The difference between gambling and investing in the volatile universe of technology stocks begins with differentiated value propositions, or the ways in which companies outdo their competitors as a means of justifying market share and shareholder value.
It’s only after building such a proposition that a business can be built around it, including tailormade management, efficient operations, sound capital allocation and any other of your preferred hallmarks of fundamental stock due diligence.
In the newest edition of Weekly Market Movers, I’ll introduce you to three stocks whose underlying companies have differentiation down pat, while painting prospective, early-stage pictures about future growth.
ReGen III
ReGen III is executing on a go-to-market strategy for patented technology that can upcycle used motor oil into Group III base oils, resulting in a 2-3x improvement in EBITDA margins compared to competitors and an over 80 per cent reduction in CO2e emissions compared to the combustion of virgin crude-derived base oils.
Group III oils are synthetic grade and suitable for newer cars, representing an over US$6 billion total addressable market for the company (slide 15).
ReGen technology’s disruptive performance positions it to increase minimal domestic U.S. production and capitalize on how only ~1 in 5 gallons of used motor oil in the country is re-refined back to base oil (slide 6). It benefits from further upside thanks to North American demand for Group III oils far outpacing supply since 2020 (slide 14).
Backed by a competitive advantage with the data to prove it, as well as boots on the ground developing processing facilities in Texas, the company has a compelling story to tell potential clients about improving their bottom lines while protecting the environment.
Chief executive officer Tony Weatherill, who brings over three decades of experience in the global lubricants and petrochemicals sectors, will be at the 29th ICIS World Base Oils and Lubricants Conference in London from February 12-14, 2025. Watch Stockhouse’s interview with Weatherill about the conference here.
ReGen III stock (TSXV:GIII) is down by 15.91 per cent year-over-year but remains up by 85 per cent since 2020.
Jupiter Neurosciences
Our second differentiated technology stock that should be on your radar is Jupiter Neurosciences, a clinical-stage pharmaceutical operation treating neuroinflammation with a current focus on central nervous system disorders and rare diseases.
The company’s lead product, Jotrol, is a resveratrol formulation designed to reduce inflammation and oxidative-stress across numerous areas of unmet need, including Alzheimer’s and Parkinson’s disease, without common gastrointestinal or bioavailability issues commonly associated with competing resveratrol-based drugs.
Significant potential to improve the patient experience makes Jotrol an early stage source of hope in addressable markets combining for over US$50 billion.
Chairman and CEO Christer Rosén recently spoke to Stockhouse about Jotrol’s upcoming phase 2a clinical trial to treat Parkinson’s disease. Watch the interview here.
Jupiter Neurosciences stock (NASDAQ:JUNS) last traded at US$1.02 per share. The stock is down by 86.91 per cent since inception in December 2024.
Onco-Innovations
Our third and final technology stock creating differentiated value is Onco-Innovations, which is dedicated to cancer research and treatment. The company holds an exclusive global license to a patented technology that targets solid tumors, having built an impressive track record of early-stage evidence supporting the prevention of regeneration in cancer cells, more effective chemotherapy and more effective radiation therapy.
Contingent on clinical trials, the technology would be revolutionary for millions of cancer patients around the world, with management seeing the highest potential in colorectal cancer, breast cancer and lung cancer.
With phase 1 clinical trials slated for later this year, and a high-specialized management team to keep development on course, Onco-Innovations is a promising bet on tapping into the over US$200 billion global oncology market for those willing to wait on the lengthy clinical trials process.
CEO Thomas O’Shaughnessy spoke with Stockhouse about Onco-Innovations’ acquisition of Inka Health, a Canadian-based AI-driven analytics company, to advance its goal of accelerating cancer detection, research and drug development. Watch the interview here.
Onco-Innovations stock (CSE:ONCO) last traded at C$2.15 per share. The stock has added 283.93 per cent since inception in December 2024.
Join the discussion: Find out what everybody’s saying about these technology stocks with differentiated value propositions on the ReGen III Corp., Jupiter Neurosciences Inc. and Onco-Innovations Ltd. Bullboards and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of ReGen III Corp., Jupiter Neurosciences Inc. and Onco-Innovations Ltd., please see full disclaimer here.
(Top image: Adobe Stock)