Shares of Novocure (NVCR 1.75%) have plunged more than 70% below their highs set last summer. What should investors do? In this Motley Fool Live video recorded on Jan. 19, Motley Fool contributors Keith Speights and Brian Orelli talk about why focusing on the long-term prospects of this healthcare stock is the best move.
Keith Speights: Mabel asks, "Can you discuss Novocure's recent drop?" Ticker there is NVCR.
Brian Orelli: I can't explain it, but [laughs] I can discuss it just fine! I've actually bought I think twice on the way down. I was really excited when it drops below 100 and I think it's about $80 per share.
I don't really understand it. There's no information out there that I can see that explains why it should be less valuable than it was a few months ago.
We're waiting. I think maybe the issue is that we're just seeing a waiting stage at this point for Novocure.
The brain cancer treatment has basically stalled out at this point. The growth has stalled out. We're waiting on the lung cancer data, which will come first and then we'll get a series of additional clinical trial readouts over the next few years. But I think that that's probably the main reason why it's dropped so much is that investors are antsy and they're looking to put their money in something that's likely to go up sooner than Novocure.
I think that's probably the reason, but if you are a patient long-term investor, I think it's going to be really great and it's my top pick, I think, for 2022.
