Supply is stalled and demand is rising. If this continues, price increases won’t be far behind.
Fri, Jul 31, 2015, 12:45pm EDT
With the Shelf Offering completed the stock will move higher and arrive at its new valuation. Analysts will issue updated price targets after the fact as investors will decide what they are willing to pay for shares.
PTX was at a 52 Week High of $12.88 when the company purchased Zohydro from ZGNX and the share price has been all down hill since then.
Published: July 30, 2015 11:01 a.m. ET
The extreme oversold and undervalued prices on natural-gas stocks recently got me to say in an interview with Brian Bain of "Investor in the Family" that "natural gas stocks are the easiest stocks to buy of my career." I stand by that. While I might not make as much in these stocks as some biotech or solar companies I've made over a 1000% on, I think these stocks carry so little long-term risk that I can comfortably buy the several financially strong companies I am recommending and simply wait for the calendar to reward me. Buying the First Trust Revere Natural Gas ETF is also a fine strategy for those who want to weight their asset allocation toward an undervalued asset with high growth potential.
Mr. Market is giving away natural-gas stocks because momentum traders ran wild and retail investors, as usual, are selling near the bottom. You should take some natural-gas stocks off of Mr. Market's hands before he figures out that he's selling too cheap.
Gilead may not have the experience of a Pfizer, Roche, or Novartis in cancer, but it sees the cancer drug landscape evolving into something right up its alley.
Gilead is driven by the vision that a cancer diagnosis will become less like a short-term death sentence, and more of a chronic disease that must be managed regularly, like HIV. As DNA sequencing is becoming fast and cheap enough for more doctors to see what's going on with the cancer at a molecular level, patients will be treated with cocktails of drugs aimed at specific molecular targets, through convenient oral pills, that offer mild side effects compared to chemotherapy, said Gilead's chief scientific officer, Norbert Bischofberger.
Saudi Arabia to Cut Oil Production After Summer
By Dow Jones Business News, July 29, 2015, 01:45:00 PM EDT
RIYADH—The world's top crude-oil exporter, Saudi Arabia, is planning to pull back from record-high levels of production at the end of the summer when domestic energy demand subsides, according to people with knowledge of the matter.
The reduction could begin as soon as September and would amount to about 200,000 to 300,000 barrels a day, bringing production to about 10.3 million barrels a day, the people said. Saudi Arabia told the Organization of the Petroleum Exporting Countries that it produced 10.56 million barrels a day in June, a record high.
"It is purely based on the [domestic] demand situation," one of the people said, adding that "production is likely to hover around" 10 million barrels until the end of the year.
Saudi Arabia—one of a handful of countries that generates electricity by burning crude oil—generally reduces production in the fall, when demand for the heavily subsidized energy to power air conditioners cools off. But the upheaval in world energy markets led some to believe this year would be different.
Challenged by oil prices down by half in the past year, the kingdom, along with the Organization of the Petroleum Exporting Countries, abandoned its traditional role of trying to prop up prices with supply cuts. Instead, it has embarked on a production tear, ramping up output to record levels to maintain its share of the market.
The planned reduction likely wouldn't affect exports and demonstrates that at least part of the kingdom's recent production figures were related to its domestic-energy needs. Much of the recent production went to Saudi Arabia's domestic refineries, including the two 400,000 barrels a day refineries it recently brought online with France's Total and China's Sinopec.
Searching for an arrival at the unknown offering price has begun. This should take a week, although in my opinion the majority of the downward move has already occurred.
Something I just saw:
Oil Companies Near Bankruptcy
By Adam Hayes | July 28, 2015
Oil Companies Next at Risk for Bankruptcy
The renewed bear market in oil is likely to take more casualties in the coming weeks and months. Investment bank Goldman Sachs Group Inc (GS) issued a report earlier this year ranking the relative financial strength of oil companies exposed to low oil prices. The findings are reproduced in the table below from their report:
COMPANIES IN THIS ARTICLE
GS 206.24 +1.22 (+0.60%)
AREX 4.26 +0.08 (+1.79%)
XCO 0.67 +0.11 (+19.64%)
GDP 17693.30 −10.40 (−0.06%)
HK 1.01 +0.14 (+16.09%)
MHR 1.08 +0.11 (+11.15%)
MPO 0.52 0.00 (−0.69%)
REXX 2.43 +0.18 (+8.00%)
SD 0.58 +0.05 (+9.48%)
SFY 0.74 +0.02 (+2.99%
Let's take a quick look at the stock performance of these companies most at risk since this report was issued in January:
1. Approach Resources (AREX) has seen its stock price tumble more than 33% year-to-date.
2. Exco Resources (XCO) shares are down 74%.
3. Goodrich Petroleum (GDP) is down over 80%.
4. Halcon Resources (HK) has lost 50% of its market capitalization.
5. Magnum Hunter's (MHR) stock price is down almost 70% since Jan. 1.
6. Midstates Petroleum (MPO) has lost 65% of its value.
7. Rex Energy (REXX) is down nearly 56%.
8. Sabine Oil & Gas has gone bankrupt.
9. SandRidge Energy (SD) trades more than 70% lower than at the beginning of the year.
10. Swift Energy (SFY) is down more than 80% year-to-date.
There is a high probability that these nine American oil companies left standing will be the next to fall.
The climb higher is set to begin after this non-event and I predict an immediate 20% jump of the stock price up into the mid $6's, promoted by rational thinkers. Considering the significant short position I estimate that this move will take place in only one or two trading days.
Investors accepted the inevitability of a subsequent shelf offering upon a favorable shareholder vote for the company to have a Reverse Split, which should come as no surprise to anyone with an ounce of sense. Frankly, I am surprised that it took this long since the Reverse Split for the company to make this announcement. It takes millions of dollars for a biotechnology company to bring a product to market and microcap companies are always strapped for cash during their attempt to evolve into a financially successful and surviving larger biotechnology corporation.
Now the offer will come in 10% lower than the current price and at a discount to attract profit minded risk rewarded investors. There will be retracement, stabilization, closure and then a continuation of a climb of the stock price to higher valuations, which will all happen in due time based upon the schedule. This will probably take two weeks to be resolved, while the stock price consolidates, down, sideways and up.
Based upon the situation I think ZGNX will reach $21.00 a share again in mid-August, about two or three weeks from now.
DVAX had a 1:10 Reverse Split on November 10, 2014 at $15.90 and is now $29.38.
Dynavax (Nasdaq: DVAX) $29.93. Dynavax announced the pricing of a previously announced underwritten public offering of 4,545,455 shares of its common stock, offered at a price to the public of $27.50 per share. The gross proceeds to Dynavax from this offering are expected to be approximately $125 million, before deducting the underwriting discount and other estimated offering expenses payable by Dynavax.
Very safe to Short two weeks ago at $13.44 with the Reverse Split, now at $21.00 and along the way to $40.00 a share, as long as you are not using your own money.
It is time to buy.
Stay Long, my friends.