At the heart of Trump's Twitter spat, a 'shocking level of bipartisan support' for Big Tech change
Expectations are that we're going to see a 45% YoY decline in the S&P 500: Chief Investment Strategist
Out on the Street, it’s full speed ahead. Despite the chaotic events of 2020, the S&P 500, which is coming off of its best quarter in more than 20 years, is down by only 2% year-to-date. Somewhat remarkably, the market has continued to charge forward as the number of new COVID-19 cases surges. As COVID-19 could be with us in waves for some time, there’s plenty of uncertainty going forward into the second half of the year. Consequently, spotting compelling plays can feel like a fool’s errand, especially given the hefty toll the virus has already taken on companies spanning multiple sectors.Having said that, the Street’s pros argue that the pandemic has actually positioned some names as beneficiaries. Looking specifically at the biotech sector, massive amounts of capital have been pumped into a handful of names racing to develop solutions to combat the virus.Bearing this in mind, we used TipRanks’ database to get more information on three biotech penny stocks, trading for less than $5 per share, that are poised for COVID-related gains. While these tickers are risky in nature, the investing platform revealed that each has earned a Moderate or Strong Buy consensus rating from the analyst community and boasts substantial upside potential. CTI BioPharma Corporation (CTIC)Focused on the development of innovative therapies, CTI BioPharma wants to address the unmet medical needs of patients. Given the potential of its COVID-19 treatment and its $1.18 share price, it’s no wonder this healthcare name is on Wall Street’s radar.CTIC scored major investor attention after it initiated the Phase 3 PRE-VENT study of its pacritinib asset in COVID patients, with the study evaluating whether the therapy can reduce the occurrence of acute respiratory distress syndrome (ARDS). It should be noted that the study will include cancer patients, and initial data is expected by YE:20.Writing for Needham, five-star analyst Chad Messer points out that ARDS, which is caused by an overreaction of the immune system, is the leading cause of mortality in COVID-19 patients. What makes CTIC’s therapy a stand-out, in Messer’s opinion, is that unlike ruxolitinib, it doesn’t target JAK1. This is important as JAK1 inhibition has been associated with immune-suppression towards infections.“Pacritinib also inhibits CSF-1R which is associated with macrophage activation. Additionally, pacritinib is less thrombocyotpenic than other JAK inhibitors. These features differentiate pacritinib and may make it a potential best in class JAK inhibitor for treatment of severe COVID infection,” Messer commented. To this end, Messer continues to give CTIC his stamp of approval. Along with a Buy rating, the top analyst keeps the price target at $3.50. Should the target be met, a twelve-month gain of 195% could be in the cards. (To watch Messer’s track record, click here)Other analysts also take a bullish approach. CTIC’s Strong Buy consensus rating breaks down into 3 Buys and zero Holds or Sells. Additionally, the $3.50 average price target matches Messer’s. (See CTIC stock analysis on TipRanks)PhaseBio Pharmaceuticals (PHAS)When it comes to PhaseBio, its focus lands squarely on the lack of new treatment options for serious cardiovascular diseases. Even though the pandemic has created challenges for the company, several members of the Street believe it can overcome these obstacles, with its $4.39 price tag reflecting an attractive entry point.Five-star analyst Andrew Fein, of H.C. Wainwright, reminds investors that its lead candidate, PB2452, which was designed to reverse ticagrelor antiplatelet effects in major uncontrolled bleeding and urgent emergency surgery events, has entered its pivotal Phase 3 trial. While this is exciting, the analyst doesn’t dispute that COVID-19 has spurred headwinds.Expounding on this, Fein stated, “Specifically, ERs have focused their attention on treating COVID-19 patients, while surgical sites remain in the process of trying to get back up and running amid shelter-in-place guidance. Therefore, we believe site initiations and patient enrollment are to continue to be site specific for the foreseeable future, based on available site resources and overall quarantine guidelines.” That being said, Fein remains optimistic about the PB2452 platform, as it “directly addresses the unmet therapeutic need in antiplatelet patients facing major bleeding and urgent surgery circumstances that could otherwise result in death or treatment delay.” He added, “We point out there are no ticagrelor or antiplatelet reversal agents, and ticagrelor reversibly binds the P2Y12 receptor, making it the only potentially reversible oral antiplatelet therapy.”Although enrollment was halted for the Phase 2 PB1046 program, the fact that PB2452 Phase 2a data could potentially be presented during the upcoming European Society of Cardiology (ESC) 2020 virtual conference in August 2020 seals the deal for Fein. To this end, Fein maintained a Buy rating on PHAS with an $18 price target, suggesting 298% upside potential from current levels. (To watch Fein’s track record, click here) Looking at the consensus breakdown, other analysts are on the same page. With 5 Buys and no Holds or Sells, the word on the Street is that PHAS is a Strong Buy. The $13 average price target puts the upside potential at 187%. (See PhaseBio stock analysis on TipRanks)Diffusion Pharmaceuticals (DFFN)As for the final stock on our list, Diffusion Pharmaceuticals develops new treatments for life-threatening medical conditions by improving the body’s ability to deliver oxygen to the areas where it is needed most. Currently going for $0.95 apiece, one analyst thinks that now is the time to snap up shares.Covering DFFN for H.C. Wainwright, analyst Swayampakula Ramakanth is looking forward to the initiation of its COVID-19 study. At the end of May, the company received a response from the FDA regarding its Pre-Investigational New Drug (PIND) meeting request on the proposed clinical development program to assess trans sodium crocetinate (TSC) in COVID-19 patients with severe respiratory symptoms and low oxygen levels.The FDA stated the study should be designed as a double-blinded, controlled, randomized trial by including Gilead’s COVID-19 treatment, remdesivir, as a component of standard of care for hospitalized patients. Additionally, the agency also accepted the proposed safety and oxygenation marker endpoints.If that wasn’t enough, Ramakanth highlights the fact that a European COVID-19 study of TSC will be conducted in collaboration with the Romanian National Institute of Infectious Diseases (NIID), which is the largest provider of treatment for COVID-19 patients in Romania. “Diffusion expects to enroll the first patient for the European study in June, upon regulatory approval, and report initial data in 3Q20, which we believe could be a catalyst,” the analyst said.It’s true that the ongoing public health crisis could slow down the enrollment for its Phase 2 PHAST-TSC (Pre-Hospital Administration of Stroke Therapy-TSC) stroke study, designed to evaluate the therapy as an acute stroke treatment. That said, Ramakanth remains unphased by a possible delay.“In our view, given that the pandemic is starting to abate and TSC is being studied as acute treatment, Diffusion could be able to get the PHAST-TSC study completed as planned. While reporting the company’s 4Q19 earnings, management stated their expectation to complete the study enrollment in 2021 and report topline data in 2022,” the analyst explained.Based on all of the above, Ramakanth rates DFFN a Buy along with a $3.50 price target. This target suggests shares could soar 286% in the next twelve months. (To watch Ramakanth’s track record, click here)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.
(Bloomberg) -- Remember when Tesla Inc.’s market value surpassed General Motors Co.? That was just in October, though investors can’t be blamed for thinking it was a lifetime ago.The electric vehicle maker’s valuation has added the combined value of the Detroit Three -- GM, Ford Motor Co. and Fiat Chrysler -- in just five trading days through Monday. Tesla has grown by an average $14 billion on each of those days.Tesla shares have been on a searing rally this year, recovering spectacularly from a steep pandemic-related sell-off, helped most recently by second-quarter delivery numbers that exceeded estimates. In the past week, the company has roughly gained the value of Fiat Chrysler Automobiles NV every single day.While skeptics have said the stock’s current pace is detaching from reality and being fueled by the “power of the narrative,” believers abound.“There is definitely a significant retail component that is driving shares higher,” Wedbush Securities analyst Daniel Ives said in an interview, referring to individual investors trading on platforms such as Robinhood.Still, a lot of big institutional investors now also want a piece of Tesla and the electric vehicle market, he said. “In a Covid-19 pandemic and a dark macro environment, the company just put up a 90,000 delivery number, especially when other automakers are seeing herculean challenges.”Tesla said July 2 it delivered 90,650 cars in the second quarter, which compared with analysts’ average estimate for about 83,000 units.The eagerness of big money to get into Tesla was also noted by Roth Capital Partners’ Craig Irwin, who said the company’s valuation was being driven by fund managers who have Tesla grouped with Netflix Inc., Amazon.com Inc., Facebook Inc. and the like, and were valuing it as a large-cap growth stock.“Those managers do not understand that this is not a winner-takes-all industry that those other names are,” Irwin said, noting that there are more than 180 electric cars that are slated to come out by 2025. “There have been some duds along the way, but you can be sure there will be some winners in those 180.”Tesla shares have gained at least 5% in four out of five sessions through Monday. While it may not be unusual for a company that has had one-day 20% gains twice in its history, the surge shows a consistency that wasn’t seen before. It’s the first time the stock has posted four out of five sessions with gains of such magnitude.The latest rally has brought Tesla’s gains this year to $170 billion, an amount that exceeds the market capitalization of all but 30 companies in the S&P 500.“Tesla’s valuation doesn’t make sense by any traditional measure,” said Ivan Feinseth of Tigress Financial Partners. However, “it is not a traditional company, so how do you put a traditional measure to it?”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.
Tesla Inc (NASDAQ: TSLA) shares ripped higher by another 10% on Monday as the Wall Street buying frenzy surrounding electric vehicle stocks continued. Earlier this month, Tesla reported its second-quarter vehicle deliveries were down about 5% from a year ago, yet Tesla's market cap has exploded from around $40 billion a year ago to $245 billion today.Tesla has the single largest short position of any U.S. stock, according to S3 Partners. And while short sellers pound the table on how detached the stock has come from reality, Tesla is a textbook example of how much more dangerous it is for traders to short a stock than go long.Risk-Reward Balance And FeesThe primary reason short selling is more dangerous than buying is potential risk versus potential reward.When an investor buys a stock, risk is capped at 100% of the investment. A stock price can't go lower than $0, and rarely does it even come close. At the same time, potential upside is unlimited, and stocks often gain 150% or even 200% in a matter of a few years. Tesla shares are up 468% in the past 12 months.When a trader shorts a stock, that risk-reward balance is reversed, creating a situation where potential gains are capped at 100% but potential losses are unlimited.On top of that elevated risk level, short sellers must also deal with borrowing fees. For most liquid stocks like Tesla, these fees are relatively small, but they eat into any potential profits and add to any losses.On top of borrow fees, short sellers are required by law to have margin accounts, meaning they're paying small fees on their margin as well.If you're shorting a dividend-paying stock, you're on the hook for paying (not receiving) that dividend. Like fees, dividend payments can add up and eat into gains over time the longer a short position is maintained.Short Squeezes And Buy-InsBut one of the biggest risks of all in short selling a stock is buy-ins and short squeezes.Short squeezes occur when a stock's price rises enough to trigger short sellers to start closing out their positions. In order to close a short position, short sellers must buy back the shares they sold. Buying volume from long investors added to buying volume from short covering creates even more buying volume, triggering even more short covering and bullish momentum traders.As a result, a stock price can rise exponentially in a short period of time, and some short sellers may have no choice but to take extremely heavy losses. Brokers implement safety measures called buy-ins to help protect investors from unreasonably large, out-of-control losses.If on-paper losses get too severe, accounts can trigger margin calls, which require more cash to be added to the account.If things get bad enough, the broker will simply close out short positions at market prices, which can often be the worst possible time to close a position. This short covering is known as a buy-in, and it's one of the most dangerous potential outcomes for short sellers.Safer AlternativesOne potential alternative to short selling is buying put options, a strategy that caps losses at 100%. However, options themselves suffer from time value decay, which can also eat into potential gains.Another alternative to short selling is to simply buy stocks that appear undervalued and stay away from stocks that are overvalued. As Tesla demonstrates, shorting a stock and getting it wrong or mistiming the trade can have serious financial consequences. But no trader ever lost a dime simply avoiding a stock that is overpriced.Benzinga's TakeTesla now has a larger market cap than Toyota Motor Corp (NYSE: TM), making it the world's largest auto stock by market cap. Unfortunately for Tesla short sellers, it doesn't matter that Toyota produced roughly 30 times more vehicles last year or that Tesla has yet to have a profitable calendar year of operations.The losses for Tesla short sellers continue to rise, and appeals to logic and market fundamentals are powerless during a buying frenzy and potential short squeeze.Tesla shares are even up another 89% in roughly two months since CEO Elon Musk tweeted "Tesla stock is too high imo" back on May 1. Tesla's stock traded around $700 a share at that time; The stock trades around $1,337 a share at time of publication.Do you agree with this take? Email firstname.lastname@example.org with your thoughts.Related Links:The Next Wirecard? 20 Things To Watch For To Spot A Massive Market Fraud Tesla Analyst Gordon Johnson: 'I Couldn't Be More Bearish'See more from Benzinga * Tesla Analyst Gordon Johnson: 'I Couldn't Be More Bearish' * Tesla Analyst Estimates 'Staggering' 650K Cybertruck Preorders(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
JPMorgan and Goldman Sachs both published surprisingly sanguine analyses of Biden’s policies recently, signaling that Wall Street is warming to Biden. “The consensus view is that a Democrat victory in November will be a negative for equities,” JPMorgan strategists wrote on July 6. “However, we see this outcome as neutral to slight positive.” Yahoo Finance's Rick Newman and Kristin Myers discuss.
And just like that, the tides have turned for Inovio Pharmaceuticals (INO). Shares of the high-flying biotech dropped last week by 31%, the vast majority of which came after the release of interim data from the early stage trial of its COVID-19 vaccine candidate, INO-4800.You could chalk the dip up to a classic case of “buy the rumor, sell the news,” but this sell-off was slightly more nuanced, with the lack of a clear good/bad story leaving a lot to interpretation.The company said that after giving participants two doses of the vaccine, 94% "demonstrated overall immune responses." What probably concerned investors was the fact that finer immune response details were missing. Specifically, how many patients produced neutralizing antibodies that could prevent a COVID-19 infection. This looks bad when compared to Pfizer/BioNTech, as they published a richly detailed report of their candidate’s progress on the same day.The full data is expected to be published in a medical journal in the near future. Meanwhile, at investment firm Maxim, analyst Naureen Quibria believes the data was “positive.”The analyst said, “In truth, while we don’t know what 'good' immunogenicity data should be, studies suggest that both T cell and antibody immune responses will be important for protection in both mild and serious infections, particularly given that most convalescent plasmas obtained from individuals that have recovered from COVID-19 do not appear to contain high levels of neutralizing activity (e.g., one study, published in Nature). However, reports have also highlighted that the virus-specific T cells found in convalescent patients can control the severity of their COVID-19 disease. As such, the early data for INO-4800 appear to be promising, in our view.”However, the analyst can’t ignore Inovio’s lofty valuation, which, along with the murky data, played a part in the sell-off. Even after last week’s drop, shares are still up by 540% since the turn of the year. Therefore, for Quibria, “the success of INO-4800 is priced into the shares.”Accordingly, Quibria downgraded Inovio from Buy to Hold, and took the price target off the table. (To watch Quibria’s track record, click here)Other analysts appear to be reading from the same page. Based on 2 Buys, 5 Holds and 1 Sell, Inovio has a Hold consensus rating. There’s small upside of 3% in the cards, should the average price target of $22 be met over the next 12 months. (See Inovio stock analysis on 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.
Revisiting Coronavirus Vaccine Timelines: Moderna Denies Delay, Pfizer Advances Project Lightspeed And More
Shares of Moderna Inc (NASDAQ: MRNA), a frontrunner in the race for a coronavirus vaccine, tumbled Thursday afternoon after a STAT News report suggested there could be a delay in the initiation of a late-stage study.Moderna's July Start In Doubt: Moderna's Phase 3 trial of mRNA-1273, which was set to start next week, is likely to be delayed due to changes the Boston, Massachusetts-based company is making to the trial protocol, STAT News reported, citing investigators who spoke on the condition of anonymity.A clinical trial protocol is a document outlining all details of study, including objectives, design, methodology, statistical considerations and organization of the trial that would ensure safety of the participants and integrity of data.Moderna had guided to a July start for a Phase 3 study with about 30,000 participants.Following the STAT News report, a statement posted on Moderna's Twitter handle suggested the Phase 3 trial initiation timeline is intact.> July 2 statement from Moderna pic.twitter.com/3AZIFKlSyf> > -- Moderna (@moderna_tx) July 2, 2020In mid-June, Moderna CEO Stephane Bancel told Bloomberg that the company plans to have efficacy data as early as Thanksgiving if all goes to plan.The company announced early data from the NIAID-sponsored Phase 1 trial in mid-May and is also running a company-led Phase 2 trial.Pfizer's Program Picks Up Pace: Large-cap pharma Pfizer Inc. (NYSE: PFE), which is also developing an RNA vaccine for SARS-CoV-2 in partnership with Germany's BioNTech SE - ADR (NASDAQ: BNTX), reported last week with positive preliminary data from the Phase 1/2 trial of BNT162b1, the most advanced of four investigational vaccine candidates from the BNT162 RNA-based vaccine program, which is dubbed Project Lightspeed.The companies said they plan to start a large, global Phase 2b/3 safety and efficacy study involving up to 30,000 healthy participants as early as this month, suggesting their program is running neck-to-neck with Pfizer. See also: Attention Biotech Investors: Mark Your Calendar For These July PDUFA Dates Oxford University, AstraZeneca Running Late-Stage Program: The Oxford University, which is partnering with AstraZeneca plc (NYSE: AZN) on developing a novel coronavirus vaccine dubbed ChAdOx1 nCoV-19, initiated a Phase 3 study in June, with enrollment ongoing in Brazil and South Africa.ChAdOx1 nCoV-19 is made from a weakened version of a common cold virus that causes infections in chimpanzees and has been genetically changed so that it is impossible for it to grow in humans.If results from the trial prove to be positive, Oxford University could have a vaccine by the end of the year.Chinese Contenders In The Fray: China's CanSino Biologics' adenovirus type 5 vectored COVID-19 vaccine, dubbed Ad5-nCoV, produced virus-specific antibodies and T cells in 14 days with a single dose in a Phase 1 trial that evaluated 108 participants. A Phase 2 trial is ongoing in Wuhan, China, the epicenter of the crisis.State-run Sinopharm reported in June the inactivated COVID-19 vaccine developed by its subsidiary produced a strong neutralizing antibody response in a Phase 1/2 study.Sinovac also released in June preliminary results from the Phase 2 part of the Phase 1/2 study that showed its vaccine, dubbed CoronVac, induced neutralizing antibodies in over 90% of the 600 trial participants.All these firms are imminently planning pivotal trials that could support regulatory clearance.About 18 vaccine candidates are in clinics and 129 more in preclinical evaluation, according to the World Health Organization. Related Link: Applied DNA Analyst Says Coronavirus Testing, Vaccine Work Could Drive Major Upside See more from Benzinga * The Week Ahead In Biotech: Endo, Eagle Pharma FDA Decisions, ObsEva Late-Stage Readouts In Focus * Pfizer, BioNTech Report Promising Initial Data From Coronavirus Vaccine Study * The Daily Biotech Pulse: T2 Biosystems Launches COVID-19 Test, Akero Aces Midstage NASH Study, Aravive Added to Russell Indexes(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Amazon.com Inc. rallied on Monday, with the stock extending a recent advance deeper into record territory and topping $3,000 for the first time.Shares rose as much as 4.8% to touch $3,030.30, and were on track for their fourth straight daily gain. The stock is up more than 12% over the four-day stretch and has climbed about 80% off a March low, resulting in a market capitalization of $1.5 trillion.Amazon has seen accelerating demand for its e-commerce and cloud-computing services during the pandemic, which has closed brick-and-mortar rivals and led more people work remotely. Many analysts on Wall Street expect these trends will outlast the pandemic, solidifying the company’s market share and fueling the recent advance.Despite the growing optimism, Amazon’s rally has left most Wall Street analysts in the dust. Fewer than a quarter of the 50 or so analysts tracked by Bloomberg have a target above $3,000, and the average target is about $2,810. While that is up from the $2,179 average at the end of 2019, it still implies downside of about 7% from current levels.According to an analysis of Bloomberg data, the degree to which the share price exceeds the average target is at a multi-year high.Amazon remains a consensus favorite on Wall Street. Only one firm tracked by Bloomberg recommends selling the stock, compared with the 52 that advocate buying it. Four firms have the equivalent of a hold rating.Amazon is expected to report its second-quarter results later this month.(Adds context about recent gains and analyst price targets)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.
If you are looking for the best ideas for your portfolio you may want to consider some of Mott Capital's top stock picks. Mott Capital, an investment management firm, is bullish on Apple Inc. (NASDAQ:AAPL) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment […]
Recent industry checks indicate a slowdown in PC builds in the second half of 2020, while Intel Corporation (NASDAQ: INTC) is likely to continue losing share in the client and server CPU markets, according to Goldman Sachs.The Intel Analyst: Goldman Sachs analyst Toshiya Hari downgraded Intel from Neutral to Sell and reduced the price target from $65 to $54.The Intel Thesis: Hari named six reasons for the bearish turn in a Monday downgrade note. (See his track record here.) * PC demand set to weaken: Strength in the first half of 2020 was driven by employees moving to a work-from-home environment and PC purchases to meet online learning needs for children, the analyst said. This strength does not represent a fundamental change in the market's long-term growth profile, Hari said, adding that PC demand and notebook CPU shipments may decline over the coming quarters. * Weak enterprise spending: Enterprise & Government, within Intel's Data Center Group, could come under pressure over the next few quarters as a strained economy forces Enterprise customers to spend more prudently, the analyst said. * Market share still headed south: Competitive headwinds are likely to persist as peers gain momentum in the client and server end markets, he said. * Capital intensity to stay elevated: As the manufacturing process grows in complexity, elevated capital expenditures will continue to weigh on gross margins, Hari said. * Rate of opex efficiency gains to slow: While management has already executed significant cost cuts, Intel will need to invest to defend share in its traditional markets and compete in non-traditional markets, the analyst said. * Memory pricing to revert lower: Recent industry checks indicate a decline in memory pricing in the second half and in 2021 given the uncertain demand environment, according to Goldman Sachs. INTC Price Action: Intel shares were trading 0.31% higher at $59.31 at the time of publication Monday.Related Links:10 Biggest Price Target Changes For MondayFacebook, Intel-Backed Reliance Jio Launches Zoom Competitor In IndiaLatest Ratings for INTC DateFirmActionFromTo Jul 2020Goldman SachsDowngradesNeutralSell Jun 2020Morgan StanleyDowngradesOverweightEqual-Weight Jun 2020KeyBancUpgradesSector WeightOverweight View More Analyst Ratings for INTC View the Latest Analyst RatingsSee more from Benzinga * Baird Charges Apple Price Target During WWDC20, Expects 5G iPhone This Fall(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
If you are looking for the best ideas for your portfolio you may want to consider some of Mott Capital's top stock picks. Mott Capital, an investment management firm, is bullish on Tesla Inc. (NASDAQ:TSLA) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment […]