Market Weekly: July 5 – 11 2020

Viewing 15 posts - 16 through 30 (of 32 total)
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    Biogen $BIIB Pre-market 291.00 +22.65 (8.44%)

    After Biogen and Eisai Co. Ltd complete submission of Biologics License Application to the FDA for the approval of aducanumab


    Gapping down

    In reaction to disappointing earnings/guidance:

    LEVI -5.6%

    M&A news:

    ALL -2.6% (to acquire NGHC for $34.50 per share)

    Other news:

    HQY -7.1% (commences underwritten public offering of $250 mln of shares of common stock)
    ETNB -7% (prices offering of 2,649,600 shares of its common stock at $27.50 per share)
    ARGO -4.8% (prices offering of 6,000,000 Depositary Shares, each of which represents a 1/1000th interest in a share of the Company’s newly designated 7.00% Resettable Fixed Rate Perpetual Non-Cumulative Preference Shares, Series A)
    ASND -3.1% (prices offering of 4,225,352 ADSs at $142.00 per ADS)
    VIR -1.9% (prices of 7,142,857 shares of its common stock at $42.00 per share)
    INSG -1.5% (files for $80 mln convertible offering by selling stockholders and shares issuable upon conversion)
    FB -0.6% (NY Times reports that co failed to win over group running ad boycott)

    Analyst comments:

    NOK -3.2% (downgraded to Neutral from Overweight at JP Morgan)
    NBR -2.8% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
    HUBS -1.6% (downgraded to Neutral from Buy at Mizuho)
    VSTO -1.6% (downgraded to Neutral from Buy at B. Riley FBR)


    Gapping up

    In reaction to strong earnings/guidance:

    CMBM +26.7% (raises guidance), SMPL +9.2%, LMNX +9.2% (guidance), GNMK +7.5% (guides Q2 revs above consensus), AA +4.2% (better than expected pre-announcement), SGH +2.8%

    M&A news:

    NGHC +65.7% (to be acquired by Allstate (ALL) for $34.50 per share)
    SYNA +5.9% (to acquire Broadcom’s (AVGO) wireless IoT connectivity unit for $250 mln in cash)
    DOCU +4.4% (acquires Liveoak Technologies for $38 mln in stock)
    KKR +2.8% (to acquire Global Atlantic Financial Group Limited)

    Other news:

    NNVC +48.8% (reports that safety and tolerability of anti-Coronavirus drug candidates observed in an animal model further advances NanoViricides’ SARS-CoV-2 therapeutics program)
    VBIV +21.1% (extends momentum from +21% move on Tues)
    CNCE +12.1% (receives FDA Breakthrough Therapy Designation for CTP-543 for the Treatment of Alopecia Areata)
    FTI +11% (signs contract with Assiut National Oil)
    BIIB +7.3% (Biogen and Eisai Co. Ltd complete the submission of a Biologics License Application to the FDA for the approval of aducanumab)
    ABEO +6.8% (restarts patient enrollment in its Phase 3 VIITAL study of EB-101 for the treatment of recessive dystrophic epidermolysis bullosa)
    CLNE +5.4% (partners with CVX on Adopt-a-Port)
    VVV +3.7% (provides preliminary June performance results)
    VFF +3.5% (executed a definitive agreement with DutchCanGrow to become one of six equal shareholders in DCG owning just under 16% each, with a seventh shareholder owning 5%)
    CORR +3.3% (says it’s actively evaluating opportunities to deploy cash)
    NXTC +2.2% (announces the initiation of a Phase 1/2 clinical trial for NC410)
    BCLI +2.2% (to host webinar discussing NurOwn Phase 2 Alzheimer’s Disease Program today at 8:15am ET)
    SCM +1.1% (provides Q2 update)

    Analyst comments:

    NKLA +7.4% (upgraded to Overweight from Neutral at JP Morgan)
    BTAI +3.5% (target raised to $120 at H.C. Wainwright)
    HRI +3% (upgraded to Buy from Neutral at BofA Securities)
    KSS +2.8% (upgraded to Buy from Neutral at BofA Securities)
    DEO +2.4% (upgraded to Buy from Neutral at Bryan Garnier)
    CAT +1.1% (upgraded to Neutral from Underperform at BofA Securities)
    RIO +0.9% (upgraded to Sector Perform from Underperform at RBC Capital Mkts)


    [size=5][b]Record COVID-19 spikes in USA today – but equities went GREEN)

    [color=purple][i][b]even though I like some of #45’s stances — on this he is on wrong side of science — as SARS version 2.0 is not the “FLU” … but more of an exotic disease — possibly goosed up to spread better if it did escape from labs :whistle: But USA must also get back to work/school/normal one day — and that is also needed.

    I’ve been auditing college level classes (Virology 2020 series) & “hermit” like avoidance is only true safe practice :). Masks are helpful — but virus has giant holes to travel … and some will get thru between fibers … and there is also even a negative as virus can “accumulate” on fibers (but small #s) … as long as one does not get large viral load — we are all likely taking in tiny # of germs daily — and gradually maybe that could build immunity? Still my bride & I wear masks 100% of all time amongst others 😉

    Likely factors for increase: protect marches, bars, crowded events (even #45s rally should be outdoors, 100% masks, and social distance) … if I can go 1 hour in church with mask – it is drop in bucket compared to 1st liners like our son & daughter … and if I could catch Bambi she would get masked & muzzled also (after taking our 5 rows of beans – lol) :woohoo:

    Our leaders must do best they can to balance health v. economy … I pray for nation & leaders on both sides — as “dark side of force” keeps the heat up in 2020 … Still hopeful for best ahead & even positive surprises ahead 8) [/b][/i][/color]


    [size=5][b]VENUS AT MAXIMUM BRIGHTNESS: If you can wake up before sunrise only once this month, make it July 10th. On Friday morning, Venus will be at its maximum brightness, magnitude -4.7. That’s 30 times berighter than Sirius, the brightest star in the sky. Bonus: Venus will be less than 2 degrees from red giant star Aldebaran. Bonus #2: Comet NEOWISE is nearby, too. Sky maps: July 9, 10, 11.

    A REALLY GOOD COMET: Comet NEOWISE (C/2020 F3) is not yet a Great Comet. It is, however, Really Good. Rising just before the sun, NEOWISE is visible to the naked eye and has a tail at least 5 degrees long. Jeremy Perez sends this picture from Merriam Crater east of Flagstaff, Arizona:[/b][/size]


    Disney World Reopening With Capacity Limits and Strict Rules wirh #Covid19 fueling Afternoon Rally

    he first stage of a phased reopening of Disneyland begins this week as the Downtown Disney outdoor shopping mall returns following a four-month coronavirus closure of the Anaheim theme park resort.

    Downtown Disney is set to reopen on Thursday, July 9.

    An employee preview of the reopened outdoor shopping mall will be held on Wednesday.

    Downtown Disney along with Disney’s two Anaheim theme parks and three hotels have been closed since mid-March amid the COVID-19 pandemic. The theme parks and hotels remain closed indefinitely.

    Here are the Downtown Disney businesses that plan to reopen on Thursday:

    Food and Beverage

    Asian Street Eats
    Black Tap Craft Burgers & Shakes
    California Churro
    Earl of Sandwich
    Kayla’s Cakes
    Marceline’s Confectionery
    Naples Ristorante e Bar
    Salt & Straw
    Starbucks West
    Uva Bar & Cafe
    Wetzel’s Pretzels
    Wetzel’s Diggity Dog

    Retail shops

    Curl Surf
    Disney Dress Shop
    Disney Home
    Disney’s Pin Traders
    Lego Store
    Pandora Jewelry
    Rinse Bath & Body Co.
    Sugarboo & Co.
    Sunglass Icon
    WonderGround Gallery
    World of Disney

    Notably missing from the Downtown Disney reopening list:

    Ballast Point Brewing Co.
    Catal Restaurant
    La Brea Bakery Cafe
    Napolini Pizzeria
    Ralph Brennan’s Jazz Kitchen
    Splitsville Luxury Lanes
    Tortilla Jo’s
    Void virtual reality experience

    The Disneyland resort’s flagship World of Disney store along with the company-operated Disney Dress Shop, Disney Home and Marceline’s Confectionery locations will all reopen on Thursday at Downtown Disney.

    Current state guidelines allow Orange County restaurants to operate with outdoor dining. Indoor dining is prohibited.

    Most Downtown Disney restaurants, such as Naples Ristorante and Black Tap Craft Burgers and Shakes, have outdoor dining areas. Additional patio seating has been added ahead of the Downtown Disney reopening.

    A number of Downtown Disney eateries like Starbucks and Wetzel’s Pretzels focus on grab-and-go takeaway orders.

    The rebranded and remodeled Jamba had just reopened in late February a few weeks before the coronavirus closure of the Disney mall. The Asian Street Eats food stand debuted in early January.

    Some retail locations — including World of Disney and Marceline’s Confectionery — will use a mobile wait list when the shops or queues to get into the stores reach capacity. Shoppers on the mobile wait list will be notified by smartphone when it is time to return.

    Only a few kiosk vendors like California Churro and Disney’s Pin Traders are included in the reopening list. A number of Downtown Disney vendor kiosks are currently stored in the Stitch cast member parking lot along Magic Way.

    Orange County bars must remain closed unless they serve food with any alcohol purchases. Downtown Disney locations like Uva Bar offer both bar and food menus.

    Some Downtown Disney businesses like Splitsville Luxury Lanes face a variety of COVID-19 guidelines with the state reclosing bowling alleys but allowing outdoor dining. The Splitsville Anaheim website lists the location as “temporarily closed” and dining reservations remain unavailable.

    The Void virtual reality experience will not be returning to Downtown Disney after the coronavirus closure. The termination of a license agreement between Walt Disney Studios and Void VR triggered the termination of the Downtown Disney lease, according to a notice posted to the Anaheim storefront.

    The reopening of Downtown Disney comes more than six weeks after the state allowed shopping malls in Orange County to resume operations in late May amid the COVID-19 pandemic.

    Since then, Disneyland has announced and been forced to delay a proposed reopening date while the state has reinstated prohibitions on indoor dining and reclosed bars in O.C. amid an increase in COVID-19 cases and hospitalizations.

    Downtown Disney shoppers will self park in the Simba lot at Disneyland Drive and Katella Avenue and enter the mall at the security checkpoint near the Disneyland Hotel and Earl of Sandwich restaurant.

    Shoppers approaching from the rideshare drop-off area on Harbor Boulevard will enter Downtown Disney at the security checkpoint on the esplanade between Disneyland and DCA. The security checkpoint between the former ESPN Zone and the former Rainforest Cafe will be temporarily closed.

    Downtown Disney will reopen with additional health and safety measures including mandatory face masks, temperature checks, reduced capacity, social distancing and enhanced sanitization.

    Temperature checks will take place before visitors pass through the metal detectors and bag check areas at the security checkpoints. Downtown Disney will not use the new Evolv Express no-touch bag check system being tested at Florida’s Disney Springs.

    Mandatory face masks must be hands-free, snug fitting, secured with ties or ear loops and cover the nose and mouth. Costume masks are prohibited.

    Disney’s new Guest Experience Team will be available throughout Downtown Disney to explain the new health and safety protocols, answer questions and encourage visitors to follow the rules.

    Downtown Disney restaurants will have additional outdoor seating. Digital or single-use menus will be available at many eateries. Reservations will be available for some table-service restaurants — either through the Disneyland app or the eatery’s reservation system or virtual waitlist.

    Ground markings for restaurant and store queues will help delineate proper physical distancing. Cashless transactions will be encouraged and plexiglass barriers will be installed at some cash registers.


    [size=5][i]USA COVID infections spike to all time high
    and thankful it is many times less lethal than Spanish flu of 1918 [/i][/size]

    [color=limegreen][size=5][b]Dow 26,067.28 177.10 0.68%
    S&P 500 3,169.94 24.62 0.78%
    Nasdaq 10,492.50 148.61 1.44%
    GlobalDow 2,889.29 7.11 0.25%
    Gold 1,818.40 8.50 0.47%
    Oil 40.88 0.26 0.64% [/b][/size][/color]

    [size=5][i]NASDAQ 10,000 record in 2020 year of rat, bat & comet
    are blinding me like science :woohoo:[/i][/size]


    Gapping down

    In reaction to disappointing earnings/guidance:

    BBBY -8.9%, TPB -5.9% (raises Q2 revenue guidance)

    Other news:

    GLG -7.8% (files for $100 mln mixed securities shelf offering)
    TPB -5.7% (upsizes offering and prices 8,977,968 shares of its common stock by certain selling shareholders at $32.00 per share)
    OTIC -5.3% (stock offering)
    HQY -1.9% (prices offering of 4,600,000 shares of its common stock at $56.00 per share)
    ALPN -1.6% (files for $60 mln mixed securities shelf offering)
    ZYME -0.8% (signs new license agreement with Merck)
    UAL -0.6% (confirmed it informed ~36,000 U.S.-based employees, either directly or through a union representative, of plans to implement a workforce reduction at their work location)

    Analyst comments:

    PLUG -2% (downgraded to Equal Weight from Overweight at Barclays)
    SEAS -2% (downgraded to Neutral from Buy at Janney)
    FUN -1.1% (downgraded to Neutral from Buy at Janney)
    TPIC -1% (downgraded to Neutral from Overweight at JP Morgan)
    WING -0.8% (downgraded to Neutral from Buy at BTIG Research)
    SQ -0.5% (downgraded to Market Perform from Outperform at Cowen)


    Gapping up
    In reaction to strong earnings/guidance:

    VERI +10.4% (guides Q2 revs above consensus),
    HELE +7.7%,
    SAP +6.2% (provides Q2 update, reaffirms 2020 outlook),
    PTC +4.8% (guides JunQ revs above consensus),
    UMC +2.9% (June revs), COST +1.8% (June comps)

    Other news:

    APDN +17.5% (forms forms clinical testing subsidiary to maximize utility of FDA EUA-approved Linea COVID-19 assay kit)
    OPTN +16.7% (signs co-promotion agreement with kaléo for XHANCE)
    OSMT +5.3% (receives FDA approval for Upneeq)
    CCL +4.4% (Carnival’s AIDA Cruises to restart sailing vacations in August; Bookings for the first short cruises start today)
    CRNX +3.7% (receives orphan drug designation from FDA for Paltusotine for treatment of Acromegaly)
    NKLA +3.5% (Worthington (WOR) disclosed the sale of 5 mln shares of Nikola common stock for ~$238 mln in open market transactions from July 6 to July 7, 2020)
    ERI +2.6% (confirms receipt of approval from the Nevada Gaming Control Board)
    PING +1.9% (upsizes offering and prices 8,977,968 shares of its common stock by certain selling shareholders at $32.00 per share)
    NBL +1.9% (provides second quarter update)
    SAR +1.7% (reinstates quarterly dividend)
    HRZN +1.3% (provides Q2 portfolio update)
    ANAB +0.9% (receives orphan drug designation for imsidolimab)


    [color=red][size=5][b]PPPPLLLUUUNNNGGGGEEEEE …. someone just pulled the trap door lever :blush:
    DOW -500 & FALLING — AS SUPREME COURT ruling on :ohmy:
    #45 TAX investigations seen as unfavorable (plus 33 million for U/E & other factors)
    May give “Forgetful Joe” :whistle: more advantages to become #46 :woohoo:
    and some SHEEP are getting sheared on WALL STREET :pinch:[/b][/size][/color]


    [color=red][size=5][b]Dow 25,706.09 -361.19 -1.39%
    S&P 500 3,152.05 -17.89 -0.56%
    Nasdaq 10,547.75 55.25 0.53%
    GlobalDow 2,863.42 -23.95 -0.83%
    Gold 1,808.70 -11.90 -0.65%
    Oil 39.49 -1.41 -3.45% [/b][/size][/color]

    [size=5][i]VIRTUAL ROCK 2020 HALL OF FAME
    One of best JAMs of all time by Doobie Brothers[/i][/size]



    Shipping logistics firm $MATX +22.9% after guides Q2 EPS above consensus – strong China numbers

    Matson Announces Preliminary 2Q20 Results, Provides Business Update And Announces 2Q20 Earnings Call Date

    – Expects 2Q20 operating income for Ocean Transportation to be $40.5 to $42.5 million vs. $19.7 million in 2Q19

    – Expects 2Q20 operating income for Logistics to be $8.0 to $9.0 million vs. $11.3 million in 2Q19

    – Expects 2Q20 net income and diluted EPS to be $30.4 to $32.6 million and $0.70 to $0.75, respectively

    – China service strength, including additional vessel charters, primarily drove increase in operating income

    – Allowable borrowings of approximately $425 million at quarter end and leverage ratio per debt agreements below 3.25x

    – Announces second quarter earnings call date on August 5, 2020

    Second Quarter Tradelane Volume (Forty-foot equivalent units (FEU)) (1)(2):

    For the three months ended June 30, 2020 compared to the three months ended June 30, 2019 and on a FEU basis:

    Hawaii container volume decreased 4.0 percent primarily due to lower volume from the state’s COVID-19 mitigation efforts including restrictions on tourism, partially offset by volume associated with the dry-docking of one of Pasha’s vessels;
    Alaska volume decreased 9.0 percent with lower northbound volume primarily due to lower demand for retail-related goods, as an effect of the state’s COVID-19 mitigation efforts, and one less sailing compared to the prior year period, and moderately lower southbound volume;
    China volume was 68.1 percent higher primarily due to volume from chartered voyages in addition to the regular CLX service;
    Guam volume was 12.5 percent lower primarily due to lower demand for retail-related goods as COVID-19 mitigation measures remained in effect; and
    Other containers volume decreased 18.8 percent.


    [quote=”CautiousInvestor” post=13943]

    Tropical Storm Fay Advisory Number 5
    NWS National Hurricane Center Miami FL AL062020
    1100 AM EDT Fri Jul 10 2020


    LOCATION…38.4N 74.5W


    CCL Carnival cruising higher today on positive comments but we think stock will ultimately rise and fall on virus concerns (15.94 +1.36)

    via Briefing

    Carnival (CCL +9%) is sailing pretty smoothly today despite a mixed Q2 (May) earnings report. The cruise line reported a sizeable adjusted loss of $(3.30) per share, which was much worse than expected. The good news is that revenue was better than expected.

    We do not think investors care much about the financials these days. Instead investors are more interested in the general outlook from Carnival and how quickly the cruise industry will get back to normal. On that front, CCL offered some reasons for optimism:

    CCL reiterated that its AIDA segment will resume cruise operations from ports in Germany beginning August 2020.
    AIDA is expected to be the first of the company’s nine cruise brands to resume guest cruise operations.
    Despite substantially reduced marketing, the company says it continues to see demand from new bookings for 2021.
    For the first three weeks in June, almost 60% of 2021 bookings were new bookings, as opposed to people cashing in credits from cancelled cruises.
    Cumulative advanced bookings for 2021 capacity currently available for sale remain within historical ranges at prices that are down in the low to mid-single digits range.

    CCL’s finances and cash balance are also a closely watched metric.

    The good news is that CCL recently raised over $10 bln through a series of financing transactions.
    CCL also drastically reduced ship operating expenses by transitioning ships into paused status to save cash.
    Liquidity will need to be watched closely as CCL says its monthly average cash burn rate for 2H20 will be approximately $650 mln.

    While air travel seems to be showing early signs of improvement (UAL’s recent flight schedule increase is a good example), we see the cruise lines as among the last industries that will recover from COVID-19 concerns. It’s one thing to take a 2 hour flight then go wherever, but on a cruise, you’re in the same enclosed space with the same people for a week.

    Overall, CCL provided enough encouraging data points to move the stock higher today. However, we continue to believe that the cruise line stocks will rise and fall on the country’s ability to get the virus under control and any progress on a vaccine.

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