STOCKS TELEGRAPH

Author: ST Staff

  • AMEDISYS, Inc. (AMED) and How COVID has Impacted them

    Amedisys, Inc. (AMED) stock is currently being traded at $202 in the aftermarket after an increase of $2.57 (1.28%) after closing at $200.13 last day. With the current average volume of 155.036K, the stock has suffered a loss of 21.91% in the recent trading session.

    The decline came after news that AMEDISYS, Inc. (AMED) released its Q2 financial report on August 4, 2021. The data was till the date of 30 June 2021. The revenue has increased by $79.2M. According to the report, they have closed the acquisition of Contessa Health, a skilled nursing facility. Based on SEC-13F filings being tracked by Insider Monkey currently, 32 Hedge funds have holdings in AMEDISYS, Inc. (AMED). D E Shaw and Co claim the number one spot with 319,640 shares.

    With the recent acquisition, AMEDISYS, Inc. (AMED) thinks of a promising future about the development in its Hospice segment. The AMED thinks that they are behind in both average daily census growth as well as admission. This is the reason that AMEDISYS, Inc. (AMED) is hiring more employees for expanding its hospice section. The document moreover talks about how COVID-19 has disrupted the system and as it has evolved has continue to disturb the healthcare system. Any new governmental restrictions could also potentially impact the business so they have updated their 2021 guidance based on the above-said details.

    Not long ago most of the recovery approach for the patients revolved around the medicinal approach. But times changed and more people became inclined for physical therapy and rehabilitation ways. This is when the industry started to grow and huge amounts of investments started getting poured in it.

    AMED and its Services.

    Amedisys Inc. was founded with the idea of providing the best medical healthcare for the patients whether it’s home-based or not. They provide rehabilitation facilities for their patients after they have undergone surgery or been through an injury. According to the official data, more than 59,000 physicians and 3000 Hospitals in the US have chosen Amedisys as a partner. AMEDISYS, Inc. (AMED) owns 524 centers in 39 states and the District of Columbia. According to a press release on 13th July 2021, the company is set to open Westchester County Home Health Care Center.

    AMEDISYS, Inc. (AMED) provides its services in Home Health Care, Hospice Care, Personal Care and Palliative Care. They aim at targeting different parts of care services. The future plans to bring improvements in their leadership and their overall system.

  • ARCA biopharma Inc. (ABIO) Stock is Soaring, Here is What You Need to Know

    With the current average volume of 894.162K, the ARCA biopharma, Inc. (ABIO) stock is being traded at $3.o2 in the pre-market with an increase of 0.08$ (2.72%) as compared to the close of 2.94$ in the market last day. The company has released its Q2 financial details. According to the report they have had an increase of $13.2M from $49.1M in December 2020 to a total amount of $63.2M. The company believes that the cash and cash equivalents would be enough to fund their operation in 2022. They have released updates on their clinical lab tests regarding Covid-19 and Cardiovascular Diseases

    Throughout history, a lot of different diseases have come forward that have been lethal for humans. Many of these diseases have been tackled. But a lot of them still need to be researched more to find their solutions and to create medicines for them. Huge advancements were brought in the industry with the discovery of DNA and then later on how to alter and isolate the structure to modify the genetic code. This was to bring in genetic changes in the hope to remove any diseases that may be transferable to the next generation. Different companies and organizations have started working on its solutions with the hope to eradicate these diseases from their roots. ARCA biopharma, Inc. (ABIO) is one of such a company that is currently trying to make its way through clinical trials and its research.

    About ABIO Stock

    In 2004 Arca Biopharma was founded on the belief of a precision medicine approach. A technique for the development of medicine according to the individual characteristic traits of a person that helps in developing a much more effective treatment. It is a clinical biopharmaceutical company that has been working in the R&D sector to provide new research and methodologies. They are also conducting trials for the evaluation of new medicines. The company ARCA biopharma, Inc. (ABIO)has its headquarters located in Westminster Colorado.

    New Research and Pipeline Projects

    The company is currently working on cNAPc2 and Heparin for patients with COVID-19.  They started conducting clinical trials in December 2020 with the grant of FAST TRACK DESIGNATION by FDA in NOV 2020.  They are also working on the trials of Atrial Fibrillation for cardiovascular diseases with the help of “GENCARO; a beta blocker. The company has also released a number of publications. Being partners with the University of Colorado they are working together on different fields hoping to achieve viable results.

  • What Future Does PING Identity Holding Corp. (PING) Has?

    PING Identity Holding Corp. (PING) stock is currently being traded at a price of $25.7 in the premarket with an increase of $3.34 (14.84%) since the last close. This surge came after the Q2 financial details were released. With an average trading volume of 564.111K, the PING stock has shown a bullish direction. Overall, in a month the company has shown a decline of 2.49%.

    When the internet became mainstream all kind of information started pouring into it. Many businesses started building their online presence. Everything shifted to become automated shifted online. Data was stored virtually to allow easy access. But at the same time threats to business also became different. People could get access to your data through the help of the internet and sufficient information about the system. So different companies came forward with providing these solutions for their customers.

    What is PING Identity Holding Corp. (PING) About?

    PING is a software company that started back in 2002. Headed from Denver, Colorado the company provides secure digital solutions to their customers. The company provides its services to a number of industries i.e. financial, public and healthcare, etc. The platform has capabilities like Authentication, MFA (Multi factor Authentication), SSO (Single Sign On), API Access, and many more.  They boast a number of notable clients including NETFLIX, HP, TESCO BANK and CHEVR0N. It is registered in NYSE under the symbol of “PING”.

    PING Stock’s Financials and Partnerships

    PING has recently released its Q2 financials. According to the data, a total revenue of $78.9M was generated in the second quarter as compared to $59M in the last year’s quarter. The subscription had the major holdings that brought in a total of 93% revenue that was generated. Overall, the company suffered a loss of $11M in the second quarter.

    The company has plans to expand its working; it has acquired “SecuredTouch”, a company that specializes in bot attacks, identity risks, and fraud. The purpose is to expand their abilities to prevent Identity Fraud Capabilities. It has also improved a number of its features showing that they are continuously developing and improving their existing products. They have also won the award for “Best Identity Management Solution” from SC Awards 2021.

    What’s ahead for PING stock?

    The crux? PING stock holds a promising future if they continue partnering with different companies and organizations. It holds a respectable position in the field of IT solutions. Being partnered with some of the biggest multinational organizations and companies, they have created a strong portfolio.

  • Rules Of Day Trading: Can I Buy a Stock and Sell It the Next day?

    Rules Of Day Trading: Can I Buy a Stock and Sell It the Next day?

    Conservatism generally entails purchasing stocks and holding them for a longer period and even years, hoping that overall market upward trends will benefit them. Stock markets allow investors to do the day trading, or they can buy today and profit tomorrow. Buying and selling securities in a day or few days period is normally called Short-Term trading. A short-term trade is also dubbed as swing trading and refers to the holding of a position (long or short) for only a short period of time. In this article, we will discuss both day trading and the rules of day trading.

    Why Rules of Day Trading are the key?

    In this practice, traders buy and sell stocks on the same day in an attempt to profit from daily fluctuations in stock prices. The price of a share of stock may rise from $35.50 to $35.60 in a few minutes, and the trader will turn a profit of 10 cents per share. In the case of a price decrease later in the day, when the stock price falls to $35.50, the trader may buy more shares in anticipation of a price increase. All that can be done efficiently only if the rules of the day trading are followed.

    Day trading rules help cut the risk of loss

    Short-Term traders run the risk of losing all their profits because daily stock price fluctuations can’t be predicted. It is a short-term bet on stock prices that makes Short-Term traders unique. Although they can win big sometimes, they can lose very quickly as well. Lots of Short-Term traders experience severe financial losses, and many never succeed in making profits as they don’t follow the basic rules of day trading.

    Short-term traders may make money, but their tax rates are often higher than those for long-term investors. Taxes are payable on capital gains realized from the sale of stock. The maximum capital gains tax rate for stocks owned over a year is 15%.

    Stocks that are held for less than a year are taxed at the same rate as income taxes. It means that traders can be taxed at rates as high as 35% on short-term trading gains.

    To trade successfully with this strategy must understand the risks and rewards. Short-term traders should have a thorough understanding of several concepts to succeed. Trading can be successful if the basics are put right.

    By knowing which trades are ideal, traders will be able to discern between a good deal and a bad deal. There are many investors who get caught up at the moment and think that they know what’s happening in the markets if they read the financial pages or watch the evening news. In reality, when the news breaks, the market has already reacted. For this reason, it is important to follow some basic steps to find the right trades at the right time.

    What are Rules Of Day Trading

    Observing closely the Moving Averages

    This is the very first rule of day trading. Stocks have moving averages whenever they have been traded over a given time frame. In general, 15-, 20-, 30-, 50-, 100-, and 200-day time frames are most common. This indicator shows whether an asset is trending upwards or downwards. Moving averages with an upward slope are generally considered good candidates. The general rule when looking for a good stock to short is to find one whose moving average is falling or flattening.

    Observing Overall Cycles or Patterns

    Most markets go through phases, so it is essential to track the calendar at particular times. Historically, the stock market has gained most during the November to April time frame, while the May to October period has experienced relatively stable averages. It is possible to determine the best times to enter long or short positions using cycles as a trader.

    Get a Sense of Market Trends

    A negative trend may prompt you to consider shorting rather than buying. If the trend is positive, you might consider buying with minimal shorting. During a trend-reversed market, your chances of making a successful trade decrease. Keeping these steps in mind will enable traders to recognize potential trades and how to spot them.

    Better Risk Assessment

    Another rule of successful day trading begins with a better risk assessment. It is crucial to maximize return and minimize risk when trading short-term. A sell stop or a buy stop serves as a safeguard against market reversals. When a stock reaches a predetermined price, then a sell stop is triggered. Once this price is reached, the order is executed. Buy stops are the opposite of sell stops. In a short position, it becomes a buy order when the stock rises to a certain price.

    In both cases, you are limiting your downside. For short-term trading, it is generally recommended that your sell stop or buy stop be set within 10% to 15% of your original price. In order to be able to achieve substantial gains, you need to keep losses manageable.

    Buy and Sell Indicators

    To decide the right time to buy and sell, various indicators are used. There are two popular ones: the relative strength index (RSI) and the stochastic oscillator. A stock’s RSI shows how strong or weak it is in comparison with other stocks on the market. If the reading is over 70, it shows the stock is in a topping pattern, and if it is below 30, it shows the stock is oversold.

    In any case, keep in mind that prices can remain overbought or oversold for quite some time.

    Based on the stock’s closing price over a period of time, the stochastic oscillator lets you know whether it’s cheap or expensive. Readings of 80 indicate an overbought (expensive) stock, whereas readings of 20 indicate an oversold (cheap) stock.

    Stock-picking tools like RSI and stochastics can be useful, but they should be used in conjunction with other approaches to identify the best opportunities.

    Finally,

    Money can be made through a variety of methods and tools used in short-term trading. It is in fact possible to Invest today and Profit tomorrow, but it is important to understand how to apply the tools to achieve that success. Depending on the particular tendencies and risk appetite, traders are likely to gravitate toward one or more strategies as they learn more about short-term trading. The goal of any trading strategy is to follow the rules of day trading by keep losses at a minimum and profits at a maximum, and this is no different for short-term trading.

  • What Are Meme Stocks and Their Trading Practice?

    What Are Meme Stocks and Their Trading Practice?

    The term “meme stock” is not uncommon these days for keen stock market followers. If you are unsure of what a meme stock is, allow us to explain to you what it is: it is a stock that goes viral through online propagation, causing a short squeeze in its price.

    In a process of a short squeeze, a stock is heavily shorted following a piece of sudden positive news or a catalyst that brings in lots of new buyers. Short sellers are now forced to cover their positions (getting squeezed out), resulting in more buying, thus causing the stock to surge quickly and significantly.

    Meme stocks have grown in popularity over the past few years. The soaring share price of GameStop (GME) in January 2021 became a highly publicized event. Users of WallStreetBets have picked up GME stock after hedge funds disclosed they are shorting it.

    Online discussion forums and social media platforms are usually responsible for meme stock’s price rise, rather than factors like production growth. The value of these stocks typically increases rapidly, so they become overvalued.

    So, how good are they for investment

    In most cases, meme stocks aren’t a good investment option; they are better classified as growth or value stocks, as their price volatility and hype may not correspond with realistic valuations.

    For instance, In recent times, there are several meme stocks to choose from, such as GameStop, AMC, and BlackBerry. After being mentioned on a popular Reddit forum, all three stocks shot up at price despite their poor performance in recent years. AMC stock jumped almost tenfold in value, while BlackBerry stock rose almost three times. However, neither of them achieved the same level of viral success as GameStop, which raised hundreds of dollars over a few days.

    What made these Meme Stocks so popular?

    The popularity of meme stocks is usually fueled by social media conversations. Their prices tend to spike more frequently in relation to internet virality. Reddit’s WallStreetBets forum recently contributed to the spikes in meme stocks prices.

    In the recent 12 months, people stayed home following the pandemic, which resulted in significant layoffs. Besides all this free time, online platforms such as Robinhood and Webull have made investing more attractive. For retail investors, the marketplace was more widely accessible than ever before.

    Collectively, all these factors boosted meme stock popularity.

    Now let’s examine what creates meme crazes

    Because of the growth of retail investing in meme stocks, the concept has become increasingly relevant recently. Individual stock trading is now easier than ever, which means more people are taking part in this meme stock bursts. These artificial spikes are not really connected to the actual performances of the companies, sharp nose dives usually follow them. 

    There are various phases in the meme stock cycle.

    1. To start with, Short squeezed or undervalued stocks are purchased in large quantities by investors as soon as they notice them. All eyes are drawn to the stock price as it gradually increases.
    2. At this point, investors have noticed a rise in volumes. As more individuals buy the stock, its price skyrockets.
    3. Instantly, the stock’s status flashes up on Facebook, Twitter, and online discussion boards.
    4. As a result, more retail investors are motivated to invest, leading to FOMO (fear of missing out).
    5. After early adopters sell their early versions for a profit, this type of trading comes to a dramatic end. People worry about losing money on the selling side of the transaction just as they did during the buying phase. This is when prices plummet even faster than they rose.

    Who is the winner in Meme stock trading?

    The early adopters are the ones who stand to benefit most from meme stock trading. It is normally too late to reap the benefits for anyone who gets involved during the FOMO phase. The influence of Reddit and Twitter over the market in the past few months is testimony to this.

    Finally,

    Meme’s stock definition can’t be as simple as easy as a growth or value stock, so categorizing it definitely would be slightly misleading. Meme stock impact is unlikely to be incorporated into textbooks soon, but to ignore it could prove very costly.

  • Best EV Stocks to Buy Now

    Best EV Stocks to Buy Now

    When we talk about the Electric Vehicle or the EV stock market, what’s the first thing that pops into your mind? Tesla Inc (TSLA) might be the company that comes to your mind if you have kept up with the mainstream trends around EV. That’s because we have heard about Tesla as the world leader and pioneer of the electric vehicle market.

    And we have heard about Elon Musk, the CEO of Tesla, who launched the TESLA Roadster into space as one of the most phenomenal marketing tactics ever. And if you have heard of Tesla, chances are, you have heard about the Chinese EV company NIO that is fiercely competing and trying to emerge as an EV leader in China.

    However, if you are looking to invest in the EV market, you need to take few steps back from what the mainstream topics and trends are telling you. According to a new market research report, the EV market is growing and is only in the nascent stage despite being a $1656.9 billion worth global market. The EV market is expected to grow at a compound annual growth rate of 33.6% from 2020 to $2495.4 billion in 2027.

    Before we dive into the top EV stocks you can invest in let’s take a look at what is driving the growth of these EV stocks.

    Researching the few fundamentals and variables driving this growth in the EV market can help us a long way in deciding how and which EV stock we should invest in.

    So the main phenomenon that is driving the Electric Vehicle market includes the global drive towards green energy and sustainable zero emissions. Governments and world leaders are creating favorable policies and regulations regarding EV adoption. The free market has played a role in reducing the cost of sourcing batteries. The OEMs are investing heavily to create a profitable business in the EV landscape.

    However, there are some caveats to this growth. The scalability and standardization of the EV market are fragmented in countries and regions of the developed part of the world. The development of EV infrastructure and favorable economic conditions are yet to be globalized. Furthermore, there are very different EV portfolios in the EV stock market based on the electric vehicle and propulsion type of the EV.

    Ford Motor Company (F)

    So let us begin now with the EV stocks! The first on our list is Ford Motor Company (F). We have chosen Ford because of its legendary reputation in the car industry and its shift towards Electric Vehicles. With a market of $58.6 billion, Ford has a diverse and robust strategy for the electrification of its automotive operations. The company’s recent Ford+ (plus) plans expect to generate almost half of its global sales through EV by 2030.

    Furthermore, the company aims to invest more than $30 billion through 2025. One other primary reason that makes Ford’s EV portfolio more attractive is that the company has revealed its three most iconic EV products, which include the elite sports and passenger vehicle- The Mustang Mach E, all-electric and available in the market. Then comes the F-150 Lightning series, which is an all-electric pickup truck. This vehicle caters to the class B vehicle segment. And third is E-transit, an all-electric van that caters to the fleet performance requirement and light commercial vehicle segment.

    This diverse portfolio, along with the Ford company’s scalability power, will allow it to carry its powerful ICE automotive reputation while switching its profitability through the EV market.

    NIU Technologies (NIU)

    The second stock on our list is known as NIU Technologies (NIU). It has a market cap of $2.454 Billion and has seen impressive growth for the past two years. The company, since its inception, had grown in value by roughly 250% since its IPO in October 2018. We chose NIU stock for our pick in the top growing EVs because it picks up a certain niche in the large addressable market of EVs. This niche corresponds to the manufacturing of electric smart scooters and pedal bikes and is a less crowded market with many potentials. NIU caters explicitly to this niche demand in one of the largest growing EV markets: China.

    NIU generated sales of around $85.6 million in the first quarter, which is a 135% year-over-year growth. Despite the dip in the EV market in May, NIU also lost 10.8% of its stock value, and it still sold 149,649 electric scooters in Q1. Out of which 97% of the sales came from the Chinese market. NIU stock has a compound annual growth rate of 7.7% for the next decade, and despite the growing competition, it is still expanding to the rest of the Chinese market.

    Hyliion Holdings Corporation (HYLN)

    Third, on our list is an eccentric EV stock called Hyliion Holdings Corporation (HYLN). It is a $1.964 billion company run by a 28-year-old CEO known as Thomas Healy. Last year, the company went public through a SPAC deal with Tortoise, and since then, it had seen volatility in price during 2020, fluctuating from $10 to $50 and back to $10. However, we chose HYLN stock because this company caters to the deficiencies and limitations in the EV market that we talked about. The charging station and ports availability limitation makes it hard for EV vehicles to sustain their range, especially for Heavy-Duty trucks or Class 8 trucks.

    Thomas Healy has taken a page from Elon Musk’s book and has turned this limitation into an opportunity for innovation and drive towards a niche. This niche specifically caters to the needs of the 8th Class trucks by transforming them into what Hyliion calls Electrified Powertrains.

    Electrified Powertrains is the concept where Hybrid energy engines power class 8 trucks; they are electric engines that also have backup natural or hydrogen gas generators for creating electricity. Its EV battery next-generation module with quicker recharging and 40% more effective battery cooling technology reflects growth and innovation in its Hypertruck ERX production line. Hyliion took this approach to bridge the gap between the lack of electric recharging availability and heavy-duty trucks’ long-range requirements.

    With 700 natural gas stations all over America, according to Hyliion, this is a better approach than consuming gasoline and more efficient than having full electric trucks with no range. According to the company, the niche has a total addressable market of $800 billion and 8 million trucks.

    For the year 2021 and beyond, there are bullish signals for the EV market. Hyliion will continue to flourish in this underdeveloped niche market as long as EV charge and range limitation exists. The company’s estimation of revenue growth from $8 million in 2021 to more than $2 billion in 2024 does not look far-fetched from this point of view.

    NIO Inc (NIO)

    Fourth on our list is NIO Inc (NIO). The market value of the company is 83.410 Billion. Yes, we did mention NIO stock as a mainstream stock initially, but the growth of this EV company is uniquely undeniable and is stealing Tesla’s thunder. Analysts, bureaucrats, and even Elon Musk admitted that China is expected to be the biggest market for Tesla, with 41% of China’s global EV market share. However, the recent US-China relations have deteriorated.

    The rug has been pulled from under Tesla as China has recently implemented bans on government authorities having ownership of Tesla and banned Tesla vehicles from government compounds and agencies. This leaves the Chinese market all for NIO to grab since no one takes the throne second in China.

    Moreover, the company is entering the Norwegian Market as well; thus, now expanding and growing far beyond its border. The sales of the Chinese EV champion have leaped over 95% year over year and have forecasted 21000-22000 EV car deliveries from the current quarter. Apart from the general trend and sentiment of the EV market’s growth, NIO enjoys an edge for the market share capacity and space given due to these geopolitical tensions. Bloomberg NEF believes that EV sales are expected to grow from 1.7 million in 2020 to 54 million in 2040, in which China would represent sales share accounting 18 million.

    Global X Autonomous & Electric Vehicles ETF (DRIV)

    The final EV pick on our list is an ETF known as Global X Autonomous & Electric Vehicles ETF (DRIV). This ETF was picked by us majorly for investors out there that want to dive into the EV stocks but don’t know where to start. This $900 million market cap of DRIV ETF gives a diversified exposure to investors in the EV market. It has a total deep portfolio of 76 stocks and has an expense ratio of approximately 0.68%.

    DRIV does not only consist of pure Electric Vehicle play but consists of the overall plug-in car play. Plug-ins mean that it includes Autonomous Vehicles, Hydrogen Fuel Cars, Hybrids; therefore, it depends on the EV fuel propulsion and reduces the volatility and limitation of the EV pure-play investment and market. The Price to Equity ratio shows a very reduced premium compared to the over 900% increased share prices of Tesla and NIO. DRIV has shown a CAGRof 23.76% since its initiation.

  • What Next After The Crypto Market Crash 2021?

    What Next After The Crypto Market Crash 2021?

    The recent crypto market crash had been brutal, to say the least. The $2.6 trillion market lost $1.3 trillion two weeks after the high of the market. Except for stablecoins whose values are pegged to fiat currencies, there wasn’t a single cryptocurrency in the top 100 by market capitalization which did not lose value.

    Let’s delve deeper into what caused the market crash and what is the future of the crypto industry.

    What was the 2021 bull run and what caused it?

    The bull run is an extended period of time where cryptocurrencies are all soaring. The market sentiment is strongly bullish and positions are long. The 2021 bull run resulted in a lot of cryptocurrencies establishing new all-time highs with phenomenal growth levels. Bitcoin alone soared from a price level of $10,000 to around $60,000 – a staggering 500% increase.

    Bitcoin is the original cryptocurrency. It is dubbed as the digital gold and has had a market dominance of nearly 50% for the better part of its lifetime. The king of the market holds enormous power over all cryptocurrencies. Altcoins – or alterative coins to Bitcoin – usually move in tandem with the king.

    The bull runs up till now are correlated with Bitcoin block reward halving events.  The first halving occurred in 2013 where Bitcoin rose from $15 to $512, followed by 2017 and finally 2020. The halving marks a drop in the hard capped supply of Bitcoin. So, it’s simple economic theory – the lesser the supply, the greater the demand and; hence, the price. In conclusion, Bitcoin halving leads to a spike in its price and Bitcoin’s hold on the whole market results in cryptocurrencies the following suit.

    But what causes crypto market crash anyway?

    Cryptocurrencies are highly speculative investment tools. Unlike stocks which derive value from the standing of the company, most cryptocurrencies are valued only because a major chunk of the investors believe so. However, that perspective is shifting but we will get to that later. Saying that cryptocurrencies are speculative assets do not mean that they do not possess any real value – at least the real cryptocurrencies do. The market has been flooded with cryptocurrencies especially in the bull run of 2021. With around 7000 altcoins, a good majority of those are nothing but scams.

    Bitcoin halvings have historically resulted in bull runs. Bull runs cause the market to overheat with some cryptocurrencies even being overvalued and then market crash becomes imminent. As more and more people begin to panic amidst the greed in the market, sell positions surpass buy positions and the sentiment gradually turns bearish to a point that a market crash is caused.

    What caused the 2021 crypto market crash?

    It’s not that simple. There are a lot of factors that play a role in a market crash but investor or not everyone knows a market crash follows after a bull run.

    The most evident culprit of the crash is Tesla CEO Elon Musk. Musk had been an ardent supporter of cryptocurrencies while his favorite is Dogecoin – only because it has dogs and memes while others don’t. Tesla had announced to accept Bitcoin as a mode of payment for its electric cars. Afterward, Musk had also held a poll asking whether or not to add Dogecoin as payment for Tesla. However, after all the build-up Elon Musk denounced the use of Bitcoin amidst environmental concerns – effectively causing the market to crash.

    Elon Musk had been criticized greatly for the announcement as many experts pointed out the energy consumption of a proof of work mechanism is a hard fact. Moreover, a huge chunk of mining has moved to renewable sources – as believed otherwise.

    The market crash was further intensified by news from China stating that the government has announced a renewal of the crackdown on Bitcoin mining in the country. The premier of the country called for tighter regulation of the crypto sphere in the country. And as China accounts for nearly 70% of the Bitcoin hashrate, any unfavorable news from the country is an immediate cause of panic.

    What is the future of the cryptocurrency industry? 

    Is the market crash the end of the crypto industry? A big fat no! if anything, it has further brought the crypto industry under the spotlight. A report from a data analytics platform revealed that the social volume of Bitcoin has surpassed that of the 2017-2018 bull run – which is huge.

    In four years, the next halving of Bitcoin can be expected which will, most probably, result in another bull-run. Yes, a market crash will follow but the five-year price projections of many cryptocurrencies place them at highs that are currently unfathomable. For example, Bitcoin is expected by Wallet Investor to have a price level of $182,164 which will become a possible price target after the next bull run.

    The importance of the blockchain technology has also been realized by many. A lot of Wall Street giants and corporate behemoths that were skeptical of cryptocurrencies in the first bull run have accepted cryptocurrencies in some shape or form. Banking giants like JPMorgan & Chase, Goldman Sachs have included cryptocurrency offerings. PayPal and Mastercard have also added cryptocurrencies to their platform. Moreover, Bitcoin and other cryptocurrencies have become an integral part of corporate balance sheets with MicroStrategy, Tesla and the likes having sizeable holdings.

    There has also been a paradigm shift from cryptocurrencies being used as mere assets or store of values – like Bitcoin – to the increasing focus on their value offering. Smart contract technology of Ethereum which fuels decentralized finance and apps to decentralized oracles of Chainlink are becoming increasing relevant.

    Market crash or not, cryptocurrencies are not going anywhere. The decentralized and trustless offering of the technology is attractive for many. And as the globe moves toward digitization, it may become the future.

  • What Are Biotech Stocks And How To Invest In Them

    What Are Biotech Stocks And How To Invest In Them

    In this article, we are going to help you understand everything there is about biotech companies ranging from what they are- all the way to- how to invest in biotech stocks. This will help you hit the nail on the head with the trend analysis and strategically make investments in this type of stock.

    Biotech stocks have been in the public’s portfolio right since the inception of the stock market and exchange platforms. But just like the recent surge in Green Energy stocks, EV stocks, and Crypto stocks, we are seeing a new rise and shift in the Biotech stocks’ popularity.

    This both excites the investors as well as creates curiosity over what actually is prompting the rise in biotech company stocks and biotech stock prices. This curiosity is essential for looking into the reasons why the Biotech stocks are trending and analyzing the patterns which are making this type of stock boom. This gives investors and stock analysts an edge in predicting and identifying signals and hints in the market shifts due to internal and external reasons.

    What are biotech stocks?

    Biotech Stocks are essentially publicly traded companies that focus on the development, production, and commercialization of pharmaceutical products and services that are used in the treatment of diseases. The therapeutics and treatments that you consume or apply in daily life, acquiring from pharmacies or hospital dispensaries exist because a Biotech company developed them.

    From a stock perspective, the biotech stock value ranges from triple-digit share prices all the way to under $1 price per share. The ones that are under $5 share prices are known as biotech penny stocks. These, just like every other penny stock are attributed to a lot of volatility however Biotech stocks have their own intrinsic share of volatility and risks (which come along with rewarding outcomes as well). Before we get into that let us first explain what really is creating the hype in this kind of stock, in the first place.

    How Biotech Industry became very popular among investors

    We mentioned before that the trend in the biotech stock is growing as it is in Green energy, Crypto, and EV stocks. But the reason behind this trend is completely different and associated to unique factors.

    Covid-19 Pandemic

    One major reason for the rise is the COVID-19 pandemic, specifically the race for vaccine production. When the pandemic had gripped the world in its virus, it had paralyzed many markets and business; the overall global economy was halted. In fact, even the most successful biotech companies had been forced to shut down. But Pandemic being human health and medical crisis had prompted responses from the very biotech industry that it had halted. The Biotech industry decided to push for solutions to the Pandemic and the virus, in the form of Vaccines. The vaccines became a huge market space in the healthcare industry and biotech stocks immediately started filling it up.

    The aging population

    According to the Rural Health Information Hub, The US population has more than 46 million citizens above or at the age of 65 which is expected to grow to 90 million almost in 2050. Every one in five Americans will be aged over 65 years old. The context of this is important when you correlate the use of prescribed medicines and drugs with old age; the older population uses prescribed medicines and drugs more often to treat their chronic illnesses and complications, as compared to younger generations. This means demand and innovation required from the Biotech Companies will increment in the following years and push the companies to focus on targeting innovative and niche spaces in the pharmaceutical market as competition concentrate between biotech companies.

    Exposure to Biotech stock

    The former factor is a more prevalent cause of exposure in the biotech market in the current market trend than the latter because the US and the overall world economy is slowly coming out of the Pandemic and rolling out vaccines. The pandemic had crippled many portfolios for the investors in various stocks and companies. During this time, the biotech stock was prevailing due to public, government, and private investors nudging the biotech companies to create vaccinations. This made investment profiles in the Biotech stock especially the ones in the vaccination race, more attractive.

    What are the types of Biotech Stocks?

    Now that we have established the roots of the developing trend in the Biotech industry, let’s focus on what exactly are the cues to look for when you are investing in the Biotech companies stock.

    There are three main types of Biotechnology companies; Medical, Agriculture, and industrial ( or referred to as Red, Green, and White respectively).

    The primary thing to focus on when you invest in Biotech companies is to have a bird’s eye view of all the metric and indicator for the stages and process that are related to Biotech stock’s operations/performances. This helps ensure, that your investment decision is based on solid evidence that can hopefully turn out to be incredibly rewarding.

    Biotech operations and drug development, especially in the Medical type, goes through rigorous testing that are subject to stringent approvals and regulatory standards. These operations, based on the development and approval are broken down into 5 stages.

    Investment and the five stages of Biotech Stock operations

    The first stage of drug development is known as Research and Discovery, where concepts and theories of new products are formed along with a given conceptual framework to back up the attributes and potential of the new product.

    The second stage is known as Preclinical Stage, where the drug’s pharmacological profile is created to assess the strategies and planning of human testing and effects that are expected to result from the early and late clinical stages. This profile is assessed by the regulatory bodies like the US FDA, to be approved and taken to the next stage human trials and tests. These trials and tests take place in 4 phases;

    • Phase 1: The safety of the drug is evaluated in human trials with determination to predict dosage range.
    • Phase 2: The efficacy of the drug is tested relevant to the disease it is targeting. This phase is known as proof of concept (PoC).
    • Phase 3: The proof of concept and previous phases are tested again in large population batches with several thousand people. This phase is known as regulatory proof which when approved requires the next step of New Drug Application (NDA) approval in order for the drug to be marketed.
    • Phase 4: Once the drug is marketed, the companies voluntarily or as per the requirement of the FDA will undertake post approval studies to validate and add additional information about the drug’s safety and efficacy.

    The third stage is known as Early-clinical stage in which the companies start initiating the phases of the testing and study. The first two phases mentioned above are what comes into this stage of Biotech companies. These companies that are in the first two phases are known as Early-stage biotech companies.

    The fourth stage is known as the late-clinical stage and the company is known as late-stage biotech. This stage consists of the regulatory approvals and NDA signing of the drug from the FDA.

    The fifth and final stage is the Commercial Stage, in which the companies have been approved for the NDA and begin rolling out the commercial strategies for the market. This stage also includes Phase 4 study as per requirement or voluntary basis.

    How to Invest in Biotech Stocks

    It may click to you up till this point that the biotechnology companies out there are in different stages of the Biotech lifecycle and thus have different risks associated with each stage for investment. The more progressed and approved the company is, in its stages, the more profitable and attractive its stock looks- however it still remains risky. Biotech Industry Organization (BIO) researched that the likelihood of success and regulatory approval to be received for a company from Phase I to Commercial stage has been 9.6% from data stretching 2006-2015. However, in the 2011-2020 data study, it was reduced to 7.9% which is mainly attributed to the concentration and new entrants in the market.

    The report also showed that even the hottest areas of a biotech investment portfolio which are Neurology, Cardiovascular, and Oncology have an approval rate of 8.4%, 6.6%, and 5.5% respectively. This report was also discussed by the Motley Fools team on their Youtube Channel in which they broke down the approval and success rating according to phases 1 to 4 (Commercialization), which was 70%, 33%, 30%, and less than 10% respectively.

    Failure is the big bad wolf in the biotech stock investment

    The investors need to lookout for the stage that the companies are in, in order to assess if the Biotechnology Company is worth investing into. Furthermore, it is important to heed for investors that companies can fail at any one of these stages which is what makes Biotech stocks volatile and risky. However, while looking into the track record of previous drug approvals of the company as well as the financials of the company, you can make a strong investment. The opposite is also true, once the company has been approved for any one of these stages and progresses, the stock price shoots up to double and triple digit percentages, while in some cases it can shoot up to quadruple digit percentages!

    Other proven ways to invest in Biotech Stock

    Looking at one biotech company’s stock for investment may seem to be tricky sometime, if there aren’t enough indicators to decide if the stock is valuable or not. In cases like these, especially if you are a new investor looking for exposure into the Biotech Industry, the safest bet is to opt for Exchange Traded Funds (ETFs) for biotechnology stocks. Biotech ETFs provide a great space for a new investor to get an exposure into Biotech stocks. Depending on your curiosity and preference you may opt for an equal-holding weight ETF or a market weighted ETF. The former will give you equal exposure to small new biotech stocks as you would get from big blue chip Biotech stocks.

    Another great strategy that has been evolving in the Biotech stock investment is the focus on Contract Research Organizations. Many Biotech stocks discover an idea for their drug candidate and then proceed to outsource the administrative, regulatory, experimentation, and clinical procedures to a CRO which is well equipped for exactly this sort of specialization in the Biotech space. These CROs generate revenue for their services despite the approval or disapproval of the product in any of the stages. Furthermore, big-fish CROs focus on the M&A action where they realize the potential of a new product candidate for which it merges, acquires or partners with the product’s Biotech company and reaps the gains from owning the candidate through its development and approvals. Therefore, investing in Biotech CROs may prove to be a better investment than just the developing Biotech Companies.

    Biotech Penny Stocks under $1

    A great way to start exposing yourself to Biotech stocks is to find biotech penny stocks which are $1 or under. Usually, investors invest in multiple under $1 portfolios to broaden their exposure. Here is a list of Biotech Penny stocks under $1.

    Ticker Company Market Cap Performance (YTD) Price Change
    AEZS Aeterna Zentaris Inc. 109.74 106.82% 0.88 2.11%
    ACST Acasti Pharma Inc. 116.17 71.54% 0.56 -1.24%
    ADXS Advaxis, Inc. 85.82 66.91% 0.58 23.31%
    ZSAN Zosano Pharma Corporation 95.38 64.01% 0.86 -3.94%
    OGEN Oragenics, Inc. 78.24 48.33% 0.67 -1.33%

    Biotech Stocks under $5

    Similarly, if you want to upgrade your investment portfolio from $1 biotech stocks, investors opt for bigger share price and market cap range for their portfolio and as such, focus on $5 or under Biotech stocks to invest in. This adds slightly more reward and risk but still provides great exposure.

    Ticker Company Market Cap Performance (YTD) Price Change
    SESN Sesen Bio, Inc. 755.67 203.70% 4.10 -3.53%
    PTIX Protagenic Therapeutics, Inc. 38.77 152.38% 2.65 -1.85%
    CTXR Citius Pharmaceuticals, Inc. 353.83 111.76% 2.16 0.47%
    MRKR Marker Therapeutics, Inc. 234.82 89.66% 2.75 -1.79%
    OTLK Outlook Therapeutics, Inc. 441.29 86.15% 2.42 1.68%

  • Here is why Snap Inc. (SNAP) stock surged in the after-hours on Thursday?

    Snap Inc. (SNAP) shares gained 17.68% in after-hours on Thursday, July 22, 2021, and closed at $74.10 per share. Earlier in the morning session, SNAP’s stock lost 0.66% to close Thursday’s session at $62.97. SNAP shares have risen 171.42% over the last 12 months, and they have moved up 4.08% in the past week. Over the past three months, the stock has gained 10.38%, while over the past six months, it has lost 15.75%.

    Let’s have a look at its recent news and developments.

    Recent financial results announcement

    On July 22, 2021, Snap Inc reported its financial results for the second quarter ended June 30, 2021.

    Q2 2021 financial highlights

    • Snap Inc reported a revenue of $982 million in Q2 2021 compared to $454 million in Q2 2020.
    • The total cost and expenses were $1.17 billion in Q1 2021 compared to $765 million in Q2 2020.
    • The company suffered a net loss of $152 million or diluted net loss per share of $0.10in Q2 2021, compared to$326 million or diluted net loss per share of $0.23in Q2 2020.
    • Adjusted EBITDA was $117 million in Q2 2021, compared to $95.6 million in Q2 2020.
    • Operating cash flow was $101 million in Q2 2021, compared to $67 million in Q2 2020.
    • Free Cash Flow was $116 million in Q2 2021, compared to $82 million in Q2 2020.

    The financial outlook for Q3 2021

    For Q3 2021, the company is expecting

    • Revenue to be in the range of 1,070 million and $1,085 million.
    • Adjusted EBITDA to be between $100 million and $120 million.

    Verishop on Snapchat Minis

    On July 20, 2021, Verishopbecame the latest fashion source to explore Snapchat Minis, an offering from the social video app that brings snack-size, third-party app features to the platform.

    Verishopaims to expand its reach with a shopping model designed for Snapchatters and introduced 11features ranging from movie tickets to voter registration. 

    Snapchat app broken on IOS devices

    On June 28, 2021, Snapchat faced some unexpected glitches on IOS devices and it stopped working on iPhone according to several reports from the users.

    The problem started after the latest version of Snapchat was installed automatically on iPhone and it simply crashed rather than opening the app after the update.

    The problems appear to be with the update numbered 11.34.0.35, which was distributed through the App Store over the weekend.

    Universal Music Group global licensing deal with Snap

    On June 24, 2021, Universal Music Group and Snap signed a multi-year global agreement that will allow Snapchat’s users to incorporate UMG’s catalogue of recorded music and content into creative tools, including Sounds on Snapchat and augmented reality Lenses.

    According to the deal, UMG’s entire recorded music catalogue is available on a global basis in Snapchat’s Sounds tool, including search and curated playlists.

    Conclusion

    The recent financial results were the reason behind its gains in the after-hours on Thursday and it can close the weekly trading by continuing its surge on Friday as well.

  • Here’s why IAMGOLD Corporation (IAG) stock’s share-price plunged

    There was a decline in the share price of IAMGOLD Corporation (IAG) by -9.79% and were trading at a stock price of $2.54. IAG’s stock volume stayed the same at 4.97 million shares, however, this was higher than the average volume of the past 50 days which was 3.96 million shares. Over the last 12 months, there has been a decline in shares of IAG by -41.09%, and the last week they have decreased by -4.42%. IAG’s stock has declined by -18.79% over the last three months and in the last six months, the stock’s value has decreased by -19.48%. The outstanding shares of IAMGOLD stand at 475.80 million and their current market value is $1.42 billion.

    IAMGOLD Corporation at a glance

    IAMGOLD Corporation, headquartered in Toronto, Canada, is a developer, operator, and explorer for gold mining properties in three regions: Western Africa, North and South America. IAMGOLD is developing high potential mining districts that help them in developing, operating, and exploring projects. Its operational mines comprise of the Westwood mine (Quebec, Canada), the Essakane mine (Burkina Faso, West Africa), and the Rosebel mine (Suriname, South America). Some of its development and exploratory projects are the Diakha-Siribaya gold project (Mali), the Cote gold project (Ontario) and the Boto gold project (Senegal), and various other countries located in America and Western Africa. IAMGOLD is estimated to employ 5,000 people and commits itself to maintain the culture of accountable mining by following high social and environmental standard practices.

    IAMGOLD reports second Quarter financial results for 2021

    The Essakane mine had produced strong and promising results of the second quarter with high gold production in spite of the fact that there were numerous challenges in ore processing with high graphitic content. The production guidance has been increased for the Essakane project which will reflect higher production in the first two quarters of 2021.
    On the other hand, the Westwood mine required additional safety measures because of which the production guidance for Westwood 2021 had to be reduced to reflect this.
    Due to difficult operating conditions, mining activities in the Rosebel mine were impacted in the second quarter, which was caused by heavy rainfall. In addition to the operating conditions, there was also a significant increase in COVID-19 cases as there had emerged a new variant in Suriname during the second quarter. The social impact of this greatly affected the projects and operations. The Guidance for Rosebel were adjusted downwards due to the said reasons.

    The company has summarized the results preliminary for second-quarter operations and also updated the 2021 guidance set on certain metrics. The changes in guidance have been made based on the first-half performance of 2021 and successive efforts for developing an updated outlook for the latter half of 2021.
    The full-year assumptions for the updated full-year guidance 2021 included the $65 average crude oil price per barrel and average realized gold price of $1,745 per ounce with a EUR: USD exchange rate of 1.2 and USD: CAD exchange rate of 1.22.
    The production guidance for the overall company has been reduced mainly due to the reduced actual production in Rosebel and Westwood mines, which was somewhat counterbalanced by high actual production in Essakane mine for the first half of 2021. Total per-ounce costs guidance had been increased which reflected lower total company-wide attributable guidance. The company, in accordance with IFRS, is trying to determine any kind of impairment for the Westwood mine and that it need adjustment or not.