Uncle Jerry’s Fed Circus Drives Markets To Record Highs

“Uncle Jerry” Powell and the Fed circus came to town again yesterday waving their magical wand & committing to keep money available and cheap through the end of 2023. Today, the markets appropriately responded with excitement & liquidity while driving all indices to all-time record highs. It was one of those days in the markets that all looked smart if you were invested in just about anything from biotech to gold and silver.

The Nasdaq closed at a record high today at 12,658.19 (+.84%) today and continued its torrid pace towards the 13k level. The S&P 500 also moved higher closing at 3,722.48 (+.58%). The nine positive sectors were led by real estate (+1.2%), materials (+1.2%), & health care (+1.1%) the energy sector pulled back .6% even thought pile prices rose to $48.33/bbl,+1.1%. The communication services sector also dropped .3%. The Dow 30 also closed at 30,303.37 (+.49%) the small caps on the Russell 2000 charged forward having the best day closing at 1,952.72 (+1.30%).

BIOTECH BLASTS – NBSE TRIBE EVENT!

Chinook Therapeutics (KDNY), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of precision medicines for kidney diseases, added another +8.91% in today’s session and now has moved a total off 48.62% this week! No news was released again today, but Chinook announced a license agreement with Morehouse School of Medicine for development of Therapies in kidney disease disproportionately affecting African Americans and underserved communities on Dec. 8th. Also, last week Cantor Fitzgerald initiated coverage on KDNY with an overweight rating and a $31 price target.

Shares of NeuBase Therapeutics (NBSE) pulled back today to close at $8.73/share, -3.75% after touching $9.14. Its 52-week high is $11.78/share. NeuBase is developing the next generation of gene silencing therapies with its flexible, highly specific synthetic antisense oligonucleotides. Yesterday, NeuBase announced positive in vitro and in vivo preclinical data for its PATrOL™-enabled anti-gene therapies for the treatment of myotonic dystrophy type 1 (DM1). These new data show that PATrOL-enabled Compound A can rapidly resolve mis-splicing without negatively impacting DMPK protein levels. They also support the potential of NeuBase’s anti-gene approach to comprehensively treat the underlying cause of DM1. Curt Bradshaw, Ph.D., Chief Scientific Officer of NeuBase stated  “Despite the fact that the genetic basis of DM1 is well understood today, there is still an urgent need to find the first genetically-targeted, disease-modifying treatment option for affected patients. DM1 is caused by a genetic mutation in the DMPK gene leading to mis-splicing of a broad spectrum of genes and DMPK protein insufficiency. A treatment option that addresses mis-splicing while retaining functional DMPK protein levels may be key to treating all aspects of DM1.” 

I will be hosting a FREE Tribe Public Presentation & Q&A Event with the CEO & Founder of NBSE, Dietrich Stephan, Ph.D., an industry veteran who is considered one of the fathers of the field of precision medicine, next Tuesday, Dec. 22nd (8:30am PT / 11:30am ET). The presentation is titled “Accelerating the Genetic Revolution with a New Class of Synthetic Medicines.” Please do not miss it by registering now at NeuBase22.TribePublic.com to join me next week for this limited seating event. 

San Diego based, OncoSec Medical Incorporated (ONCS), a late stage biotech company focused on developing cytokine-based intratumoral immunotherapies to stimulate the body’s immune system to target and attack cancer,  jumped +21.31% on 4X the daily avg. volume after I met with the management team via zoom meeting yesterday. No news released but they have my attention. 

FAANGS, EV, PLUG, Etc.

The heavily weighted & popular FAANGs ended mostly in the green today as follows: Apple (AAPL) ($128.70, -.05%), Amazon (AMZN) ($3,236.08, -.15%), Alphabet (GOOG) ($1,747.90, -.86%), Facebook (FB) ($274.48, -.43%) & Netflix (NFLX) closed at $532.90/share, +1.54%. 

Shares of Elon Musk’s Tesla (TSLA) closed at $655.90/share, +5.32%. Chinese EV concern NIO Limited (NIO) closed at $46/share, +2.98%.  

Leading provider of hydrogen engines and fueling solutions enabling e-mobility, Plug Power (PLUG), closed at $30.57/share, +7.41%. Yesterday, PPLUG announced that is expanding is relationship with Walmart (WMT). Recently, PLUG confirmed that they had sold 38M shares priced at $22.25/shares raising a whopping $845.5M which represented about 9.1% of the shares outstanding and brings their capital to the $1.7B range. 

The leading pan-African e-commerce platform Jumia Technologies (JMIA) closed at $39.14/share, -.38% cooling off from yesterday’ jump. In Q3, Jumia’s total payment volume on their JumiaPay was up 50%Y/Y.

GOLD, SILVER, & NUCLEAR

With the flood of Fed money hitting the streets as the precious metals had a very good day.  Silver prices closed a US $26.20/oz, +.74 & gold prices closed at US $1,887/oz, +22.

North American silver and gold producer Hecla Mining Company (HL) closed at $6.40/share (+9.97%). HL’s 52-week range is $1.40 – $6.79. Recently, Hecla announced Q3 2020 financial and operating results. Phillips S. Baker, Jr., Hecla’s President and CEO stated, “Because of our strong operating performance and higher prices, Hecla had record adjusted EBITDA, generated the most free cash flow in a decade and repaid our revolver in full. These accomplishments were achieved because of our workforces’ resiliency and our commitment to health and safety. With the Lucky Friday ramp-up ahead of schedule, the expected improvements at Casa Berardi, and our modest planned capital expenditures, we are well positioned to further strengthen our balance sheet, increase exploration activities, and pay our enhanced dividend.” 

Barrick Gold Corporation (GOLD) closed at $23.59/share, +2.25%.

Energy Fuels (UUUU), a nuclear fuels supplier, closed at $3.57/share up +13.69% today. 

MONEY

The 2-yr treasury yield closed up 1 basis point .13% while the 10-yr yield closed up 1 basis point too at .93%. The U.S. Dollar Index weakened again today closing at 89.78. 

TODAY’S MACRO

The initial claims report for the week ending December 12 confirmed a rise by 23k to 885k while continuing claims for the week ending December 5 dropped by 273k to 5.508M, a level last seen in March of this year when all hit the sell button. The Housing starts report confirmed a rise by 1.2% month/month in November to a seasonally adjusted annual rate of 1.547M. The Building permits report confirmed a sizable rise by 6.2% month/month to 1.639M. The Philadelphia Fed Index fell again to 11.1 in December.

TOMORROW’S MACRO

The Macro schedule will deliver the Conference Board’s Leading Economic Index report for November & the Q3 Current Account Balance report.

WATCH LIST

• Shares of Atossa Therapeutics, Inc. (Nasdaq: ATOS) closed at $.8602/share down 10.4% on 22.82 Million shares of trading volume after announcing another $14M equity raise now $37M over the last 2 weeks.
  •  Atossa 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.
  • ATOS announced today that it has entered into a securities purchase agreement with institutional investors to purchase approximately $14.0 million of its common stock in a registered direct offering priced at-the-market under Nasdaq rules and warrants to purchase common stock in a concurrent private placement. The combined purchase price for one share of common stock and 0.75 warrants to purchase one share of common stock will be $1.00. Under the terms of the securities purchase agreement, the Company has agreed to sell 14,000,000 shares of common stock. In a private placement, which will be consummated concurrently with the Offering, the Company also has agreed to issue warrants to purchase up to an aggregate of 10,500,000 shares of common stock. The warrants will be immediately exercisable, will expire in 4 and a half years from the date of issuance and will have an exercise price of $1.00 per share. The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately $14.0 million before deducting the placement agent’s fees and other estimated offering expenses. The offering is expected to close on or about December 21, 2020, subject to the satisfaction of customary closing conditions.
    Maxim Group LLC is acting as the sole placement agent for the offering.

• • Last week, Atossa announced the pricing of an underwritten public offering with expected total gross proceeds of $20.0 million before deducting underwriting discounts, commissions and other offering expenses payable by the Company. The shoe was exercised for a final total gross proceeds of $23M. The securities offered by the Company consist of (i) 14,575,000 Units, each consisting of one share of common stock (the “Common Stock”), and 0.75 Warrants (“Warrants”) to purchase one share of Common Stock at a price of $1.00 per Unit and (ii) 5,425 Units, each consisting of one share of Series C Convertible Preferred Stock (the “Preferred Stock”) with a stated value of $1,000 per share and convertible into 1,000 shares of Common Stock together with Warrants to purchase 750 shares of Common Stock at a purchase price of $1,000 per Unit. The Warrants will have an exercise price of $1.00 per share, will be immediately exercisable and will expire four years from the date of issuance.

• Shares of INVO Bioscience (INVO) closed trading at $3.42/share, +8.92%.
  • 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.

• • This week, Colliers International Securities analyst Kyle Bauser, Ph.D. initiated coverage on INVO with a BUY rating and a $5 Target Price. His report is titled “A More Affordable Option Than Traditional In-Vitro Fertilization.” You can contact him at kyle.bauser@colliers.com.

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

Economic Reports

• On Monday, no reports came forward.

Investing & Inspiration

“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