.

That’s why CRISPR Therapeutics is a great stock to buy this month. It hasn’t performed well this year, but over the long run, it has the tools to become a major player in the promising gene editing realm. Interested investors should scoop up the company’s shares while they’re down.

2. Moderna

Moderna made a name for itself during the pandemic by developing and marketing a successful COVID-19 vaccine. Although sales from this product have fallen off a cliff, the company has made plenty of progress.

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Moderna is setting a solid foundation that could allow it to perform well over the long run. That starts with newer approvals: Moderna has now earned the green light for an RSV vaccine called mRESVIA and should launch at least one other product within the next couple of years.

The company’s combined coronavirus/flu vaccine aced a phase 3 study. It elicited higher immune responses than some individual vaccines in both categories in its late-stage trial.

Few people like getting shots, even if it’s necessary to do so. Getting one beats getting two, provided patients don’t have to sacrifice efficacy. It looks like that won’t be a problem.

Moderna has several other phase 3 candidates — a potential stand-alone flu vaccine, one for the cytomegalovirus (there currently is none), another for the norovirus, and still another that’s being developed as a personalized cancer vaccine in collaboration with Merck. Moderna should recover in time, even of its financial results currently don’t inspire confidence.

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What does that mean for investors? The stock is down 41% year to date. There are several potential catalysts related to the company’s late-stage pipeline on the horizon that could jolt the stock price.

In the long run, Moderna’s vast pipeline of mRNA-based products should help it develop plenty of successful candidates. Now is a good time to buy.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Advertisement
  • Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,266!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,047!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,794!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 7, 2024

Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics, Merck, and Vertex Pharmaceuticals. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.

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2 Biotech Stocks That Are Screaming Buys This Month was originally published by The Motley Fool



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3 Incredibly Cheap Dividend Stocks to Buy Now

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The stock market recently hit another all-time high. The S&P 500 is up more than 30% over the past year, driven by a strong economy and falling interest rates. As a result, the valuations of most stocks have soared. The S&P 500 currently trades at more than 24 times earnings, which is much higher than the roughly 20 times P/E ratio it had at this time last year.

However, while the broader market is getting more expensive, there are some bargains if you know where to look. Several real estate investment trusts (REITs) are incredibly cheap right now because they haven’t yet captured the full benefits of falling interest rates. Realty Income (NYSE: O), W. P. Carey (NYSE: WPC), and EPR Properties (NYSE: EPR) stand out for their attractive values and high dividend yields right now.

This high-quality dividend stock is on sale

Realty Income is a diversified REIT that owns stable retail, industrial, and gaming properties net leased to high-quality tenants under long-term agreements. Those leases provide it with very stable rental income because the tenants cover all operating costs, including routine maintenance, building insurance, and real estate taxes. That gives it a lot of visibility into its earnings.

The REIT currently expects to generate between $4.15 and $4.21 per share of adjusted funds from operations (FFO) this year. With its share price recently over $60 apiece, Realty Income trades at about 15 times its adjusted FFO. That incredibly cheap valuation is why the REIT offers a high dividend yield. At more than 5%, it’s several times higher than the S&P 500’s sub-1.5% dividend yield.

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Realty Income has done a fantastic job increasing its dividend over the years. It has raised its payout for 108 straight quarters and every year for three decades. The REIT routinely invests billions of dollars each year into buying new income-producing net lease real estate. Those investments should grow its adjusted FFO, enabling the company to steadily increase its dividend.

Building back better

W. P. Carey is also a diversified REIT. It owns industrial, retail, and other properties (including a portfolio of operated self-storage locations). It focuses on owning operationally critical commercial real estate net leased to high-quality tenants.

The REIT has been reshuffling its portfolio quite a bit over the past year. It made the strategic decision to exit the office sector late last year. Meanwhile, a large self-storage tenant exercised its option to purchase the properties it leased from the REIT. Those sales have weighed on the REIT’s dividend, FFO, and valuation.

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W. P. Carey expects to generate between $4.63 and $4.73 of adjusted FFO per share this year. With its stock price currently right around $60 a share, the REIT trades at less than 13 times its FFO. That incredibly cheap valuation is why it currently has a dividend yield approaching 6%. The company has already started rebuilding its portfolio and dividend, which should continue in the future.

A cheap ticket to lots of dividend income

EPR Properties is a REIT that owns experiential real estate like movie theaters, attractions, and entertainment venues. It leases those properties back to operating companies under long-term net lease agreements.

The REIT expects its experiential real estate portfolio to produce $4.76 to $4.96 of FFO as adjusted this year. With its share price below $50, the REIT trades at about 10 times its FFO. That ridiculously cheap level is why it offers a dividend yield above 7%.

EPR Properties generates enough income to cover its high-yielding dividend with ample room to spare. That gives it the financial flexibility to invest in building and buying more experiential properties. It plans to spend $200 million to $300 million this year. Those investments will help grow its FFO, which should enable the REIT to continue increasing its dividend.

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Dirt cheap dividend stocks

Higher interest rates have weighed on REIT valuations over the past few years. While rates have started to fall, many REITs still trade at bargain-basement prices.

Realty Income, W. P. Carey, and EPR Properties are among the cheaper REITs, which is why they have such attractive dividend yields. Those high yields, along with their low valuations and improving growth prospects, position these dividend stocks to deliver strong total returns in the coming years, making them look like great buys right now.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

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  • Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,266!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,047!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,794!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 7, 2024

Matt DiLallo has positions in EPR Properties, Realty Income, and W.P. Carey. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.

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3 Incredibly Cheap Dividend Stocks to Buy Now was originally published by The Motley Fool



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2 Unstoppable Growth Stocks to Buy Right Now for Less than $200

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2 Unstoppable Growth Stocks to Buy Right Now for Less than $200


The bull market has had a variable impact for stocks across a range of industries the last few years. While some companies have ridden the bull market waves, others have retreated or been beaten down by the market at large for one reason or another.

Even if you have a more modest amount to invest, say $200, there are still quality businesses begging to be bought in the current environment. Sometimes, these stocks are discounted as fickle investor sentiment prevails, but they can still be superior long-term buys. Here are two such names to consider for your portfolio.

1. Pfizer

Pfizer (NYSE: PFE) has definitely struggled in the last few years after its exceptional performance during the height of the COVID-19 pandemic as a result of its vaccine and oral antiviral drug. While the tailwinds from those products have long died down, there’s plenty to like about this business if you’re a long-term buy-and-hold investor. Pfizer remains one of the top healthcare companies in the world, with a portfolio of blockbuster as well as emerging vaccines, and medicines in disease areas including oncology, hematology, and immunology.

The company went on an acquisition streak with the billions in revenue and profits raked in from COVID-19 products. One notable acquisition was of cancer drugmaker Seagen for a cool $43 billion, a purchase that has been integral in management’s goal to have eight or more blockbuster oncology drugs in its portfolio by 2030. Pfizer intends to achieve this goal through a combination of new drugs and additional indications for existing ones. Management is also planning to double the number of patients being treated with its cancer drugs by that time frame, from its current figure of about 2.3 million lives.

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The company’s oncology division will be focusing primarily on various breast cancers, genitourinary cancers, blood cancers, and thoracic cancers, areas where it already has approved drugs, but with varying levels of penetration. Management has previously said the Seagen acquisition alone could add $10 billion in additional annual revenue to Pfizer’s top line by 2030. Oncology drugs are just one part of Pfizer’s growth strategy, though.

The company has been aggressively cutting costs, and hopes to achieve $4 billion in net cost savings in 2024 alone. The company’s recent acquisitions have also brought new medicines like Nurtec, a migraine therapy developed by Biohaven Pharmaceuticals, which is now a part of Pfizer. Nurtec was first approved by the U.S. Food and Drug Administration in 2020, and became the first in a class of drugs known as calcitonin gene-related peptide (CGRP) receptor antagonists available in a fast-acting orally disintegrating tablet (ODT).

Nurtec is estimated to have peak annual sales potential in the ballpark of $6 billion. It is racing toward that runway, delivering $213 million in revenue in 2022 and $928 million (just shy of the requirement to hit blockbuster status) in 2023. Current Pfizer blockbusters include blood thinner Eliquis, as well as the Vyndaqel family of drugs (used to treat cardiomyopathy of wild-type or hereditary transthyretin-mediated amyloidosis), and the Prevnar family of pneumococcal vaccines, which can be used to prevent pneumonia, meningitis, and sepsis.

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In the most recent quarter, revenue grew 3% operationally even with waning COVID-19 product sales factored in. If you exclude these products, Pfizer’s top line grew 14% operationally, which is a pretty great growth rate when you’re looking at a business at this level of maturity and scale. Total revenue came to $13.3 billion, while profits totaled $42 million for the three-month period.

Pfizer is also a faithful dividend payer. Because investor appetite toward shares has dampened significantly, its dividend yield has risen to a juicy 5.8%. Income investors looking to invest in an established healthcare company and enjoy some dividend returns to boot can still find plenty of green flags for this business.

2. e.l.f Beauty

E.l.f Beauty (NYSE: ELF) has had a bumpy ride in recent months, with shares currently down about 25% since the start of the year. The cosmetics retailer is likely dealing with mixed investor sentiment due to a range of factors, including shifts in consumer spending patterns, uncertainty about the current macro environment that is trickling down to a numerous growth-oriented stocks, and how inflation could impact growth rates.

That being said, e.l.f. continues to do extremely well from a financial perspective. It regularly reports growth rates in the double digits, and even some of its more moderate projections for growth for the current fiscal year still targets a 25% to 27% revenue increase from the prior one.

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E.l.f. beauty has garnered renewed interest from a new generation of consumers in recent years with its popular TikTok campaigns and celebrity-driven advertising campaigns. The company currently controls a roughly 12% share of the U.S. color cosmetics market, while its total international penetration compared to beauty brand peers is just 16%.

These figures are impressive for a brand like e.l.f. that has long stood up to the competition of more established mass beauty retailers with its high-quality, vegan, and affordable products. E.l.f. Beauty has expanded exponentially through the years from lucrative partnerships with retailers like Target, Walmart, and Ulta Beauty; growth of its own personal brands; and acquisitions of third-party brands.

Currently, the company is one of the top cosmetic brands sold at Target, accounting for over 21% of cosmetics sales for the retailer in e.l.f.’s first quarter of fiscal 2025. Apart from e.l.f. cosmetics, the company also boasts brands including e.l.f. SKIN, Keys Soulcare, Naturium, and Well People. Management estimates that the company has only penetrated approximately 2% of the skincare market at present, despite expanding consumption in the mass skincare category by 45%.

In e.l.f.’s fiscal Q1, ended June 30, the company brought in net sales of $324.5 million, up 50% year over year. Net income came in just shy of $48 million for the quarter, while the company had $109 million in cash on hand at the end of the period. Investors might be underestimating the growth potential of the stock over the next three to five years, but that could present an opportunity for some to buy shares on the dip.

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Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,266!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,047!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,794!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

Advertisement

*Stock Advisor returns as of October 7, 2024

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer, Target, Ulta Beauty, Walmart, and e.l.f. Beauty. The Motley Fool has a disclosure policy.

2 Unstoppable Growth Stocks to Buy Right Now for Less than $200 was originally published by The Motley Fool



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