Fluidigm soars 25% on COVID-19 FDA approval – here’s what you need to know

Fluidigm Corporation (NASDAQ: FLDM) just became a bull-market magnet as its COVID-19 saliva kit received FDA approval. Optimism is high in pre-market trading as some bullish investors believe this is news to send FLDM soaring. However, the bears are screaming that a pump and dump is coming at the bell. The division in sentiment causes many investors to be in a tug of war between FOMO and shorting. Today’s article will provide our readers with a breakdown on whether the COVID-19 rising star is bearish or bullish.

Table of contents
1. Breakdown of the FDA approval 
2. Everything you need to know before Investing

What does Fluidigm’s COVID-19 FDA approval mean?

The FDA is continuously looking to simplify the testing process during COVID-19. Fluidigm’s tick of approval represents just that, the FDA endorsing a more simplified testing approach. FLDM’s COVID-19 test (Advanta Dx SARS-CoV-2 RT-PCR Assay) is saliva-based, which means it does not require collection via invasive nasopharyngeal swab. However, coronavirus-saliva testing is nothing new, but what is unique is Fluidigm’s production technology. Because, Fluidigm is using an ultrahigh-throughput testing capability system, that eliminates the expense and complexity of extraction.To put the throughput testing capability system’s benefit into perspective FLDM could produce 6000 tests per day per system.

Fluidigm’s ability to simply COVID-19 testing is significant. Because the current testing methods are invasive, time-consuming, and are only relatively effective in responding to COVID-19 hotspots. Hence, FLDM’s saliva test could become an effective method to neutralise COVID-19 hotspots and, thus stave off the lockdowns. Also, investors and society are in vaccine and treatment limbo-land. Thus, FLDM’s FDA approval paints an optimistic view for COVID-19 testing and bullish investors.

Here is what you need to know before investing in Fluidigm

Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research

COVID-19 false hope theory

It is common to hear a COVID-19 stock go to the moon overnight only to return to Earth within the next few days. The rollercoaster can be brutal for some investors. The promise of unrealistic gains reels them in, but then the sell-off from the people who pushed the bullish narrative leave some investors burnt. While the COVID-19 false hope theory is more common in penny stocks,  it does not mean Fluidigm is immune. However, Fluidigm differs slightly from your typical COVID-19 stock. Because its meteoric 600% rise is over 6 months and follows a linear progression. Suggesting FLDM is a COVID-19 stock that is transforming from a speculation to a possible coronavirus play.

While the six month chart shows organic growth, Fluidigm’s short-term price action is more volatile. Today’s insurgence of the raging bulls should increase volatility. In turn, people investing in FLDM at the bell are more exposed to a potential sell-off. Overall, Fluidigm does not appear to be a loose end when looking at the general trend but could exhibit signs of the false hope theory days after massive market news.

Institutional weighting – good or bad?

Institutions own 74.9% of Fluidigm shares. Essentially, that means the analysts did their due diligence and thought FLDM was worth investing in. Significant institutional ownership is a strong bullish sign for rising COVID-19 stocks as analyst ratings often drive retail investor sentiment. However, if the FLDM hype fizzles out, we could see a majority of the FLDM institutions take their profit bags and leave. Overall, notable institutional ownership on the share registry is a positive sign for now.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG

Johnson & Johnson set to acquire Momenta Pharmaceuticals – here’s what investors need to know

Johnson & Johnson announced this morning that they have entered a “definitive agreement” to acquire Momenta Pharmaceuticals at $52.50 per share. The acquisition has been confirmed as an all-cash transaction, which has been approved “unanimously” by the Board of Directors from both J&J and Momenta. The acquisition is set to be finalised later this year, assuming all the closing conditions are met by both parties in the tender process. MNTA is up 69.39% pre-market while J&J share price has remained unchanged according to pre-market movements.

Table of Contents 
1. Acquisition details 
2. What this means for MNTA and J&J investors?

What this means for both MNTA and J&J investors?

MNTA Investors

There is no doubt, this is a very positive opportunity for MNTA to accelerate it’s current research and development in the treatment of autoimmune and rare diseases. At the core of MNTA business, lies the exploration and development of auto-immune diseases which have little to no current treatments.

MNTA have four treatments in the pipeline which include the use of Nipocalimab, to treat generalized myasthenia gravis (gMG), hemolytic disease of the fetus and newborn (HDFN) and autoimmune hemolytic anemia (wAIHA). These are three examples of auto-immune diseases that cause the immune system to react in a counter intuitive manner, causing harm to the host. The J&J acquisition will allow for further development of these treatments, ultimately assisting MNTA to reach a cure for these auto-immune diseases. This is excellent news for MNTA investors assuming the acquisition can be smoothly and efficiently finalised by the end of 2020.

J&J investors

J&J is one of the largest multi-national pharmaceutical companies in the US, boasting a tidy Market Cap at $395 Billion USD. The $6.5 Billion acquisition should have little effect to the Cash assets for J&J. All-cash acquisitions are a preferred alternative for most corporations as Cash agreements will not fluctuate at the levels stock value does. As large corporations focus on steady stock growth, the higher the buyers stock goes – the more they end up paying for the acquisition.

This is definitely a strong opportunity for J&J to extend their operations into the autoimmune treatment sector.

“We’re excited by the opportunity to further advance patient care by combining Johnson & Johnson’s world-class R&D, commercial and supply chain capabilities with Momenta’s talented people, pipeline and deep expertise in this important area.”

Jennifer Taubert, Executive Vice President, Worldwide Chairman, Pharmaceuticals, Johnson & Johnson – read full statement by J&J here

Summary of the risk involved

MNTA stock has boosted dramatically as J&J have agreed to buy-out all outstanding shares in MNTA via all cash transaction at $52.50. The risk for investors is that in the event the acquisition falls out, investors who bought in above $30 may be left with a significantly over priced stock. Although acquisition fall outs are rare, we have seen the detrimental effect it has on the investor. The recent Boeing acquisition fall out with Embraer was due to a three year long negotiation between both parties. Agreements were never met and the initial agreement fell out as per the closing conditions.

Nonetheless, this is also a strong opportunity for J&J to expand their wings into the auto-immune sector, lead by MNTA. This is definitely an acquisition to watch come late 2020.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

After rising 50% on Friday is Mesoblast now a good investment ahead of COVID-19 trials?

Mesoblast (ASX: MSB) (NASDAQ: MESO) was on our portfolio since May. However, volume started to climb higher this week as an advisory committee voted in favour of Mesoblasts pediatric drug remestemcel-L (Rynocil). The positive catalyst triggered a Mesoblast buying party on the ASX and the NASDAQ. For now, investors are optimistic about Mesoblast’s medium-long term future. However, the sentiment come Monday is uncertain. Some investors expect the biotech company to keep on rising next week. Whereas the bears forecast a Mesoblast sell-off next week.

Table of contents 
1. Why did Mesoblast soar this week? 
2. Update on the COVID-19 trial timeline. 
3. Is Mesoblast now a good investment?

 

Why is Mesoblast rise 50% on Friday

Mesoblast traded like a rollercoaster this week. The week started bearish as the FDA expressed concerns around the effectiveness of Mesoblasts remestemcel-L in treating acute graft versus host disease (aGvHD). FDA apprehension saw investors sell Mesoblast ahead of its meeting with the Oncologic Drugs Advisory Committee (ODAC). Consequently, Mesoblast fell 37% to $3.06. However, at the $3 range, Mesoblast reached capitulation, meaning all sellers had left the party leaving only buyers to drive up the price.

However, the real buying began when the ODAC unexpectedly voted in favour of Rynocil. The ODAC agreed that Mesoblast’s data indicated remestemcel-L could be an effective treatment for aGvHD. Ultimately driving a 50% rally at the bell on Friday.

However, YIG would like to point out that the recommendations of the ODAC are not binding. The FDA could still turn down Remestemcel-l. Thus, the ODAC’s suggestions must be convincing. Because the FDA will make the final decision on remestemcel-l on the 30th of September, and if they are not convinced, they can still deny Mesoblast despite Friday’s outcome.

Mesoblasts COVID-19 trial update

Mesoblast is no one-trick pony. The biotech has a robust clinical pipeline that covers aGvHD, chronic heart failure, degenerative back disc disease, and more recently, COVID-19. Mesoblast’s COVID-19 treatment is acting like a magnet to the wallets of investors. Especially as Mesoblast reported an 83% survival rate for 12 patients who underwent the COVID-19 treatment. 

Mesoblast is set to release interim analysis of its COVID-19 trial in early September. The report will likely assess the recovery in COVID-19 patients so far and the related side effects, with a judgement deciding whether the trial can continue. Thus, the COVID-19 hype should see investors pile in on the expectation of positive interim results (opinion, not advice).

 

Is Mesoblast a good investment now?

Before I begin,  I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research 

Short answer: Waiting for new resistance, support levels and then riding the COVID-19 anticipation holds the most weight (opinion not advice)

Mesoblast will become more volatile from here on out. Allowing investors to capture massive upswings in the stock. However, volatility will increase your risk to major sell-offs, and Mesoblast is known for short-term cliff edges.

Despite volatility increasing the underlying sentiment towards Mesoblast should remain bullish. Mainly because of the upcoming catalysts, which, if positive, should elevate Mesoblast to all-time highs.(opinion not advice) Investors will likely view leading up to the COVID-19 trial results, Chronic back pain, and FDA aGvHD decision with optimism. Because humans are wishful thinkers. Thus, riding the anticipation of catalysts, like what some investors did till Friday, holds more weight than trying to day-trade the biotech.

 

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG.

CureVac the newest vaccine contender on Wallstreet – here’s everything you need to know

CureVac’s (NASDAQ:CVAC) initial public offering in the US markets went incredibly well for investors, posting a 250% gain on its first day of trading. CureVac is a German Biopharma, based in Tübingen who specialises in the development of vaccines for infectious diseases. CVAC’s IPO raised $213.3 million USD in funding at its short price of $16. Investors quickly snapped up the opportunity for shares driving CVAC to close at $55.90. CureVac’s quick success with it’s COVID-19 vaccine CVnCoV, saw the German Government buying a large stake in CureVac amounting to 300 million Euros in June this year. CVAC’s COVID-19 vaccine CVnCoV, commenced human trials in June and aims to begin larger human trials by fall this year.

Table of Contents
1. Introduction 
2. What CVAC investors need to know
3. Does YIG see value in CureVac (NASDAQ:CVAC)

What CVAC investors need to know

  • CVAC’s COVID-19 vaccine CVnCoV is a strong global contender in the race for the first safe and effective COVID-19 vaccine. The German Bio-Pharma is compared with the big US players Moderna and Pfizer in the COVID vaccine race.
  • CVAC announced in late July they received $640 million USD in private financing from the German Government and the Qatar Investment Authority (QIA) 
  • CVAC and GlaxoSmithKline (NYSE:GSK) entered a strategic collaboration for the development of vaccines for deadly diseases. This collaboration sees CVAC receive over 200 million Euros from both equity investment and an up-front payment from GSK. Note this is not including the development of the COVID-19 vaccine.
  • CVAC entered a 75 million Euro loan with the European Investment Bank to further fund the manufacturing of the COVID-19 vaccine. CVAC currently has the potential to produce hundreds of millions of vaccine doses. CureVac’s expansion in operations over the next 2 years is predicted to produce several billion doses of vaccines.
  • The IPO success proves the investor sentiment remains strongly sided with the leaders of the COVID-19 vaccine. With only one day trading under CVAC’s belt, we can expect further investor interest (opinion not advice). The CVAC stock offers an off-shore option for US investors to spread exposure in the event the US does not develop the first vaccine.

Does YIG see value in CureVac stock?

Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research 

There is no doubt CureVac are one of the most promising global leaders in the race for a COVID-19 vaccine. The first COVID-19 vaccine will receive historic demand by Governments across the globe. Ultimately offering what may be one of the greatest opportunities these Bio-Pharma’s will have this decade. With strong US contenders such as Moderna, Pfizer and Novavax – the German Biopharma will have an up-hill battle to finish in first place. However, the first vaccine to be released will have serious distribution and supply shortages. This offers some security to investors who don’t pick the imminent winner.

The investor behaviour in the vaccine market remains heavily shifted by news. Therefore we expect CVAC to behave in the same manner as a listed US stock. With CVAC closing at $55.90 on the first day of trading, we can expect investors to continue to pump money in, in the hope that it continues to remain bullish. NVAX is currently priced at $146.51 and Moderna at $69.59 respectively. We could expect CVAC to find equilibrium with these two Bio-Pharma’s for the time being. This stock is definitely one to watch this week.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

U.S government orders 100 million doses of Moderna’s vaccine, yet insiders are selling – here’s what you need to know

Moderna (NASDAQ: MRNA), alongside Novavax, is running at full speed in the vaccine race. The Trump Administration’s recent agreement with Moderna to order 100 million doses adds to the argument that MRNA is at the front of the pack. While the announcement is a positive catalyst, investors are doubtful that we will see an enormous rally. Especially, as Astra Zeneca, Pfizer, and Inovio all plummeted on supposedly pleasing vaccine announcements.

Table of Contents 
1. A brief overview of the Trump administration agreement
2. Will we see a Moderna sell-off? 
3. Here is what you need to know before investing in Moderna

Moderna’s coronavirus vaccine gets a boost

The U.S government is purchasing experimental doses from Pfizer, Johnson and Johnson, Astra Zeneca, and other drugmakers to fight COVID-19 better. However, today was Moderna’s time in the spotlight as the Trump administration ordered 100 million doses of MRNA’s experimental coronavirus vaccine, with the option to purchase 400 million additional doses. The administration’s investment will see Moderna receive $1.5 billion. However, suppose you add today’s purchase to the $955 million that the U.S government already invested. In that case, Moderna’s coronavirus vaccine funding totals $2.48 billion. Also, the purchase caused a rally in pre-market trading as MRNA is up 12% (at the time of writing). Suggesting investors and the government both view Moderna with strong growth prospects. Overall the U.S government has tremendous confidence in Moderna’s vaccine which  Trump reaffirms below.

“We are investing in the development and manufacturing of the top six vaccine candidates (which includes Moderna) to ensure rapid delivery. The military is ready to go, they’re ready to deliver a vaccine to Americans as soon as one is fully approved by the FDA and we’re very close to that approval” – Trump during press conference at the White House 

 

Institutional and insider selling could flag Moderna’s vaccine as overbought

Today’s purchase order is a strong fundamental catalyst for Moderna Investors. However, the market is incredibly irrational, so despite the positive sentiment in pre-market trading, we could easily see a sell-off throughout the day for three reasons. First, day traders will likely flood Moderna today and tomorrow in hopes of a quick gain. Second, a popular COVID-19 investment strategy for retail and professional investors is buying the dip and selling the news. Moderna’s decline since its high of $94 on the 17th July created entries for investors this week, and today’s bullish news should be the golden parachute for those short-term traders.

Lastly, the sale of shares from Moderna insiders and institutions could indicate that an underlying bearish sentiment. For example, Hedge fund NVWM LLC and Amalgamated Bank sold 34.9% (11th August), and 74.1%, respectively (10th August) of their Moderna position. To add insult to injury, CEO, Stephane Bancel, and president Stephen Hodge have been selling Moderna shares for two weeks. To gain an insight into all of Moderna’s insider trading activity, then click here. Overall, the influx of day traders, sell the news phenomena, and recent selling from insiders and hedge funds could suggest that Moderna is in for a sell-off following today’s news.

Here is everything you need to know before investing in Moderna

Before I begin I am obliged to remind our viewers that this is not financial advice, but rather investment commentary from extensive research

Moderna, and the wider market might be irrational for the next few days, but that is okay. Because a medium to long-term investment should pay off.

The wishful thinking theory

Humans are wishful thinkers. You could put an Inovio, Astra Zeneca, Pfizer, Moderna, and a Novavax investor all in a room, and they would likely tell you the same thing that their vaccine stock is going to the moon. While only one vaccine can win , or possibly none, professional investors will not focus on the outcome but the hype. Thus, it is best to ride the Moderna wave leading into another announcement.

Humans can also be greedy creatures. Hence there should be an insane amount of day traders that will flock to Moderna in the name of a quick gain. YIG would like to point out that riding Moderna’s hype (wishful thinking of investors) in the medium-term or investing for the long-term holds the most potential. Especially as insiders are likely selling their shares to reinvest in vaccine development. Also hedge funds could just be selling Moderna to get more at a cheaper price.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG.

INO falls 8% ahead of today’s earnings – does YIG see value?

Inovio Pharmaceuticals (NASDAQ: INO) is probably the most controversial COVID-19 play of 2020. Some investors are incredibly bullish on the vaccine frontrunner claiming the stock will be near Novavax very soon. However, many investors are pessimistic about INO, claiming it is a COVID-19 star fizzling out. Initially, the bulls seemed to be right as INO gapped up from $15 to $32 in days. However, the recent downward slope is adding weight to the bearish argument. INO is becoming even more polarised as Inovio’s earnings are just around the corner. Thus, today’s article will look to explain why INO is down, what’s in store for earnings and whether YIG sees value.

Table of contents 
1. A simple explanation on why INO plummeted
2. What to expect in upcoming earnings 
3. Does YIG see value in an Inovio Investment?

Why INO, a vaccine frontrunner, down 40%?

INO skyrocketed on phase I trial data, government funding, and, most importantly, retail investors flocking towards the relatively cheap vaccine stock. However, Stifel analyst Stephen Willey change his position on INO from a buy to a hold at the back end of June, which instantly sparked a sell-off. Leading many investors to speculate that INO is driven by retail investors but led, at large, by institution ratings.

Moreover, vaccine investors have a huge appetite for price-sensitive events that keep the stock on its bullish trajectory. However, it seems INO’s massive events are behind them at the moment. Also, competition played a key role in Inovio falling. Novavax’s recent vaccine success saw many INO investors jump ship, in an attempt to benefit off the bullish optimism.

Furthermore, the recent decline stems from bearish news articles criticising INO’s technology, vaccine progress, and history of attracting money in the name of solving a virus. In particular, the New York Times post today sums up the bearish narrative from bearish journalists. The main arguments are as follows. INO’s technology is questionable, insiders exaggerated claims to inflate the stock price, no DNA-based, which INO’s is, has ever made it to market, and the legal battles with VGX and INO shareholders should wrench the biotech down.

It is hard for investors not to have a bearish outlook on INO after reading the NYT’s post. Pre-market shows INO down 2% (at the time of writing),  indicating the article’s negative sentiment is beginning to sweep across Wall Street. However, YIG reminds investors that taking the words of one article to be final is not the smartest decision. Thus doing due diligence to conduct further research on the INO debate would be intelligent.

What to expect for Inovio’s earnings

INO is releasing earnings this afternoon with an expected EPS averaged at -$0.18, a -8.33% surprise factor according to NASDAQ. The past four quarters for INO produced an average EPS of -$0.30, suggesting this quarter will be a considerable improvement for INO. It is worth mentioning YTD INO is yet to provide a positive surprise percentage, suggesting analysts have over-stepped their predictions with optimism.

Takeaways from Q1 Earnings

  • INO posted $1.3 million in revenue for Q1, a 55% decrease in revenue compared to its previous quarter
  • -$0.26 EPS, a slight improvement from its previous quarter
  • $5.4 million decrease in R&D expenses compared to its previous quarter
  • The Coalition for Epidemic Preparedness Innovations (CEPI) grant for $17.2 million alongside an addition $5 million from the Bill & Melinda Gates Foundation

 

Inovio’s Q2 earnings call should give greater insight into how INO is currently tracking with their vaccine alongside other medical projects. In all reality, these earnings won’t drastically effect investor sentiment. The COVID-19 vaccine progression is the key driver of INOs share price, as some INO investors will not even read the earnings report this afternoon. This is the reality of the current market we operate in.

 

Does YIG see value ahead of Inovio’s earnings?

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research 

Short answer: Short-term plays on both sides of the fence holds the most value (opinion not advice) 

Neither the INO bulls nor bears are going away anytime soon. However, YIG would like to point out that volatility is a traders dream. Without volatility, there would be no risk-reward.

Investors can ride the bullish momentum by buying calls, selling puts, or buying and selling the stock. An investment that rides the anticipation of the catalyst will increase your odds of success. On the other side, investors can join the bears and purchase puts options, or sell call options. Riding the sell-off after catalysts could increase your probability of making a gain. In both bullish or bearish plays the time-horizon should be short otherwise, volatility will crush you profit potential.

Objectively no vaccine stock should grow at a linear rate. Instead, upwards growth with occasional pull-backs before continuing the surge should be the graph the stock creates. Thus, giving weight to riding the anticipation before INO’s big events and shorting when the noise gets quite (volatility reduces). The strategy takes out emotion, which is what every trader should be looking to do. (opinion not advice)

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, and Tyger Fitzpatrick, Senior Manager, and Founder of YIG.

The Teladoc Health Stock is up 200% – is it too late to get?

Medicine is changing, and the Teladoc Health stock (NASDAQ: TDOC) is at the cusp of the industry transformation. Teladoc Health allows users to access expert medical advice, organise medical records, manage health risks, and enter virtual mental health appointments at the touch of a button. Teladoc Health recently acquired biotech giant Livongo (NASDAQ: LVNGO). However, TDOC fell after the announcement suggesting that the music might be slowing down. Thus, today’s article will provide our investors with a simple explanation as to why TDOC surged 200% and then fell 30%, and whether it is too late to invest.

Table of contents 
1. Teladoc soars 200% in 2020
2. Why have investors sold their TDOC shares? 
3. Have all the gains been made?

 

Teladoc Health stock rises 200% in 2020

The Teladoc Health stock rallied for three reasons: COVID-19, strong Q2 2020 earnings, and the LVGO acquisition. In the wake of the pandemic, a tidal wave of people began consulting healthcare professionals online as opposed to in person. To put the influx of customers into perspective, Teladoc’s users grew by 203% (YOY) to 2.7 million. Second, TDOC posted impressive Q2 earnings. Teladoc Health saw revenue increase by 85% (YOY) and a net loss of $0.23, which was in line with analyst expectations. Investors instantly reacted positively to revenue growth by propping up TDOC by 8%.

The cherry on top was when Teladoc announced it plans to acquire large-cap Livongo (NASDAQ: LVGO). LVGO, uses digital tools to alleviate the pain that people suffer from diabetes and other chronic conditions.

Why have investors been selling Teladoc shares?

It seems the music is starting to slow as Teladoc shares slid 23% in the past few days. Confusion spread across the market regarding how could the giant telehealth company with three strong announcements fall hard and fast.

Every acquisition draws critics. Some investors may not agree with the acquisition and cannot see how the two healthcare behemoths will compliment each other. Moreover, existing shareholders will have their ownership diluted as the LVGO acquisition will issue additional shares. The acquisition will dig into Teladoc’s revenue pocket, meaning profitability targets will likely be pushed back.

Furthermore, Teladoc’s meteoric rise attracted insiders, directors, and senior management, to sell their shares. For example, director William H. Frist sold 740 shares for 177,600 on the 31st of August. However, William still owns 6,158 shares valued at around $1,477,920. Thus, it seems insiders are selling to re-invest their profits into the growth of Teladoc.

The growing pessimism saw put options dominate call options for the beginning of August. However, the further you go along the 2020 timeline call option volume outweighs put options. Suggesting that the short-term sentiment is bearish, hence the recent fall. On the other hand the bulls own the underlying direction of Teladoc Health.

Is it too late to invest in the Teladoc Health stock?

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from our extensive research 

Short answer: A long-term investment holds the most weight. However, timing your entry is crucial to maximising your investment potential (opinion not advice) 

Following the smart money is usually an excellent indictaor to use for investing. (opinion not advice). While insiders sold some of their Teladoc shares, hedge funds are buying in. For example, Profound Advisors LLC increased their stake by 812.2% by purchasing an additional 16,911 shares. Overall, hedge funds and institutions own 97.14% of Teladoc, suggesting there is a lot of smart money behind the telehealth giant.

The current trend in Teladoc screams a bearish pedant flag. Saying that we should see the bears own the short-term chart. However, all signs, revenue, call options, and market share are indicating long-term growth. Many investors see the long-term green light and are ready to push the button. YIG would like to point out that timing is a key differential between retail and professional investors. Waiting until the call option volume increases and Teladoc posts, FY2020 financials might be a great time to cement your position.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG.

Bausch Health rises 25% on bad earnings – is this pump a trap for retail investors?

Bausch Health’s (NASDAQ: BHC) pre-market rally is causing the ears of investors to prick up as the word gets out. While the sentiment appears to be positive at the moment investors could be in for a rollercoaster at the bell. Considering the pre-market is a usually a façade for the trading day, many investors are skeptical as to whether the rally will hold up. Ultimately creating a division across Wallstreet. Thus, today’s article will explain to our viewers why BHC is up and whether retail investors should avoid the biotech.

Table of contents 
1. Why BHC is up 25% 
2. Should Investors worry about bad earnings 
3. Is the Bausch Health rise a sucker rally?

Bausch Health jumps 25% off spin-off business announcement

Bausch Health’s business is split into three medical areas. These include Eye Health, Gastrointestinal Diseases, and Dermatology which is run by Bausch + Lomb, Salix Pharmaceuticals, and Ortho Dermatologics, respectively. Today BHC announced that it is planning to spin off its eye-care business into a separate public company. Bausch + Lomb’s eye-care company accounts for 50% of the entire businesses revenue. Thus when BHC announced a spin-off  of their best subsidiary, investors went nuts. However, the likelihood that most retail investor are aware of the risks of a spin-off is quite low.

Essentially a spin off is where a parent company separates one of its subsidiaries and makes it a separate business. Part companies could spin-off a part of its business for two reasons. First if that part of the business is infecting the growth of the parent company. Second would be if the parent company is underperforming but a subsidiary is outperforming. In BHC’s case it looks like Bausch and Lomb is outperforming while the core parent company overall is underperforming. Hence the spinoff  is to give the eye-health subsidiary the best chance of reaching its highest value.

Investors will receive shares (stock dividends) in Bausch and Lomb in proportion to how many shares they own in BHC. Also, if BHC believe Bausch and Lomb offers a higher growth potential they may wish to offer BHC shareholders the right to exchange their shares for a discount. However, investors must understand that spin-offs tend to be more volatile, creating a higher probability for the downside. Also a large portion of Bausch and Lomb shareholders may wish to sell their spin-off shares, creating significant selling pressure.

BHC reported poor Q2 2020 earnings

  • Reported Q2 revenue at $1.664 billion, a 23% decline in comparison to Q2 2019
  • Bausch + Lomb/International segment of business took the greatest hit, losing 25% revenue in comparison to Q2 2019
  • Full year revenue guidance set to $7.80 Billion – $8.20 Billion, an extremely optimistic guidance forecast for investors.

“Since the COVID-19 pandemic began, our top priority has been to ensure our employees remain safe and that we have the necessary processes in place to protect our supply chain so that we can continue to provide access to our health care products to people around the world,” said Joseph C. Papa, chairman and CEO, Bausch Health.”

Have all the Bausch Health gains been made in pre-market?

Before I begin I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research 

Short answer: The odds of BHC rising at the bell are extremely low (opinion not advice) 

The lack of willing Bausch Health buyers

Investors looking to make a quick buck  with BHC might be disappointed. Because to make an intra day gain you need to do two things. First, you need to buy the stock, so you would need a willing seller. The current price of $23.30 (pre-market at the time of writing) will entice shareholders to sell their shares and thus allow most investors to buy the stock. However, once you own BHC you need a willing buyer to take them off you at a higher price. Considering BHC’s disappointing Q2 2020 earnings and the lack of knowledge about the risks of the spin-off  we should see a sell-off at the bell. In which case you are left with shares in BHC that lost their value faster than you could blink. YIG does not expose the potential shortcomings of an intra day investment to discourage investors but to simply provide a balanced perspective.

August 7th puts suggest a bearish BHC trend

Using the activity in the options market is an excellent way to gauge the underlying sentiment of the stock. In the case of BHC we will compare the volume of calls to puts in relation to today’s announcement. On the bullish side BHC calls at a strike price of $19.50 are the most traded, with a volume of 1,099. Those calls are already in the money, meaning the likelihood investors execute their right at open is high. Also, the call volume for strike prices higher than $19.50 becomes lower and lower, suggesting a lack of confidence in BHC. On the bearish side BHC puts with a strike price of $19.00 hold the most volume with 3,989. Hence many investors bought these puts today with a strong expectation that the price will drop down to $19.

Overall the imbalance between puts to calls and the pessimism of a drop at the bell will likely be a self fulfilling prophecy. Thus, the retail investor should avoid the BHC pump as it is most likely a suckers rally.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG.

Sorrento Therapeutics soars 10% from Jim Cramer’s bullish outlook – should investors avoid shorting SRNE?

Sorento Therapeutics (NASDAQ: SRNE) is causing Wall Street to divide. Some bears are adamant that Sorrento will become a COVID-19 stock that will fade in a few months. Whereas the bulls are aggressively buying up SRNE shares as they believe the biotech has not even come close to its true value. While the overall war between the SRNE bears and bulls is unclear, the bulls are dominating the charts as Sorrento climbs 43% in two days. A lot of eyeballs and wallets are now on SRNE as a potential COVID-19 play. Today’s article will explain SRNE’s recent developments, how Jim Crammer is aiding a bull run, and whether shorting or going long on Sorrento is the best option.

Table of contents 
1. Sorrento's COVID-19 update.
2. Jim Crammer is injecting SRNE with confidence. 
3. Does going long on SRNE hold more value than shorting.

Why is Sorrento up 54.7% this week?

Sorrento is set to open at $14.72 (14.49%) this morning according to pre-market movements (8am EST). So what caused this upswing in investor interest?

Sorrento Announced last Wednesday that they had entered a licensing agreement with Columbia University to the rights to a rapid COVID-19 Saliva test. The saliva test offers a less invasive COVID-19 testing method , which only needs 30 minutes of incubation before the test results show. This advancement in testing may push testing at site and potentially to households. This licensing agreement shot investor interests sky-high, with the stock reaching heights it hasn’t seen since September 2015. Wallstreet analyst Raghuram Selvaraju reinstated his buy rating on Sorrento (SRNE) and increased his target price from $24 to $30. Read here for more information on SRNE price target averages.

The Jim Crammer Effect is boosting Sorrento Therapeutics

The influx of retail investors during the coronavirus saw Jim Crammer’s show Mad Money gain significant traction. This should be no surprise as his enthusiasm, tell like it is attitude, and constant hunt to find a bull run makes his content appealing to mum and dad investors. Every time Jim Crammer champions a stock in Mad Money, the bulls rally behind the company during trading hours, creating the Crammer Effect.

Crammer has been rallying behind Sorrento since June when the company traded at $4. SRNE’s positive PR on Mad Money for its COVID-19 vaccine contributed to the 100% surge to $8. Yesterday Jim explained how “stupid” it was that the market did not rally behind Sorrento’s rapid Covid-19 detection test announcement last Wednesday. Yet Tuesday this week the stock rallied 31% on the same news. Since Jim Crammer’s comments, SRNE has risen 11.45% to $14.31. Coincidence probably not. Now YIG is not saying that Jim Crammer solely moves SRNE, but his bullish sentiment holds significant weight.

Overall it seems retail investors do not want to invest in a COVID-19 stock until someone else gives them the confirmation. Such as a financial media company like Motley Fool or social media platform like Facebook. In Sorrento’s case it is Jim Crammer who is partially fuelling the bullish appetite of retail investors. Thus, YIG would like to point out that it pays to know when Jim Crammer will be talking about Sorrento on Mad Money. Investors can keep track of Jim’s movement via the CNBC website here or TV guide.

The constant short and long battle over SRNE – is there a clear winner?

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research

Going long on Sorrento Therapeutics

When investors go long on a stock, they are going with the crowd. The Sorrento party is bullish, which means if an investor wants to go long, they can purchase call options, sell put options, or buy low and sell SRNE shares for a higher price in the market. Investors initially went long on Sorrento as they announced 100% protection against COVID-19. However, the possibility of a pump a dump and a growing lawsuit saw the investors going long go into hiding.

Investors have since turned a page as the lawsuit alarms faded into the background, and positive COVID-19 catalysts rolled in. The increase in SRNE call options for August and September validates this claim. In August call option volume for strike prices $12, $13, and $14 were 18,159, 7472, and 3433, respectively. Compare that to September’s call options for the same strike price and we get 9157, 1954, 1042. While the volume is lower, we are only five days into August allowing for the call options that expire in September to gain significant traction still.

Shorting Sorrento

When an investor is shorting a stock they are going against the crowd. In the case of SRNE to short the stock you would take a bearish position by purchasing put options or selling call options. Initially, shorting SRNE was the popular route. Because they had made the claim off 100% COVID-19 protection without any clinical trials and had a lawsuit on their hands. However, the voice behind SRNE shorters is losing momentum.

How do we know this? We look at the volume of puts on the options chain. The volume of SRNE August puts at a strike price of $12,$13, and $14 is 4012, 1100, and 254 units, respectively. Compare that to the volume of September puts for the same strike prices, and we have 199,80, and currently 0 puts. The picture becomes clear. Think of SRNE shorters at the moment as a few people in the corner at a party asking everyone to turn the music down. YIG does not make this statement to say that all shorters are wrong in their financial judgement but to say the underlying sentiment is bullish simply.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, and Tyger Fitzpatrick, Senior Manager, and Founder of YIG.

Here’s how much a $10,000 investment in this COVID-19 vaccine company is worth now

The COVID-19 vaccine industry has seen immense investor backing with popular US listed companies such as Moderna, Pfizer and Vaxart multiplying their pre-COVID value upwards of 500%-1,000%. However, Novavax, Inc. (NASDAQ: NVAX) has surpassed it’s rivals in stock value growth, currently priced at $143.10. An investment of $10,000 in NVAX after the initial COVID-19 vaccine announcement in March, would now be worth over $207,000. Investors found promise in Novavax as the US Government committed to $1.6 Billion in late clinical trial funding.

Table of Contents 
1. How much a $10,000 investment in NVAX is now worth?
2. Breakdown on rivals and vaccine development 
3. What experts expect NVAX price to hit by 2021?

Breakdown on rivals and vaccine development

The current COVID-19 vaccine industry has been operating at a rapid pace. The Warp Speed operation set up by the US Government has narrowed down the list of contenders to a handful. Moderna, Astra Zeneca and Pfizer are currently leading the pack as they push to the final stages of their COVID-19 vaccine trials.

What separates Novavax from its competitors, is its continued Government funding for vaccine development and manufacturing. Recent funding includes the $1.6 Billion from the US Government and $388 million from the Coalition for Epidemic Preparedness. This is alongside it’s other multi-million dollar venture, Nano Flu. This Flu vaccine has acted as a safety net for investors,  in the event the COVID-19 vaccine NVX-CoV2373 fails to reach the distribution phase.

What experts expect NVAX to hit by 2021?

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research.

The expectations for vaccine developers such as NVAX are extraordinarily high. The challenge of developing a safe and effective vaccine during a pandemic is somewhat an overwhelming task. The progress of Novavax’s vaccine NVX-CoV2373 so far has been outstanding. This has marked NVAX as one of the key players in the COVID-19 race. The current price targets for Novavax on the Wallstreet Journal are averaged at $132, with a bullish target at $182 and a bearish prediction of $105. These current price targets suggest a flat short term future for NVAX.

However, price targets will continuously change in this industry as speculators move between each company on news. The positives for investors are NVAX has been able to restructure their business model into a profitable prospect by 2021-22. If NVAX can secure a safe and effective vaccine, alongside their project Nano-Flu, we could be looking at one of the biggest success stories in Bio-Pharma history to date (opinion).

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

BNGO rises 100% off COVID-19 DNA research – here’s what you need to know.

Binano Genomics (NASDAQ: BNGO) catapulted itself onto the COVID-19 stage this week, which naturally saw investors flood the market. The area that BNGO is targeting is the COVID research field. However, for most investors, the scientific jargon can make the task of understanding the company, let alone investing, extremely difficult. Thus, this article will provide our readers with a digestible explanation on why BNGO is trending, and what you want to know before jumping in.

Table of contents 
1. Why the hype? 
2. Here is what you need to know before investing.

Why is BNGO up 100% in a month?

At a basic level, diseases, such as COVID-19, can change our DNA structure. BNGO’s Saphyr device can detect changes in the structure of our DNA. This identification prompted BNGO to form an international COVID-19 research group with 40 world-renowned scientists and institutions. The group will use Saphyr’s detection technology to compare the DNA structure of patients who show mild symptoms to those severely affected by the virus. Overall, BNGO is looking to find out why does COVID-19 significantly affects some people but not others.

However, it is not just the association with COVID-19 that is driving BNGO higher. Bionano used its Saphyr device to map the DNA structure of 85 patients with inherited genetic disorders earlier this month. The results were quite impressive, as BNGO identified every structural change in all 85 patients. The current identification of DNA changes  requires labour-intensive methods. Considering, that Saphyr is an automated system we could see BNGO reduce the time it takes to identify why certain diseases temporarily change our DNA. Thus, it is the possibility for BNGO to revolutionise the structuring of chromosomes (cytogenetic) market that is fuelling share price growth.

 

Everything you need to know before investing in Bionano Genomics

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research in the field 

Short answer: A short-term investment has potential but still holds considerable risk (opinion, not advice). 

Riding the BNGO hype?

Investors see that a company is apart of the COVID-19 fight and are instantly ready to invest. Riding the COVID-19 news can be successful, as seen with Moderna, Gilead, and Novavax. If you think everyone will rally behind BNGO next week, then the current price could be a possible window. However, BNGO is a penny stock and is currently suffering a bearish decline. Thus, the likelihood of a bearish pattern continuing is high.

Investing without knowing about BNGO

Investing in a hot stock without knowing anything about the company would be a cardinal sin. Because how would you determine the value, and thus distinguish whether the company is oversold (possible entry point) or overbought (possible exit point). However, you can determine value through mathematics. For example, is the stock trading below (undersold)/above (overbought) a certain average, or what percentage is the stock away (deviated) from the average? Thus, value investing (think of Warren Buffet) or technical investing (think of Jim Simons) could be used to determine the value of BNGO. However, value investing demands that you understand the company and expect it to grow over the long-term. BNGO is a biotech penny stock. Thus, the probability of it rising in the long-term is low, and the scientific jargon makes understanding the company difficult.

BNGO’s resistance and support levels sit around the $1 and 0.70 cents mark. Whenever you are trading short-term, you need to make sure it is not near the resistance level. Because the closer your price is to BNGO’s resistance level, the higher the probability you will lose money in the short-term. For example, investing on Friday was extremely risky. Because the price hit the resistance level at $1 and then suffered a 10% decline from that point on. Thus, knowing a bit about BNGO’s connection to COVID-19 and entering near the bigger picture support level could potentially pay off (opinion not advice). However, investors must understand that investing in BNGO via mathematics and without a solid understanding of the company still holds significant risk.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

If you aren’t already subscribed to us, you can subscribe for free via email below and get updates when we post new articles and stock market news. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you. 

Written by Patrick McLoughlin, Senior Manager of YIG.

U.S. Health officials order 100 million doses of Pfizer’s vaccine – does YIG see value?

Along with the NASDAQ, vaccine stocks have wrenched back the stock market remote control as the pandemic worsens. Today, it was Pfizer (NYSE: PFE) who stole the spotlight. U.S health officials have agreed to pay $1.95 billion for 100 million doses of  Pfizer and BioNTech coronavirus vaccine.  The news is causing the bulls to charge ahead.

Table of contents 
1. Pfizer and BioNTech vaccine order 
2. PFE's vaccine developments so far. 
3. Does YIG see value in a Pfizer investment?

U.S. officials order 100 million doses of Pfizer’s vaccine

In short,  the government cannot wait until next year for a viable vaccine. Hence, the U.S. government is ordering experimental doses from COVID-19 biotechs, such as Astra Zeneca and Pfizer, to potentially save people’s lives. The U.S. government can acquire another 500 million Pfizer doses on top of the existing 100 million. Today’s announcement signifies government backing and an opportunity for Pfizer to show the world that their vaccine can successfully fight the virus. It is this opportunity that is causing the bulls to rally in pre-market trading.

Pfizer/BioNtech vaccine developments timeline

This table is copyright protected – Property of Youth Investment Group. Data compiled by our team from Pfizer Vaccine public announcements. See full announcements here.

Does YIG see value in a Pfizer investment?

Before I begin, I am obliged to remind our viewers that this is not financial advice rather investment commentary on my extensive research 

Short answer: YIG does see value, but investing solely off vaccine news might not the smartest investment strategy.

Trading off Pfizer vaccine news can be dangerous

Many investors are trading Pfizer, and other vaccine companies, on a news-based approach. Do not get me wrong today’s announcement is a big win for Pfizer investors. In which we should Pfizer’s moving average and resistance levels climb higher (opinion not advice)

However, YIG would like to point out that news-based trading can be incredibly dangerous. First, greed is alive when trading off positive news. Greed will infiltrate your brain and convince you that this COVID-19 announcement will send the stock to the moon. Ultimately, causing you not to put a profit target. Consequently, you watch the stock soar and watch the stock plummet, in which you are forced into a long-term hold or taking a loss.

Second, good COVID-19 news does not always equate to astronomical gains. The sell-offs from Inovio and Astra Zeneca expose how a positive announcement can cause investors to take profits. Because investors want to sell when the stock is high, which is usually when the company releases news. Thirdly, institutions hold more capital than everyday investors. Despite everyday investors riding the news hype if the institutions decide to sell, which is usually off news, then your hope of unrealistic gains disappears.

Overall, Pfizer is a roboust COVID-19 frontrunner with an impressive clinical wallet and vaccine candidate. Today’s announcement is a positive for the Pfizer story, but should not be the sole reason you invest. Understanding the bigger picture, being fundamentals, technical, the news, and other potential vaccines will ensure you stay in the COVID-19 game longer.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

If you aren’t already subscribed to us, you can subscribe for free via email below and get updates when we post new articles and stock market news. From all of us at YIG, thank you for the support.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you. 

Written by Patrick McLoughlin, and Tyger Fitzpatrick, Senior manager, and Founder of YIG.

 

 

 

 

 

 

 

 

 

 

 

 

 

Actinium Pharmaceuticals hits 150% gain over 2 months – here’s everything you need to know

Actinium Pharmaceuticals (NYSE:ATNM) has caught the attention of investors as the stock continues its path of strong bullish momentum. ATNM is likely to open at $0.56 according to pre-market movements, marking a 211% gain over the past 2 months. The Bio-Pharma works on the development of commercial therapies for bone marrow transplant and other adoptive cell therapies. For the good part of 2019-2020, the stock found an equilibrium price between $0.20-$0.28 respectively.

Table of Contents 
1. Introduction 
2. ATNM forecasts and analysis 
3. YIG's take on ATNM and its future

ATNM forecasts and stock analysis

With a current market cap of $177.70 million and a 5 Year Beta of 1.54, ATNM has cemented itself as a fair performing Bio-Pharma trading on the NYSE. The stock recently earned itself #2 on Zacks Rank, sparking a surge in investor interest. What’s Zacks Rank?

“In 1978, Zacks’ Founder and CEO hit upon a key discovery: earnings estimate revisions are the most powerful force impacting stock prices. With this crucial finding, he developed the Zacks Rank to harness the power of earnings estimates.

For more than a quarter century, it has more than doubled the S&P 500 with an average gain of +24.04% per year. These returns cover a period from January 1, 1988 through June 1, 2020.”

Zacks Rank official website, read more here.

Although an impressive feat, it is worthwhile mentioning forecasts and predictions are far from a sure thing. Further, the forecasts published on the Wallstreet Journal have concluded an average price target at $2.83 with a low targeted at $1.50. These price targets are extremely bullish and suggest ATNM to capitalise on strong growth. With such positive targets, it is important to remember the current market environment. With a global pandemic worsening as time has progressed, it would be vital to calculate this in your investment decision (opinion not advice).

YIG’s breakdown on Actinium Pharmaceuticals and its future

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather commentary from extensive research. 

Short answer: YIG believes ATNM holds strong potential, however the current market environment remains investors greatest threat 

The strong forecasts and recent investor momentum are encouraging signs for long term shareholders. With price targets extremely bullish, it is likely ATNM will continue the strong momentum for the better part of this week (opinion). From what we know, when a stock picks up momentum, the change of investor sentiment shifts. So here is the short term risk. As speculators look to make a quick buck – the stock becomes more and more volatile.

Let’s take the technical analysis out of the equation. Any investment in this current market environment exposes that investor to the risks of the pandemic and the up-coming election. This exposure is often looked past in certain price targets released by major investment firms. Hence why they continue to update their positions.

It is important to understand the general market sentiment for any stock you invest in. For example, we see intense “pump and dumps” in the current COVID-19 vaccine industry. YIG have analysed these market movements and concluded the Bio-Pharma industry to be one of the most volatile trading industries on the US stock market today. In the defence of ATNM, the stock is not directly related to COVID-19 speculation in any way, shape or form. Therefore, we can conclude that the strong surge in momentum looks positive for the bone marrow pioneer Actinium Pharmaceuticals.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.