Updated on 8/12/20
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- Click here to read Sultan’s new article on BCRX
- Click here to read Chris Stand, PharmD’s new article on Rapt Therapeutics (RAPT)
- Click here to read Sultan’s LJPC update
- Click here to read Chris Stang, PharmD’s new article on Verastem (VSTM)
- Click here to read Chis Stang, PharmD’s new article giving an overview of Corbus Pharmaceuticals (CRBP), and the upcoming investor call.
- Click here to read Chris Stang, PharmD’s new article on BCRX
- Click here for Sultan’s update on DelMar Pharmaceuticals (Nasdaq: DMPI). Another update is coming soon following recent news of the company’s plans for a pivotal Phase 2/3 study!
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|Market Performance 8/12/20|
The S&P is receiving the spotlight after achieving a closing high within reach if its intraday record. The DOW and Nasdaq also managed to secure yet another day of gains signaling some concern from investors like Buffet. Many investors appear focused on tomorrow’s upcoming jobless claims report, a key performance indicator in today’s climate of economic health, as well as import price numbers. In other news, Mnuchin and Pelosi are reported have made contact in regards to the potentially looming stimulus package, but progress still shows little signs of being made. As of this evening the futures are suggesting a moderate favor to the bears.
For a list of reports and economic metrics set to release this week, click here.
|Futures as of 7:08 pm PT on 8/12/20|
|DOW Jones 30||-0.06%|
Click here for trade updates on past tickers, not on tonight’s email
Day swing/day trade candidates for 8/13/20
1) DRIO $14.14
- For those of you unfamiliar with Dario Health (DRIO), the company markets its digital health platform through a SaaS (software as a service) model for the management of chronic conditions such as diabetes and hypertension. For an overview of DRIO’s value proposition click here for our original research.
- Has had a continuous flow of positive material developments this year including a partnership agreement with Vitality Group, assembling an elite C-suite team of former Catasys (now Ontrak (OTRK)) Execs, and expanding its service offering into the behavioral health and telemedicine market.
- This summer DRIO continued its momentum. In June they presented new clinical data at the American Diabetes Association’s (ADA) Scientific Sessions demonstrating that proper management of blood sugar and blood pressure through its platform translated to improved clinical outcomes.
- DRIO further commenced enrollment on two remote patient monitoring agreements (which include Medicare billing codes) providing a turn key solution for physicians amid the pandemic, appointed veteran healthcare plan executive Dennis Matheis to DRIO’s board of directors, and closed a $28.6M private placement with institutional and healthcare focused investors at $7.94/share
- Since the deal closed the market has reacted favorably propelling DRIO over 70% in a couple weeks.
- Per comments made by DRIO’s President and General Manager of North America Operations Rick Anderson in today’s 2Q20 earning call, the company is in late stage discussions with several payers, employers, and health plans which are projected to come to fruition in the coming months. One of these contracts was described by Rick as “Jumbo”.
- Competitor Livongo (LVGO) recently was acquired by Teladoc in a deal valued at $18.B. Note that DRIO essentially offers the same service on arguably a better platform and with better software, hence the substantial growth opportunity it presents us at these levels
- We anticipate further upside this year in DRIO driven by continued execution on its B2B2C (business to business to consumer) commercial strategy. Guidance given by Rick puts the annual revenue opportunity at $200M/year (vs. $1.7M in 2Q20)
- Financials are in good share with $38M+ in cash, no debt, and a low cash burn of only $2M in 2Q20.
- PT= $25+
2) SINT $2.18
- Recently swung this from our SMS alert at $2.20 to a peak of $3.26. The trade appears to be presenting another opportunity for re entry with a similar thesis to the original play
- Closed direct offering for $8.2m at $2.4 per share on August 10th
- A commercial-stage company that develops and markets silicon nitride for medical and non-medical applications.
- Surged over 300% on 6/22 after announcing that its sintered silicon nitride powder deactivated COVID in a lab study. This data was generated by an independent entity. SINT supplied the product. We feel this increases the integrity of the data.
- Based on the positive results in the recent study the company said its silicon nitride could potentially be used to make face masks, protective equipment, and other products with surfaces posing a high risk of spreading the disease. The revenue potential from an application like this would be immense
- The company hopes to implement its solution into materials to reduce the spread of this virus
- PT = $2.5-3.0+
3) NNVC $5.57
- Monitoring for bottom to add to position, thesis remains intact
- Sold off on less than half the average volume amidst continued mass sell off in the biotech sector
- Raised $11.5m on July 23 from a public offering at $7.30 to support development of COVID-19 study
- Got added to the Russel Microcap Index on June 29, 2020
- Has received some vocal support from senator Richard Blumenthal after he visited their site at the beginning of the pandemic
- Recently observed safety and tolerability in the animal model which has furthered the development of their study
- PT = $7.5+
4) QTNT $6.63
- Thesis remains intact, monitoring for entry
- Commercial medical diagnostics company. It’s proprietary microarray platform MosaiQ is the first fully automated, consolidated testing platform.
- First-quarter earnings announced on 8/3 showing modest revenue growth expectations (+9% QoQ). The financial outlook for the period until 3/31/21 was positive, although the company stated that it could not provide revenue guidance for its COVID-19 antibody test due to the competitive nature of the market. Total revenue is projected to be $32-35M during this period
- Nonetheless, the company’s COVID antibody test based on its MosaiQ platform landed 10 contracts in Europe. FDA emergency use authorization (EUA) is anticipated soon. Independent testing of the technology validated the test as extremely precise.
- Read their Q1 report to learn about additional milestones the company hit this year.
- PT= $7.20-8.0
5) GNPX $3.65
- Thesis remains intact, held up well today amidst wide spread bleeding in biotech
- Bullish engulfing candle formed this week which has proven to be a strong indicator in recent trading sessions. The stock price is still above all major moving averages. Anticipating a reversal from here. $3.53 is a critical support level to monitor
- Reported 2Q20 earnings today
- Presenting data at the end of the month
- Received fast track designation this year
- $23m cash as per the vastest 10Q with an estimated 10Q coming up around 9/2/20
- University of Pittsburg recently received an NIH grant of $2.59m to fund research of diabetes gene therapy licensed by GNPX
- Recently joined the Russel 3000 index
- PT = $4.20-5+
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Just because a company is listed higher on the email does not necessarily mean its a better stock to trade. Trading stocks is risky. Part or all of an investment may be lost.
Our daily “Trade Insights” emails are meant to give you ideas for swing and day trades but do not serve as investment advice. We recommend users conduct their own independent research before making investment decisions and consult with a financial advisor.
Returns we aim for are in the mid-single-digit to the double-digit range. Price targets (PT) are short-term in nature (i.e. a few days to a few weeks). Price targets are estimates.
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