Volatility
Lithium Americas–Buy on the plunge
I certainly understand the sell off in shares of development stage lithium producer Lithium Americas (LAC). Today, April 23, the stock closed at $4.68 a share, down another 1.47%. On April 16 the stock closed at $6.49 after hitting $7.34 on April 11. The culprit? The company closed a previously announced stock offer to 55 million shares at a price of $5 a share to raise $275 million.
You can see the problem, right? Stock is trading at $7.34 or $6.49 and then a big public offer dumps 55 million shares on the market at $5 a share. Ouch!! So I understand the price plunge–36.2% from April 11 to the close on April 23. And as someone who owns shares in his personal portfolio, I can’t say I’m a happy camper. But I will be being more in my personal account three days after this is posted.
Special Report A New World for Dividend Investors Pick #4 Equinor
Equinor (EQNR) is Pick #4 in my Special Report A New World for Dividend Investors. I posted this pick in my long Special Report post. But I wanted to flag it here as well so no one wouldl miss the pick. Dividend Pick #4: Equinor (EQNR)
Another reason to buy Novo Nordisk: Kidney trial success for GLP
Back on February 20, I posted a video recommending a buy of Novo Nordisk (NVO). In the video, “Buy GLP-1,” I said that the stock, along with Eli Lilly (LLY) was riding the momentum of increased sales of GLP-1 drugs, originally developed to treat diabetes, as weight-loss drugs. Buy, I said, despite the huge run-up in the shares, because new trials and analysis of existing data were pointing to expanded uses for the drugs. Today, Novo Nordic announced exactly the kind of news that I had talked about.
My 10 Penny Stock Homeruns Pick #7 L’Occitane International LCCTF
Although I’m selling Natura out of my portfolio and my penny stock list, I do want to keep exposure to global beauty sector, however. I like the high margins and I like the correlation between sales of beauty products and rising incomes in developing economies. My pick for this iteration of my penny stock list is L’Occitane International (LCCTF)
Please Watch My New YouTube Video: Hot Button Moves NOW Buy VKTX
Today’s Hot Button Moves NOW video is Buy Viking Therapeutics (VKTX). Last week I suggested that you buy GLP-1 drug stocks like Eli Lilly (LLY) or Novo Nordisk (NVO). This class of diabetes and weight loss drugs is growing rapidly, with $36.5 billion in sales in 2023. Viking Therapeutics, a development-stage biotech company, recently announced Phase 2 trial results for its compound VK2735. This drug has the potential to be the best in its class when it hits the market. The company still has to go through Phase 3 trials and approval, but the data show VK2735 to be more effective at weight loss than its competitors. It could also be one of the few drugs of its kind to be available orally. The current round of trials shows that the drug will need to be injected less frequently than competitors. The company trades with a market cap of $9 billion (in contrast to Lilly’s $720 billion market cap) and is still small enough that it could be bought before the expensive process of taking a drug to market. (Although the company recently raised a secondary offering that would advance marketing plans.) I would buy this up to $100 a share and expect it to continue to zoom as more good news, I expect, on the oral version gets released this quarter. I am adding the stock to my online portfolios today, Thursday, February 29. You can find a write up on this pick on my subscription JubakAM.com and free JubakPicks.com sites.
Need more GLP? Buying Viking Therapeutics on trial results
Yesterday, February 28, development-stage biotech Viking Therapeutics (VKTX) announced results from a Phase 2 training of its GLP-1 weight-loss drug candidate that that showed the potential for the VK2735 compound two move to be best in class in the $36.5 billion (revenue) market for GLP diabetes-control and weight-loss drugs. I will add Viking Therapeutic to my Volatility Portfolio and to my Jubak’s Picks Portfolio today, February 29, with a target price of $150.
Yes, I’d buy Palo Alto Networks today–with these caveats
After yesterday’s earnings report–the company beat Wall Street estimates for the quarter–and radically lower guidance for next quarter and the rest of 2024–total billings for next quarter will grow by just 2% to 4% and revenue for all of 2024 will grow by just 15% to 16% from 2023–shares of Palo Alto Networks (PANW) took a big hit right between the eyes. The stock fell 28.44% at the close and lost $104.12 a share to $261.97. What do I recommend? I’d say “buy” with a couple of caveats. Why buy?
The Fed sends up warning flag on commercial real estate loans: I’m adding to my KRE Put Options
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Please Watch My New YouTube video: Hot Button Moves Now! Short regional banks
I’m adding a bit more timeliness to this weekly video slot by moving away from my Trend of the Week series and changing it to “Hot Button Moves NOW” to highlight action you can take now.. Today’s Hot Button Moves NOW video is: Put Options on the S&P Regional Banking ETF (KRE). This is a play on continued trouble in the regional banking sector. New York Community Bank has just been downgraded to junk by Moody’s, (due to its real estate loan portfolio) and has dropped by 60%, taking the regional bank sector along with it. Last Monday I bought puts for April 24 at 14 strike price for $2.09 each and the put price has gone through the February 7 date when I recorded this video. I don’t think this is the end of regional bank trouble so I’ll be holding on to these puts until the bad news subsides. This is a good way to take advantage of some of these dips in the market and hedge risks. For more options and volatility stocks, subscribe to JubakAM.com.
Special Report: 10 Penny Stock Home Runs–Pick #2 PILBF
This one is very simple. When the price of lithium rebounds, high-quality low-cost lithium producers will see the revenue roll in. That’s why I’d got the world’s leading lithium-producer Albemarle (ALB) in my long-term 50 Stock Portfolio. But a smaller, high-quality, low-cost producer like Australia’s Pilbara Minerals will show gains even higher than Albemarle since the current price of $2.29 a share comes close to discounting the company’s survival.
New York Community won’t be the last bank to get into trouble; adding Puts on next bank crisis
Nothing like a bank surprise to get Wall Street in a lather. On Wednesday, January 31, New York Community Bancorp (NYCB) announced that it would cut its dividend and add to reserves against losses in its commercial lending portfolio. The stock fell 38% on Wednesday to hit a 23-year low on Thursday. The bad news wasn’t limited to U.S. banks either.Tokyo-based Aozora plunged more than 20% after warning of US commercial-property losses Frankfurt’s Deutsche Bank more than quadrupled its provisions against U.S real estate losses. I don’t see any reason to think that this is a one-day phenomenon. Or that the damage is just a minor problem in a few portfolios. Billionaire investor Barry Sternlicht warned this week that the office market is headed for more than $1 trillion in losses. “This is a huge issue that the market has to reckon with,” Harold Bordwin, a principal at Keen-Summit Capital Partners in New York, which specializes in renegotiating distressed properties, told Bloomberg. “Banks’ balance sheets aren’t accounting for the fact that there’s lots of real estate on there that’s not going to pay off at maturity.” On Monday then, I’m adding Put Options on the SPDR S&P Regional Banking ETF (KRE).
