Market Indices Turn Deep Red While The Reddit Powered WallStreetBets Small Cap Plays GME, AMC, NOK, BBBY Turn ‘Ridiculously’ Green

Wednesday’s market session saw the indices fall into a relatively deep negative & red territory throughout the day, into the close, and across the board. The S&P 500 closed at 3,750.77 (-2.57%), the Nasdaq at 13,270.60 (-2.61%), the Dow 30 closed at 30,303.17 (-2.05%) & the little guys/small caps on the Russell 2000, generally considered the “riskiest” group, faired the best, as it closed at 2,108.70 (-1.91%). The overall weakness came from all 11 sectors & was led by the communications services sector which experienced a substantial 3.1% sell off.

On the hand, much of the green on my screen today, and there was not allot of it, came from a few names that have been highlighted by a group posting on Reddit that call themselves WallStreetBets. Names like GameStop (GME) ($347.51, +134.84%), AMC Entertainment (AMC) ($19.90, +301.21%), Bed Bath & Beyond ($52.89. +43.45%) & Nokia (NOK) ($6.55, +38.48%) all have flown up lately and/or again today after this group pointed their message of a short squeeze effort and against the “evil” Wall Streeters to an army of +2 million investors/reddit followers and mainstream media further reported it across the world wide web and globe. Now the same group’s server has currently been banned or shut down by Discord following reported warnings for allowing hate speech and the mainstream media cannot get enough of it. Curious developments this way come my friends. Stay tuned to this story as it develops as it may be a real statement of how our “free speech” world will be working on go forward basis. By the way, right before they shut down them down they had made another post this time calling out the massive manipulation going on in the silver marker. It might be an interesting experiment to see if there is any follow through with this bet in the ETF for silver SIL or two silver producers i.e. Hecla Mining (HL) or First Majestic Silver (SIL) which are currently up in the aftermarkets. 

MACRO & MONEY

Fed Chair Jerome Powell reconfirmed via a statement today that “The ongoing public health crisis continues to weigh on economic activity, employment, and inflation, and poses considerable risks to the economic outlook.” The Fed continued to promise to leave interest rates low and to buying bonds to add liquidity and support economic activity and credit markets.

 The macroeconomic schedule produced a couple of interesting reports today. The new orders for durable goods report confirmed a rise by .2% month/month in December and when you exclude transportation, the orders moved up .7% month/month.
The MBA Mortgage Applications Index report confirmed a 4.1% drop week over week. Tomorrow, the schedule will deliver the advance estimate report for Q4 GDP, the weekly Initial and Continuing Claims reports, the New Home Sales report for December, the Conference Board’s Leading Economic Index report for December, & the advance December readings for Intl Trade in Goods, Retail Inventories, and Wholesale Inventories reports. 

The 2-yr treasury yield closed even again at .12%, while the 10-yr treasury yield dropped 3 basis point to close at 1.01%. The U.S. Dollar increased .5% to end at 90.65.

APPLE, FACEBOOK, & TESLA BEAT

The ever so popular FAANG’s ended significantly lower overall as follows: Apple (AAPL) shares closed at $142.06, -.77%, Amazon (AMZN) ($3,232.58, -2.81%), Alphabet (GOOG) ($1,830.79, -4.51%), Facebook (FB) closed at $272.14, -3.51%, & Netflix (NFLX) closed at $523.28/share, -6.88%. On the bright side Apple (AAPL) reported that they surpassed $100B in quarterly sales & Facebook (FB) reported a 33% rise in revenue along with a 53% leap in profit while both offered positive outlooks.

Shares of the leading EV maker Tesla (TSLA) closed higher at $864.16, -2.14%. after the markets closed today Tesla reported that they recognized record deliveries in Q4 that buoyed by a rise in demand for electric vehicles worldwide. Chinese EV producer NIO Limited (NIO) closed at $60.31/share, +.53%.

BIOTECH

The iShares Nasdaq Biotechnology ETF rose to 159.85, -3.02% while the NYSE ARCA Biotech index rose to 5,997.68, -2.45%. 

GOLD, SILVER, & Oil

Silver closed up at $25.21/oz, -.28 and gold closed at 1,840, -11.

North American Silver and gold producer Hecla Mining Company (HL) closed at $4.80/share, -5.517%. 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.”

The energy sector dropped another 1.4% today as oil prices rose .4% to close at $52.84/bbl.

VP WATCH LIST HIGHLIGHTS

• Shares of next generation of gene silencing therapy firm NeuBase Therapeutics (NBSE) closed trading at $9.27, -6.17% on 411,744 shares of trading volume. 

• • 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 $87.52/share, down another 2% today 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/share, -2.91%. Today, 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 $14.83, -3.14%. 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 $2.22/share, off 14.94%. 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