A Workmanlike Move In The Markets on Thursday

After yesterday’s jump across the markets, which reacted to the President Trump’s idea of standalone stimulus for airlines, small businesses, & US citizens alike, we saw bit of a continuation or a workmanlike effort today.

All indices moved up and ended in the green today. The S&P 500 closed at 3,446.83 up .8%, the Dow 30 closed at 28,425.51 up .43% as Dow 30 component IBM (IBM) closed at $131.49/share up 6% after it was reported that they have plans to spin off their IT infrastructure unit leaving their future focus on their hybrid cloud growth strategy.  The tech heavy Nasdaq closed up .5% ending at 11,420.98 & the little guys on Russell 2000 had another good day closing up 1.09% ending at 1,628.55. The energy sector rose 3.8%, the utilities sector moved up 1.8%, the real estate sector added1.6%, and the financials sector moved up up 1.4% to lead all sectors.

The macroeconomic schedule brought forth the Initial claims report for the week ending October 3 which showed a drop by 9k to 840k while continuing claims for the week ending September 26 dropped by 1.003M to 10.976M.

The FAANG stocks ended as follows: Facebook (FB) closed at $263.76/share up 2.19%, Amazon (AMZN) closed at $3,190.55/share down .16%, Apple (AAPL) closed at $114.97/share down .1%, Netflix (NFLX) dropped .54% closing at $531.79/share & Alphabet (GOOG) closed at $1,485.93/share up 1.76%. 

Elon Musk’s Tesla (TSLA) closed higher at $425.92/share up .15%. Tesla’s 52-week post forward split low is $43.67/share and its recent all-time new high is $502.49/share. We continue to like clean hydrogen solution provider Plug Power (PLUG) dropped back to day down 1.89% at $17.88 after Kramer touted in after the close last night. However, the recent sizable move recently since we brought PLUG to your attention after they closed the $300M equity offering at $10.25 is no less impressive. 

Financial giant Morgan Stanley (MS) closed at $49/share up .6% today after announcing that they will acquire Eaton Vance Corporation (EV) for $7B or $56.50/share in cash and stock. EV shares closed at $60.65 up 48.1%.

Regeneron (REGN) closed at 599.88/share up 1.4% after it was reported the they have requested emergency use authorization for their prospective COVID-19 antibody treatment. 

Precious metals moved up again today as gold closed at $1,896(+8) while silver closed at $23.99/oz (+..07). North American silver and gold producer Hecla Mining Company (HL) closed at $5.20/share up .78% after recently establishing another new 52-week high of $6.79/share during intraday trading. HL’s 52-week low is $1.40. Barrick Gold Corporation (GOLD) closed at $27.27/share up 1.19%. 

Oil prices moved higher closing at $40.05/bbl up $.83. Chevron (CVX) closed at $75.22/share up 1.95%.

The 2-yr US treasury yield closed down 2 basis points at .13% while the 10-yr yield also closed down 3 basis points at .77%. The U.S. Dollar Index strengthened to close at 93.59.

TOMORROW

The macroeconomic calendar will deliver the weekly MBA Mortgage Applications Index & the NFIB Small Business Optimism Index for September.

WATCH LIST

Atossa Therapeutics (NASDAQ: ATOS) closed at $2.36/share up .85%.

• • Atossa Therapeutics is a clinical-stage biopharmaceutical company seeking to discover and develop innovative medicines in areas of significant unmet medical need with a current focus on breast cancer and COVID-19.

  • Recently, WTVQ reported that Summit Biosciences Inc., a Lexington-based pharmaceutical company focused on nasal spray medicines, is expanding its operation at the University of Kentucky Coldstream Research Campus with a more than $19 million investment expected to create up to 78 full-time jobs. In May, Atossa Therapeutics Inc. (NASDAQ: ATOS) awarded Summit a contract to accelerate the development of a nasal spray medicine for preventing and/or mitigating a COVID-19 infection. The proposed product is being developed as an at-home, easy-to-administer preventative or treatment option for patients and is among a very limited number of medicines or vaccines that will rely on intranasal delivery. Atossa selected Summit for its specialized capabilities, industrial-scale infrastructure and proven track record in nasal spray medicines. “We are excited and honored to have been entrusted by Atossa Therapeutics to aid in the development of a product that could potentially be used in the global fight against the coronavirus,” said Greg Plucinski, president and COO of Summit. “Our dedicated, high-performing team has taken this immense responsibility and worked extremely hard to deliver products for the start of human clinical studies in record time.”

• • Recently, Atossa Therapeutics, Inc. announced a positive interim safety assessment from the second cohort of healthy participants in their Phase 1 clinical study using Atossa’s proprietary drug candidate AT-301 administered by nasal spray. This second group of eight participants received a single escalated dose of either AT-301A (placebo) or AT-301B (active drug). The blinded, positive assessment by the safety committee allows the study to now enroll the next cohort, which will be the third of a total of four cohorts and the first of two multi-dose, placebo-controlled cohorts. The ongoing Phase 1 study is a double-blinded, randomized, and placebo-controlled safety study of AT-301 nasal spray in 32 healthy adult subjects divided into two study groups. Part A consists of two single-dose cohorts receiving either active therapy, AT-301B, or the placebo comparator AT-301A at two different doses. Part B is a multiple-dose arm with cohorts receiving either AT-301A or AT-301B for 14 days at two different doses. The primary objective of the study is to evaluate the safety and tolerability of single and multiple doses of AT-301 administered via nasal instillation to healthy volunteers. Secondary objectives are to assess the incidence and severity of local irritation and bronchospasm following administration of AT-301 via nasal instillation. The study is being conducted in Australia. READ THE COMPLETE STORY!

• • Dr. Steven Quay MD, Ph.D., Atossa’s founder, and CEO, recently published the following book “Stay Safe: A Physician’s Guide to Survive Coronavirus” . Proceeds from the book will go to military veterans performing COVID-19 relief work in their communities.  You may order it here.

• Shares of Fate Therapeutics (FATE) closed at $44.98/share up 2.13% after establishing a new all-time high of $45.30.

  • Fate is a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders. 

  • On Aug. 19, Fate announced that Edward Dulac has been appointed Chief Financial Officer. Mr. Dulac comes to the Company from Celgene Corporation, where he most recently served as Vice President, Business Development & Strategy, and brings an extensive array of biopharmaceutical experience having served for over 20 years in positions in finance, business development, and product portfolio strategy.

  • On Aug. 5, Fate Reported Second Quarter 2020 Financial Results and Highlights Operational Progress ending the quarter with $533 Million in Cash & Short-term Investments. Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics stated, “Early clinical data from our FT596 program are very encouraging, as we observed a partial response in a heavily-pretreated patient with refractory diffuse large B-cell lymphoma at the first dose level without any reported events of cytokine release syndrome, neurotoxicity or graft-versus-host disease. Additionally, the safety, tolerability, and immunogenicity data across our off-the-shelf NK cell programs continue to suggest that multiple doses of iPSC-derived NK cells can be administered to a patient without matching. We continue to be pleased with our pace of innovation, where the recent clearances of our IND applications by the FDA for FT538, the first-ever CRISPR-edited iPSC-derived cell therapy, and for FT819, the first-ever iPSC-derived CAR T-cell therapy, continue to demonstrate our unique ability to rapidly bring multiplexed engineered, off-the-shelf NK cell and T-cell cancer immunotherapies to patients. In addition, we successfully launched our Janssen collaboration with strong momentum, bringing together Janssen’s proprietary tumor-targeting antigen binders and our industry-leading iPSC product platform to develop novel off-the-shelf CAR NK and CAR T-cell immunotherapies for hematologic malignancies and solid tumors.”

  • July 14th, FATE announced that the Company entered into an exclusive license agreement with Baylor College of Medicine covering alloimmune defense receptors, a first-in-class approach that renders off-the-shelf allogeneic cell products resistant to host immune rejection. Preclinical studies published in the journal Nature Biotechnology (https://www.nature.com/articles/s41587-020-0601-5) demonstrate that allogeneic cells engineered with a novel alloimmune defense receptor (ADR) are protected from both T- and NK-cell mediated rejection, and provide proof-of-concept that ADR-expressing allogeneic cell therapies can durably persist in immunocompetent recipients.

  • On June 11th, FATE announced that it had closed an underwritten public offering of 7,108,796 shares of its common stock, which included 927,324 shares that were issued pursuant to the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $28.31 per share. Aggregate gross proceeds from this offering, including the exercise of the option, were approximately $201.3 million, prior to deducting underwriting discounts and commissions and estimated offering expenses. 

• Shares of NeuBase Therapeutics (NBSE) closed at $8.03/share up .12% after recently reaching a new 52-week high recently of $11.78/share.

• • Chairman, CEO & Founder of NeuBase, Dietrich A. Stephan, Ph.D., presented at Tribe Public’s Webinar Presentation and Q&A Event on Wednesday, August 26th, 2020.  During this complimentary, 30-minute event, Dietrich Stephan, Ph.D. introduced the NeuBase’s next generation of gene silencing technology & the company’s progress with treatment candidates in Huntington’s Disease (HD) and Myotonic Dystrophy (DM1) and be available for Q&A. Here’s a link to the Tribe Public Youtube channel where you may watch the interview presentation.

• • NeuBase is developing the next generation of gene silencing therapies with its flexible, highly specific synthetic antisense oligonucleotides. The proprietary NeuBase peptide-nucleic acid (PNA) antisense oligonucleotide (PATrOL™) platform allows for the rapid development of targeted drugs, increasing the treatment opportunities for the hundreds of millions of people affected by rare genetic diseases, including those that can only be treated through accessing of secondary RNA structures. Using PATrOL technology, NeuBase aims to first tackle rare, genetic neurological disorders. NeuBase is continuing its progress towards developing treatment candidates in Huntington’s Disease (HD) and Myotonic Dystrophy (DM1.)

  • RBC Capital Markets recently initiated coverage of NBSE today with an Outperform, Speculative Risk rating & a $16 price target. 

  • NBSE recently reported its financial results for the three and nine-month periods ended June 30, 2020. Dietrich A. Stephan, Ph.D., chief executive officer of NeuBase stated, “We are pleased with the continued execution of our development programs during 2020. This includes the announcement in late-March of compelling data that firmly validates our platform as a viable fully synthetic approach to genetic medicine. Notably, these data confirm that our therapies penetrate into the brain when administered systemically – overcoming one of the grand challenges of drug delivery. PATrOL-enabled compounds can also access tissues throughout the entire body, opening our platform up to unexplored indications that have not previously been accessible by genetic medicine technologies. These positive pharmacokinetic and pharmacodynamic data-position our unique technology to output a vast pipeline of therapeutics to resolve innumerable human diseases. We anticipate presenting additional new data with respect to our ongoing progress in the fourth calendar quarter of this year. A key objective for our company shortly after the March data announcement was to strengthen our balance sheet in order to fully advance our strategies in HD and DM1, and build out our pipeline. This was accomplished in April with the closing of our oversubscribed capital raise of approximately $33.3 million in net proceeds that was led by fundamental healthcare investors and significantly increased our institutional shareholder base. We expect this to support our R&D and general corporate expenses into the second calendar quarter of 2022.”

• Shares of INVO Bioscience (INVO) closed at $3.91/share up 10.14%.

• • INVO is a medical device company focused on creating alternative treatments for patients diagnosed with infertility and developers of INVOcell®, the world’s only in vivo Intravaginal Culture System. Industry forecasts suggest that only 1% to 2% of the estimated 150 million infertile couples worldwide are currently being treated. INVO’s mission is to increase access to care and expand infertility treatment across the globe with a goal of improving patient affordability and industry capacity. 

• • INVO announced last week that it has teamed up with Dr. Francisco Arredondo, MD, a respected and experienced board certified reproductive endocrinologist, and Dr. Ramiro Ramirez, MD, a physician and owner of several successful enterprises in Mexico, to establish a joint venture through its wholly-owned subsidiary INVO Centers, LLC, a Delaware limited liability company (“INVO Centers”), focusing on developing the Mexico market for INVOcell. The new jointly-owned operation, named Positib Fertility, S.A. de C.V. (“Positib Fertility”), is a Mexico registered company that will focus on establishing fertility centers dedicated to offering INVOcell, with the initial center to be located in the city of Monterrey, Mexico.

• • Recently, INVO also announced the appointment of two seasoned executives, Barbara Ryan and Matthew Szot, to its board of directors, effective immediately. To make way for their appointments, Kathleen Karloff and Michael Campbell have both agreed to voluntarily step down from their board positions to assist the company in achieving an independent board majority. Mr. Campbell will remain as Chief Operating Officer and Vice President of Business Development, while Ms. Karloff intends to continue to advise the board and assist the operating team on a go-forward basis. Ms. Ryan founded Barbara Ryan Advisors, a capital markets and communications firm, in 2012 following a more than 30-year career on Wall Street as a sell-side research analyst covering the US Large Cap Pharmaceutical Industry. Previously, Ms. Ryan was a Managing Director at Deutsche Bank/Alex Brown and Head of the company’s Pharmaceutical Research Team for 19 years and began her research career covering the Pharmaceutical industry at Bear Stearns in 1982. Ms. Ryan has deep experience in equity and debt financings, valuation, SEC reporting, financial analysis, and corporate strategy across a broad range of life sciences companies. During Ms. Ryan’s career as an analyst, in addition to covering the large-cap pharmaceutical companies, Barbara also covered the drug wholesalers and PBMs and was the lead analyst on many high-profile IPO’s including Express Scripts, PSSI, Henry Schein, and Flamel Technologies. Ms. Ryan has extensive global buy-side, sell-side and financial media relationships, and has provided support and counsel on several of the highest-profile deals in the biopharma industry, including Shire/Abbvie, Shire/Baxalta, and Allergan/Valeant. Barbara led the IR/PR programs for Radius Health, the best performing IPO of 2014, for 4 years, Eloxx Pharmaceuticals for the past two years, and served on the Executive Team at both companies. Ms. Ryan has provided strategic communications counsel for Cardinal Health, Purdue, Zoetis, Radius Health, Eloxx Pharmaceuticals, Agenus, Centrexion, Esperion, ContraFect, Relypsa, Shire, Allergan, and Perrigo. Ms. Ryan’s opinions and expertise are widely sought; she is frequently quoted in the press and appears on CNBC. Ms. Ryan currently serves on Pharmaceutical Executive’s Editorial Advisory Board, the Executive Advisory Board for the Prix Galien Foundation is a member of the Life Sciences Council of Springboard Enterprises and is a member of the Board of Directors of Gilda’s Club NYC, and a Faculty member at the GLG Institute. Ms. Ryan Chaired the Board of Villa Maria School, a school for children with learning disabilities, for 8 years. Ms. Ryan is the Founder of Fabulous Pharma Females, a non-profit dedicated to the advancement of women in the biopharmaceutical industry.

• • Since January 2019, INVO Bioscience has signed commercialization agreements in the United States, India, as well as parts of Africa and Eurasia and Mexico for the INVOcell device.

• Aduro Biotech, Inc. (NASDAQ: ADRO), now officially called Chinook Therapeutics (KDNY) closed at $16.7o/share.
  • Aduro, a clinical-stage biopharmaceutical company focused on developing therapies targeting the Stimulator of Interferon Genes (STING) and A Proliferation Inducing Ligand (APRIL) pathways for the treatment of cancer, autoimmune and inflammatory diseases, recently announced the results for the three proposals considered and voted upon by its stockholders at its Special Meeting on October 1, 2020. The Company reported that the various proposals giving effect to the merger agreement between Aduro and Chinook Therapeutics were approved by approximately 55,168,606 of the outstanding shares of Aduro. All proposals were approved by the Aduro stockholders. A Form 8-K disclosing the full voting results will be filed with the Securities and Exchange Commission on October 1, 2020. Following stockholder approval, the Company announced a one-for-five reverse stock split. The Company’s common stock will began trading on a split-adjusted basis on The Nasdaq Global Select Market effective with the open of the market on Friday, October 2, 2020.

• • This week Chinook Therapeutics, Inc. (NASDAQ: KDNY), a clinical-stage biotechnology company focused on the discovery, development and commercialization of precision medicines for kidney diseases, announced the closing of its merger with Aduro Biotech, Inc. and $115 million private placement financing. The combined company, now known as Chinook Therapeutics, commenced trading October 6, 2020 on the Nasdaq Global Select Market under the trading symbol “KDNY.” As previously announced, the $115 million private placement financing includes participation from new investors EcoR1 Capital, OrbiMed Advisors, funds managed by Rock Springs Capital, Fidelity Management and Research Company LLC, Avidity Partners, Surveyor Capital (a Citadel company), Ally Bridge Group, Monashee Investment Management LLC, Northleaf Capital Partners, Janus Henderson Investors, Sphera Biotech and other top-tier healthcare investors. As part of the financing, Chinook’s existing investors, Versant Ventures, Apple Tree Partners and Samsara BioCapital, purchased $25 million in Chinook common stock on the same terms as the new investors. Effective as of the closing of the merger, Chinook has over $275 million in operating capital to advance its kidney disease programs.

Economic Reports

• On Monday, the ISM Non-Manufacturing Index report for September was reported to have jumped to 57.8% and the Markit Services PMI report for September rose to 54.6. 
• On Tuesday,  the schedule brought forth the report that the trade deficit widened to $67.1B in August, while y-o-y, average exports dropped $44.8B from the three months ending August 2019 & average imports dropped $34.7B. The August job openings report confirmed a decline to 6.493M.
• On Wednesday, we received the Consumer credit report which pulled back by $7.2B in August. The weekly MBA Mortgage Applications Index report also confirmed a rise by 4.6%.
• On Thursday, the Initial claims report for the week ending October 3 which showed a drop by 9k to 840k while continuing claims for the week ending September 26 dropped by 1.003M to 10.976M.

   

Investing & Inspiration

“You cannot save time for your future use however you can invest time for your future.” – John F. Heerdink, Jr. 

“Know what you own, and know why you own it.” – Peter Lynch

“Liquidity is only there when you don’t need it.” -Old Proverb

“If you want to be a millionaire, start with a billion dollars and launch a new airline.” – Richard Branson

“Fear incites human action far more urgently than does the impressive weight of historical evidence.” – Jeremy Siegel

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

“Spend each day trying to be a little wiser than you were when you woke up.” – Charlie Munger

“The entrance strategy is actually more important than the exit strategy.” – Edward Lampert

“The rivers don’t drink their own water; Trees don’t eat their own fruits. The sun does not shine for itself, And flowers do not spread their fragrance For themselves. Living for others is a rule of nature” – Pope Francis

“It is impossible to produce superior performance unless you do something different from the majority.” – John Templeton

“An investment in knowledge pays the best interest.” – Benjamin Franklin.

“I believe the returns on investment in the poor are just as exciting as successes achieved in the business arena, and they are even more meaningful!” -Bill Gates

“Every portfolio benefits from bonds; they provide a cushion when the stock market hits a rough patch. But avoiding stocks completely could mean your investment won’t grow any faster than the rate of inflation.” – Suze Orman

“The tax on capital gains directly affects investment decisions, the mobility, and flow of risk capital… the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy.” – John F. Kennedy

“If all the economists were laid end to end, they’d never reach a conclusion. -George Bernard Shaw

“There are old traders and there are bold traders, but there are very few old, bold traders.”-Ed Seykota

“Let this scenario play out on its own, in its own fashion. As you watch it unfold, you will soon be grateful that you choose the peaceful path. Remember — those who live by the sword, die by the sword.”

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger