Sep.03 -- Bank of America Corp. says technical analysis is signaling four different ways to bet on dollar strength as a key gauge of the currency rises from a two-year low. Bloomberg’s Dani Burger reports on "Bloomberg Markets: European Open."
Sep.03 -- Bank of America Corp. says technical analysis is signaling four different ways to bet on dollar strength as a key gauge of the currency rises from a two-year low. Bloomberg’s Dani Burger reports on "Bloomberg Markets: European Open."
Stocks were getting beaten up pretty badly midway through Monday’s trading session, with the Dow Jones Industrial Average (DJIA) down more than 800 points amid concerns of another spike in COVID-19 cases in Europe. Cramer played down coronavirus fears, saying that another lockdown in Europe doesn’t necessarily mean the U.S. is trending in the same direction. “I do think that this is the beginning of the end of the selloff,” Cramer said.
Apple and other big techs helped the stock market pare losses Monday, especially the Nasdaq. Tesla dived late as Elon Musk signaled Battery Day advances won't hit the road for some time.
Sooner or later, homeowners in this frothy U.S. housing market must pay the piper, writes Keith Jurow.
Wall Street is hoping that the founder’s exit turns down the noise around the electric-vehicle maker.
Bob Dylan sang, “There’s too much confusion, I can’t get no relief,” and that is a good way to describe the condition of the markets right now.Investors must interpret a range of conflicting signals. Macroeconomic data is rising – unemployment is falling, consumer confidence and spending are up – and indications are, the economy is recovering quickly from the sharp recession we experienced earlier this year. That goes hand-in-hand with a perception that COVID-19 is beginning to face back, and there are signs that another lockdown may be coming. Will there be a national policy? Or will we see a state-by-state reaction. In that case, the blue states are more likely to double down on lockdowns, with California leading the way, while the red states try to maintain current conditions.And speaking of blue and red, there is always the election looming over everything. While Democrat Joe Biden appeared to hold a comfortable lead through the summer, the race is tightening and incumbent President Trump is narrowing that gap, especially in the key swing states that will decide the electoral college. It’s an investment environment that is made for dividend stocks. These are the classic defensive plays – reliable dividend payers provide a steady stream of income no matter whether the portfolio gains or loses. Writing from Jefferies, which earns the top spot on TipRanks’ list of Top Performing Research Firms, three analysts show us why high-yield dividends are on their minds. These are their picks for proactive investors looking to buy into the market now, while prices are low – and the yields start at 8% and go up from there. We’ve pulled the details on these three picks from the TipRanks database, to find out who else recommends them.Compass Diversified Holdings (CODI)First on the list is Compass Diversified, a holding company with a varied portfolio of middle-market businesses. The company’s portfolio generated over $1.5 billion in revenue last year. Compass has built its portfolio with a goal of long-term cash generation, and has a 22-year record of success. They use the cash to fund a generous dividend for their own shareholders.That dividend yields 8.14%, more than 4x the average yield found among S&P-listed companies. Compass has kept its payment reliable for the past 14 years, an enviable record, and saw no need to make changes to the payment during the corona crisis. The current quarterly payout is 36 cents per common share, annualized to $1.44.The company funds the dividend with strong revenues and earnings. The highly diverse portfolio helped insulate Compass from losses in the crisis atmosphere of 2020. In the first half, CODI reported EPS of 29 cents and 36 cents in the first two quarters. This was down 50 cents from 4Q19, but compares well with the 1H19 quarterly results of 18 cents and 36 cents.Analyst Kyle Joseph covers this stock for Jefferies, and he is impressed.“We view the anticipated recovery in portfolio company sales/EBITDA encouragingly and highlight that some businesses saw improving demand, highlighting portfolio diversification benefits. CODI has significant levels of dry powder to take advantage of recent market dislocation… we like CODI's unique structure as a publicly-traded PE shop with permanent capital that affords the company enhanced investment flexibility/patience and competitive advantages,” Joseph opined.Accordingly, Joseph rates CODI a Buy along with a $22 price target. That target implies an upside potential of 30% for the coming year. (To watch Joseph’s track record, click here)Overall, CODI has a Moderate Buy from the analyst consensus rating, with 2 Buys and 1 Hold given in recent weeks. The stock’s share price is $16.91, and the $21 average price target suggests room for 24.5% upside growth in the next 12 months. (See CODI stock analysis on TipRanks)Enterprise Products Partners (EPD)Next up is an oil and gas company, part of the midstream sector that connects the wells with the customers. Enterprise controls a network of pipelines, for both oil and natural gas, totaling over 50,000 miles, along with storage facilities adequate for 160 million barrels of oil and 14 billion cubic feet of gas, and shipping terminals located in the hydrocarbon-rich Gulf coast of Texas.Even with revenues and earnings slipping in the first half of this year, Enterprise finished 1H20 with solid liquidity. The company reported having $7.3 billion in available cash and credit. Q2 earnings were down 22% sequentially, but were inline with the analyst consensus.The company has used its earnings and liquidity to maintain its dividend. The payment, at 44.5 cents, has been increased gradually over the past 12 years. The current payout annualized to $1.78 per common share, and yields an impressive 10.72%.Jefferies analyst Christopher Sighinolfi was careful to note EPD’s liquidity strength in his note.“…better than anticipated 2Q results illustrate the resiliency & flexibility of EPD's assets and personnel, mgmt commentary underscores a continued recovery in operating conditions in 3Q… At quarter-end, EPD had $7.3B in consolidated liquidity, including $6.0B of available capacity under its credit facilities, and $1.3B in unrestricted cash,” Sighinolfi noted.To this end, Sighinolfi rates EPD a Buy along with a $24 price target. This figure implies a strong 47% one-year upside from current levels. (To watch Sighinolfi’s track record, click here)Overall, Enterprise gets a Strong Buy rating from the analyst consensus, and it is unanimous, based on 7 recent Buy reviews. The shares have an average price target of $23.33, suggesting a 43% upside from the current share price of $16.28. (See EPD stock analysis on TipRanks)Enbridge, Inc. (ENB)Last up is Enbridge, Canada’s largest natural gas distributor – and the operator of the longest crude oil transport pipeline system in North America. Enbridge is a giant of the midstream sector, with over $60 billion in market cap.As the corona crisis started and first took hold, in Q1, Enbridge saw little difficulty. The company reported high sequential gains in earnings for the 1Q20, with EPS rising from 46 to 62 cents (61 cents to 82 cents Canadian) and revenue stable at $9 billion ($12 billion Canadian). Q2 saw a reversal, as the effects of the pandemic hit Enbridge. Revenue fell to $5.9 billion ($7.9 billion Canadian), and EPS dropped to 41 cents (54 cents Canadian).Through all of this, Enbridge has kept up its dividend payments – not missing any, even though the company did adjust payouts to keep the dividend sustainable. The current payment is 61 cents US (81 cents Canadian), and gives a yield of 8.2%.Jefferies analyst Vikram Bagri notes several positive developments for ENB in recent months.“ENB sanctioned $1B of new growth projects including four gas utility projects and another European offshore wind project… ENB extended approximately $10B of 364 day extendible credit facilities by one year bringing total liquidity to ~$14.6B, sufficient for ENB to execute on its plans,” Bagri explained.Bagri rates ENB a Buy along with a C$49 price target (US$37.18), implying a 26% upside for the year ahead. (To watch Bagri’s track record, click here)The analyst consensus rating on ENB is a Strong Buy; the stock has 12 Buys and 2 Holds set recently. Shares are selling for $29.57 (C$39.27), and the average price target of $39.63 ($52.23 Canadian) indicates room for a 34% upside potential. (See Enbridge’s stock analysis at TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
(Bloomberg) -- Apple Inc. Chief Executive Officer Tim Cook said he’s been impressed by employees’ ability to operate remotely and predicted that some new work habits will remain after the pandemic.During an interview at The Atlantic Festival on Monday, Cook said Apple created products including new Apple Watches and iPads that are launching on time this year, despite the need for most employees to work away from the office due to Covid-19.Cook said he doesn’t believe Apple will “return to the way we were because we’ve found that there are some things that actually work really well virtually.”The comments contrast with the views of other executives, such as Netflix Inc.’s Reed Hastings, who recently called remote work “a pure negative,” and Jamie Dimon of JPMorgan Chase & Co., who warned of lasting damage if workers don’t get back to the office soon.Cook said 10% to 15% of Apple employees have gone back to the office and he hopes the majority of staff can return to the company’s new campus in Silicon Valley sometime next year.The CEO said he goes into the office at different points during the week and he noted that remote work is “not like being together physically.” Working in the office sparks creativity such as during impromptu meetings, he added.The Apple executive also said the company focuses on policy and not politics when asked about his discussions with U.S. President Donald Trump.Cook was also asked how long he foresees running the Cupertino, California-technology giant. “We’ll see,” he said. “At some point, of course, we all do something different.”Read more: Apple’s Rising Class of Leaders Will Shape a Post-Tim Cook EraFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
When are we going to get real about the looming retirement and aging crisis in this country? The latest evidence that there’s an iceberg straight ahead comes courtesy of the Transamerica Center for Retirement Studies, which has just published its 20 annual retirement survey of U.S. workers.
Is more volatility on tap for stocks? Following a three-week losing streak, the longest in about a year, all eyes are on the market. The three major U.S. stock indexes have struggled for the last few weeks as the titans of tech, which have fueled the charge forward from COVID-induced lows, came under pressure due to overheated valuations, with market watchers waiting to see how renewed lockdown fears will come into play.So, what’s the bottom line for investors? Even though uncertainty remains as Wall Street gears up for the fourth quarter, the pros are pounding the table on a select few names, noting that these tickers boast strong long-term growth narratives.Bearing this in mind, our focus shifted to two penny stocks backed by investment firm Cantor. Major gains could be in store, as the firm’s analysts believe these tickers trading for less than $5 per share could climb all the way to $11.These plays are known for being risky, so we turned to TipRanks’ database. Using the platform, we got the full scoop, to find out why both are so compelling even with the risk involved.Rockwell Medical (RMTI)With the goal of transforming iron deficiency and anemia management in a wide variety of therapeutic areas, Rockwell Medical works to improve the lives of patients all over the world. Given the strength of its technology and its $1.22 share price, Cantor thinks that now is the time to snap up shares.Firm analyst Brandon Folkes notes that RMTI “has begun to build on its presence in the dialysis market” with the recent launch of dialysate Triferic, which is the first and only FDA-approved treatment for the replacement of iron to maintain hemoglobin in adult patients with hemodialysis-dependent chronic kidney disease. This formulation is administered through the dialysate (mixed with liquid bicarbonate).On top of this, an IV formulation of Triferic (Triferic Avnu) will enter clinical evaluation in Q3 2020, with Folkes expecting the commercial release to come in the following quarter. Folkes said, “The company continues to believe in the future of Triferic, dialysate and IV formulations, and is executing on its commercial strategy, which takes time to get adoption.” Speaking to this commercial strategy, RMTI is offering three-month evaluation periods for Triferic and has converted 75% of clinics who completed the evaluation period. RMTI is also positioning Triferic at a price that results in a cost neutral position for the clinics, while receiving the clinical benefits from Triferic.Additionally, the company is set to hold a virtual investor meeting this month to discuss the opportunity for two new indications, total parental nutrition (TPN) and hospitalized acute decompensated congestive heart failure (CHF).“...we believe this incremental information is a meaningful positive, as while RMTI had previously noted its indication in exploring additional indications, investors will now have a concrete map of the development work the company will employ to fully maximize the platform within a product potential of the Triferic platform,” Folkes stated.If that wasn’t enough, on September 9, RMTI announced that it has entered into an exclusive license agreement with Jeil Pharmaceutical for the rights to commercialize Triferic in South Korea. As per the terms of the agreement, RMTI will receive an upfront fee and is eligible for milestone payments and royalties on net sales.All of the above prompted Folkes to comment, “We believe Triferic is an innovative product that will drive significant value for RMTI shareholders. We expect product approvals and upward earnings revisions in our DCF model to drive RMTI's stock higher.”To this end, Folkes rates RMTI an Overweight (i.e. Buy) along with an $11 price target. Should the target be met, a twelve-month gain in the shape of a whopping 801% could be in store. (To watch Folkes’ track record, click here)Turning now to the rest of the Street, 2 Buys and no Holds or Sells have been published in the last three months. Therefore, RMTI has a Moderate Buy consensus rating. Based on the $10 average price target, shares could soar 719% in the next year. (See RMTI stock analysis on TipRanks)Taiwan Liposome Company (TLC)Using its LipAD lipid-assembled delivery system to enable sustained release and targeted deliveries that reduce toxicity and improve efficacy, Taiwan Liposome Company develops cutting-edge nanomedicines. Currently going for $4.38 apiece, Cantor views TLC as an under-the-radar story and believes its share price reflects an attractive entry point.Writing for the firm, analyst Kristen Kluska told clients, “TLC is underappreciated considering the management has an extensive track record in liposomal products (including two acquisitions).” She cites the company's two late-stage development programs, TLC599 (its BioSeizer formulation of dexamethasone sodium phosphate (DSP) designed to provide relief for knee osteoarthritis (OA) pain) and TLC590 (its therapy for post-surgical pain), that “could present with advantages over current standard of care extended release products, in large markets.”According to Kluska, the company remains on track to complete enrollment for the Phase 3 study of TLC599 by YE20. Further, TLC believes this program is superior to the competition as it’s possible to receive one injection every six months and show that repeated dosing is both safe and effective.Kluska added, “Further, TLC599 consists of just one vial, which could allow for a quick preparation, whereas Zilretta has two vials, thus a potentially longer preparation time. The company also has flexibility with the needle size that could be used for this product, and believes there could be a potential utilization in the joints, hip, shoulder, etc., which the company could consider evaluating in the future.” To this end, should the results be positive, the company could submit an NDA during 1H22.When it comes to TLC590, TLC already reported topline results from the Phase 2 post-surgical pain following bunionectomy study earlier this summer, arguing the candidate has a faster onset and a longer duration than other therapies. Now, management needs to meet with the FDA to discuss pivotal trial designs. “As a reminder, TLC is evaluating a different API (ropivacaine) vs. competitors, which could potentially show a stronger safety profile. The company also believes this product could have lower COGS, which could allow for attracting pricing,” Kluska pointed out.If that wasn’t enough, TLC recently revealed it is evaluating a NanoX sustained release of hydroxychloroquine (HCQ) inhalation for prophylaxis and treatment of COVID-19. It already submitted an IND, and could be ready to initiate a Phase 1 study after approval, with data potentially coming by early 2021. It should be noted that Taiwan is the second largest API producer for HCQ in the world, so the company has clear access, in Kluska’s opinion.It should come as no surprise, then, that Kluska stays with the bulls. The analyst rates TLC an Overweight (i.e. Buy) along with an $11 price target. Should her thesis play out, a potential twelve-month gain of 154% could be in the cards. (To watch Kluska’s track record, click here)What does the rest of the Street have to say? With 2 Buys and zero Holds or Sells, the word on the Street is that TLC is a Moderate Buy. In addition, the $11 average price target matches Kluska’s. (See TLC stock analysis on TipRanks)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Elon Musk tweets battery day announcement Tuesday won't reach high-volume production until 2022.
September saw some serious market losses, from 5% in the Dow to 9.5% in the NASDAQ. In the wake of it, investors must decide what those losses mean, and how it will impact investment strategy going forward. And for that, investment bank Oppenheimer has some suggestions.The firm’s 5-star analyst Ittai Kidron has tagged three tech stocks in which he sees plenty of room for near- to mid-term growth. Kidron is an expert in the market’s technology sector, and is rated among the Street’s 25 best analysts, with a 72% success rate to his forecasts and a 34.5% average return on his stock picks. Using TipRanks’ Stock Comparison tool, we were able to evaluate these 3 stock picks alongside each other to get a sense of what the analyst community has to say.Smartsheet, Inc. (SMAR)Kidron’s first pick is Smartsheet, an SaaS company with a cloud-based workspace management and collaboration system. Smartsheet’s products enable faster, more efficient teamwork via remote, letting team members automate, capture, manage, plan, and report on work at any scale. The company boasts over 97,000 customer – including 75% of the Fortune 500 companies. Smartsheet has enhanced its relevance in the online business space by making its product compatible with popular systems such as Dropbox, Google Apps, MSOffice, and Salesforce.Smartsheet's earnings – while still coming in at a net loss – beat the forecasts by wide margins in Q1 and Q2, and revenues grew steadily in the first half of the year, with the top line currently at $91.22 million. That last number – the company’s FYQ2 revenue – is up an impressive 41% year-over-year.In another impressive display of Smartsheet’s strength, the company announced last month that it is acquiring the digital asset management company Brandfolder, in a deal worth $155. The acquisition will add Brandfolder’s capabilities to Smartsheet’s products, helping customers to improve efficiency.Oppenheimer’s Kidron sees a clear path ahead for Smartsheet with this acquisition.“We suspect Brandfolder's annualized rev. run rate is still small... While we don't expect a material change to Smartsheet's near-term rev. run rate, we view it as a long-term positive from a diversification perspective. We also believe the acquisition can be quickly absorbed from a cost perspective over 1-2 quarters given Smartsheet's normal pace of investment…”Kidron sets a $65 price target on the stock, implying an upside of 42% for the coming year, and backing his Outperform (i.e. Buy) rating. (To watch Kidron's track record, click here)Overall, SMAR's Moderate Buy consensus rating is based on 9 Buys and 4 Holds set in recent days. The stock is selling for $45 and the average price target of $60.54 suggests room for 32.5% upside growth. (See SMAR stock analysis on TipRanks)New Relic, Inc. (NEWR)Next up is New Relic, another Silicon Valley tech company. New Relic’s products permit software analytics, allowing the customer to use a cloud system to track app performance in order to perfect the software. As New Relic says, it puts analytics, troubleshooting, and optimization all in one place for efficient engineering.The company has seen modest, steady revenue growth during 2020, and the CY2Q results put the top line at $162.6 million. The EPS net loss held steady in the first half, at 37 cents.Kidron is generally positive on New Relic, acknowledging headwinds but not shy about his belief that the company can overcome them.“While we expect the execution challenges to weigh on the shares near term, we also still believe there's value in New Relic One and demand for observationally in general… New Relic's taking an aggressive step to simplify its product positioning and pricing, which could make for a tough 2Q as sale/customers react. Given the increased uncertainty, we believe NT stock performance could be volatile as investors wait for proof points of customer renewals, new customer engagement, and better sales execution, which could emerge late in FY21,” Kidron opined.These comments are backed by Kidron’s Outperform rating (i.e. Buy), and his $75 price target implies an upside potential of 40% for the stock in the next 12 months.While the top analyst is bullish on NEWR, the stock only rates a Hold from the analyst consensus. New Relic has 4 Buy reviews, along with 6 Holds and 2 Sells. The stock is priced at $53.61 and has an average price target of $66.70, suggesting a 24% one-year upside. (See NEWR stock analysis on TipRanks)Twilio (TWLO)Last on our list today is Twilio, a cloud server company based in Silicon Valley. This company offers customers a cloud-based communications platform, allowing access to telecom systems via the computer. Twilio’s platform makes it possible for customers to place or receive phone calls, chats, text messages, and even video conversations via connected devices, and built-in security systems keep it safe through user verification.The sudden move toward remote work and virtual offices in 1H20, precipitated by the coronavirus crisis, would seem on its face to be a boon for a company like Twilio – and the data bears that out. The company saw revenues grow sequentially from 4Q19 to 1Q20, and broke $400 million in the second quarter. The company reported 200,000 active customer accounts at the end of Q1, up 5% year-over-year, and added another 10,000 in Q2. TWLO shares have gained 137% year-to-date; they seemed to shrug off the corona crisis.Kidron updated his notes on Twilio after hearing management’s Summer 2020 Releases webinar. He notes several important points that underlie the company’s fundamental strength: “Twilio now has 8M registered developers… Cumulatively, it has now reached 3 trillion emails processed… Twilio has made more progress in making its entire portfolio available for healthcare use cases now that Studio and Functions are HIPAA-compliant.”At the bottom line, Kidron says simply, “We're increasingly confident in Twilio's ability to make platform investments, engage with developers, and expand its lead over competitors during the crisis. Twilio remains a top pick.”In line with these comments, the analyst rates TWLO an Outperform (i.e. Buy), and his $300 price target implies a 28% one-year upside potential. (To watch Kidron’s track record, click here)Twilio holds a Strong Buy rating from the analyst consensus, based on 21 reviews including 17 Buys and just 4 Holds. Meanwhile, the average price target stands at $294.50, suggesting a 29% upside potential, and lining up nicely with Kidron’s outlook. (See Twilio’s stock analysis at TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
(Bloomberg) -- The tech-led selloff in U.S. equities is likely only halfway done, according to the Morgan Stanley strategist whose warning last month about the top-heavy market now appears prescient.Down 13% from its Sept. 2 high, the Nasdaq 100 has tumbled below its 50-day average and is underperforming the S&P 500 for the first time in a year. Yet deeper losses may be ahead because the selloff has yet to clear out the positive sentiment that bubbled up in the past few months during its historic rally, according to Mike Wilson, the bank’s chief U.S. equity strategist.The tech-heavy gauge is at risk of falling to its 200-day average, according to the strategist. That level, which sits near 9,528, would be a 12% drop from current levels and a 23% decline from its all-time high of 12,421 reached earlier this month.“This is what happens when stocks get so extended -- corrections can be much bigger when remaining in an uptrend,” Wilson wrote in a note to clients.The Nasdaq 100 extended a three-week rout, falling as much as 2.4% as of 1:40 p.m. in New York. The biggest ETF tracking the index lost money as the fastest rate since 2000 on Friday, while large speculators boosted the net bearish positions in Nasdaq futures to a 12-year high.But to Wilson, excessive bullishness toward tech stocks has yet to be completely washed out. Just consider: Despite the worst drawdown in months, open interest on bullish call options remained elevated for tech giants such as Apple Inc. and Facebook Inc. A flurry of software companies soared in their recent trading debuts, with Snowflake Inc. more than doubling on its first day.More importantly, hedge funds have stayed “decidedly” long tech and growth stocks, Wilson said, citing the firm’s prime brokerage data. While the conviction partly reflects the outsize returns from internet and software companies, it also highlights the danger should sentiment start to sour, he said. Despite this month’s retreat, the Nasdaq 100 is up 24% for the year, compared with a gain of less than 1% for the S&P 500.Many of those funds “are letting it ride,” Wilson wrote. “That may come into play and provide some fuel for this correction to go a little further than most are expecting.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
For the 55 calendar years from 1965 through 2019, Berkshire Hathaway’s stock rose at an 18.6% annualized pace, versus 11.8% for the S&P 500 (SPX) . Because some years ago a group of researchers broke the Buffett Code. It is testament to Buffett’s accomplishments that it took many researchers many attempts over many years before they figured out the Oracle of Omaha’s secrets.
Inovio Pharmaceuticals Inc (NASDAQ: INO) shares have been seeing strong momentum ever since hitting a near-term low of $8.78 on Sept. 4.Inovio Weathers Market Downturn: Inovio's stock rose as high as $18.55 Wednesday before pulling back slightly in the next session. Reversing course, Inovio rebounded Friday to settle the session at $17, a gain of about 94% from the Sept. 4 low.The momentum is continuing in Monday's session, with the stock holding up despite the major averages plunging by about 2% and across-the-board weakness seen among shares of coronavirus vaccine developers.The strength comes despite the odds that are by the Plymouth, Pennsylvania-based company.Inovio's DNA Vaccine Play: Moderna Inc (NASDAQ: MRNA), Pfizer Inc. (NYSE: PFE)/BioNTech SE - ADR (NASDAQ: BNTX) and AstraZeneca plc (NYSE: AZN) arguably have the finish line in sight for a coronavirus vaccine. Inovio is developing a DNA vaccine codenamed INO-4800, as opposed to Moderna and Pfizer/BioNTech, both of which are working on mRNA vaccines.The Phase 1 study of INO-4800 commenced in early April and evaluated 40 healthy volunteers ages 18-50 who were given either a 1mg dose or 2mg dose at week zero and a second dose at week four. The interim efficacy and safety data were encouraging. The company also reported positive results from non-human primate animal challenge studies.INO-4800 has been evaluated in a Phase 1/2a study in South Korea since June.Inovio has a September start timeline for a Phase 2/3 efficacy study in the U.S.A study protocol is being developed to assess efficacy in high-risk population, according to the company. Possible Near-Term Inovio Catalyst Ahead: Strength in Inovio's shares could be due to anticipation building around a potential announcement from the company with regard to the mid-to-late-stage coronavirus trials.CEO Joseph Kim is set to present at the Oppenheimer Fall Healthcare Life Sciences & MedTech Summit at 10:50 a.m. Wednesday. The last time Kim made a public presentation, the stock soared about 64% over two sessions.Rising Inovio Short Interest: Short interest in the stock is rising, with the number of shorted shares increasing from 38.4 million at the end of July to 51.82 million at the end of August, according to the Yahoo database.About 31.58% of the float has been sold short.This reflects a bearish disposition among traders and also portends the risk of short squeeze in the event of positive catalysts.The short ratio is a not-so-elevated 3.3 days, given the huge average trading volume.Benzinga's Take: Given the volatility associated with the stock and Inovio's unproven pipeline, caution might be the watchword unless traders are interested in capitalizing on wild stock swings.At last check, Inovio shares were adding 3.82% to $17.65.Related Links:The Week Ahead In Biotech: Conference Presentations, IPOs In The Mix AstraZeneca Has Lost The Lead In Race For Coronavirus Vaccine, Says SVB Leerink See more from Benzinga * Inovio Analyst Says Thermo Fisher Deal 'One Solid Step' Toward COVID-19 Vaccine Commercialization * The Daily Biotech Pulse: AstraZeneca Pauses Coronavirus Vaccine Study, Trillium To Get M Pfizer Investment(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
mRNA specialist Moderna (MRNA) is among the leading players in the race to be first to market with a COVID-19 vaccine and the market has been kind in return. Overall, the stock is up 254% year-to-date. According to Needham analyst Alan Carr, the market is not the only space where Moderna is performing well. After attending last week’s virtual R&D day, the analyst is encouraged by the progress across the company's clinical programs. Moderna has several vaccines and therapeutics in the pipeline, with a focus on infectious diseases, oncology and rare diseases. The company presented encouraging initial data from its study of investigational cytomegalovirus - the CMV mRNA-1647 Phase 2 trial - and announced plans to develop an mRNA-based seasonal Influenza vaccine.That said, the Moderna story in 2020 is based on the potential of mRNA-1273, its late-stage COVID-19 vaccine candidate.The drug is currently in a Phase 3 trial and the company has enrolled 25,296 subjects out of the overall target of 30,000 subjects. First interim analysis of the trial is expected in November and interim analysis will be conducted at 53 and 106 events, after which a final primary analysis will be held at 151 events.Carr gives mRNA-1273 an 80% probability of success and highlights its differentiating qualities.“As a reminder,” the analyst said, “The Moderna vaccine has less demanding storage requirements than the Pfizer mRNA vaccine (-20C vs -80C). Moderna plans to distribute the vaccine in 10 x 0.5ml dose vials, with no dilution required... Progress with mRNA-1273 as a vaccine for COVID-19 represents an opportunity for upside in 4Q20. We believe the stock is attractive in the long-term, given validation of the Moderna mRNA platform and an extensive diversified pipeline.”Accordingly, Carr reiterated a Buy rating on MRNA shares accompanied by a $94 price target. Investors could be pocketing a 34.5% gain should Carr’s thesis play out over the coming months. (To watch Carr’s track record, click here)Overall, Moderna has robust backing amongst the Needham analyst’s colleagues, too. Based on 11 Buys, 2 Holds and 1 Sell, the biotech has a Moderate Buy consensus rating. With an average price target of $91.86, the analysts project upside of 31% over the next 12 months. (See Moderna stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The United States is in a recession. Wall Street hasn't mirrored that fact at all in recent months, with the S&P 500 rallying nearly 50% from its March 23 lows through today. Will the stock market crash again?
Among millennials this percentage is just 16%. More than 71% of older adults rate themselves as having “high financial knowledge.” The comparable percentage among millennials is only slightly lower at 62%.
(Bloomberg) -- Oil pipelines, hotels, convenience stores and automaker bonds are among the assets being bought by some of the world’s biggest asset managers as they look for value in a world thrown into turmoil by the coronavirus pandemic.In interviews with sovereign wealth funds, pension firms and asset managers across Asia and Europe that collectively manage about $3.4 trillion, one thing was clear: many of them are avoiding the overheated stock market.The most common outlook was one of caution. They are mindful that much of the rebound in markets and private-company valuations is thanks to ultra-low interest rates, massive central bank stimulus and government fiscal support, some of which could start to be wound back in coming months.With asset values still seen as inflated, even in some hot areas like healthcare and technology, many are waiting for a potential second downturn after stimulus measures end but before mass vaccinations enable economies to restart without risking widespread infection.Here’s what they had to say:Convenience Stores, PipelinesGIC Pte, Singapore’s sovereign wealth fund, is looking at “less loved” areas from retailing to infrastructure, whose valuations have been pummeled by the pandemic, Chief Executive Officer Lim Chow Kiat said when the firm released its annual review in late July.The fund only officially discloses it manages more than $100 billion but has more like $450 billion, according to the Sovereign Wealth Fund Institute, making it the sixth-biggest in the world.In two of its largest deals this year, it was part of a group that acquired a 49% stake in ADNOC Gas Pipelines for $10.1 billion, and last month teamed with Australian property group Charter Hall in a A$682 million ($500 million) acquisition of more than 200 convenience stores attached to gas stations.Chief Investment Officer Jeffrey Jaensubhakij says even areas like hospitality could bounce back before global travel resumes. “Once you’ve contained the virus, domestic travel can come back even if international travel can’t,” he said. “Then there might be opportunities in the hotel space where domestic travel could continue to grow and take up a fair amount of demand.”Supply Chain ShiftGlobal border closures can only be temporary, and trade is slowly recovering, says Didier Borowski, head of global views at Amundi SA, Europe’s largest asset manager which oversees the equivalent of about $1.9 trillion.However, he predicts pharmaceutical and health industries will relocate production of some key goods to avoid being dependent on one country. But even then, Borowski says it would be too expensive and not cost-efficient to bring it all home.“This is the end of unbridled globalization, not the end of globalization,” he said in an interview earlier this month.StaycationsWith travel restrictions limiting holiday plans, so-called staycations are back on the agenda, says Will James, deputy head of European equities at Standard Life Aberdeen Plc, whose team manages the equivalent of about $11 billion.It’s invested in Thule Group AB, the Swedish maker of bike racks and roof-top luggage carriers for cars, whose shares have almost doubled since late-March.“Rather than going abroad to the beach, people are staying home to drive around the country,” he said in an interview late last month.Aviation stocks like Airbus SE could “recover very aggressively” if a vaccine is found, though he warns it’s still unclear if the world will ever go back to the way things were even if it works.Bonds, Auto BondsBonds are one of the great unloved assets of the Covid crisis, says Andrew McCaffery, global CIO at Fidelity International, which manages about $437 billion.Carmaker bonds are particularly attractive as auto production picks up, and more people drive to avoid crowded public transport, he said in an interview earlier this month.“If you look at credit spreads, they’ve moved to levels that make the bonds of some global carmakers relatively attractive,” he said, citing Ford Motor Co. and Nissan Motor Co. as examples. “These bonds are unloved, especially when you consider there’s been an increase in car usage versus public transport.”Green ReboundDuring the pandemic selloff and rebound AustralianSuper, the nation’s biggest pension fund with the equivalent of about $133 billion, kept more than half its portfolio in Australian and global stocks and reduced holdings of property, credit and private equity.Now it’s hunting for digital, transport and social infrastructure investments as governments pump-prime economies, CIO Mark Delaney said last week. The firm is also looking for more renewable energy opportunities like last year’s $300 million deal with Quinbrook Infrastructure Partners as governments consider a green rebound.“Clearly doing more around the environment will be a really great long-term outcome,” he said. “Given governments are prepared to spend more and be more proactive around the economy, they’ll probably be far more proactive around the environment as well.”Holding FireWith a mandate to maximize long-term returns, Australia’s sovereign wealth fund is keeping its powder dry, CEO Raphael Arndt said at its annual portfolio update earlier this month. The $118 billion fund is positioned cautiously with no pressure to deploy its liquidity “unless and until the opportunities arise,” he said.“Economies right around the world are in their worst recessions for many, many decades, and if you look at the price of assets, they haven’t moved much,” he said. “The question investors have to ask is: does that make sense? The only way it makes sense is if interest rates stay very close to zero and stimulus stays for a very, very long time -- and there’s got to be risks to that. That’s why we think we’re much better positioned in a cautious way right now.”Data CentersWith public markets overvalued, Aware Super CIO Damian Graham is going into direct investments, such as data centers and apartment buildings. The $91 billion fund is also selling some of the assets it thinks will struggle, like office buildings and malls, as people change the way they work and shop, he said in an interview last month.The Sydney-based fund last week invested 100 million euros ($118 million) with APG Group NV to build serviced apartments in Europe -- a deal that could increase to 500 million euros. It’s also in a bidding war for listed fiber-optic operator OptiComm Ltd.China TechWhile China was the first to be hit by the coronavirus, it is now leading the way out, making it an attractive proposition for Singapore’s state investor Temasek Holdings Pte.The firm, which oversees the equivalent of about $225 billion, is positive about several key themes in China, including consumer technology, life sciences, biotechnology, and fintech, Chief Investment Strategist Rohit Sipahimalan said at the firm’s annual review earlier this month.“This year probably China will be the only large economy with positive GDP growth,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
JPMorgan, HSBC, Standard Chartered Bank, Deutsche Bank and Bank of New York Mellon among them — have continued to profit from illicit dealings with disreputable people and criminal networks despite previous warnings from regulators. According to the International Consortium of Investigative Journalists, leaked government documents show that the banks continued moving illicit funds even after being warned of potential criminal prosecutions. The consortium reported that documents indicate that JPMorgan moved money for people and companies tied to the massive looting of public funds in Malaysia, Venezuela and the Ukraine.
Nikola is now a prove me company, argues one sell-side analyst.
The company said it is focused on power-generation businesses that have “attractive economics and a growth trajectory.”