Futures Prices (%)
PT= Price target (i.e our approximate exit price)
Unless stated otherwise, the price next to the ticker is a suitable entry price. An asterisk (*) next to the ticker means one of us owns it.
LJPC showed a lot of strength today. Still holding
CALA has performed well for us. Since it’s at a 52-week high and up 62% in a month we feel its time to take profits.
MS Weekly Top 4 (Click here to see the article on our website)
1) CLVS $9.48
- Traded 9M shares today which is in line with the 10-day avg
- Buy any weakness in the morning
- Call option volume/open interest indicates the market is bullish on CLVS’s short-term performance
- Announced today that the company received priority review status from the FDA for their sNDA filing for their lead asset to treat prostate cancer.
- Patients with prostate cancer are in dire need of improved therapies
- In our view, receipt of priority review increases the chances the drug will be approved
- The stock price was restrained today and kept between $9.16-9.75
- PT= $12
2) TORC $1.50
- Still trading. Has been consolidating after its move up on 1/13/20
- High institutional ownership (53%) and insider ownership (24%)
- Morgan Stanley form 13G showed them taking a 9% stake
- Dropped 80% in November after failing a P3 study and has traded flat since
- $125m in cash and a P2 Alzheimer’s readout in 2020
- PT = $2
3) OVID $3.90 *
- Still trading. Gained 8% today
- Ovid specializes in developing medicines to treat rare neurological diseases
- Released a 2020 update on 1/7/20 ahead of several late-stage data readouts
- The first data set is due in 1Q20 (Jan-Mar 2020)
- The second data is slated for early 2Q20 (~April 2020)
- Phase 3 data is due mid-2020 as well as multiple other data readouts
- Well capitalized for the year following a public offering
- Takeda Pharmaceuticals increased its stake in the company over 300% in Oct. 2019 purchasing 2M shares @$2.50. The CEO also bought shares at this time
- Should trend up into the end of the week
- PT= $6-8
4) LABD $11.55
- Trading near its 52-week low ($11.09)
- The primary biotech stock exchange-traded fund (ETF) is reaching a 2-year high ($100)
- LABD is a leveraged ETF that performs 3X the inverse of the XBI
- Thus if the XBI pulls back as we suspect will happen in the near-term, the share price of LABD will appreciate
- PT= $14
MS Hold/BTFD (buy the effin dips) (We love these companies. We own them and are buying more of them when they dip)
1) GRTS $10.75 *
- Pulled back today which allowed us to add to our positions
- Presented at the J.P Morgan Health Conference today
- Cutting edge oncology company developing platforms that enable the detection and characterization of unique tumor proteins. Once characterized, the technology educates immune cells to target these proteins.
- The technology essentially allows for personalized cancer treatments
- Credible institutional investors we follow (Fidelity, The Column Group, Topspin, and Redmile) have sizable stakes (5-15% ownership) at prices above $8
- Announced promising Phase 1 data for two clinical programs in December 2019
- PT= $20
2) LJPC $7.91 *
- Holding; buying any meaningful dips. Shorting is futile. Should continue to grind up.
- The Chief Commercial Officer reported today buy 3000 shares @$8.22 ($24.7K)
- The initial run was sparked by a press release of preliminary sales numbers for Giapreza.
- Next we learned that Tang-Capital Management (whose owner is chairman of the board) purchased 3M shares
- Now we have additional insider buying by the CCO
- The next catalyst we are anticipating is receipt of a priority review voucher.
- Do not be afraid to take profits. Future gains are never guaranteed.
- PT= $20
3) NGM $18.99 *
- Holding. Will add on any meaningful dips
- What’s interesting is that they waited until pre-market Monday morning to announce they would be meeting with investors at JPM this week.
- Top-line Phase 2 nash data is due early 1Q20
- Interim data released in October 2019 was positive and in-line with expectations
- PT= $25+
4) VBIV $1.78*
- Still buying dips
- Announced positive phase 3 data.
- In our view, VBIV’s Hep-B vaccine demonstrated superiority over GSK’s vaccine
- The stock should continue to trend up as investors accumulate now that the risk of poor data is off the table.
- PT= $2.0
5) DRIO $7.50
- Still accumulating
- Has held its gains since announcing the appointment of Rick Anderson as President and General Manager of North America.
- Met with the CEO today and he convinced me that 2020 will be a transformational year for the company
- Prior to coming to Dario Rick worked at Catasis (CATS) where he helped them negotiate strategic partnerships for their AI-tech healthcare company
- Dario at its core is a software company. We feel Rick play a pivotal role in the procurement of contracts with payers and distributors
- Anticipating additional catalysts this month (in the form of press releases)
- CEO is meeting with many investors this week at JPM which could translate to an inflow of new, stick money over the next few weeks.
- PT = $10
MS Prospects (we are considering trading these)
1) TCON $4.30
- Closed up 47% on strong volume (5.7M shares traded) after announcing its Chinese partner received Orphan drug designation.
- Has the potential to be a multi-day runner
- Top-line Phase 2 data in wet-AMD is due 1H20
- Only $19M cash on hand so beware of an offering (i.e. secure profits quick)
- Forming a double top on the 6-month chart (i.e. is near 6-month resistance ($4.50)
- If the stock can break above $4.50 it should reach $5.0 or more
- PT= $5.0+
2) OPK $1.59
- Gained 9% this week after breaking out of its 2.5-month range near its 52-week low ($1.38)
- Phase 3 data due in 1Q:20 (1/1/20 to 3/31/20)
- Market cap ($998M) is below Enterprise value ($1.25B)
- Good time to start a position. The price should continue to inflate into 2020
- There is a gap to fill to $2.15
- PT= $2.0
3) ZYNE $6.02*
- Had a healthy pullback. Buying dips
- Multiple upcoming catalysts
- Pivotal top-line CONNECT-FX data due 1H 2020
- Phase 2 BRIGHT and Phase 2 INSPIRE expected in 1H20
- Buying dips
- PT = $8.50
MS Money Move and its Chief Operating Officer who is a scientist and individual investor, as well as its affiliates are not registered financial advisors. Our posts should serve as educational material to help you conduct due diligence research. Posts and articles are not directives or recommendations to invest in any security. We reserve the right to buy or sell any security for ourselves without any notification except when required by law. We are not responsible for the action of our affiliates. Investment theses may change due to the variable nature of the securities market. Because of this there is great risk when investing in stocks and options which can result is capital loss. Additionally, past performance by MS Money Moves or any security is not a predictor of future performance. Everyone should conduct their own research and due diligence before making an investment decision. We recommend you consult a financial advisor regarding any investment action.
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