Mr. Market is fickle, punishing one day, seductive the next. What is an investor to do?
Sometimes it is luck. Sometimes judgments are made that turn out right. And sometimes the market will respond with a poke in the eye. No one ever knows for sure.
Plan to stay invested," they recommend. "Trying to time the market is extremely difficult to do consistently. Market lows often result in emotional decision making. Investing for the long-term while managing volatility can result in a better outcome."
The "Fast Money" traders share their final trades of the day.
Jim Lebenthal is a buyer of MPC.
Mike Murphy is a buyer of BX.
Stephanie Link is a buyer of PCL.
Joe Terranova is a buyer of TEVA.
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Pain Therapeutics and Durect Stung by Pfizer Move
By Chris Lange October 27, 2014 12:40 pm EDT
Pain Therapeutics Inc. (NASDAQ: PTIE) shares dropped significantly in Monday’s trading on news that Pfizer Inc. (NYSE: PFE) had discontinued its agreement to develop and commercialize Pain’s Remoxy extended release treatment.
Pain will regain the full development and commercial rights to Remoxy, which it had previously licensed from Durect Corp. (NASDAQ: DRRX). The original licensing agreement took place in 2002.
Under this agreement, Durect was reimbursed for formulation and if certain developmental milestones were achieved. Also if the drug was commercialized, Durect would receive royalties of between 6% and 11.5% of net sales.
Remoxy is an investigational extended-release oral formulation of oxycodone intended to treat pain severe enough to require daily long-term opioid treatment.
The press release stated:
Pfizer further announced that it has concluded an internal review of the top-line results of five recently completed clinical studies required to address the Complete Response Letter received in June 2011 from the U.S. Food and Drug Administration (FDA), that Pfizer and Pain Therapeutics will work together for an orderly transition of REMOXY to Pain Therapeutics, and that Pfizer will continue ongoing activities under the agreement for the next six months until the scheduled termination date.
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President and CEO of Durect, James Brown, said:
We are surprised by Pfizer’s decision given the late stage of this program, and continue to believe that REMOXY could play an important role in serving the needs of chronic pain patients while potentially reducing the misuse and abuse of oxycodone.
Shares of Pain had dropped over 53% to $1.95 and shares of Durect plunged over 47% to $0.73 in the noon hour of trading Monday. However Pfizer’s stock did not see any significant change and remains around the $29 price level.
Pain’s stock has a consensus analyst price target of $8.00 and a 52-week trading range of $1.61 to $6.22. The mean price target for Durect is $2.50, and shares have traded in a range of $0.68 to $2.69 over the past year.
By Chris Lange
Read more: Pain Therapeutics and Durect Stung by Pfizer Move (NYSE: PFE) - 24/7 Wall St. http://247wallst.com/healthcare-business/2014/10/27/pain-therapeutics-and-durect-stung-by-pfizer-move/#ixzz3HMynG74d
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Equities-Specific News Of Note
Blackstone (NYSE: BX) plans to raise $13 billion for a new global real estate fund. Shares gained 0.53 percent, closing at $30.55.
Sentiment: Strong Buy
was up to 30.87 this morning and this weakness..Fed minutes will set the tone..I am hoping UP :)....crazy action in this stock..the only good thing is my dividend reinvestement will be a lower price :)....
Sentiment: Strong Buy
Where growth may soon be even higher than utility-scale solar, is in residential solar power. In residential, SolarCity SCTY, -1.52% is the undisputed leader with Elon Musk driving investor excitement. Vivint Solar VSLR, -2.21% on the other hand, does not come with the "wow" factor, but may offer greater upside due to a slide in price after its recent IPO. The two companies provide east-to-west coverage in the U.S. for residential solar development and could be the two dominant publicly traded companies in the space for a long time.
Sentiment: Strong Buy
Apollo, which reported earnings before the start of U.S. trading, closed yesterday at $23.40, having lost 26 percent this year. The company sold shares to the public in March 2011 for $19 apiece.
The firm’s 2 percent decline in buyouts compares with an 18 percent gain in the third quarter last year, when markets soared. Blackstone Group LP (BX), the largest manager of investment alternatives to stocks and bonds, said previously that its private-equity holdings appreciated 3.7 percent in the latest quarter, while Carlyle Group LP (CG) and KKR & Co. (KKR) buyout portfolios gained 3 percent and 2.2 percent, respectively.
The value of a private-equity firm’s buyout holdings affects economic net income, or ENI, because the metric in part depends on quarterly mark-to-market valuations of those investments. Accounting rules require the firms to value their portfolio holdings every quarter.
Good morning. Buyout firms that used to remain debt-free while pioneering the use of debt in corporate buyouts are turning that strategy back on themselves. The strong pull of low interest rates is luring them to sell bonds as they expand into lending, real estate and distressed-debt investing, the WSJ's Timothy W. Martin reports.
Investors have snapped up nearly $2 billion in bonds issued by KKR & Co.(KKR), Carlyle Group LP(CG), Apollo Global Management LLC(APO) and Blackstone Group LP(BX). "For most of the corporate world, issuing debt is pretty standard," said Glenn Youngkin, Carlyle's co-president. "Issuing it at the firm level is relatively new for all of us."
The firms' move beyond buyouts has earned them strong credit ratings on par with banks and other financial companies. Analysts said the firms don't' appear risky by traditional debt-rating standards. And buyers expect the bonds to eventually rally, driving down yields that currently reflect factors including the issuers' limited borrowing history, the low level of regulation of their businesses relatively to highly rated banks and insurers, and untested performance in some new businesses.
THE DAY AHEAD
HLT is over $15 Billion market value for BX !!!!!!!! BRX IPO doing great MV over $3.2 BIllion... BX has great investments and hisory.. stupid selling....
Sentiment: Strong Buy
The BX chart appears to be showing a head-shoulder reversal pattern..with the breakout above the last left shoulder high around 31.30 or so, not adjusted for the dividend..would be around 30. 85 or so...here is an article today...17:10 EDT - Moody's is cautious on the future performance fees of alternative managers like KKR, Apollo (APO), Oaktree (OAK), Carlyle (CG) and Blackstone (BX) because the "combination of loose credit and high valuations typically result in lower returns." The ratings firm says the median enterprise value paid by private-equity firms for companies larger than $250M was 14.3 times Ebitda, citing PitchBook data. "Pressures to deploy record dry powder over the next 4 to 5 years could potentially force hundreds of billions of dollars to be invested at expensive multiples," observes Moody's, which adds that the risk will likely be exacerbated as leading PE firms would be competing for deals during the same period. Global private-equity "dry powder" topped $1.1 trillion in 2Q, according to Preqin. Private-equity managers are incentivized to deploy funds by the end of a pre-set investment period to maximize fees, Moody's says.
After Blackstone's latest deal, called Invitation Homes 2014-SFR3, the firm has now financed more than a third of the US$8.7bn it spent buying 46,000 homes in the aftermath of the financial crisis, according to a Kroll Bond Rating Agency pre-sale report.
The newcomers to the sector say targeting smaller landlords is the natural next step in the evolution of the SFR securitization market.
Private equity firms are still playing a key role, with Cerberus Capital Management stumping up the cash for FirstKey to lend to investors, instead of taking on the hassle of managing the properties directly.
hourly gaps are not counted as gaps... the high on 10/17 was 91.44 so it does not show as a gap on a daily chart....you can see many gaps like that in charts..you see a much bigger gap on 10/22 from high of 87.11 to next trade low of 88.14..