Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 […]

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(Bloomberg) — Data on Sarepta Therapeutics Inc.’s experimental gene therapy for a rare type of muscular dystrophy showed that patients receiving a higher dose of the medicine saw greater benefits than those receiving a lower dose, delivering another early-stage win for the drug developer.Three patients with limb-girdle muscular dystrophy Type 2E who got the high dose of Sarepta’s SRP-9003 produced greater levels of the protein beta-sarcoglycan. While patients with the progressive and debilitating muscle-wasting disease normally make very little or none of the protein, the three children showed an average protein expression that was 62% of normal, topping 36% seen at the lower dose, when using a standard analysis called Western Blot.“We see a dose-dependent increase in expression and we see good tolerability across these kids in both the first and second cohort,” Chief Executive Doug Ingram said in an interview.All three patients in the early-stage study saw an average reduction in the enzyme that the muscle releases when it’s being damaged, known as CK, of 89% after 90 days. Ingram called the reduction in enzyme levels “encouraging.” The three patients also showed significant expression of alpha-sarcoglycan, another integral protein.Shares of Cambridge, Massachusetts-based Sarepta rallied as much as 4.7% at 9:31 a.m. in New York Monday, bringing its 2020 gain to 18%. RBC Capital Markets analyst Brian Abrahams advised clients to continue buying shares as the results help provide “clear differentiation” of Sarepta’s gene therapy platform compared to peers.Sarepta said in a slideshow that one patient had a serious case of dehydration that was a result of vomiting three days after receiving the one-time infusion. The side effects were resolved two days after treatment with a pair of nausea and vomiting medicines and intravenous fluids. Management brushed aside any concern for the side effects, saying it’s not uncommon for patients to have nausea after receiving a gene therapy.Ingram highlighted that none of the six patients treated saw a decrease in platelet counts that were outside of normal or any signals of complement activation. “That has been, for other therapies using different vectors, a very significant issue and in fact others have been put on clinical hold as a result of these very serious problems,” he said.While the opportunity in this rare disease is much smaller than the company’s leading program in Duchenne muscular dystrophy, Wall Street will likely be pleased with the update as it further validates Sarepta’s gene therapy platform. Coming into the data, analysts including Mizuho’s Difei Yang were looking for a solid safety profile as well as a clear increase in benefit at the higher dose.Sarepta also said three patients who received the lower dose of SRP-9003 had improved function one year after treatment.The company plans to select the final dose for a registrational trial in coming months as it continues to discuss trial designs with regulators around the world.When asked if there was interest in studying a higher dose of the gene therapy, Ingram said “we’re getting to the top of what one could reasonably expect.”The update comes less than a month after underwhelming data from competitor Pfizer Inc.’s Duchenne muscular dystrophy gene therapy sent shares of Sarepta to a nine-month high.(Updates with share movement and analyst commentary in fifth paragraph, adds chart)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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Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Anjalee Khemlani discuss a possible merger between Astrazeneca and Gilead Sciences.

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An editor at both the New York Times and Philadelphia Inquirer chose to resign after facing backlash over controversial headlines. Yahoo Finance’s Emily McCormick breaks down the details.

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The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

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Arguably the most controversial on the Street, penny stocks are a hot-button issue. Usually, there isn’t a lot of middle-ground with respect to these tickers priced for less than $5 apiece. Dividing market watchers into two distinct groups, both sides present valid arguments laying out the pros and cons.Sure, there is reason enough to be skeptical. Often, a cheap stock is cheap for a reason, with the low share price potentially reflecting an underlying problem with the business, whether it be poor fundamentals or unbeatable headwinds. That said, a bargain price tag isn’t always indicative of a lost cause. For some, better days are on the horizon, and for very little money, investors can control a lot more shares. Therefore, even minor upward movements could result in massive percentage gains, and thus, significant returns.As the nature of these investments makes it difficult to gauge the strength of their long-term growth prospects, one effective stock selecting strategy is to follow the analysts’ advice. Turning to five-star analyst Leland Gershell from investment firm Oppenheimer, which ranks third on TipRanks’ list of Top Performing Research Firms, we wanted to see if any of his recent picks could lead us towards returns.Running three penny stocks boasting Gershell’s stamp of approval through TipRanks’ database, we found out that the rest of the Street is also on board. The cherry on top? Each Buy-rated ticker sports over 140% upside potential.Cerecor Inc. (CERC)With the goal of making life-changing medicines available to underserved patient populations, Cerecor wants to address the significant unmet needs within neurology, pediatric and orphan diseases. Based on its impressive pipeline, Gershell believes that its $2.73 share price presents a unique buying opportunity.The analyst points to CERC’s CERC-002 (anti-LIGHT mAb) candidate for respiratory complication management in severe COVID-19 as being a key component of his bullish thesis. At the end of May, Cerecor and its partner, Myriad Genetics, released positive biomarker analyses demonstrating that free levels of the cytokine LIGHT are tied to disease severity and mortality in COVID-19 patients suffering from acute respiratory distress syndrome (ARDS). This is important as roughly 15-20% of COVID-19 patients experience clinically significant pneumonia that most likely results from a hyperimmune response to the virus.Expounding on the implications of the results, Gershell stated, “While these data represent early results generated from a modestly sized patient population (47 COVID-19 patients compared to 30 healthy controls), they nonetheless motivate investigation of anti-LIGHT monoclonal antibody CERC-002 to mitigate or prevent cytokine storm-induced severe ARDS caused by COVID-19 and to decrease mortality and the need for ventilation. CERC is now advancing CERC-002 for potential use in this setting.”Adding to the good news, the first look at data from the CDG-FIRST retrospective study in congenital disorders of glycosylation is set to come in the first half of this calendar year. According to Gershell, the results could help accelerate the CERC-800 series’ FDA 505b2 development. Not to mention he tells investors “each approval would yield a (monetizable) Priority Review Voucher to CERC.”As for the proof-of-concept trial looking at CERC-007 in adult-onset Still's disease and multiple myeloma is slated to kick off in 4Q20 and 1Q21, respectively, shares could get another boost. In addition, data for CERC-006 in complex lymphatic malformations could be published in the first half of 2021.Gershell added, “Following recent balance sheet strengthening (stock offerings, sale of AYTU holdings), CERC is on solid footing to support operations as it continues to pursue Millipred sale. We expect shares to outperform as progress across the company's development portfolio is registered.”To this end, Gershell rates CERC an Outperform (i.e. Buy) along with a $10 price target. Should this target be met, a twelve-month gain of 266% could be in store. (To watch Gershell’s track record, click here) Looking at the consensus breakdown, it has been relatively quiet when it comes to other analyst activity. Only one other analyst has reviewed CERC recently, giving it a Hold recommendation. As a result, the consensus rating is a Moderate Buy. (See Cerecor stock analysis on TipRanks)Soleno Therapeutics (SLNO)Soleno Therapeutics primarily works on developing and commercializing therapeutics for the treatment of rare diseases, with its lead candidate, DCCR, being evaluated for use in Prader-Willi syndrome in a Phase 3 clinical development program. Currently going for $3.26 apiece, Oppenheimer's Gershell thinks now is the time to snap up shares. Gershell doesn’t dispute the fact that some investors expressed concern when Millendo Therapeutics discontinued the livoletide program after the asset’s pivotal failure in Prader-Willi syndrome (PWS), but he argues that this development isn’t necessarily a bad thing.“While disappointing for the PWS community given the dearth of treatment options, elimination of one of the two other candidates in late-stage development may be seen as a modest positive for SLNO. As both mechanism of action and route of administration differ between livoletide (injectable Ghrelin agonist) and SLNO's DCCR (oral KATP channel agonist), we do not see negative read-across from ZEPHYR to DESTINY PWS, expected to report top-line results this quarter,” Gershell commented.The readout of initial results from the placebo-controlled Phase 3 DESTINY PWS trial of DCCR is on track to report top-line results by June 30. “We maintain a favorable outlook heading into this reveal, and expect success to yield significant upside given current levels (~$140 million enterprise value),” Gershell said. With this in mind, the analyst reiterated an Outperform rating on SLNO with an $11 price target, implying 237% upside potential.Turning now to the rest of the Street, SLNO has received a total of 2 Buy recommendations, making the consensus rating a Moderate Buy. The $10.50 average price target brings the upside potential to 222%. (See Soleno stock analysis on TipRanks)Recro Pharma (REPH)Operating as a Contract Development and Manufacturing Organization (CDMO) business, Recro Pharma boasts capabilities that range from early feasibility and product development solutions to commercial manufacturing. Coming in at $4.95, Oppenheimer believes the selloff that resulted from a recent guidance revision makes the share price look like a steal.The company slashed its full year 2020 revenue and earnings guidance as a result of the impact from COVID-19 and more market competition facing one of its key products. Speaking to the former, Gershell points out the pandemic led to a reduction of existing commercial business as well as slower timing and decision-making by development customers due to the uncertain financial environment. It also didn’t help that two commercial product lines from two customers were discontinued, causing a $4 million revenue guidance reduction, with the analyst calling for a $7-8 million hit to 2021 revenue. Its staff was also cut by 10% to minimize costs.Additionally, it was originally thought that re-entering supplier Mylan, which competes with Teva, a 42% contributor to REPH's total revenue in 2019, would take 30% market share through 2020. However, updated information now indicates Mylan has 50% market share.Still remaining very much on board, Gershell said, “The degree of yesterday's update came as a surprise following recent guidance we interpreted as erring toward the conservative, given backlog of new business and continued efforts toward customer base expansion… While recovery may be sluggish as REPH navigates the balance of 2020, an attractive value case is made with shares having corrected to just ~6.4x EV-to-2020 adjusted EBITDA.”To provide more support for his bullish thesis, Gershell reminds investors that excluding COVID-19-related restrictions, operations are fully functional and the supply chain remains intact and current, with many obligations able to be executed virtually. REPH is also growing its product lineup to include clinical trial materials. The analyst also argues the recent recruitment of a senior business development head should facilitate new business.All of this prompted Gershell to maintain his bullish call. Having said that, he reduced the price target from $18 to $12. Even with the haircut, the figure still suggests shares could climb 142% higher in the next year.What does the rest of the Street think about Recro Pharma? One other Buy rating has been issued in the last three months, so the consensus rating is a Moderate Buy. In addition, the $15 average price target implies 203% upside potential. (See Recro stock analysis on TipRanks)To find good ideas for penny 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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We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]

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Shares in PG&E Corp. (PCG) sank as much as 13% in pre-market trading after the debt-strapped U.S. utility announced that a group of investors agreed to commit to a $3.25 billion equity investment at a discounted share price.The U.S. utility disclosed that a number of investors, including Appaloosa, Third Point LLC, Fidelity Management & Research Co. LLC and Zimmer Partners, have committed to buy shares at a price of up to $10.50 in an offering to generate $3.25 billion. The stock plunged as much as 13% in pre-market trading to $10.95 after closing at $12.52 on Friday.The equity investment agreement is part of the power provider’s plan to raise a total of $5.75 billion from public offerings as it embarks on a plan to exit from its bankruptcy, it said in a SEC filing.Over the weekend, Reuters reported that PG&E is working on a $11 billion debt-financing package as it seeks to come out of Chapter 11 proceedings by June 30 to tap a state-backed fund that would help utilities cope with the financial fallout suffered from wildfires.In January last year, the utility filed for bankruptcy, citing potential liabilities exceeding $30 billion from major wildfires sparked by its equipment in 2017 and 2018.It looks like some investors are welcoming PG&E’s plan to emerge out of bankruptcy. Since hitting this year’s low in March, shares have surged more than 70%.Merrill Lynch analyst Julien Dumoulin Smith on Friday reiterated a Buy rating on the company with a $14 price target, saying that with approvals and a reorganization plan in place, the stock offers a “much cleaner story”.“Under conservative assumptions we calculate shares as offering compelling total return prospects with additional catalyst potential if the backstop agreement were amended to provide better terms,” Dumoulin Smith wrote in a note to investors.Overall, the Wall Street analyst community is cautiously optimistic on the stock. The Moderate Buy consensus consists of 5 Buy versus 3 Hold ratings. The $14.06 average price target implies shares may gain another 12% in the coming 12 months. (See PG&E stock analysis on TipRanks).Related News: PG&E Is Said To Ready $11 Billion Debt Financing Plan Colombian Carrier Avianca Files for Bankruptcy Protection Due to Coronavirus Woes S&P Cuts American Airlines’ Credit Rating To ‘B-‘ from ‘B’ On Cash Flow Deficit Concern More recent articles from Smarter Analyst: * IFF Sales Drop 7% Due To Coronavirus Pandemic Impact; Shares Fall In Pre-Market * Tesla Sales Triple For China Model 3 Vehicle In May * Canada’s Bombardier Cuts 2,500 Jobs As Pandemic Stalls Travel Demand * Stitch Fix Earnings: Top Analyst Cautiously Optimistic Into Today’s Print

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The Black Lives Matter movement has sparked some monumental changes, with cities making moves to defund police forces. Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Andy Serwer discuss.

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New figures show that Tesla Inc (TSLA) sold 11,095 Shanghai-made Model 3 vehicles in China in May, reports Reuters.This is more than triple the volume seen in April, according to the China Passenger Car Association (CPCA).The CPCA previously revealed that the electric-vehicle maker sold 3,635 vehicles in April- a dramatic 64% drop from the 10,160 units sold in March.Notably, CPCA uses a different counting method than Tesla’s deliveries.Shares in Tesla have now more than doubled on a year-to-date basis, and are currently trading up 2% in Monday’s pre-market trading.With shares at such high levels, analysts are taking a cautious stance on Tesla stock. The Hold analyst consensus is made up of 9 recent buy ratings, 9 holds and 10 sells. (See Tesla’s stock analysis on TipRanks)Meanwhile the average analyst price target stands at $619, indicating 30% downside potential lies ahead.Argus Research’s Bill Selesky recently reiterated his hold rating after Tesla slashed prices by about 6% on its Model S, Model X and Model 3 in North America and its Model S and Model X in China.The analyst stated “Due to the pandemic, we have lowered our 2020 vehicle delivery forecast by 19% to 409,000. We are also concerned about the potential impact of tensions between the U.S. and China on Tesla’s manufacturing facilities in Shanghai, as we had expected China to account for 30% of production volume in 2020, up from 13% in 2019”.Similarly Wedbush analyst Dan Ives is also staying on the sidelines, with a price target of $800 (10% downside potential).According to Ives, “the China growth story is worth $300 per share to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months in a more normalized backdrop.”Related News: Grubhub Shares Lifted On Report Of European Acquirers Lining Up   Can Tesla Provide the Million Mile EV Battery? Top Analyst Weighs In Uber In Partnership With MoneyGram For Driver Discount During Pandemic More recent articles from Smarter Analyst: * Canada’s Bombardier Cuts 2,500 Jobs As Pandemic Stalls Travel Demand * Stitch Fix Earnings: Top Analyst Cautiously Optimistic Into Today’s Print * Oxford Biomedica Clinches Manufacturing Deal For AstraZeneca’s Covid-19 Vaccine * Vale SA Forced To Shutter Itabira Mines; Analyst Sees The Bright Side

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