Energy Oil prices fell again today down 1.4% closing at $54.38/bb. Dow 30 energy participants Chevron (CVX) moved lower by .67% closing at $116.95/share & Exxon (XOM) closed lower by .59% closing at $67.25/share. Occidental Petroleum (OXY) closed at $43.96/share up .59% after their recent sale of $13 billion of debt to fund their Anadarko Purchase. The energy sector ended down .5%. Metals & Mining Gold prices closed at $1521.605/oz. Silver closed at $17.26/oz down .03 on the day. First Majestic Silver (AG) closed at $10.26/share up .79%. Hecla Mining Company (HL) closed at $1.46/share up 1.47% after reporting results last week & offering the following highlights:
- Silver production of 3.0 million ounces and gold production of 60,768 ounces.
- Increasing annual silver production estimate Company-wide to 11.7 million ounces due to higher grades at Greens Creek.
- Total annual gold production estimate Company-wide unchanged at 274,000 ounces.
- Sales of $134.2 million.
- Adjusted net loss applicable to common shareholders of $36.4 million, or $0.07 per share.1
- Adjusted EBITDA of $22.9 million and net debt/adjusted EBITDA (last 12 months) of 3.9x. 2,3
- Cash and cash equivalents of $9 million, with a draw on the revolving line of credit of $52 million, at June 30, 2019.
- Amended revolving credit agreement to allow higher net debt/EBITDA ratios through the second quarter of 2020.
- Locked in minimum average prices of $1,400 per gold ounce and $15.13 per silver ounce by acquiring put options through the first quarter of 2020, while allowing full participation in potentially higher prices.
Healthcare The S&P 500 healthcare sector closed at 1033.52 up .35%. UnitedHealth (UNH) closed up .43% closing at $244.25/share, Walgreens Boots Alliance (WBA) closed at $49.29/share off 2.22% & Cigna (CI) lost .3% closing at $159.70/share post their recent Q2 earnings beat. INVO Bioscience, Inc. (IVOB) ended the day at $.325/share as daily trading volume continues to rise in concert with their announcing progress after their exclusive U.S. partnership with Ferring Pharmaceuticals, a leader in the reproductive health industry was announced in Q1-2019. Ferring has committed to providing the necessary sales and marketing resources to more fully develop the market in the United States. There are countless couples not able to receive reproductive treatments today, and Ferring can be instrumental in addressing the unmet needs of this cohort. Ferring has the industry experience, relationships and the marketing capabilities to successfully embed the INVOcell in clinics throughout the country. IVOB is a medical device company, headquartered in Sarasota, FL focused on creating simplified, lower-cost treatment options for patients diagnosed with infertility. The company’s lead product, the INVOcell, is a novel medical device used in infertility treatment that is FDA cleared and that enables egg fertilization and early embryo development in the woman’s vaginal cavity. Yesterday, INVO Bioscience (IVOB) announced that revenues for the quarter totaled $658,638 compared to $110,210 in the second quarter of 2018, an increase of 498%. Revenue growth was driven primarily by increased product sales in the U.S. as shipments to Ferring were above expectations outlined in May 2019 as they began to increase their marketing activities. On January 14, 2019, the Company closed an exclusive U.S. licensing agreement with Ferring International Center S.A. the parent Company of Ferring Pharmaceuticals U.S. to commercialize the INVOcell™ system for use in the treatment of infertility. As part of the U.S. licensing agreement, the Company received a $5 million one-time milestone payment, with the ability to receive an additional $3 million upon obtaining a label enhancement from the U.S. Food and Drug Administration. Read Complete Story.
Biotech The Ishares Nasdaq Biotechnology ETF (IBB) lost .34% closing at $102.68. The 52-wk range is $89.01 – $122.97.
Retail Walmart (WMT) closed at $112.69/share as it stole the show today as it offered and earnings beat earnings results and positive guidance. Disney (DIS) closed at $133.41 up .42% after it was confirmed that global ticket sales for “Toy Story 4” moved higher than $1 billion and breaking a record for most $1 billion movies in a year that was set in 2016. This year they also have “Avengers: Endgame”, The Lion King”, Captain Marvel” and “Aladdin” all confirming sales from $2.8 billion to $1billion.
Economy Last Friday, the index for final demand was confirmed to have an increased .2% m-o-m in July. The index for final demand, excluding food and energy, was lower by 1% m-o-m. Core PPI was up 2.1% y-o-y but inflation stays in check. On Monday, the Treasury Budget for July exhibited a deficit of $119.70 billion & the fiscal year-to-date deficit was confirmed at $866.81 billion. The budget deficit over the last 12 months was $961.8 billion. On Tuesday, the Total CPI checked in with an increase of 0.3% m-o-m in July. Core CPI, which excludes food and energy, rose by .3%. Total CPI was up 1.8% y-o-y & core CPI was up 2.2% y-o-y. The NFIB Small Business Optimism Index for July increased to 104.7. On Wednesday, import prices increased .2% m-o-m in July & all import prices were down 1.8% y-o-y. Export prices were up .2% m-o-m in July & all export prices were down .9% y-o-y. The weekly MBA Mortgage Applications Index moved significantly higher by 21.7%. Today, we received the retail sales report and it confirmed a .7% month-over-month move higher in July more than doubling estimates. Initial claims for the week ending August 10 increased by 9,000 to 220,000. Continuing claims for the week ending August 3 moved up to 1.726 million. Nonfarm business sector productivity report confirmed an increase of 2.3% in Q2. Unit labor costs rose 2.4% in Q2. Industrial production was confirmed to have gone down by .2% in July. The total industry capacity utilization rate lowered to 77.5%. The year-o-year growth rate is now .5%. The Empire State Manufacturing Survey for August rose to 4.8. The Philadelphia Fed Index for August came in at 16.8. The NAHB Housing Market Index moved higher to 66.
Day or Short Term Trading We exited VIPS today at $7.10/share after buying it in the low $6/share range yesterday. Exited VRAY at $3.87/share today after buying yesterday at $3.945. Bought BE at $5.06/share and $4.99/share and seeking a swing back up after its recent beat down. Company has a 52-week high of $38/share.
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