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Top Biotech Stocks to Watch as Equities Rally

The markets are up this morning driven by a combination of COVID-19 vaccine excitement, and China-related news. On COVID-19 vaccine news, the announcement by AstraZeneca that it was restarting its late-stage COVID-19 vaccine trial is still exciting the market. Given that this is one of the most promising vaccine candidates in the market, investors are taking the latest development as a sign of good things to come. The excitement stems from the fact that a COVID-19 vaccine can lead to a revamp of the economy, due to a resumption of consumer spending.

The U.S economy thrives on consumer spending and a return to pre-COVID-19 levels of spending would see the stock market’s rally again as investors throw money more confidently at the stock markets. On China, the country has reported positive data on industrial production and retail sales. The country has stated that industrial production increased by 5.6%, while retails grew by 0.5%. Given how important China is to the global economy, the growth data points to both economic resilience, and a potential bounce back in the world economy once a vaccine is found.

As optimism rises in the markets, biotech stocks are leading the way in early morning gains. Some of the top stock performers ahead of markets are as below:

Novus Therapeutics Inc [NASDAQ: NVUS]

This stock is gaining quite strongly pre-market and is up by over 150%. This follows the company’s announcement that it was buying privately-held Analixis Therapeutics Inc. Through the acquisition, the company will have access to compound AT-1501, a next-gen anti-CD40L antibody.

Once developed, it will be used for organ and cellular transplants, when treating autoimmune and neurodegenerative diseases. The company will also inherit Anelixis senior management that has lots of experience in drug development and commercialization. Commenting on the deal, board chairman Keith A. Katkin stated that the acquisition would deliver value to Novus shareholders.

Marinus Pharmaceuticals Inc [NASDAQ: MRNS]

Marinus Pharmaceuticals Inc is another top performer this morning and is up by over 60%. This follows the company’s announcement that Ganaxolene has met its primary endpoint in the company’s phase 3 trial for CDKL5 deficiency disorder The Company has also announced that the treatment was well-tolerated and that it had a discontinuation rate of under 5%.

ARCA Biopharma Inc [NASDAQ: ABIO]

ARCA Biopharma is another top performer this morning and is up by over 20%. This is largely price action-driven, and comes a month after the company announced that it had completed its FDA pre-IND consultation for its severe COVID-19 treatment. The company expects to submit its IND this month ahead of its phase 2b clinical trials.

September 15, 2020
Stocks to Watch as AstraZeneca Raises COVID-19 Vaccine Hopes

The markets are headed for a strong start to the week, with the NASDAQ, the S&P 500, and the Dow all in the green. This follows optimism that a COVID-19 vaccine is now closer than ever. Over the weekend, AstraZeneca announced that it was continuing with late-stage tests for its COVID-19 vaccine trials with the University of Oxford.

The trials had been put on hold earlier after one of the participants suffered an adverse reaction. The restart of the program means that a vaccine could be in the offing any time before the end of 2020. The excitement around a vaccine stems from the fact that COVID-19 has had an adverse effect on the world economy. Entire sectors such as travel and tourism have been hit hard.

Unemployment has also been high all through the pandemic thereby hitting consumer spending. Given that the U.S economy runs on consumer spending, there is optimism that a vaccine, and a return to normalcy, would help restart the economic engine, and drive the economy to new heights, and possibly return to the economic strength that was experienced before the pandemic.

As market-wide optimism rises, stocks that have positive news coming out are outperforming the market in early morning trading and could do better than average in the day. Some of the top performers this morning are as below:

Immunomedics Inc [NASDAQ: IMMU]

Immunomedics Inc is a top performer this morning and is up by over 100%. This follows news that Gilead was buying the company in a $21 billion deal. This means that Gilead is offering $88 per share, or a premium of 108% compared to the stock’s Friday’s close.

The deal will be financed in a mix of cash and debt and will give Gilead access to Immunomedics’ breast cancer treatment that has already been approved by the FDA. Commenting on the deal, Gilead CEO Daniel O’Day stated that the acquisition was a step forward in strengthening the company’s portfolio of oncological treatments.

Cassava Sciences Inc [NASDAQ: SAVA]

Cassava Sciences Inc is another top performer this morning and is up by over 100% pre-market. This follows the company’s announcement of results from its phase 2b clinical study for Sumifilam, the company’s treatment for Alzheimer’s. The company noted that patients who were put under the treatment recorded more cognitive improvement compared to those put on a placebo. The company also noted that the treatment was well-tolerated.

J.Jill Inc [NYSE: JILL]

Jill Inc is another top performer this morning and is up by over 50%. This follows the company’s announcement that it would be restructuring out of court. The company stated that it had received a nod from 97.8% of its lenders to go ahead and restructure without the need for a court judge.

September 14, 2020
Stocks to Watch Even As Markets Start the Day in the Red

The markets are down this morning, indicating that investors are not confident of a return to pre-pandemic levels anytime soon. Labour numbers are still pointing to a generally sluggish economy. According to a report by JOLTS, hiring was slow in July despite an increase in job openings.

The report showed that job openings in July were still much lower when compared to a year ago. While there is an improvement when compared to March/April, they still point to a market that is still relatively depressed and does not correlate to the massive run-up in price that the stock markets have experienced recently. As such, there could still be a sizeable number of investors that believe the markets are overvalued.

The markets have also been dampened further by news that that the Oxford vaccine trials had been halted after complications. While this is just one of the many vaccines that are being tested, it points to the massive challenges that the world faces in the race to a vaccine.

This means that the world could have to wait longer before a credible vaccine candidate is found. By extension, this means that large segments of the economy could continue to suffer in the near-term. Despite the dampened outlook, there are stocks that are gaining quite strongly this morning. Some of the big performers this morning that are likely to outperform the markets in the day are as below.

Yield10 Bioscience Inc [NASDAQ: YTEN]

Yield10 Bioscience Inc is gaining strongly this morning and is currently up by over 90%. This follows the company’s announcement that its President and CEO Oliver Peoples will be presenting at the H.C Wainwright 22^nd annual global investment conference that will take place between the 14^th and 16^th of September. The excitement around what new and exciting things he will talk about have created strong momentum that could last over the next few weeks.

CBL& Associates Properties Inc [NYSE: CBL]

This is another big winner this morning and is up by over 40%. This is purely a price action driven move and comes weeks after the company announced that it had entered into a debt restructuring agreement with its debt holders. Through the deal, the company aims to get rid of $1.4 billion in unsecured debt. Given the uncertainty currently prevalent in the economy, investors seem to be excited about the stock.

Jaguar Health Inc [NASDAQ: JAGX]

Jaguar Health Inc is up this morning and is up by over 30% pre-market. While there are no news around it this morning, the stock recently announced that it had started an initiative to develop a natural prescription medicine for treating mood disorders.

September 10, 2020
Top Pre-Market Performers as Markets Rebound

The markets are up this morning with the NASDAQ, S&P 500 and the Dow all in the green. This recovery comes after several days of heavy selloffs and could be an indicator of investors taking positions in hopes of a bump in prices. Nonetheless, the mood in the market remains mixed. There hasn’t been a major improvement in fundamentals since data from the Federal Reserve showed that the labour markets were not picking up as fast as the markets were expecting.

The markets are also still absorbing the news that the recent tech rally was not really fundamentals, but due to aggressive stock-buying by Japanese firm Softbank. As such, despite the jump in market value this morning, the underlying fundamentals remain weak. However, if the pre-market rally holds until the markets open, it could be an indicator that the worst has passed.

This could see the markets sustain gains in the day, and close higher. In this environment of cautious optimism, there are stocks that are outperforming the markets by a huge margin. Some of the stocks doing well pre-market and could do well all through the day are:

Superconductor Technologies Inc [NASDAQ: SCON]

Superconductor Technologies Inc is a top performer this morning and is up by over 30%. This comes as investors await the annual general meeting that is taking place today.

Part of the excitement stems from the fact that one of the issues on the agenda is a reverse stock split. Earlier, the company had announced that the stock split proposal had not got enough votes and that an extra 1.5% of the company’s outstanding shares were needed to actualize it.

The proposal is likely to pass this time as investors have been given enough time to exercise their voting rights after the AGM had been adjourned earlier on September 2^nd. The stock split is aimed at enabling the company to maintain the $1 minimum bid price as required by the NASDAQ.

Trillium Therapeutics Inc [NASDAQ: TRIL]

This is another top performer this morning and is up by over 40%. This comes after the company announced that it had received a $25 million investment from Pfizer. The company has also announced that it has received a good safety profile for TTI-622, its antibody fusion protein that is viable as a cancer treatment.

Watford Holdings Ltd [NASDAQ: WTRE]

This is another pre-market top performer and is up by over 30%. This comes after the company announced that Arch Capital Group Ltd had made a $500 million offer for the company. The offer comes a year after the company went public and lost a third of its value. The offer represents a bid of $26 per share, much higher than the stock’s value of $17.8, at yesterday’s close.

September 9, 2020
Top Bio-Tech Stocks to Watch as U.S Major Indices Slump Pre-Market

U.S stocks are headed to a negative start, with the NASDAQ leading the way in losses. The losses are a continuation of the bearish momentum that gripped the markets last week. The heavy selloff in the NASDAQ follows the revelation that the massive tech rally that characterized the market earlier was the result of an aggressive buying spree by Softbank.

This has created a chaotic trading environment as investors rush to sell and take profits. It’s an indicator that investors are not confident that there was any fundamental justification for the run-up in price. For context, stocks like Tesla and Apple had rallied by between 30% and 50% in a very short time, with the fundamentals remaining relatively unchanged.

There is also the fact that the Federal Reserve had dampened the market mood with data showing a relatively weakened labour market. This points to a situation whereby the equity markets have not been reflective of the economy. This mismatch could see the stock markets correct further in the day, with the relatively weak trading day in Europe being a pointer on market direction. Nonetheless, there are stocks that are weathering this environment and are gaining quite strongly pre-market. Some of the stocks that are gaining are:

Biocept Inc [NASDAQ: BIOC]

Biocept is a top performer ahead of markets and is up by 700%. This rally comes days after the company announced a 1 for 10 reverse split. The split was announced on 4^th September but will become effective today when markets open. The goal of the split is to raise the price and allow the company to hold above $1 and maintain its listing on the NASDAQ. The company further announced that no fractional shares would be issued with regards to the split.

Albireo Pharma Inc [NASDAQ: ALBO]

This is another top performer pre-market and is up by over 80%. This follows the company’s announcement that its phase 3 trials for Odevixibat had met its primary endpoints. The company’s CEO Ron Cooper stated that Odevixibat had clinically shown to lower bile acids in patients suffering from PFIC1 and PFIC2. He added that the results were a confidence boost for the company in its current BOLD pivotal trial for the treatment of Alagille syndrome that will start this year.

InspireMD Inc [NYSE: NSPR]

This is another top performer pre-market and is up by over 30%. This follows the company’s announcement that the U.S F.D.A had approved it to go ahead with a study of CGuard™ in preventing stroke. CEO, Marvin Slosman, stated that this was a major milestone in the company’s plans for worldwide expansion.

September 8, 2020
Stocks to Watch even as Sentiment Points to Short-Term Market Correction

The markets are mixed today, after yesterday’s huge slump. It was the largest slump in over two months and saw billions of dollars wiped off the market.

Apple, which has been a top performer in recent months shed off over $150 billion in value. The massive drop in value is a combination of multiple factors. One of them is yesterday’s data that showed that the private sector was not adding jobs as quickly as most investors were expecting.

This has reinforced a long-held believe that the stock markets at the moment do not reflect the true state of the U.S economy. This has created panic and could possibly see further correction until the government takes proactive measures to breathe new life into the economy.

There is also the fact that analysts have started calling for caution. For instance, analysts at Citi have told their investors to focus more on the value of growth.

This further affirms the fear that markets are overvalued at current prices. However, this does not mean that stock fundamentals are bad, only that at current prices, they are not justified. For instance, in just under 3 months, stocks like Apple and Tesla have gained by 30 to 50%.

While they are fundamentally strong companies, there hasn’t been a major change in fundamentals that can justify this rally. Despite the fear and cautious optimism that have gripped the market, there are several stocks that are gaining upside momentum this morning. Some of the stocks that are gaining pre-market are as below:

PolyMet Mining Corp [NYSE: PLM]

PolyMet Mining Corp is a top performer this morning and is up by over 18%. This follows news that the court had found that the company’s water permit to have been issued in accordance with set procedures. In his ruling, the judge rejected allegations that the company took part in systemic efforts to hid administrative records.

DPW Holdings Inc [NYSE: DPW]

This is another top performer this morning and is up by over 40%. This follows the company’s announcement that its Coolisys Power business unit will be partnering with other companies to test its new electric vehicle. The tests will include charging solutions that have a range of 150 miles and can be fully charged in just 30 minutes. This is a big deal as the electric vehicle charging market is expected to hit a value of $27.7 billion by the year 2027.

I-Mab [NASDAQ: IMAB]

I-Mab is in the green this morning and is up by close to 10% pre-market. This follows the company’s announcement that it has entered into a strategic partnership with AbbVie for immune-oncology therapy. Under the deal, I-MAB will receive an upfront pay of $180 million.

September 4, 2020
Stocks to Watch as Poor Labor Data Dampens Market Sentiment

The markets are down this morning, with the NASDAQ: the Dow and the S&P 500 all in the red. This follows lower than expected job numbers and a mixed report on the economy from the Federal Reserve. Yesterday, data on jobs came out and it showed that in the month of August, the private sector added about 428,000 jobs.

While this is a high number, it is still much lower than what the markets were expecting. The markets were expecting the private sector to add at least 1 million jobs in August. While announcing the data, ADP Research Institute Vice President Ahu Yildirmaz stated that the jobs that the private sector posted in August point to a slow recovery in the labour markets.

He added that the slow job creation cut across all sectors of the economy. To add to that, the Federal Reserve released its Biege Book report showing that labor markets showed mixed data across all its 12 districts.

The book is usually closely watched by investors as a guide on the potential standing of the economy and will be a basis for the Fed policy meeting scheduled for September 15^th to 16^th.

Data on the standing of the economy points to the need for an economic bailout. Unfortunately, the impasse between democrats and republicans on this issue could see the possibility of such a bailout drag out for longer, with the effect being a dampened climate in the equity markets.

Despite the current negative outlook, there are stocks that are outperforming the markets this morning. Some of the pre-market top performers are as below.

Sunesis Pharmaceuticals Inc [NASDAQ: SNSS]

This is a top performer this morning and is up by over 800%. This follows the company’s announcement of a 1 to 10 reverse stock split that took effect yesterday after markets close. The stock split is aimed at allowing the company to maintain the requirement of $1 per share by the NASDAQ.

Kensington Capital Acquisition Corp [NYSE: KCAC]

Kensington Capital Acquisition is another top performer this morning and is up by over 50%. This follows the company’s announcement that the company was merging with QuantumScape, an electric battery maker that is backed by Volkswagen. The move has excited the markets due to the fast-growing nature of the EV battery market.

RiceBran Technologies [NASDAQ:RIBT]

RiceBran is another top performer this afternoon and is up by over 25%. This is largely a price action driven move. If it holds on to these gains when markets open, then increased buyer momentum could see it record more gains in the day.

September 3, 2020
Stocks to Watch as Equities start September on a High

The equity markets are up this morning driven by the increased optimism that the worst of the COVID-19 pandemic is over. Even before a vaccine is found, the numbers are pointing to a slowdown in new virus cases. This means that if a vaccine is found any time soon, the markets could return to pre-pandemic levels when the economy was strengthening and unemployment numbers were getting lower.

Economic numbers are also pointing to a potential post-COVID-19 recovery. One of the key metrics that is pointing to a potential recovery is consumer data.

Despite the hard economic times, consumer data is pointing towards resilience. As has been the case over the past few months, big tech stocks continue to lead the way in gains. With their market dominance and strong growth during the lockdowns, investors expect that in a post-pandemic economy, these stocks stand to lead the way in growth.

Companies that have shown to be adaptable to the new normal are also gaining exponentially. One such stock is Zoom. The stock has grown its clientele during the pandemic and is on a similar growth trajectory as the likes of Tesla and Apple.

The momentum that these stocks have created is being felt across the markets. This morning, some of the biggest performers ahead of markets opening are:

Shilow Industries Inc [NASDAQ: SHLO]

Shilow Industries Inc is a top performer this morning and is up by 19%. While there is no news around the stock, its price action shows that it is still looking for direction after the August 30^th announcement that it had entered into a stock and asset purchase agreement with Grouper Holdings LLC.

Under the deal, Grouper will buy all of the company’s assets for $218 million in cash, in a deal that will be subject to working capital adjustments. To ensure the deal works, Shillow filed for voluntary Chapter 11 bankruptcy that will see it get reorganized under the U.S bankruptcy code.

Lonestar Resources Ltd [NASDAQ: LONE]

Lonestar Resources is another top performer this morning and is up by over 70%. This is largely a price action driven move. As long as the markets open positive and maintain that momentum in the day, this stock could see its value keep growing all through the day.

China HGS Real Estate [NASDAQ: HGHS]

China HGS Real Estate is another top performer this afternoon and is up by over 100%. This is on the basis of the company’s announcement that it will start trading on the NASDAQ on a split-adjusted basis today.

September 2, 2020
Stocks to Watch as Market Sentiment Points to a Good Day for Equities

The markets are up this morning, with the NASDAQ leading the way. This has been driven by the increased momentum around big tech. More specifically, Apple and Tesla are the two key big tech stocks that are leading the way. The excitement comes from the news of the stock split itself and the fact that the two companies have recorded consistent growth all through the year. Besides big tech, there is increased optimism in the market banked on hopes that the worst of the pandemic is over. This is evident in the moves and investments that big companies are making. Yesterday, the markets woke up to the news that Nestle was buying Aimmune in a deal worth $2.6 billion. Similarly, companies are now confident enough to start doing mega IPOs. Today, Reuters has reported that Chindata, a Chinese data centre company was planning to do a $400 million IPO in the U.S. This would make it the 5^th largest IPO of a Chinese company in the U.S in 2020. Such moves point to growing optimism in the market that the future is bright. As positive market sentiment grows, certain stocks that have positive news are outperforming the market. Some of the best performers ahead of markets are as below:

Plus Therapeutics Inc [NASDAQ: PSTV]

Plus Therapeutics Inc is a top performer this morning and is up by close to 50% pre-market. This follows the company’s announcement that the U.S FDA had given it an orphan drug designation for Rhenium NanoLiposomes, an investigational drug for treating recurrent glioblastoma. The treatment is being developed with support from the NIH and NCI and is phase 1 dose-finding clinical trial. Commenting on the development, the company’s CEO, Dr. Marc Hedrick stated that the approval by the FDA was a key milestone towards the development of the treatment. He added that they believed the treatment has the potential to increase patient lifespans.

Priority Technology Holdings Inc [NASDAQ: PRTH]

Priority Technology Holdings Inc is another top performer this morning and is up by over 30% pre-market. This follows the company’s announcement that it had entered into an agreement with MRI software for the sale of its RentPayment™ business. Under the deal, MRI will buy the business that comprises of RentPayment.com™, DuesPayment.com™ and StorageRentPayment.com™. The deal also stipulates that Priority will provide its payment infrastructure as a service to the MRI platform.

Athenex Inc [NASDAQ: ATNX]

Athenex Inc is another top performer this morning and is up by over 20%. This follows the company’s announcement that the FD had accepted its NDA filing for its metastatic cancer treatments called Oral Paclitaxel and Encequidar. CEO Johnson Lau stated that they were happy with the milestone and continue making preparations for a commercial launch.

September 1, 2020
Stocks to watch as Market Sentiment Turns Positive Amidst a Drop in Uncertainty

The markets are upbeat this morning with the S&P 500, the Dow and the NASDAQ all in the green. This comes amidst analysts’ projections that the uncertainty that characterized the market since March is easing up. When the COVID-19 lockdowns started, the markets entered into deep uncertainty with corporations suspending their projections for future earnings.

However, this has since changed. Many companies are now offering favourable projections for the rest of the year. Many of them have also proven to be quite resilient and reported strong earnings over the last quarter. With the lockdowns now easing up in the U.S and worldwide, optimism is high that the economy will rebound.

The optimism is further enhanced by the fact that biotech companies, and research institutions, working on a COVID-19 vaccine are giving positive pointers to a possible vaccine before the end of the year.

Treatments are also coming up, and the U.S FDA has already approved the use of plasma in the treatment of COVID-19 citing its high efficiency. In this environment of high optimism in the U.S economy, stocks that have good news around them this morning are gaining exponentially. Some of the biggest stock gainers this morning are:

Aimmune Therapeutics Inc [NASDAQ: AIMT]

Aimmune Therapeutics Inc is a top performer this morning and is up by over 160%. This follows news that Nestle had agreed to buy the company in a $2.6 billion deal. Under the deal, Nestle will buy the company at $34.50 per share, representing a premium compared to the stock’s trading price of $12.60 as of Friday’s close.

In a statement, Nestle stated that Aimmune’s Palforzia is the world’s first and only FDA-approved treatment for peanut reactions in children aged between the ages of four and seventeen. Prior to the takeover, Nestle already owned 26% of Aimmune.

Transatlantic Petroleum Ltd [NYSE: TAT]

Transatlantic Petroleum Ltd is another top performer this morning and is up by 33%. This follows the company’s announcement that its shareholders had approved the payment of dividends on the company’s series A preferred common stock.

The dividends are payable on the 15^th of September 2020. This has triggered optimism in the company’s health and hence the current price rally ahead of the upcoming earnings season.

Vivopower International PLC [NASDAQ: VVPR]

Vivopower International PLC is another stock showing lots of potential in early morning trading. After a massive rally on Friday that saw it close the day with gains of 69%, the stock is in the green pre-market. It’s momentum today is price action driven days after the company reported unaudited results showing revenue growth of 12% for the year ending 30^th June 2020.

August 31, 2020