Major Indices Rebound As Interesting Batch of Economic Reports Surface & Silver Stocks Jump Thursday

Thursday’s market session saw the indices rebound strongly throughout the day but the little guys on the Russell 2000 missed the mark closing lower at 2,106.61 (-.1%). The big boys again faired quite well as S&P 500 closed at 3,787.38 (+.98) and was up as high as 2.1% at one point, the Nasdaq closed at 13,337.16 (+.5%), the Dow 30 closed at 30,603.36 (+.99%). The overall strength came from all 11 sectors and was led by a 1.9% move higher by the financials.

MACRO & MONEY

The macroeconomic schedule produced a few interesting and generally positive reports today. The Q4 real GDP report confirmed a rise by an annualized rate of 4%. The Initial jobless claims report showed an drop by 67k for the week ending January 23 to 847k (while continuing claims for the week ending January 16 dropped by 203k to 4.771M. The new home sales report showed a rise by 1.6% month/month to a seasonally adjusted annual rate of 842k in December. The Conference Board’s Leading Economic Index  report (LEI) showed a rise by.3% month/month in December. The Advance report for International Trade in Goods report for December showed a deficit of $82.5B. The Advance report for Retail Inventories report for December showed a rise by 1%, and the Advance report for Wholesale Inventories for December showed a rise by .1%.  Tomorrow, the schedule will deliver the Personal Income and Spending report for December, the PCE Prices report for December, the Q4 Employment Cost Index report, the Chicago PMI report for January, the Pending Home Sales report for December, & the final Univ. of Michigan Consumer Sentiment Survey report for January. 

The 2-yr treasury yield closed even again at .12%, while the 10-yr treasury yield dropped 5 basis points to close at 1.06%. The U.S. Dollar dropped .1% to end at 90.52.

APPLE, FACEBOOK, & TESLA DRAGGED

The ever so popular FAANG’s ended mixed overall as follows: Apple (AAPL) shares closed at $137.09, -3.5%, Amazon (AMZN) ($3,237.62, +.16%), Alphabet (GOOG) ($1,863.11, +1.77%), Facebook (FB) closed at $265, -2.62%, & Netflix (NFLX) closed at $538.60/share, +2.93%. 

Shares of the leading EV maker Tesla (TSLA) closed higher at $835.43, -3.32%.  Chinese EV producer NIO Limited (NIO) closed at $58.37/share, +2.13%.

BIOTECH

The iShares Nasdaq Biotechnology ETF rose to 160.41, +.35% while the NYSE ARCA Biotech index rose to 6,014.26, +.28%. 

Today, Pittsburgh-based NeuBase Therapeutics, Inc. (Nasdaq: NBSE) ($9.40/sh, +1.4%), a biotechnology company accelerating the genetic revolution using a new class of synthetic medicines to drug the genome, announced the execution of a binding agreement to acquire infrastructure, programs and intellectual property for several peptide-nucleic acid (PNA) scaffolds from Vera Therapeutics, formerly known as TruCode Gene Repair, Inc. The technology has demonstrated the ability to resolve disease in genetic models of several human indications. The acquisition was reported to bolster NeuBase’s capabilities and reinforces the Company’s position as a leader in the field of genetic medicine. Read the complete story. 

GOLD, SILVER, & Oil

As suggested in yesterday’s daily report a bet on the ETF for silver SIL & two silver producers in Hecla Mining Company (HL), First Majestic Silver (SIL) today might produce interesting results and indeed it did and feels like it could continue. Silver closed up at $26.56/oz, +1.35.

The ETF SIL closed at $42.93, +8.38%.

North American Silver and gold producer Hecla Mining Company (HL) closed at $5.62/share, +17.08%. HL’s 52-week range is $1.4 – $7.06. Last week, Hecla announced its preliminary silver and gold production for the fourth quarter and full year 2020 and year-end cash position and highlighted the following: Silver production of 13.5 million ounces, an increase of 7%, second highest production only to 2016, Gold production of 208,962 ounces, expected lower gold production from the Nevada operation decreased production 23% from 2019, which was Hecla’s highest gold production, Zinc and lead production increased 7% and 41%, respectively, due to the ramp up of the Lucky Friday Mine, Silver equivalent production of 40.7 million ounces and gold equivalent production of 471,413 ounces, Year-end cash position of $131 million with the credit facility undrawn, Net debt reduction of approximately $75 million, or 16%, from March 31, 2020.3, All injury frequency rate (AIFR) of 1.22 for 2020, lowest in the Company’s history and a reduction of 24% over 2019. Hecla’s President and CEO, Phillips S. Baker, Jr. stated, “Despite the challenges of operating during the pandemic, 2020 marked a year of very strong operational performance with silver production significantly exceeding guidance. Our U.S. silver production was 15% higher than the year before and more than 50% higher than 2018, strengthening our position as the United States largest silver producer. The strong performance allowed Hecla to reduce net debt, increase dividends, and double exploration expenditures while more than doubling last year’s cash position. At current prices, we could repeat these results in 2021.”

First Majestic Silver (AG) closed at $16.86, +21.38%. 

Gold prices closed at 1,844, +4..

Oil prices fell 1% to close at $52.30/bbl.

GME & AMC FALL

Both GameStop (GME) ($193.60, -44.3%) & AMC Entertainment (AMC) ($8.63,-56.6%) fell today as further scrutiny and mania continue to swell around this issues that flew up post the Reddit based WallStreetBets posting when wild and mainstream media and Robinhooders magnified the whole situation. I could resist updating you all on this. By the way, please read this story as an example of how crazy it is now from the NY Post titled “22-year-old risked parents’ mortgage on GameStop: ‘You only live once’”.

VP WATCH LIST HIGHLIGHTS

• Shares of next generation of gene silencing therapy firm NeuBase Therapeutics (NBSE) closed trading at $9.40, +1.4% on 336,144 shares of trading volume. Today, Pittsburgh-based NeuBase Therapeutics, Inc. (Nasdaq: NBSE) ($9.40/sh, +1.4%), a biotechnology company accelerating the genetic revolution using a new class of synthetic medicines to drug the genome, announced the execution of a binding agreement to acquire infrastructure, programs and intellectual property for several peptide-nucleic acid (PNA) scaffolds from Vera Therapeutics, formerly known as TruCode Gene Repair, Inc. The technology has demonstrated the ability to resolve disease in genetic models of several human indications. The acquisition was reported to bolster NeuBase’s capabilities and reinforces the Company’s position as a leader in the field of genetic medicine. Read the complete story. 

• • 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 has 141 institutional owners and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC). These institutions hold a total of 8,993,130 shares. Largest shareholders include Greenlight Capital Inc (9%), Vanguard Group Inc, BlackRock Inc., Renaissance Technologies Llc, VTSMX – Vanguard Total Stock Market Index Fund Investor Shares, IWM – iShares Russell 2000 ETF, Sio Capital Management, LLC, State Street Corp, VEXMX – Vanguard Extended Market Index Fund Investor Shares, and Geode Capital Management, Llc.

• • In December, I hosted a FREE Presentation & Q&A Event for our sister organization Tribe Public with the CEO & Founder of NeuBase Therapeutics, Dietrich Stephan, Ph.D., who owns 34.3% of NeuBase’s total shares. He  is an industry veteran who is considered one of the fathers of the field of precision medicine. The presentation is titled “Accelerating the Genetic Revolution with a New Class of Synthetic Medicines.” You can view the recording at the Tribe Public Channel.

• • We expect to see the company to announce an update on its work in Huntington’s Disease and also sign a corporate deal of some kind prior to the end of April 2021 based on recent conversations & expectations of management.

• Natural-Killer cell (NKcell) focused biopharmaceutical firm Fate Therapeutics (FATE) closed at $90.91/share, +3.87 after recently establishing a new all-time high of  $121.16. FATE also recently announced the pricing of an underwritten public offering of ~$432 million at $85.50/share. Jefferies, BofA Securities, SVB Leerink and Barclays acted as joint book-running managers for the offering.

  • We started with Fate over 3 years ago when it was in the $3 range. Fate’s 52-wk range is $16.75- $103.86. 

  • Recently, Fate presented a patient case study from the Company’s Phase 1 clinical trial of FT596, its universal, off-the-shelf, CD19-targeted chimeric antigen receptor (CAR) natural killer (NK) cell product candidate, at the 62nd Annual Society of Hematology Annual Meeting and Exposition and the street loved it. NK cells are the body’s first line of defense against viral infections and cancerous cells with an innate ability to rapidly seek and destroy transformed cells. NK cell therapy has the potential to 1) target multiple pathogenic antigens with measurably more efficient cytotoxicity, 2) be better controlled to reduce risk of cytokine storms and 3) be produced from a variety of sources without relying on patient-specific immune cells. Dr. Wayne Chu, Senior Vice President, Clinical Development of Fate Therapeutics stated, “The safety, pharmacokinetics and clinical activity observed following both the first and second single-dose treatment cycles of FT596 are compelling, especially when considering that the administered cell dose was significantly lower than the recommended cell dose of FDA-approved autologous CD19-targeted CAR T-cell therapies and that the heavily pre-treated patient was refractory to last prior therapy. We are excited the CAR component of FT596 has shown clinical activity at this low dose level, and we continue to enroll patients in dose escalation with FT596 as a monotherapy and in combination with rituximab.”

• Shares of INVO Bioscience (NASDAQ: INVO) closed at $3.08/share, +2.67%. This week INVO announced it has advanced its commercialization efforts into the European fertility market by securing initial orders of INVOcell in Madrid and Barcelona, Spain. INVOcell will initially be available at three separate existing fertility clinics which have placed orders and commenced training.

• • 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. 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.

• • INVO’s Management Issued a letter to shareholders recently that spoke to their key developments and future initiatives that have positioned their product INVOcell® within the severely underserved fertility market. PLEASE READ IT HERE.

• • INVO received BUY Ratings from both Roth Capital ($5 PT) & Collier International Securities ( $5.75 PT) in December, 2020.  

• • Recently, INVO filed an 8k highlighting three new partners that they have established to distribute or develop invocell only clinics in Malaysia and North Macedonia. 

• • INVO recently announced that it has entered an exclusive distribution agreement with Galaxy Pharma Ltd. to distribute the INVOcell system within Pakistan, the fifth most populous country in the world with approximately 212 million people. Galaxy Pharma is a leader in providing products and services to the country’s current full-service In Vitro Fertilization (IVF) facilities, and has joint ventures operating an additional 21 facilities focused on administering Intrauterine Insemination (IUI) via OBGYN’s.

• Shares of Chinook Therapeutics (KDNY), a clinical-stage biotechnology company developing precision medicines for kidney diseases, closed today at $14.29, -3.64%. I hosted Chinook’s President & CEO Eric Dobmeier at our sister organization Tribe Public’s Presentation and Q&A event, Tuesday, Jan. 26th which you can watch now at Tribe Public YouTube Channel. 

• • Chinook has well-funded development programs with participation in a $115 million private placement financing concurrent with the close of a merger with Aduro Biotech in Q4 2020 from top-tier healthcare investors including, 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 others.

• Shares of Seattle-based Atossa Therapeutics, Inc. (Nasdaq: ATOS) closed at $2.08/share, off 6.31%. Atossa’s CEO, Dr. Steven Quay, M.D., Ph.D. & CFO, Kyle Guse, Esq., will present at Tribe Public’s Webinar Presentation and Q&A Event titled “The Important Role of COVID Therapeutics in a Post Vaccine World”. The Event is scheduled to begin at 8am Pacific/11am Eastern on Tuesday, February 2, 2021. To register to join the complimentary, ZOOM webinar-based event, please visit Tribe Public LLC at Atossa2021.TribePublic.com.

• • Atossa Therapeutics, 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.

• • Atossa’s Dr. Steven C. Quay, MD., Ph.D., President and CEO,  was a panelist at the 2021 Precision Medicine World Conference “21st Century Precision Medicine in the Age of COVID-19” this week. The Precision Medicine World Conference, or PMWC, is the largest, original forum for precision medicine. PMWC is an independent conference that attracts recognized authorities and experts across healthcare and biotechnology sectors. The conference showcases practical content that helps close the knowledge gap between different sectors, thereby catalyzing cross-functional collaboration to further adoption of personalized medicine in the clinic. Additional information about PMWC can be found at https://www.pmwcintl.com/covid/. Dr. Anthony S. Fauci is the spotlight speaker of the event. Dr. Fauci is the Director of the U.S. National Institute of Allergy and Infectious Diseases and Chief Medical Advisor to the President. The panel topic is “Development of New SARS-CoV-2 Therapeutics.”

• •  Atossa recently raised $62.2M in gross proceeds between three equity raises affording the company a significant development runway and many more options to be considering. Atossa is seeking in the near term to get an FDA nod to move into a Phase 2 trial with its nasal spray COVID-19 therapy.

Economic Reports

• Nothing hit the tape on Monday.
• Tuesday’s scheduled included the Conference Board’s Consumer Confidence Index report which showed a rise to 89.3 in January. The S&P Case-Shiller Home Price Index report also confirmed a 9.1% rise in November. The FHFA Housing Price Index report moved up 1% in November.

Investing & Inspiration

“No Price is too low for a bear or too high for a bull.” — Anonymous

“Investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.” Anonymous

“Behind every stock is a company. Find out what it’s doing.” — Peter Lynch

“Wise spending is part of wise investing. And it’s never too late to start.” –Rhonda Katz

“It amazes me how people are often more willing to act based on little or no data than to use data that is a challenge to assemble.” ― Robert Shiller

“A bull market is like sex. It feels best just before it ends.” — Barton Biggs

“The investor’s chief problem — even his worst enemy — is likely to be himself.” — Benjamin Graham

“No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation.” – Robert Rhea

“Money is like a sixth sense – and you can’t make use of the other five without it.” – William Somerset Maugham

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” — Albert Einstein

“Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results” — Warren Buffett

“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett

“Thousands of experts study overbought indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money supply…and they can’t predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.” – Peter Lynch

“Investing puts money to work. The only reason to save money is to invest it.” – Grant Cardone

“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