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Author: therawinformant

  • Moderna: Tricky Road Ahead for mRNA-1273, Says 5-Star Analyst

    Moderna: Tricky Road Ahead for mRNA-1273, Says 5-Star AnalystInvestors of Moderna (MRNA) slept soundly last weekend, as shares ended each session in the green during the week. Saving the best for last, on Friday July 17, Moderna posted a 16% uptick after it was revealed that the European Union (EU) might purchase Moderna’s experimental COVID-19 vaccine. The latest surge has sent the stock to a record high, having added 310% of muscle since the turn of the year.With a Phase 2 study currently in progress, and a Phase 3 trial of mRNA-1273 set to begin on July 27, Oppenheimer analyst Hartaj Singh sees a rocky path ahead, yet remains optimistic.“MRNA's valuation, in our view, is reflecting an approval and fast uptake of mRNA-1273, in line with other historical biotech comps. Pricing dynamics, potential donation of free vaccine and distribution of mRNA-1273 are non-trivial issues. We believe these can be navigated, but transit could be choppy. As the leader in the COVID-19 vaccine space, we continue to find MRNA attractive,” said the 5-star analyst.Should mRNA-1273 gain approval, which is by no means a certainty and given a 50% probability of success by Singh, it is expected to generate sales of $5 billion by 2023. However, in order for that to become a reality, there are “many hurdles that MRNA needs to navigate over the next 3-6 months.”These hurdles include the drug’s pricing. Other big pharma names such as Johnson & Johnson and AstraZeneca have said they might distribute their vaccines “at cost” while the virus still rages on. Additionally, with Moderna’s use of shareholder capital to produce mRNA-1273 “at risk,” this means “threading the pricing needle for mRNA-1273 will require finesse.” Add into the mix the possibility that the vaccine might be donated to developing countries – like Gilead has done with its viral treatment, remdesivir – and pricing becomes further complicated.Lastly, there are the distribution logistics. Singh believes Moderna will “work closely with US governmental and international agencies to distribute mRNA-1273 in an equitable manner,” and might even search for a partner to work with on the commercial side.Despite the variables, all in all, Singh concludes these are “high-quality problems, and we continue to find MRNA attractive.”Therefore, Singh reiterated an Outperform rating along with a $108 price target. There’s 33% upside in the cards, should Singh’s target be met over the next 12 months. (To watch Singh’s track record, click here)What does the rest of the Street make of the high-flying biotech’s prospects? Based on 13 Buys and 3 Holds, Moderna has a Strong Buy consensus rating. In addition, the $93.79 average price target implies upside potential of 17%. (See Moderna stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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  • TPG and 1 other quality ASX 200 share to buy right now

    blackboard drawing of hand pointing to the words buy now

    I believe that buying quality ASX 200 shares is the best way to build your wealth over the long term. This is especially this case with interest rates looking to remain at historic lows for several years to come.

    Here we look at 2 ASX 200 shares that I believe could make good additions to your share portfolio right now. Here’s why I recommend them:

    2 ASX 200 shares to add to your portfolio

    TPG Telecom Ltd (ASX: TPG)

    TPG has struggled in recent years. This is partly due to the tight operating margins it faced when purchasing wholesale fixed broadband services from the National Broadband Network (NBN). This is reflected in its NBN average revenue per user (ARPU) figure. NBN ARPU has been steadily declining in recent years. It has dropped from $67.4 per month in 1H19 to $66.4 per month in 1H20.

    However, I believe that TPG’s merger with Vodafone places it in a position to turn its fortunes around and drive higher profitability. TPG-Vodafone is now more strongly placed to compete with its two largest operators in the Australian telco market: Telstra Corporation Ltd (ASX: TLS) and Optus. In particular, the newly merged entity is well positioned to roll out a competitive 5G offering on Vodafone’s existing nationwide mobile network.

    Transurban Group (ASX: TCL)

    Transurban has unsurprisingly seen a reduction in traffic on its toll roads during the coronavirus pandemic. This triggered a sharp decline in it share price during the early phase of the crisis. The Transurban share price fell from $16.33 on 11 February to $10.50 on 20 March, a decline of 36%.

    However easing of COVID-19 restrictions is resulting in a gradual recovery in traffic on Transurban’s tollways in local markets over the past few months. The company reported a steady recovery in traffic across its Australian operations, from mid April up until late June.

    Melbourne of course is now in full lockdown mode again, and this will definitely slow down Transurban’s recovery over the rest of the year. However, I still remain optimistic about Transurban’s long-term  future. The coronavirus pandemic will eventually subside, with traffic levels returning to normal. Furthermore, Transurban’s two largest area of operation, Sydney and Melbourne, both have fast growing populations. They also both have expanding road systems that may require additional toll roads in the years to come. 

    With the Transurban share price well below pre-COVID-19 levels, I believe that now could be a good opportunity to snap up some shares in this toll-road operator.

    Foolish takeway

    TPG and Transurban are two quality ASX 200 shares that I would be happy to add my portfolio right now. Both have faced recent challenges, however are now well placed for long-term growth.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post TPG and 1 other quality ASX 200 share to buy right now appeared first on Motley Fool Australia.

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  • A Bullish Alibaba Will Depend on Ant’s Bottom Line

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  • GE Capital Global Holdings, LLC — Moody’s announces completion of a periodic review of ratings of GE Capital Global Holdings, LLC

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  • Flood Of Unusual Boeing Call Buying Following FAA 737 Max Update

    Flood Of Unusual Boeing Call Buying Following FAA 737 Max UpdateBoeing Co (NYSE: BA) shares traded higher by 3.4% on Tuesday after the Federal Aviation Administration released an update on the grounded 737 Max suggesting the jet could be cleared for takeoff in the fourth quarter, a later return date than Boeing has been anticipating.A flurry of large Boeing option trades were mixed in nature as investors struggle to determine just how much upside the stock has in a post-coronavirus world.The Boeing Trades: On Tuesday morning, Benzinga Pro subscribers received 26 option alerts related to unusually large trades of Boeing options. Here are a handful of the biggest: * At 10:22 a.m., a trader bought 1,000 Boeing call options with a $180 strike price expiring on Aug. 21 at the ask price of $14. The trade represented a $1.4 million bullish bet. * At 10:25 a.m., a trader bought another 988 Boeing call options with a $180 strike price expiring on Aug. 21 at the ask price of $13.801. The trade represented a $1.36 million bullish bet. * At 10:41 a.m., a trader sold 600 Boeing put options with a $160 strike price expiring on Nov. 20 at the bid price of $16.851. The trade represented a $1.01 million bullish bet. * At 12:25 p.m, a trader bought 974 Boeing call options with a $180 strike price expiring on Aug. 21 near the ask price at $14.20. The trade represented a $1.38 million bullish bet.Of the 26 total large Boeing option trades on Tuesday morning, 10 were calls purchased at or near the ask or puts sold at or near the bid, trades typically seen as bullish. The other sixteen trades represented calls sold at or near the bid or puts purchased at or near the ask, trades typically seen as bearish.All four of the largest trades of the day, all over $1 million in value each, were bullish.Why It's Important: Even traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader.Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there's no surefire way to determine if an options trade is a standalone position or a hedge. In this case, given the relatively large sizes of the largest Boeing trades, they could potentially represent institutional hedging.Backlog Shrinking: Boeing has been one of the hardest-hit U.S. companies during the COVID-19 downturn. On Tuesday, the FAA said it will be issuing a Notice of Proposed Rulemaking related to the 737 Max "in the near future." Following the release, CNBC's Phil LeBeau said the timeline included in the proposal suggests the Max could be cleared by the fourth quarter, a later return date than Boeing had been targeting.Boeing reported another 60 net 737 Max order cancellations in the month of June, bringing total net cancellations in the first half of 2020 up to 323 planes. In the first half of 2019, Boeing's net order total was +21 planes. Boeing's total order backlog shrank to 4,552 planes in June.Back on March 20, Boeing announced it was suspending its dividend and share buybacks in an effort to weather the COVID-19 downturn. In May, the company raised $25 billion via a bond offering to help shore up its liquidity position during the outbreak.Boeing shares are now down 44.6% year to date, but up 70.8% since the market bottomed on March 23. On July 17, Wolfe Research downgraded Boeing from Peer Perform to Underperform with a $149 price target and said the firm is concerned about additional 737 Max cancellations and near-term demand for widebody planes. BA Chart by TradingView new TradingView.widget( { "width": 680, "height": 423, "symbol": "NYSE:BA", "interval": "D", "timezone": "Etc/UTC", "theme": "light", "style": "1", "locale": "en", "toolbar_bg": "f1f3f6", "enable_publishing": false, "allow_symbol_change": true, "container_id": "tradingview_d1039" } ); Benzinga's Take: Boeing's stock has rallied significantly in large part due to relief that the company will remain solvent in the near term. However, additional upside for the stock from here may be limited if the second wave of the COVID-19 outbreak continues to hurt the air travel industry and Boeing keeps losing more orders than it is gaining.Related Links:Visa Option Trader Makes .6M Bet On 15% Upside How To Read And Trade An Option AlertSee more from Benzinga * Here's How Large Option Traders Are Playing Boeing As Order Backlog Shrinks * Dave Portnoy Trades And Entertains, But Whitney Tilson Says He's Reminiscent Of The 'Proverbial Shoeshine Boy'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Why Mesoblast might be the best ASX healthcare growth share to own right now

    Piggy Bank Stethoscope

    ASX junior pharmaceutical company Mesoblast Limited (ASX: MSB) is one of the few companies to have delivered substantial gains to its shareholders during 2020. While big name healthcare shares like Cochlear Limited (ASX: COH) and CSL Limited (ASX: CSL) have struggled throughout the COVID-19 pandemic, the Mesoblast share price has risen over 80% so far this year. It is also up an astounding 263% since bottoming out at $1.02 back in late March.

    What’s been driving the Mesoblast share price?

    Mesoblast uses stem cell technology to develop treatments for various inflammatory diseases including chronic heart failure and graft versus host disease (GvHD). GvHD is a complication which can occur in cancer patients who have received donor bone marrow or stem cells. It occurs when the donated ‘graft’ cells attack the patient’s own body cells and has the potential to be life-threatening.

    Mesoblast’s GvHD treatment has been accepted for priority review by the United States Food and Drug Administration (FDA), with the potential for it to be made available in the US as early as September. The company announced on Tuesday that the Oncologic Drugs Advisory Committee, which advises the FDA, will review Mesoblast’s application in mid-August.

    Additionally, one of Mesoblast’s treatments has shown promising results in treating COVID-19 patients suffering from acute respiratory distress syndrome (ARDS). The company is currently conducting a phase 3 trial involving 300 patients across North America in an attempt to prove the treatment’s efficacy.

    Meanwhile, trials are also advancing to establish whether Mesoblast’s treatments are effective against advanced heart failure, lower back pain caused by degenerative disc disease and inflammatory lung disease, such as chronic obstructive pulmonary disease.

    That seems like a lot of different fronts for the company to be advancing on simultaneously. As such, it’s no wonder Mesoblast has excited the market so much recently. And although some of these trials are still in their early stages, they do illustrate the broad potential of the company’s proprietary medical technology.

    Mesoblast is also starting to show its commercial potential. Revenues for the first nine months of FY20 were US $31.5 million, a 113% increase over the same period in FY19. A successful capital raise in May means the company now has close to US $150 million in cash. It plans to put this cash towards launching its GvHD treatment in the US, pending the FDA approval, as well as scaling up manufacturing for its COVID-19 treatment.

    Is the Mesoblast share price a buy?

    While there is a lot of (justified) excitement around Mesoblast, this must be weighed against the potential risks. There is always the possibility that the FDA will not approve the company’s GvHD treatment for sale in the US, or that its treatment against ARDS will prove ineffective. There seems to be enough positive results coming out of its trials to make either, or both, of those scenarios seem unlikely – but they are still possible.

    There is also the more likely potential that, considering the global focus that is directed towards the fight against COVID-19 right now, another treatment will come along that is more popular or effective against the respiratory complications caused by the virus. Mesoblast is only one of many companies from all over the world trying to develop an effective treatment against COVID-19.

    However, notwithstanding these caveats, I still believe Mesoblast is an exciting investment and I’m bullish on its growth prospects. Despite a 10% surge in the Mesoblast share price yesterday, the company’s shares are still around 17% off the 52-week high of $4.45 they reached in late April.

    With its commercial prospects rapidly improving, now could be a good time to snap up shares in this promising pharmaceutical company.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

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    Rhys Brock owns shares of Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Why Mesoblast might be the best ASX healthcare growth share to own right now appeared first on Motley Fool Australia.

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  • Bring your portfolio to life with these ASX healthcare shares

    asx healthcare shares

    If your portfolio hasn’t been performing as strongly as you would like this year, then now could be a good time to bring it to life with one of the top healthcare shares listed below.

    I believe both have the potential to provide market-beating returns over the next few years, potentially making them great long term options today. Here’s why:

    CSL Limited (ASX: CSL)

    My favourite ASX healthcare share continues to be CSL. I think the biotherapeutics giant could be a fantastic long term option due to the quality and strength of its CSL Behring and Seqirus businesses. Its CSL Behring business is the global leader in plasma therapies, whereas its growing Seqirus business is the second largest influenza vaccines company globally.

    I think both businesses have very positive outlooks thanks to their leading therapies and CSL’s heavy investment in research and development. In respect to the latter, this year the company will invest almost US$1 billion in its research and development efforts. I expect this to cement its leadership position and underpin strong long term earnings growth.

    Nanosonics Ltd (ASX: NAN)

    Nanosonics is the infection control specialist behind the popular trophon EPR disinfection system for ultrasound probes. This system has been growing its installed base at a rapid rate over the last few years and reached 22,500 units globally earlier this year. This installed base growth is positive for two reasons. This is because as its installed base grows, so too do the sales of the consumables that it requires.

    For example, during the first half, consumables and service sales were up 40% on the prior corresponding period to $34.1 million. These recurring revenues represented 70% of its total revenue for the half. Pleasingly, its current installed base is still only a fraction of the global market opportunity estimated to be 120,000 units. Due to the quality of the product and favourable regulatory recommendations, I believe Nanosonics is well-placed to grow its market share materially over the next decade. This should be supported by the upcoming launch of several new products targeting unmet needs.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Bring your portfolio to life with these ASX healthcare shares appeared first on Motley Fool Australia.

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  • Elon Musk Unlocks $2.1 Billion Award as Tesla Hits Milestone

    Elon Musk Unlocks $2.1 Billion Award as Tesla Hits Milestone(Bloomberg) — Tesla Inc. Chief Executive Officer Elon Musk unlocked the second chunk of his moonshot pay award.The electric-car maker’s average trailing market value over six months rose above $150 billion on Tuesday, according to data compiled by Bloomberg, despite a dip in the company’s share price. That means Musk is now able to exercise an additional 1.69 million stock options, though he must wait at least five years before he can sell them.The options have a strike price of $350.02, meaning he would reap a $2.1 billion gain if he exercised and could immediately sell the shares.Musk unlocked the first tranche of the award in May, when Tesla’s average six-month market value topped $100 billion. The company’s shares have more than doubled since then, and the company is now worth more than Toyota Motor Corp., Volkswagen AG and Hyundai Motor Co. combined.Musk’s compensation package — the largest corporate pay deal ever struck between a CEO and a board of directors — includes 20.3 million options, split into 12 tranches, that could yield the founder more than $50 billion if all goals are met, according to Tesla’s estimates.A representative for the company didn’t immediately respond to a request for comment. Tesla shares fell 4.5% in New York trading Tuesday to $1,568.36, paring this year’s gain to 275%.For Musk to unlock the third tranche, Tesla must reach a six-month average market capitalization of $200 billion, and either post revenue of $35 billion or $3 billion in adjusted earnings before interest, taxes, depreciation and amortization, over four consecutive quarters.Musk, 49, is the world’s ninth-richest person with a $71.5 billion fortune, according to the Bloomberg Billionaires Index.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Resolute Mining share price on watch after solid Q2 update and guidance confirmation

    gold mining shares

    The Resolute Mining Limited (ASX: RSG) share price will be on watch on Wednesday after the release of its second quarter production update.

    How is Resolute performing in FY 2020?

    For the quarter ending 30 June 2020, Resolute achieved gold production of 107,183 ounces at an all-in sustaining cost (AISC) of US$1,033 an ounce.

    This was a 3% decline on production during the first quarter, but a 37% lift on production during the prior corresponding period.

    During the quarter, Syama Sulphide gold poured lifted 64% to 35,248 ounces. This was supported by Syama Oxide gold poured of 28,457 ounces and Mako gold poured of 43,478 ounces.

    Managing Director and CEO, John Welborn, commented: “I am particularly pleased with the performance of the Syama Underground Mine and Syama Sulphide operations during the June quarter.”

    “We continue to focus on further improvements to Syama Underground and Sulphide operations while ensuring the positive performance in the June quarter is sustainable and sets a benchmark for quarterly performance from now on,” he added.

    What about sales?

    Resolute had a strong quarter of sales. It sold 110,660 ounces of gold, up 8% from the March quarter.

    Positively, it experienced a 3% quarterly rise in its average realised price to US$1,446 an ounce. Based on its AISC of US$1,033 an ounce, this gives Resolute a margin of US$413 an ounce.

    Which, when multiplied with its 110,660 ounces of gold sold, equates to an operating profit of approximately US$45.7 million.

    Outlook.

    Looking ahead, the company believes it is on target to achieve its FY 2020 guidance of 430,000 ounces at an AISC of US$980 an ounce.

    Mr Welborn said: “Production of 107,183oz of gold during the June quarter meets our expectations and results in year to date production to 217,946oz placing the Company in a strong position to deliver our full year guidance of 430,000oz.”

    “We expect to continue to improve production and deliver lower costs at Syama in the second half of 2020 while we evaluate further value enhancements and exciting exploration opportunities.”

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    See The 5 Stocks

    *Returns as of June 30th

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Resolute Mining share price on watch after solid Q2 update and guidance confirmation appeared first on Motley Fool Australia.

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  • United Airlines Reports ‘Most Difficult’ Quarter in Nearly 100 Years

    United Airlines Reports ‘Most Difficult’ Quarter in Nearly 100 YearsTypically, when a public company reports earnings, it highlights a positive in its release, no matter how much money it lost in the previous three months. But on Tuesday, United Airlines did not spin, telling investors it recently completed "the most difficult financial quarter in its 94-year-history." United reported a net loss of $1.6 billion, […]

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