Morning Market Musings: September 24th
Specializing in biotech stocks, Small Caps, managing optimized portfolios
Seeking Alpha Analyst Since 2009
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Specializing in profiling high beta sectors, Bret Jensen founded and also manages The Biotech Forum, The Insiders Forum, and the Busted IPO Forum model portfolios. Finding “gems” in the biotech and small-cap stock sectors, these highly volatile spaces proven hugely successful have empowered Bret Jensen's own investing portfolio.
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I prefer to be true to myself, even at the hazard of incurring the ridicule of others, rather than to be false, and to incur my own abhorrence.”― Frederick Douglass
Note: Going forward the Biotech Analyst Run Down will be called the Morning Market Musings.
The weakness we have seen recently in the market continued during Wednesday's trading session as the S&P 500 lost 2.3%. The decline was broad based as both the NASDAQ and the Russell 2000 lost just over three percent each Wednesday.
The breadth of the rally had us concerned before this latest market sell-off. Given continued violence in many American cities as well as one of the most contentious elections in our history on the horizon, many investors are concluding discretion is the better part of valor in recent weeks.
The housing market (I, II) continues to be one of the strongest parts of the economy. September PMI Manufacturing levels also came in slightly above expectations yesterday.
Pre-market futures are currently pointing to a slightly down opening.
The Latest Post On The Biotech Maven:
As trading is about to begin, here are four small healthcare plays that analyst firms like this Thursday.
Otonomy (OTCPK:OTIC) sees its first analyst action so far in September. Oppenheimer comes out and maintains its Buy rating and $8 price target on the stock this morning.
The Centers for Disease Control and Prevention has tracked thousands of deaths this year beyond expected levels for conditions that also include hypertension, strokes and diabetes. Physicians say the surge was especially notable in the spring, when the pandemic hit New York and other parts of the Northeast hard.
After being initiated as an Underweight two weeks ago by Morgan Stanley, Veracyte (VCYT) gets a vote of confidence from Needham this morning. The analyst firm reiterates its Buy rating and $37 price target on VCYT today.
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Gamida Cell (GMDA) gets some new analyst support this morning. Both Oppenheimer ($20 price target) and Needham ($17 price target) initiate the shares as a new Buy this Thursday morning.
A new Wealth Tax law in the works that would require people with high incomes such as business owners leaving California to continue to pay taxes to the state for 10 years, even though they no longer live there. In other words, successful business owners who leave California will have to pay taxes to two separate state governments at the same time.
Finally, we have vTv Therapeutics (VTVT) which we recently provided a 'deep dive' on. Today, Northland Securities reissues its Buy rating and Street high $8 price target on.
And those are four small biotech stocks getting the nod from the analyst community in early trading Thursday.
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Thank You & Happy Hunting,
Bret Jensen
Founder, The Biotech Forum, The Busted IPO Forum & The Insiders Forum
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