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Apple & The Fed’s Inflation Concerns Drive Markets Lower To End Q3 – $AG $ATOS $BIIB $BRQS $FATE $INM $VIX $XLE Rise!

By John F. Heerdink, Jr.
LinkedIn Twitter Disclaimer
Quote of the Day:  “Success seems to be largely a matter of hanging on after others have let go.” – William Feather


Happy Saturday All!

I hope that you all had a great week as we successfully closed out the third quarter of 2022. As for the stock market, it was another overall negative week that saw all major indices slide significantly lower that and confirmed that all three major indexes clocked in their 2nd consecutive monthly loss and 3 straight quarters of declines.  The market continues to be captured by the Fed’s intense efforts to continue to raise interest rates to wage their war on inflation increasing the fears of investors.  In concert, with the the Fed’s nerve racking dance, we are seeing nearly all other countries, except Japan, move to raise their rates as well, even as the world seems to be swiftly heading towards or in a global recession & further unsettling currencies. In the US, the yield curve rose accordingly again this week, as the 2-yr note yield moved up +6 basis points to end at 4.279% & the 10-yr note yield rose by 12 basis points to end at 3.82%. With the Fed’s efforts and now that +7% mortgages are a thing, the housing market is showing increasing signs of weakness and is placing pressure on a vast majority that are invested. Oil prices somewhat behaved and stayed below $80 to end at $79.67/bbl, +1.2% for the week and sits up 5.9% YTD, lower I just filled up my auto today for over $7 a gallon and that this not feel great. The US dollar also jumped around again, but closed slightly lower at $112.17, but still at a distinctive odds with the world’s various currencies. From the corporate world a bleak guidance report from Dow 30 component further disturbed the markets as Nike (NKE) as their shares dropped -14.33% over the last 5-days. Reports also surfaced that Apple has removed its plans to increase iPhone 14 production beyond its current plans as it is believed to be seeing less than expected demand for the new model that became available on September 16, which also did not sit well with investors and it dropped 8.13% over the course of week adding its highly significantly weighted influence.

At the end of the week all major indices dropped significantly for the third consecutive week to end September. The S&P 500 closed at 3,586, below the 3600 support level now, down 2.9% for the week and is now down 24.8% YTD.  10 of the 11 sectors closed in the red this week with only the energy sector rising 1.8% and where the utilities sector took the heaviest hit sinking 8.8%. The Dow closed lower at 28,726 and down 2.9% for the week and is now down 20.9% YTD. The Nasdaq closed at 10,576 and down 2.7% weekly & is now down a ugly 32.4% YTD.  With the overall negative sentiment seen across the major indices, the CBOE Volatility Index (^VIX) closed sharply higher again at $31.62, +5.68% over the last 5-days and now up ~34% over the last 15-days. The small caps on the Russell 2000 showed some relative strength but closed at 1664.72 and down .7% for the week & is now down 25.9% YTD. The MicroCaps also faired relatively well as the iShares Micro-Cap ETF (IWC) closed at $103.39, -.10% over the last 5-days and is now down 26.01% YTD.  

THE MAC REPORTS

On Tuesday, the New home sales report confirmed a 28.8% M/M jump in August to a seasonally adjusted annual rate of 685k units, and on Y/Y basis, new home sales are down .1%. The pop most likely can be explained a way by noting that mortgage rates came run temporarily during August, but as we know they are currently surging so we most likely we will not see a repeat. The balance of reports included the August Durable Orders report that showed a .2% drop.  The July S&P Case-Shiller Home Price Index report was confirmed to be at a lower rate of 16.1%, while the September Consumer Confidence Index report moved higher to 108.

On Wednesday, the Weekly MBA Mortgage Application Index report confirmed a 3.7% decrease. The August Advance report for International Trade in Goods report confirmed a deficit of $87.3B, while the Advance report for Retail Inventories report showed a 1.4% rise. The Advance report for Wholesale Inventories report also confirmed 1.3% move higher. The August Pending Home Sales report showed 2 drop. The Weekly EIA Crude Oil Inventories report confirmed a .215M barrel draw.

On Thursday, the weekly initial jobless claims report confirmed that it dropped to 193k. In turn, investors assumed the worst, which was that it was enough fire power for the Fed to continue on their recent continuous path to raise interest rates and the markets tanked. The Continuing claims report also came in lower at 1.347M. The Q2 GDP Third Estimate report also in flat at .6% decrease . The Q2 GDP Deflator Third Estimate ticked up slightly to 9%. Lastly, the Weekly EIA Natural Gas Inventories report confirmed 103 bcf build the same as last week. 

On Friday, the personal income report confirmed a rise by .3% M/M in August, while personal spending moved up .4% M/M in August. The Final September University of Michigan Consumer Sentiment reading closed in at 58.6 below expectations. The September Chicago PMI dropped apprize. 7pts to 45.7.

BIOTECH AND HEALTHCARE

The Nasdaq Biotechnology ETF (IBB) closed at $116.96, +1.42% over the last 5-days, & is down -23.37% YTD. The NYSE ARCA Biotech Index (^BTK) closed at 4,509.45, +.73% over the last 5-days. The SPDR S&P Biotech ETF (XBI) closed at $79.32, +3.48% over the last 5-days & is now down 29.15% YTD. The 52-week range is is now $61.78-$134.79.

Shares of Biogen (BIIB, $267, +35% over the last 5-days) and a Japanese pharma co. called Eisai rose this week as their potential treatment for Alzheimer’s showed promise as the results from a late-stage study, the infused treatment, lecanemab, confirmed a patient decline by 27% after 18 months.  

EV, TECH, CONSUMER, FINANCIALS


Apple (AAPL) closed at $138.20, -8.13% over the last 5-days. Apple enjoys a 6.82% weighting in the S&P 500. Reports surfaced that Apple has removed its plans to increase iPhone 14 production beyond its current plans as it is believed to be seeing less than expected demand for the new model that became available on September 16. 

On Sept. 7, Apple  introduced Apple Watch® Series 8 and the new Apple Watch SE®, which bring groundbreaking technology and performance, and important safety innovations to the two best-selling smartwatches. Apple Watch Series 8 features the beloved design of Apple Watch, including a large, Always-On Retina® display and a strong crack-resistant front crystal. With all-day 18-hour battery life, Apple Watch Series 8 builds on best-in-class health and safety features like the ECG app and fall detection by introducing temperature-sensing capabilities, retrospective ovulation estimates, Crash Detection, and international roaming. The new Apple Watch SE delivers the core Apple Watch experience, including Activity tracking, high and low heart rate notifications, and Emergency SOS, as well as the new Crash Detection feature and a completely redesigned back case that perfectly matches the three classic case finishes, all at a more affordable price of $249 (US). Both models are powered by watchOS® 9, introducing new and more customizable watch faces like Lunar and Metropolitan, an enhanced Workout app, sleep stages, a first-of-its-kind AFib History feature, and an all-new Medications app. Apple Watch Series 8 and Apple Watch SE are available to order today, with availability beginning Friday, September 16. Jeff Williams, Apple’s chief operating officer “We hear from customers how Apple Watch helps them stay connected with loved ones, be more active, and live healthier lives. Apple Watch Series 8 reinforces our commitment in these areas with the addition of pioneering technology, while Apple Watch SE brings advanced core features at a new starting price. Powered by watchOS 9, the best smartwatches deliver more capabilities than ever before.”

 On Aug. 1, reportedly Apple raised $5.5B by issuing of 4 series of bonds with ratings of AAA from Moody’s Investors Service and AA+ from S&P Global, according to Informa Global Markets.

On July 28th,  Apple announced financial results for its fiscal 2022 third quarter ended June 25, 2022. The Company posted a June quarter revenue record of $83.0 billion, up 2 percent year over year, and quarterly earnings per diluted share of $1.20. Tim Cook, Apple’s CEO stated, “This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers. As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”  Luca Maestri, Apple’s CFO stated, “Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category. During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.” Apple’s board of directors has also declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on August 11, 2022 to shareholders of record as of the close of business on August 8, 2022.

tesla

EV giant Tesla (TSLA) closed at $265.25, -3.66% over the last 5-days after recently splitting their stock 3- 1. The International Energy Agency said 2022 is “expected to see another all-time high for electric vehicle sales, lifting them to 13% of total light duty vehicle sales globally,” as quoted on CNBC.

On Sept. 22, Barron’s reported that a Tesla recall affecting 1,096,762 vehicles showed up on the National Highway Traffic Safety Administration, or NHTSA, website. The recall is for a safety issue. A glitch in the power window operating system.

Reportedly, Elon Musk accused Twitter Inc. (TWTR) of fraud by concealing serious flaws in the social media company’s data security, which the entrepreneur said should allow him to end his $44 billion deal for the company, according to a Thursday court filing.

On Friday September 9th, Elon Musk tweeted, “A major Fed rate hike risks deflation.” Bloomberg also reported that Elon stated that the global economy is “past peak inflation.”

Recently, it was widely reported that Tesla has plans for expanding its Travis County, Texas campus for its brain-computer interface startup Neuralink & a possibly a lithium battery plant.

On September 1, it was reported that Tesla sold 77k China-made cars last month, the China Passenger Car Association (CPCA) said Thursday, a 74% increase over the same period last year. 
 
 
 
Shares of ADT Inc. (ADT), the most trusted brand in smart home and small business security, closed at $7.49, -2.73% over the last 5-days.
 
On Tuesday, Sept 6, ADT and State Farm, the 100-year good neighbor and largest insurer of homes in the U.S. with 13.7 million homeowners policies in force, announced that State Farm will make a $1.2 billion equity investment in ADT, resulting in State Farm owning approximately 15% of ADT after the equity investment and the tender offer (described below) close. Additionally, ADT plans to partner with State Farm, and build upon its existing relationship with Google, with the aim to expand opportunities to combine next-generation security, innovative smart home technology and reimagined risk-mitigation capabilities to monitor, detect, prevent and optimize against homeownership risks. State Farm will commit up to $300 million to fund product and technology innovation, customer growth and marketing. In addition, Google has separately agreed to commit an incremental $150 million, subject to the achievement of certain milestones, to advance opportunities created by this type of innovation, raising its total success fund commitment to $300 million. Jim DeVries, ADT President and CEO stated, “ADT’s partnership with State Farm creates the capability to drive innovation in homeowners insurance on a broad scale. By delivering a truly connected home, together we can improve the customer experience and provide more peace of mind. These new and expanded partnerships represent another bold step forward for our company and provide ADT more avenues to grow our customer base, strengthen brand loyalty and lower customer acquisition costs.”


Shares of JPMorgan (JPM) closed at $104.50, -4.25% over the last 5-days. JPM will host a conference call to review third-quarter 2022 financial results on Friday, October 14, 2022 at 8:30 a.m. (EDT). The results are scheduled to be released at approximately 7:00 a.m. (EDT). The live audio webcast and presentation slides will be available on www.jpmorganchase.com under Investor Relations, Events & Presentations.

On Sept. 20, JPM declared a quarterly dividend of $1.00 per share on the outstanding shares of the common stock of JPMorgan Chase. The dividend is payable on October 31, 2022, to stockholders of record at the close of business on October 6, 2022.



Amazon.com, Inc. (NASDAQ: AMZN) $113, -.69% over the last 5-days.  On September 28, Amazon announced pay increases for its U.S. front-line employees—a nearly $1 billion investment over the next year—along with a new benefit that enables employees to collect their pay at any point during the month. Average starting pay for front-line employees in customer fulfillment and transportation is increasing from $18 per hour to more than $19 per hour, with employees earning between $16 and $26 per hour depending on their position and location in the U.S. The company also announced additional investments in career development programs, building on its commitment to provide free college tuition to hourly employees. This brings the company’s total investment in benefits offered to its team to nearly $10 billion this year alone.

Shares of Microsoft Corp. (MSFT) closed at $232.90, -2.11% over the last 5-days. On September 26, Ontario Power Generation (OPG) and Microsoft announced a Canada-first strategic partnership aimed at tackling climate change and driving sustainable growth across Ontario. The two companies will work together on a series of initiatives that are focused on delivering innovative clean energy solutions and digital skilling programs. Microsoft will procure Clean Energy Credits (CECs) sourced from OPG’s carbon-free hydro and nuclear assets in Ontario on an hourly basis. This will enable Microsoft to advance progress on its 100/100/0 by 2030 goal whereby Microsoft is committed to powering its datacentres globally with carbon-free energy, around the clock

Shares of Salesforce, Inc. (CRM) closed at $143.83, -2.16% over the last five days. On September 21, Salesforce announced the appointment of Robin Washington as Lead Independent Director of the Company’s Board of Directors, effective September 15, 2022. Washington, who also chairs the Board’s Audit Committee, succeeds Sanford Robertson, who will continue to serve as a Director and Chair of the Nominating and Corporate Governance Committee.

Shares of NVIDIA (NVDA), a pioneer in accelerated computing, closed at $121.39, -3.01% over the last 5-days. On Sept, 20, NVIDIA announced the second generation of NVIDIA OVX™, powered by the NVIDIA Ada Lovelace GPU architecture and enhanced networking technology, to deliver groundbreaking real-time graphics, AI and digital twin simulation capabilities. The new NVIDIA OVX systems are designed to build 3D virtual worlds using leading 3D software applications and to operate immersive digital twin simulations in NVIDIA Omniverse™ Enterprise — a scalable, end-to-end platform enabling enterprises to build and operate metaverse applications.

Cathie Wood’s ARK Innovation ETF (ARKK) closed at $37.73, -.26% over the last 5-days. 

The Technology Select Sector SPDR Fund (XLK) closed at $118.78, -4.01% over the last 5-days.


Walt Disney Company (DIS) closed at $94.33, -5.20% over the last 5-days. On September 30, Disney reached a deal with activist investor Dan Loeb’s Third Point, which included adding former Meta executive Carolyn Everson to the board of directors.
The deal comes weeks after Third Point took a new stake in Disney valued at about $1 billion, or 0.4% of the company, and urged the media company to spin out its sports property, ESPN.  Carolyn Everson, a veteran media and technology executive, will join its Board of Directors, effective November 21. Ms. Everson, 50, a well-respected executive with deep experience in consumer-facing companies, will be included in the Company’s slate of director nominees in the proxy statement for Disney’s 2023 Annual Meeting of Shareholders. Ms. Everson most recently served as President of Instacart. Prior to that role, she was Vice President of the Global Business Group at Facebook, now known as Meta, where she led the global marketing solutions team focused on top strategic accounts and global agencies, as well as media strategy, advertising sales, and account management from 2011-2021.

Shares of McDonald’s (MCD) closed at $230.74, -6.18% over the last 5-days. On September 14, McDonald’s Corporation is announcing the establishment of a new facility, Speedee Labs, which will be focused on driving the customer experience and supporting restaurant teams through innovation, at its global headquarters (MHQ) located at 110 N. Carpenter Street in Chicago’s West Loop neighborhood. An example of McDonald’s commitment to the city of Chicago, this new facility will bring teams from McDonald’s corporate office and the existing Innovation Center (IC) in Romeoville, IL together in a new innovative environment creating more opportunities for collaboration and end-to-end development of restaurant solutions and technologies. Introduced in 1948, McDonald’s Speedee Service System revolutionized the way a restaurant could operate. New kitchen processes streamlined crew responsibilities, making it easier than ever to serve customers efficiently. Now, through Speedee Labs, McDonald’s will continue to define tomorrow’s restaurant solutions.


GOLD & SILVER

Gold prices closed at $1,665/oz., +$18/oz. & silver prices closed at $19.05/oz., +$.13/oz. for the week.

Hecla Mining (HL) closed at $3.94, +8.54% over the last 5-days & First Majestic (AG) closed at $7.62, +13.22% over the last 5-days. 

On Sept. 7,  Hecla Mining Company and Alexco Resource Corp. (NYSE American:AXU; TSX:AXU) announced that the Alexco acquisition has been completed.


MEMES CENTRAL

AMC Entertainment (AMC) closed at $6.97, -12.77% over the last 5-days. On Aug. 25, Fathom Events, owned by AMC Entertainment Inc. (NYSE: AMC); Cinemark Holdings, Inc. (NYSE: CNK); and Regal, a subsidiary of the Cineworld Group (LSE: CINE.L) and Sonovision announced the release of the new documentary film SAINT MICHAEL: MEET THE ANGEL in theaters for one-night-only on Thursday, September 29.  On August 4, AMC Entertainment reported results for the second quarter ended June 30, 2022.  Total revenues grew to $1,166.4 million compared to $444.7 million for the second quarter of 2021.

GameStop (GME) closed at $25.13, +.36% over the last 5-days. On Sept 7th, GameStop released financial results for the second quarter ended July 30, 2022. Net sales were $1.136 billion for the quarter, compared to $1.183 billion in the prior year’s second quarter. Sales attributable to collectibles, which is a segment the Company intends to grow over the long-term, were $223.2 million for the quarter, compared to $177.2 million in the prior year’s second quarter. Selling, general and administrative expenses were $387.5 million for the quarter, representing a sequential decline of 14.3% from the first quarter of 2022 and reflecting, in part, the Company’s focus on right-sizing costs following a period of significant investment in long-term initiatives. After the close today, September 7, GameStop Corp. also announced that it has entered into a partnership with FTX US (“FTX”). The partnership is intended to introduce more GameStop customers to FTX’s community and its marketplaces for digital assets. In addition to collaborating with FTX on new ecommerce and online marketing initiatives, GameStop will begin carrying FTX gift cards in select stores. During the term of the partnership, GameStop will be FTX’s preferred retail partner in the United States. The financial terms of the partnership are not being disclosed.

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) closed at $.4728, -12.44% over the last 5-days. On Aug. 4, Seanergy Maritime Reported Record Financial Results for the Second Quarter and Six Months Ended June 30, 2022 and declare a dividend of $0.025 Per Share.


CRYPTO & BITCOIN

Bitcoin (BTC) closed at $19,416.68, +1.01% over the last 5-days. 

ENERGY

The Energy Select Sector SPDR Fund or ETF (XLE) closed at $72.02,+2.19% over the last 5-days. Chevron (CVX) closed at $143.67, -.76% over the last 5-days.

Oil prices closed on Friday to end at $77.90/bbl.


NEXT WEEK



On Monday the stock market will be closed to observe Labor Day in the US and then we will have 4 normal trading days thereafter.

VP WATCHLIST UPDATES

Please review our complete VP Watchlist that includes Apple (AAPL), Disney (DIS), Tesla (TSLA) & a select group of emerging names.  The pages will allow you to learn more and keep up with these companies daily.

For now, please see the summaries  from the VP Watchlist below:

  • Shares of Natural-Killer cell (NKcell) focused biopharmaceutical firm Fate Therapeutics (FATE) closed at $22.41, +2% over the last 5-days. 
    • On Aug. 8, Fate Therapeutics announced the publication of preclinical study results demonstrating the successful generation, durable anti-tumor response, and functional persistence of TCR-CAR+ iPSC-derived CD8αβ T cells from induced pluripotent stem cells (iPSCs). The CD8αβ T cells were derived from a single engineered iPSC integrating a novel chimeric antigen receptor (CAR) transgene into the T-cell receptor alpha constant (TRAC) locus, ensuring complete bi-allelic disruption of T-cell receptor (TCR) expression and promoting uniform CAR expression. The discoveries were made under a multi-year research collaboration between the Company and Memorial Sloan Kettering Cancer Center (MSK) led by Michel Sadelain, M.D., Ph.D., Director, Center for Cell Engineering and Head, Gene Expression and Gene Transfer Laboratory, and were published this week in Nature Biomedical Engineering.
    • After the market closed on August 3, Fate released its business highlights and financial results for the second quarter ended June 30, 2022. Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics stated,  “We continue to make important strides across our clinical, regulatory, and manufacturing operations to support pivotal readiness of our iPSC-derived NK cell product candidates for B-cell lymphoma, and are looking forward to meeting with the FDA in the third quarter to discuss registrational pathways for the treatment of relapsed / refractory aggressive lymphomas, including for patients that have previously failed CD19-targeted CAR T-cell therapy. We are also excited that clinical investigation of FT536 has initiated to assess the targeting of oncogenic and cellular stress ligands, a novel pan-tumor-targeting strategy with the potential to overcome common mechanisms of tumor escape that frequently emerge in patients with advanced solid tumors. Finally, we continue to drive our collaborations with Janssen and Ono with strong momentum, and are well positioned to achieve significant milestones and advance three multiplexed-engineered, CAR-targeted cell collaboration candidates into clinical development over the next 12 months.”
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  • Shares of Atossa Therapeutics, Inc. (Nasdaq: ATOS), 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, closed at $.8333, +1.62% over the last 5-days.
    • Atossa Therapeutics’ Kyle Guse, General Counsel & Chief Financial Officer attended the 24th Annual H.C. Wainwright Global Investment Conference that was  held on September 12 – 14, 2022 at the Lotte New York Palace.  
 
 
On Aug. 25th, Atossa’s CEO, Dr. Steven Quay, M.D., Ph.D., and Kyle Guse, GC & CFO presented at Tribe Public’s Webinar Presentation and Q&A Event. During this complimentary event, Atossa management spoke of new opportunities for its inhalation therapy, AT-H201, to potentially treat lung injury caused by cancer treatment and were available for a Q&A session focused on Atossa’s research programs and future development. To watch the event video titled “The Important Role For Inhalation Therapy In Oncology” please visit the Tribe Public YouTube Channel. 
    • On Aug. 8, Atossa announced their financial results for the fiscal quarter ended June 30, 2022, and provided an update on recent company developments. Dr. Steven Quay, Atossa’s President and Chief Executive Officer stated, “We continue to make steady progress with our Endoxifen programs: one to reduce tumor cell activity in breast cancer patients in the neoadjuvant setting; and another to reduce dense breast tissue in women. Our work on AT-H201 demonstrated valuable outcomes, not the least of which was an understanding of how to pursue its development in the field of oncology. With the widespread availability of SARS-CoV-2 vaccines and other therapies now approved to treat COVID-19, we believe that altering the development pathways for AT-H201 in cancer patients with compromised lung-function resulting from radiation treatment may fill a compelling unmet medical need and create additional value for our stockholders. Lung injury caused by radiation treatment affects 30-40% of lung cancer patients, and ~35% of esophageal cancer patients. In non-small cell cancer patients receiving concurrent chemotherapy and radiation therapy the incidence of lung injury is estimated to be greater than 60%. As we previously announced, rather than proceeding with Part D of the AT-H201 study in COVID-19 patients, we plan to quickly initiate a clinical study of patients with compromised lung function caused by radiation treatment and we anticipate announcing next steps in the coming months.”
    • July 28, Atossa announced it has completed dosing participants in Part C of its Phase 1/2a clinical study of its proprietary inhalation therapy (or, AT-H201) in Australia. AT-H201 consists of two drugs previously approved by the FDA to treat other diseases. AT-H201 is intended to be inhaled via nebulizer with the goal of preventing or reducing lung injury that may be caused by fibrin deposition, fluid build-up and secondary infection. Part C of the study involved administering the two drugs in succession in healthy volunteers. The study originally included a Part D which was designed to assess the effects of the treatment regimen in hospitalized COVID-19 patients with moderate illness. However, due to the rapidly shifting COVID-19 treatment landscape and the introduction of effective vaccines limiting hospitalizations, Atossa has evaluated indications for AT-H201 beyond COVID-19 patients, including treating and/or preventing lung injury in patients undergoing certain cancer treatments. Rather than conducting Part D of the Phase 1/2a clinical study, Atossa now plans to shift the development of AT-H201 to closely align with its oncology focus by continuing the development in patients with compromised lung-function due to the damaging effects of cancer treatment. For example, radiation treatment can lead to radiation induced lung injury, which is poorly treated with current therapies and is often irreversible. Furthermore, radiation damage can limit the overall success of lung cancer treatment leading to a reduction in efficacy and poor disease control. AT-H201 has pharmacological properties to potentially curtail excessive radiation-induced lung injury without compromising standard of care cancer therapy for cancer patients. AT-H201 is designed to prevent and reduce dose-limiting toxicities, and enable a more durable therapeutic tumor response for cancer patients receiving pulmonary radiation. Steven Quay, M.D., Ph.D., CEO and President of Atossa stated, “We are happy to have completed Parts A, B and C of the clinical trial and look forward to evaluating the results. With widespread availability of SARS-CoV-2 vaccines and other therapies now approved to treat COVID-19, we believe that altering the development pathways for AT-H201 in patients with compromised lung-function resulting from radiation may fill a compelling unmet medical need and create more value for our stockholders. Based on our work to date with AT-H201, we believe we can quickly initiate a clinical study in this setting and we plan to announce our next steps in the fourth quarter.”
    • On July 28,  Jason McCarthy Ph.D., a biotech analyst at the Maxim Group, put out a note reconfirming his BUY rating and a $4 target price on Atossa.
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  • Shares INVO Bioscience (NASDAQ: INVO), 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, closed at $1.06/share, but has traded up to $1.12, +5.66% in the aftermarkets. The 52-wk range is $.63 – $4.28.
    • On Aug. 25th, INVO Bioscience announced that Advanced Reproductive Centre, Hospital Canselor Tuanku Muhriz (HCTM), formally known as Hospital Universiti Kebangsaan Malaysia (HUKM), based in Kuala Lumpur, Malaysia, is making IVC available for their patients. The move follows the successful completion of the first IVC case in the country recently with data presented at the Obstetrical and Gynecological Society of Malaysia (“OGSM”) where it was awarded a prize as a new and innovative fertility treatment. A signing ceremony announcing the launch of IVC was witnessed by the Minister of Science and Innovation and Deputy Secretary General. HCTM, one of the five university hospitals in Malaysia, is currently the highest volume fertility center in the country. Steve Shum, CEO of INVO Bioscience, commented, “We are excited that INVOcell will officially be commercialized at HCTM in Kuala Lumpur following the successful presentation of data at OGSM and government support by the Minister of Science and Innovation and Deputy Secretary General. HCTM will start offering IVC both in their public and private sectors with an expectation to complete a number of cycles by the end of 2022. We are also working with partners in Malaysia to open up an INVO Centers in their existing practice as we strive to bring our innovative advanced fertility treatment to the people of Malaysia.”
    • INVO Bioscience reported financial results for its second quarter 2022, ended June 30, 2022, after the market close on Monday, August 15, 2022.  INVO highlighted the following progress: Existing INVO Centers experienced a 20% increase in patient inquiries and consultations compared to the first quarter of 2022, as key activities continue to build, Progressing toward planned openings of additional INVO Centers in Tampa, Florida, Kansas City, Kansas, and the San Francisco Bay Area, In May 2022, signed an exclusive distribution agreement with Onesky Holdings Limited (“Onesky”) for mainland China (excludes Hong Kong, Macau and Taiwan). Onesky will be responsible for registering the product in the country, and upon government approval, will be obligated to purchase minimum quantities of INVOcell totaling approximately $14 million over the subsequent five-year term, & increased U.S.-based expansion opportunities post-Ferring, including both greenfield INVO Centers and potential acquisitions of established fertility clinics.



  • Shares of InMed Pharmaceuticals, Inc. (NASDAQ: INM), a leading clinical-stage pharmaceutical company developing cannabinoid-based drug candidates for high unmet medical needs and IntegraSyn, a proprietary and cost effective manufacturing approach for synthesized rare cannabinoids, closed at $6.59/share, +18.38% over the last 5-days.  Please visit the INM page at our website to learn more and check out the videos section too. 

    • After the close, September 13, InMed announced the closing of its previously announced private placement with two healthcare-focused institutional investors for the issuance and sale of 691,245 of its common shares at a purchase price of $8.68 per share (or pre-funded warrant in lieu thereof) priced at-the-market under Nasdaq rules. In addition, the Company has issued to the investors in the offering unregistered preferred investment options to purchase up to an aggregate of 1,382,490 common shares.The aggregate gross proceeds to the Company from the private placement were approximately $6 million. The Company intends to use the net proceeds from the offering to continue pipeline development of its pharmaceutical drug candidates, advance manufacturing know-how of cannabinoids and cannabinoid analogs, support intellectual property development and other commercial activities, and for general working capital purposes. H.C. Wainwright & Co. acted as the exclusive placement agent for the offering. The unregistered investment options issued in the offering are exercisable immediately upon issuance at an exercise price of $8.44 per share and will expire seven years from the date of issuance. In addition, an investor in the private placement agreed to cancel preferred investment options to purchase up to an aggregate of 412,331 common shares of the Company which were previously issued to the investor.

    • On Sept. 8, InMed announces an update on its research/development and commercial activities. Eric A. Adams, InMed CEO, stated, “The Company continues to execute on its research and development (“R&D”) plans to complete enrollment in a Phase 2 clinical program in epidermolysis bullosa (“EB”) by calendar year end, to continue to advance a preclinical drug candidate in ocular disease and to investigate the utility of proprietary cannabinoid analogs in targeting specific diseases. We remain enthusiastic with the potential of the proprietary cannabinoid analog program that resulted in part from our acquisition of BayMedica, LLC (“BayMedica”) in October 2021. However, despite the significant efforts by the commercial team at BayMedica, the market demand for the BayMedica naturally-occurring cannabinoids in the Health & Wellness (“H&W”) sector is not progressing as anticipated.” READ MORE. 
    • On Aug. 9, InMed announced the appointment of Nicole Lemerond to its Board of Directors, effective immediately. Nicole Lemerond is a financial executive with over 25 years of experience in investment management, private equity, investment banking and leveraged finance. She has significant experience executing complex transactions, managing diligence processes, raising capital and structuring balance sheets. Throughout her career, Ms. Lemerond has worked with public and private company management teams and boards to increase stakeholder value. She established and led healthcare groups at leading investment firms and has also worked at several large financial institutions, including Lehman Brothers and The Carlyle Group. Ms. Lemerond holds a Bachelor of Science degree from Cornell University and is a CFA charterholder. Contemporaneous with Ms. Lemerond’s appointment, Adam Cutler has decided to transition off the Board of Directors. Mr. Cutler has served on the Board since 2015, during which time his financial and healthcare expertise has been instrumental in advancing the strategic initiatives of the Company. Over the years, Mr. Cutler has served as Chair of the Audit Committee as well as a member Governance and Nomination Committee. Ms. Lemerond will replace Mr. Cutler as a member of the Audit Committee and as a member of the Governance and Nomination Committee.
    • On July 18, InMed announced Michael Woudenberg has been appointed Chief Operating Officer of the Company, overseeing all day-to-day operations. Mr. Woudenberg was previously Senior Vice President of Chemistry, Manufacturing and Controls. Mike has been an integral part of the executive team for the last four years, supporting multiple functions within the organisation. Prior to joining InMed, Mike had over 20 years of successful drug development, process engineering, GMP manufacturing and general management experience at all levels of various companies. Mike’s intimate knowledge of the Company’s operations and extensive leadership experience make him an ideal candidate to oversee operations and support the long-term strategic growth of the Company. He will continue to report to Eric A. Adams, InMed President and CEO.


Shares of Chinook Therapeutics, Inc. (KDNY), a biopharmaceutical company focused on the discovery, development and commercialization of precision medicines for kidney diseases, closed at $19.66, +3.53% over the last 5-days. 

On Aug. 8, Chinook provided a business update and reported financial results for the quarter and six months ended June 30, 2022. “During the second quarter of 2022, we executed well on advancing our pipeline of clinical and preclinical programs for rare, severe chronic kidney diseases. We continue to ramp up enrollment of patients in the phase 3 ALIGN trial for atrasentan, and the data we presented at ERA from the ongoing phase 2 AFFINITY trial of atrasentan demonstrated consistent and clinically meaningful proteinuria reductions in patients with IgAN,” said Eric Dobmeier, president and chief executive officer of Chinook Therapeutics. “For BION-1301, the additional data presented at ERA from the ongoing phase 1/2 trial reaffirms its disease-modifying potential in IgAN by demonstrating durable reductions in mechanistic biomarkers and corresponding impressive proteinuria reductions. We look forward to advancing BION-1301 into a phase 3 study for patients with IgAN in 2023. We are also continuing to make progress with dose escalation in the ongoing phase 1 trial of CHK-336 in healthy volunteers and expect to report data in the first half of 2023.”



Borqs Technologies, Inc. (Nasdaq: BRQS, $.7193, up +12.39% over the last 5-days), a global provider of 5G wireless solutions, Internet of Things (IoT) solutions, and innovative clean energy, recently provided the following updates on the Company.

  • On Sept 20, Borqs announced its solar energy storage subsidiary, Holu Hou Energy LLC (HHE), a company that offers state-of-the-art renewable energy and energy storage systems to the Single-Family Residential, Multi-Dwelling Unit Residential and Commercial building markets, has signed a power purchase agreement (PPA) with Kapolei Diversified Properties, LLC to deliver energy to Luhauola, a new mixed-use development in Kapolei, on the island of Oahu, Hawaii. The property includes 10,000 square feet of commercial space, plus outdoor dining for local food establishments. The residential portion of the property includes 29 workforce housing rental apartments. U.S. Energy Information Administration data shows oil generated about two-thirds of Hawaii’s electricity in 2021. That makes Hawaii the most petroleum-dependent state.

    • Holu Hou Energy will construct the Solar + Energy Storage system utilizing its market leading HoluPower Residential Energy Storage System, combined with the Residential and Commercial scale solar generation. The contract is valued at several million dollars and includes 200KW of PV and 500KWh of energy storage. The system will be placed into service in 2023.

      “Our products and services are improving the lives of customers every day by delivering cheaper, cleaner and more reliable electricity, including to those living in Multi-Dwelling Unit residential housing,” stated Brad Hansen, CEO of Holu Hou Energy. “We look forward to building on our Hawaii leadership position and bringing this same energy independence to markets like California in the near future. The cost of utility electricity in Hawaii has risen by about 60% over the last 18-months, with residential rates being at a historical high of around $0.50/kWh. Reliance on fuel oil for a significant part of Hawaii’s power generation means that these unprecedented rates are not likely to abate soon. HHE brings the most safe and productive solar and energy storage solutions to customers, including to those in income brackets not historically able to have their energy needs met by renewables.”


  • On July 15, Borqs Technologies announced that its majority owned solar energy storage systems subsidiary, Holu Hou Energy LLC (“HHE”), has signed agreement with Honokea Villages to deliver a major renewable energy generation and storage system to Honokea’s planned ecological sports training and Hawaiian Cultural facility in their “ahupua’a”, or local community. The development will have Olympic calibre training facilities for surfing, sport climbing, kayaking, beach volleyball, and more, and will serve as tool to celebrate athletics in Hawaii. The renewable energy system will feature over 3 MW of PV generation and over 4 MWh of energy storage, enough to power 100% of the operations of the facility, and will be financed under a 20-year power purchase agreement, or PPA. The system provided by HHE will begin construction in 2023 and its value is estimated at nearly $20M. This project is included in the $49.8 million of Q2 2022 signed contracts announced earlier this month. Honokea Villages was co-founded by Brian Keaulana in 2011 to address the need for Hawaiian Surf Culture to be incorporated into, what was at the time, the fledgling surf park industry. Now 11 years later there are 100+ surf parks being planned around the world with names like Kelly Slater and in places as foreign as Switzerland. “Honokea aims to ensure Hawaiian Culture is incorporated into every aspect of the planning of the family destination: excellence in sports, sustainability, arts and culture. It’s a place for the whole family that’s truly designed to benefit our community in as many ways as possible especially on our side of the island,” says Keaulana.
  • HHE is a premier provider of an energy storage system that is engineered to provide a new level of resilience to homeowner, multi-dwelling units and businesses, giving energy security in uncertain and unstable times. The Holu system is completely integrated, meaning engineered and tested from the start, at the system level. Other suppliers piece together components made by multiple vendors in unknown factories with unknown work conditions, causing the customer to have questionable reliability, safety and performance when all the disparate pieces are put together. Our energy storage system is certified and warrantied as an integrated product, including our breakthrough “modular energy controller”, so you get resilience, safety and performance you can count on day in and day out, and you get “cloud-based” upgrades and performance enhancements based upon the rate structures you reside in.



Thanks again for your attention this week. Please continue to share your thoughts, questions, & ideas as we move forward. 

In the meantime, please enjoy the balance of the weekly newsletter’s videos, quotes, updates and let’s find ways to crush it again this year!

Investing & Inspiration

  1. “Success seems to be largely a matter of hanging on after others have let go.” – William Feather

  2. “The essential conditions of everything you do must be choice, love, passion.” – Nadia Boulanger

  3. “More business is lost every year through neglect than through any other cause.” – Rose Kennedy

  4. “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.” – Archimedes

  5. “A person who won’t read has no advantage over one who can’t read.” – Mark Twain

  6. “The best way out is always through.” – Robert Frost

  7. “Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.” – Francis of Assisi

  8. “Without labor nothing prospers.” – Sophocles

  9. “Intellectuals solve problems, geniuses prevent them.” – Albert Einstein

  10. “This is the precept by which I have lived: Prepare for the worst; expect the best; and take what comes.” – Hannah Arendt

  11. “The best and most beautiful things in the world cannot be seen or even touched – they must be felt with the heart.” – Helen Keller

  12. “He who is brave is free.” – Lucius Annaeus Seneca

  13. “When something is important enough, you do it even if the odds are not in your favor.” – Elon Musk

  14. “I choose a block of marble and chop off whatever I don’t need.” – Auguste Rodin

  15. “Hope is the only bee that makes honey without flowers.” – Robert Green Ingersoll

  16. “He who knows that enough is enough will always have enough.” – Lao Tzu

  17. “Plans to protect air and water, wilderness and wildlife are in fact plans to protect man.” – Stewart Udall

  18. “In order to carry a positive action we must develop here a positive vision.” – Dalai Lama

  19. “A hero is someone who understands the responsibility that comes with his freedom.” – Bob Dylan
  20. “Inflation destroys savings, impedes planning, and discourages investment. That means less productivity and a lower standard of living.” – Kevin Brady
  21. “If we give something positive to others, it will return to us. If we give negative, that negativity will be returned.” – Allu Arjun
  22. “A good plan violently executed now is better than a perfect plan executed next week.” ~ George S. Patton
  23. “You must do the things you think you cannot do.”- Eleanor Roosevelt
  24. “Success is dependent on effort.” – Sophocles
  25. “Nobody who ever gave his best regretted it.” – George Halas
  26. “Lots of people want to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down.” ~ Oprah Winfrey
  27. “And when I breathed, my breath was lightning.” – Black Elk
  28. “Moderation is the silken string running through the pearl chain of all virtues.” – Joseph Hall
  29. “You are the sum total of everything you’ve ever seen, heard, eaten, smelled, been told, forgot – it’s all there. Everything influences each of us, and because of that I try to make sure that my experiences are positive.” – Maya Angelou
  30. “If you want a guarantee, buy a toaster.” – Clint Eastwood
  31. “We are an impossibility in an impossible universe.” – Ray Bradbury
  32. “If you think in terms of a year, plant a seed; if in terms of ten years, plant trees; if in terms of 100 years, teach the people.” – Confucius
  33. “I’d rather attempt to do something great and fail than to attempt to do nothing and succeed.” – Robert H. Schuller
  34. “Do your little bit of good where you are; it’s those little bits of good put together that overwhelm the world.” Desmond Tutu
  35. “It takes considerable knowledge just to realize the extent of your own ignorance.” – Thomas Sowell
  36. “Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.” – Buddha”
  37. Surprise is the greatest gift which life can grant us.” –  Boris Pasternak
  38. “Trust in dreams, for in them is hidden the gate to eternity.” – Khalil Gibran 
  39. “Always be yourself, express yourself, have faith in yourself, do not go out and look for a successful personality and duplicate it.” – Bruce Lee
  40. “All life is an experiment. The more experiments you make the better.” – Ralph Waldo Emerson
  41. “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” –  Colin Powell
  42. “There is more to life than increasing its speed.” – Mahatma Gandhi
  43. “Your attitude is like a box of crayons that color your world. Constantly color your picture gray, and your picture will always be bleak. Try adding some bright colors to the picture by including humor, and your picture begins to lighten up.” – Allen Klein
  44. “Definiteness of purpose is the starting point of all achievement.” – W. Clement Stone
  45. “Success usually comes to those who are too busy to be looking for it.” – Henry David Thoreau
  46. “In matters of truth and justice, there is no difference between large and small problems, for issues concerning the treatment of people are all the same.” – Albert Einstein
  47. “Life is too short for long-term grudges.” – Elon Musk
  48. “There cannot be a crisis next week. My schedule is already full.” – Henry Kissinger
  49. “Success consists of getting up just one more time than you fall.” – Oliver Goldsmith
  50. “The Earth is the cradle of humanity, but mankind cannot stay in the cradle forever.” – Konstantin Tsiolkovsky
  51. “Ours is a world of nuclear giants and ethical infants. We know more about war that we know about peace, more about killing that we know about living.” – Omar N. Bradley
  52. “Beauty surrounds us, but usually we need to be walking in a garden to know it.” – Rumi
  53. “But man is not made for defeat. A man can be destroyed but not defeated.” – Ernest Hemingway
  54. “Don’t watch the clock; do what it does. Keep going.” – Sam Levenson
  55. “Let there be work, bread, water and salt for all.” – Nelson Mandela
  56. “The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelope our future.” – John Maynard Keynes
  57. “A successful society is characterized by a rising living standard for its population, increasing investment in factories and basic infrastructure, and the generation of additional surplus, which is invested in generating new discoveries in science and technology.” – Robert Trout
  58. “I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.” – Albert Einstein
  59. “It is the fight alone that pleases us, not the victory.” – Blaise Pascal
  60. “If you can’t describe what you are doing as a process, you don’t know what you’re doing.” – W. Edwards Deming
  61. “Never interrupt your enemy when he is making a mistake.” – Napoleon Bonaparte
  62. “Be sure you put your feet in the right place, then stand firm.” – Abraham Lincoln
  63. “Without investment there will not be growth, and without growth there will not be employment.” – Muhtar Kent
  64. “You have to do your own growing no matter how tall your grandfather was.” – Abraham Lincoln
  65. “Victory has a thousand fathers, but defeat is an orphan.” – John F. Kennedy
  66. “Delete the negative; accentuate the positive!” – Donna Karan
  67. “It’s crazy how fast time flies and how things progress.” – Nathan Chen
  68. “The world is a dangerous place to live; not because of the people who are evil, but because of the people who don’t do anything about it.” – Albert Einstein
  69. “Life isn’t about finding yourself. Life is about creating yourself.” – George Bernard Shaw
  70. “Everything has beauty, but not everyone sees it.” – Confucius
  71. “A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them.” – John C. Maxwell
  72. “Walking with a friend in the dark is better than walking alone in the light.” – Helen Keller
  73. “A man who dares to waste one hour of time has not discovered the value of life.” – Charles Darwin
  74. “The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.” – Michelangelo
  75. “Progress is man’s ability to complicate simplicity.” – Thor Heyerdahl
  76. “I like to encourage people to realize that any action is a good action if it’s proactive and there is positive intent behind it.” – Michael J. Fox
  77. “Nothing is impossible, the word itself says ‘I’m possible’!” – Audrey Hepburn
  78. “But investment in space stimulates society, it stimulates it economically, it stimulates it intellectually, and it gives us all passion.” – Bill Nye
  79. “Bitcoin, in the short or even long term, may turn out be a good investment in the same way that anything that is rare can be considered valuable. Like baseball cards. Or a Picasso.” – Andrew Ross Sorkin
  80. “Life is a tragedy when seen in close-up, but a comedy in long-shot.” – Charlie Chaplin
  81. “No matter what you’re going through, there’s a light at the end of the tunnel and it may seem hard to get to it but you can do it and just keep working towards it and you’ll find the positive side of things.” – Demi Lovato
  82. “Infrastructure investment in science is an investment in jobs, in health, in economic growth and environmental solutions.” – Oren Etzioni
  83. “Educating our children and giving them the skills they need to compete in a global economy is a smart investment in our country’s future.” – Sheldon Whitehouse
  84. “Know thy self, know thy enemy. A thousand battles, a thousand victories.” – Sun Tzu
  85. “If one does not know to which port one is sailing, no wind is favorable.” – Lucius Annaeus Seneca
  86. “Beware of missing chances; otherwise it may be altogether too late some day.” – Franz Liszt
  87. “The sofa is a really important investment for anybody, and I don’t mean financially. You need to find a really great sofa that can transition with you, and you can build from there.” – Jeremiah Brent
  88. “There is no investment you can make which will pay you so well as the effort to scatter sunshine and good cheer through your establishment.” – Orison Swett Marden
  89. “Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.” – Marie Curie
  90. “There is little that can withstand a man who can conquer himself.” – Louis XIV
  91. “In tennis, you strike a ball just after the rebound for the fastest return. It’s the same with investment.” – Masayoshi Son
  92. “A camel makes an elephant feel like a jet plane.” – Jackie Kennedy
  93. “The advance of technology is based on making it fit in so that you don’t really even notice it, so it’s part of everyday life.” – Bill Gates
  94. “Success depends upon previous preparation, and without such preparation there is sure to be failure.” – Confucius, Chinese 
  95. “Coming together is a beginning; keeping together is progress; working together is success.” – Edward Everett Hale
  96. “Never do anything against conscience even if the state demands it.”– Albert Einstein
  97. “Education is not only a ladder of opportunity, but it is also an investment in our future.” – Ed Markey
  98. “The true measure of a man is how he treats someone who can do him absolutely no good.” – Samuel Johnson
  99. “In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital. Not only is the mere drop in stock prices not risk, but it is an opportunity. Where else do you look for cheap stocks?” – Li Lu
  100. “A successful society is characterized by a rising living standard for its population, increasing investment in factories and basic infrastructure, and the generation of additional surplus, which is invested in generating new discoveries in science and technology.” – Robert Trout
  101. “The best preparation for tomorrow is doing your best today.” – H. Jackson Brown, Jr.
  102. “Friendship marks a life even more deeply than love. Love risks degenerating into obsession, friendship is never anything but sharing.” – Elie Wiesel
  103. “Investing in women’s lives is an investment in sustainable development, in human rights, in future generations – and consequently in our own long-term national interests.” – Liya Kebede
  104. “Success isn’t measured by money or power or social rank. Success is measured by your discipline and inner peace.” – Mike Ditka
  105. “No matter how many goals you have achieved, you must set your sights on a higher one.” – Jessica Savitch 
  106. “Start where you are. Use what you have. Do what you can.”– Arthur Ashe
  107. “The secret of getting ahead is getting started.” – Mark Twain
  108. “The amount of work and the amount of both physical and emotional investment it takes to get to the top.” – Drew Bledsoe

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