Senior Analyst at Aviation Data Specialist OAG John Grant joins joins Yahoo Finance’s Zack Guzman to discuss the airline industry as CNBC reports that Delta is asking flight attendants to take unpaid leave amid COVID-19.

from Yahoo Finance https://ift.tt/3gGndmT

Horizon Therapeutics Public Limited Company's (NASDAQ:HZNP) price-to-earnings (or "P/E") ratio of 27.8x might make it…

from Yahoo Finance https://ift.tt/3fDIw7h

CNBC's Jim Cramer recently discussed some of the "clueless buying" that's been taking place in the markets. In particular, the Mad Money host is confounded about the Aug. 4 buying in Sorrento Therapeutics (NASDAQ:SRNE) stock.Source: Shutterstock The longtime investment guru recommended SRNE stock several weeks ago when it was trading at $8. InvestorPlace – Stock Market News, Stock Advice & Trading TipsInterestingly, while Cramer's bullish about the company's prospects due to its 30-minute spit test for the novel coronavirus, he has a hard time understanding why Sorrento's stock was up 30% a week after Sorrento's announcement. "Turns out the market was just stupid because today, on the exact same news … Sorrento rallied 31% to just under $13. The stock market's supposed to be efficient, but somehow it took Wall Street six days to process this news," Cramer stated. * 7 Travel Stocks to Buy Banking On Pent-Up DemandHe's kind of right. Sorrento Drops the Saliva NewsOn July 29, Sorrento issued a news release announcing it was entering into a licensing agreement with Columbia University for the rights to a rapid, one-step diagnostic test that detects SARS-CoV-2 virus from a saliva sample in 30 minutes."Unlike other commercially available diagnostic products, the test developed by Columbia's team, to be marketed by Sorrento under the COVI-TRACE™ name, holds all of the testing materials in a single tube and requires no specialized laboratory equipment, making it easily deployable for point of care, on-site or potentially at-home testing."That was a Wednesday. There were three days of trading between the announcement date and Aug. 4, the day its share price jumped by a third. If you include the weekend, that's almost six days. So, close enough.But it is weird, that at a time when the words Covid-19 have been said far more often than the number of U.S. cases, no one in the investment community took notice of something that could be vital to resuming normal activities in this country. Is SRNE Stock All That and a Bag of Chips?Cramer was ahead of the curve when it comes to the San Diego-based clinical-stage, antibody-centric, biopharmaceutical company. The question is whether he's right or not. If he is, SRNE's current price of $13.61 is certainly not expensive based on future revenue potential. On the other hand, its stock has almost doubled in two weeks. It's now valued at 64x sales. That's a lot for a company that only had $16.7 million in sales and a $90.9 million loss through the first six months of 2020.Late to the Sorrento party, I'll lean on my InvestorPlace colleague, Josh Enomoto, who once worked for the company and lives in San Diego, to get a better feel for whether Cramer is barking up the wrong tree. Josh's most recent discussion about the company also happens to have occurred on Aug. 4, the same day as Cramer's comments.In his commentary, he points out that if the claims by the Columbia University Medical Center team and Sorrento are found to be accurate – a true positive rate of 97% and a true negative rate of 100% – SRNE stock would skyrocket. My words, not his. However, and this is something that bears repeating from time to time when dealing with development-stage biopharmaceutical companies: Claims aren't the same thing as proven capabilities.Not to mention, there are massive drug companies out there who spend billions on research and development to create new drugs. Sure, in recent years, Big Pharma has acquired its way to growth, but the pendulum seems to be swinging back in the direction of organically derived medicine. "Bear in mind that the leaders in the diagnostic space are Abbott Laboratories (NYSE:ABT) and Roche Holding (OTCMKTS:RHHBY). As I just mentioned, Abbott has fielded many questions about its testing accuracy," Enomoto wrote."It's hard to believe that Sorrento won't at least face some setbacks when rigorous testing, including peer review and broadening the test sample size, are incorporated."My colleague is trying to point out that Sorrento is pivoting from being an oncology-focused firm to one solving the problems of the here and now. That's not an easy thing to do at the best of times. But when better-financed companies are stumbling to the finish line, the likelihood of Sorrento running the gauntlet free of setbacks does seem remote. The Bottom LineIn past articles about Covid-19 related vaccines, treatments, and tests, I've recommended investors interested in placing a bet on one or more of the winners, make a safer play, and buy shares of the ETFMG Treatments Testing and Advancements ETF (NYSEARCA:GERM).Unfortunately, for investors interested in SRNE stock, it's not one of the 56 holdings owned by the ETF, so you're out of luck on the safety play. I bet if you asked Cramer how he feels about buying at almost $14 a share, he'd be a lot less bullish than he was at $8. Like my colleague, I'm neither a bull nor a bear when it comes to Sorrento, but I do think the climb to $20 will be a lot more difficult than the climb from single digits. I wouldn't buy SRNE stock, but that doesn't mean you shouldn't. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post The Next Bull Run Will Be Harder For Sorrento Therapeutics appeared first on InvestorPlace.

from Yahoo Finance https://ift.tt/2XHMXYE

Many stocks hammered by the novel coronavirus have bounced back, but not names like Carnival Cruise Lines (NYSE:CCL). Investors may be willing to take a gamble with airlines, but CCL stock just makes people nervous.Source: Ruth Peterkin / Shutterstock.com No surprises here. While airlines are slowly climbing back from their lows, cruise ships remain mothballed. With no-sail orders extended to Oct 31, cash burn is set to continue for Carnival, as well as for its rivals Royal Caribbean (NYSE:RCL), and Norwegian Cruise Line Holdings (NYSE:NCLH).So, what does this mean for the industry's largest operator? At first glance, you may think being size equals strength. Yet, as I wrote back in June, this may not be the strongest cruise stock out there.InvestorPlace – Stock Market News, Stock Advice & Trading TipsWhy? For starters, Royal Caribbean may be smaller, but it could recover much faster. Also, despite its size, Carnival may be behind its rivals in terms of liquidity and balance sheet strength. * 7 Travel Stocks to Buy Banking On Pent-Up Demand And, with the odds favoring a "return to normal" much further on the horizon for cruise lines compared to other hard-hit industries, why buy CCL stock, or any cruise name, now? As the situation continues to be tough, you may have the opportunity to enter a position at much lower prices.With this in mind, let's dive in and see why it's best to stay on the sidelines for now. Riding Out the Storm With CCL StockAs InvestorPlace's Mark Hake discussed Aug 4, no-sail orders may continue to be extended until there's a coronavirus vaccine. In other words, it probably won't be until early 2021 at the earliest that cruise lines can even think about "returning to normal."In the meantime, the heavy cash burn we've seen so far shall continue. And, how much is Carnival burning through each month? Previously, the company projected $650 million per month in cash burn through the second half of 2020.And, with ships not setting sail until at least November, that projection's probably not coming down. Sure, with over $10 billion in liquidity, the company can stay afloat for more than a year. But, tapping into this lifeline means Carnival's going to get out of this in a much weaker position.With a heavy debt load incurred during this rough environment, it's a long road ahead for shares to retrace prior levels. And, with uncertainty over how quickly cruise demand will bounce back, shares may head lower before it's all said and done. This Ship Could Sink FurtherIt's easy to compare cruise line stocks to airline stocks, but as our own Matt McCall wrote last month, there's a key difference. As he put it, there are multiple demand channels for air travel.Sure, like cruise lines, people hop on planes for personal vacations. However, there are situations where people have to fly. Whether its to attend a family member's wedding or required travel for business, there's more at play that can help get the airlines back on their feet.Cruise lines? All they have is the vacationer market. And, given there are plenty of vacation substitutes to cruise travel, this industry could still struggle. Even after ships set sail again.So, where does that leave Carnival? Post-pandemic, profitability may continue to be a challenge. Coupled with what will be a highly-levered balance sheet, and it's hard to see shares making any sort of epic comeback.In fact, shares could keep on sinking lower for now. While the worst-case scenario may already be priced into airline stocks, it's debatable whether that's the case with cruise stocks.How low could CCL stock go? That's hard to tell. The specter of a vaccine coming out by early next year may be giving shares some support. But, what happens if bringing a vaccine to market takes longer than expected? Shares could fall back to lows set during March's pandemic-driven sell-off.Granted, that may be a great entry point for a "bottom-fisher's buy." But, for now, the prospect of further decline means you ought to steer clear for now. Wait and See If CCL Stock Falls Back to Single DigitsAs the world contends with the coronavirus, there's still an opportunity to take high-risk, high-return positions in hard-hit stocks. But, compared to other struggling industries like airlines, cruise operators like Carnival face greater hurdles.Hemorrhaging cash while its ships sit mothballed, the situation could continue to deteriorate. That may mean a great entry point down the road (if shares fall back to single-digits).But, for now, take a "wait-and-see" approach with CCL stock. There's no compelling reason to climb aboard today.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post It Still Is Way Too Early to Consider Setting Sail With Carnival Stock appeared first on InvestorPlace.

from Yahoo Finance https://ift.tt/2XHY7wO

American Airlines (NASDAQ:AAL) stock remains down nearly 60% for the year. But to be clear, it could be a lot worse. And that is creating some sentiment that AAL stock could be a contrarian bet.Source: GagliardiPhotography / Shutterstock.com I don't think that's an apt assessment of the situation. The definition of a contrarian investor is that they buy when others are selling and vice versa.However, when it comes to American Airlines, investors are buying the stock. In fact, all of the big four U.S. airlines have bounced off May lows. United Airlines (NASDAQ:UAL) is up nearly 70%, Delta Air Lines (NYSE:DAL) is up nearly 40%, and Southwest Airlines (NYSE:LUV) is also up nearly 40%.InvestorPlace – Stock Market News, Stock Advice & Trading TipsAAL stock as of this writing is also up nearly 40%. This tells me that investors aren't ignoring AAL stock, even though that it might be a good idea to do so. * 7 Travel Stocks to Buy Banking On Pent-Up DemandWhen you look at airline stocks over the last 12 months, a similar picture emerges. American, United, and Delta are down 56%, 61%, and 54% respectively. Only Southwest's stock at price is less than 50% off its price of 12 months ago.As a result, investors may believe that investors find no clear winner, or loser, among the airline stocks. Investors are clearly not blaming any one airline for the pandemic. But that doesn't mean they agree every airline will come out of this well. AAL Stock Was a Laggard in a Bull MarketAirline stocks were up briefly in early August because airline traffic had topped the 700,000 mark for five consecutive days. While nobody ever thought 25% of year-over-year traffic would be reason to celebrate, airlines will take what they can get.This got me thinking about how the big four were performing at this time last year. AAL stock was the only one not to be positive for 2019. This is a reminder that while investors may feel American's stock dropped too far, they are likely to be less bullish on the way back up. Recovery Will Take Some TimeDespite the sell-off in March, airline stocks didn't bottom out until May 15. This was due to two factors. The first was largely intangible. On April 22, Delta CEO Ed Bastian told his employees it could be two or three years before the industry recovers from the novel coronavirus.While it seems obvious that it's not going to happen now, at the time many investors were holding out hope for a V-shaped recovery. The case was understandable. First, cases of Covid-19 would largely disappear in the summer (just as America was reopening). Then if the virus resurfaced in the fall, we would be that much closer to having a vaccine or antibody treatment.But by the time we got to late April, investors were beginning to realize that we were really dealing with a different kind of virus. And that it was going to be a difficult summer for the airlines. Were They Who Buffett Thought They Were?The second factor was more tangible. In April, Warren Buffett announced he was dumping all of his airline stocks. In doing so, Buffett gave a dour outlook on the future of the industry. Buffett said of his decision that Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) was not going to fund a company that they believed would be chewing up money in the future.And shortly after Buffett's announcement, a heavily indebted American took on additional debt. The company raised $3.5 billion in new financing, putting its total debt at the end of the first quarter to $34 billion. The company said the funding was to ensure its solvency throughout the pandemic.And that seems to be working. The company is managing to slow the rate at which it was burning cash. This is making bankruptcy less of a possibility. However my InvestorPlace colleague Thomas Niel advises you not to discount a Chapter 11 filing. The Worst of a Bad LotThese are troubled times for airlines. It seems that some Americans are stiffening their upper lip and creating their own version of normal. Some of them may even decide they will get on an airplane. But those individuals will be exceptions. American Airlines high debt load was weighing it down before the pandemic. A larger debt load will continue to hamper AAL stock as better days appear.However, the longer those days take to get here the more likely another bankruptcy may become. For that reason alone, you can find better options if you want to speculate on airline stocks.Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for Investor Place since 2019. As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post There's Little Reason for Optimism for American Airlines appeared first on InvestorPlace.

from Yahoo Finance https://ift.tt/31vKoKx