Ticker Confusion… and Breadcrumbs

Per yesterday’s missive, a reader says:

“Novavax (NVAX) has its NanoFlu treatment fast-tracked.

“On the same day, Nanoviricides (NNVC) goes up over 80%. Coincidence? Or people choosing the wrong ticker?

“By the way, markets are efficient.”

If not efficient, at least impressionable.

It appears an entire subset of biopharmaceutical companies — many of them penny stocks — have gotten a lift from the outbreak of a new virus in China. We still stand by Novavax as a leader in the space.

Next, here’s a reader’s take on the dangers of freebies:

“Handouts are the crumbs that lured Hansel and Gretel into the oven, and they will lead us into the oven of socialist poverty. Fables have a teaching purpose and we forget them at our peril.”

More of your opinions tomorrow…

Your Rundown for Wednesday Jan. 22, 2020

Good To Be The King

“Tesla reached a $100 billion market cap for the first time at the beginning of trading Wednesday,” CNBC reports, “setting CEO Elon Musk up for a large payout.”

According to an authorized compensation package approved in 2018: “Musk would earn the first tranche of at least $346 million in shares if Tesla’s market capitalization hits and stays at $100 billion.” It’s good to be the king… of electric vehicles.

“That’s all assuming the compensation plan holds up in court,” CNBC says. Richard Tornetta, a Tesla stockholder, is suing Musk and other members of Tesla’s board on the basis that the award is “excessive.”

All that aside, TSLA stock is up over 20% in 2020; shares have surged since the company reported third-quarter earnings on Oct. 23. As for Tesla’s Q4 report, that’s scheduled for release Jan. 29.

Might you benefit from buying TSLA shares ahead of earnings? Here’s a few nuggets to inform your decision:

  • Good news: “Tesla managed to open its Shanghai factory ahead of schedule and began deliveries of its Model 3 sedan in China at the end of 2019.”
  • Good news: “The company is also moving forward with its plans to build a fourth factory in Germany….”
  • Bad news: Tesla’s gotten backlash over environmental concerns from the German community.
  • Good news: “Tesla said it delivered 112,000 vehicles in the quarter to finish out the year,” CNBC says, “which brought the total vehicles delivered in 2019 to approximately 367,500 vehicles, a 50% jump from 2018.”

There’s the good news/bad news scenario. The good news seriously outweighs the bad. To reiterate, Tesla earnings will be announced next week.

Market Rundown for Wednesday, Jan. 22, 2020

S&P 500 futures are up 14 points to 3,335.

Oil’s down 2.35% to $57.01 for a barrel of WTI.

Gold’s lost $2.70 per ounce to $1,555.20.

Bitcoin is down $85.85 to $8654.64.

We’ll circle back tomorrow. Have great day!

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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