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Novavax

2/20/2018

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Novavax, Inc. is a clinical-stage biotechnology company delivering novel products to prevent a broad range of infectious diseases. Using innovative proprietary recombinant nanoparticle vaccine technology, they produce vaccine candidates to efficiently and effectively respond to both known and emerging disease threats. Their vaccine candidates are genetically engineered three-dimensional nanostructures that incorporate recombinant proteins critical to disease pathogenesis. Their product pipeline targets a variety of infectious diseases, with clinical vaccine candidates for respiratory syncytial virus (RSV), seasonal influenza and Ebola virus (EBOV) and a preclinical program for a combination respiratory vaccine candidate, as well as other infectious disease vaccine candidates. Novavax is headquartered in Gaithersburg, Maryland with additional facilities in Rockville, Maryland and Uppsala, Sweden.
19 February 2018
Price $2.34
1yr Target $3.25
Analysts 6
Dividend $0.00
Payout Ratio 0.00%

1yr Cap Gain 38.88%
Yield 0.00%
1yr Tot Return 38.88%

P/E ---
PEG ---
Beta 2.53


EPS (ttm) $-0.68
EPS next yr $-0.59
Forward P/E ---
EPS next 5yr 0.00%
1yr Price Support ---

Market Cap $677.41 Mil
Revenues $26.20 Mil
Earnings $-190.00 Mil
Profit Margin ---

Quick Ratio 3.30
Current Ratio 3.30
Debt/Equity ---


1yr RevGR ---
3yr RevGR ---
5yr RevGR ---

1yr EarnGR ---
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1yr DivGR ---
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ROA -52.60%
ROE 452.80%


Operations

Novavax, Inc. is a clinical-stage biotech company focused on the discovery, development and commercialization of recombinant nanoparticle vaccines and adjuvants. They produce vaccine candidates to efficiently and effectively respond to both known and emerging disease threats.

The Company's vaccine candidates are genetically engineered 3D nanostructures that incorporate recombinant proteins critical to disease pathogenesis. Their product pipeline targets a variety of infectious diseases, with clinical vaccine candidates for respiratory syncytial virus (RSV) and Ebola virus (EBOV), and preclinical programs for Zika virus (ZIKV), seasonal influenza and a combination respiratory vaccine candidate, as well as other infectious disease vaccine candidates.

Novavax is also developing immune stimulating saponin-based adjuvants through their wholly owned Swedish subsidiary Novavax AB. The lead adjuvant, Matrix-MTM, has been shown to enhance immune responses and was well-tolerated in a Phase 1/2 clinical trial for the pandemic H7N9 influenza vaccine candidate, as well as in a Phase 1 clinical trial for the EBOV vaccine candidate.

Genocea Biosciences has licensed rights to the Company's Matrix technology and has conducted Phase 2 clinical trials with its herpes simplex 2 vaccine candidate using Matrix-M. 



​Product Pipeline


Novavax's product pipeline includes vaccine candidates engineered to elicit differentiated immune responses with the potential to provide increased protection. Their nanoparticle technology targets antigens with conserved epitopes essential for viral function. Unlike traditional vaccines that ‘mimic’ viruses and elicit naturally occurring immune responses to them, their nanoparticles are engineered to elicit differentiated immune responses, which may be more efficacious than naturally-occurring immunity. The Company's vaccine technology has the potential to be applied broadly to a wide variety of human infectious diseases. 
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Respiratory Syncytial Virus

Novavax is developing a respiratory syncytial virus fusion (F) protein nanoparticle vaccine candidate (RSV F Vaccine) for three susceptible target populations: infants via maternal immunization, older adults (60 years of age and older) and children six months to five years of age (pediatrics). The Company believes their RSV F Vaccine represents a multi-billion dollar revenue opportunity. Currently, there is no approved RSV vaccine available.

Repeat infection and lifelong susceptibility to RSV are common and it is currently estimated the global cost burden of RSV to be in excess of $88 billion. Despite decades of effort to develop an RSV vaccine, there are currently no licensed vaccines. Although the monoclonal antibody palivizumab (Synagis) is indicated for the prevention of serious lower respiratory tract disease caused by RSV in children at high risk of RSV disease, it is not indicated for use in other populations.

Novavax made a breakthrough in developing a vaccine that targets the fusion protein, or F-protein, of the virus. The F-protein has highly conserved amino acid sequences, called antigenic sites, which they believe are ideal vaccine targets. Palivizumab, which targets one such site, antigenic site II, has demonstrated protection in five randomized clinical trials. Novavax genetically engineered a novel F-protein antigen resulting in enhanced immunogenicity by exposing these antigenic sites. The RSV F Vaccine assembles into a recombinant protein nanoparticle optimized for F-protein antigen presentation. The Company is seeking to bring the first RSV vaccine to market to combat the 64 million RSV infections that occur globally each year.


Emerging Diseases

Ebola In July 2015, Novavax announced top-line data from their Phase 1 clinical trial of the Ebola GP Vaccine in ascending doses, with and without their Matrix-M adjuvant, in 230 healthy adults. Participants received either one or two intramuscular injections ranging from 6.5μg to 50μg of antigen, with or without adjuvant, or placebo. Immunogenicity was assessed at multiple time points, including days 28 and 35. These Phase 1 data demonstrated that our Ebola GP Vaccine is highly immunogenic, well-tolerated and, in conjunction with the Company's proprietary Matrix-M adjuvant, resulted in significant antigen dose-sparing. Although the adjuvanted Ebola GP Vaccine was highly immunogenic at all dose levels, the adjuvanted two-dose regimens induced Ebola anti-GP antibody geometric mean responses between 45,000 and 70,000 ELISA units, representing a 500 to 750-fold rise over baseline at day 35. In 2015, Novavax also announced successful data from two separate non-human primate challenge studies of our Ebola GP Vaccine in which, in both cases, the challenge was lethal for the control animal, whereas 100% of the immunized animals were protected.

ZIKV EnvD Vaccine Novavax initiated development of a vaccine against the Zika virus in response to the unmet global medical need for a response to this serious disease. Beginning in 2015, ZIKV spread in South, Central and North America, via mosquito-borne and sexual transmission. Although acute ZIKV infections in adults are generally either asymptomatic or associated with mild symptoms (fever, joint pains and skin rash), more serious outcomes can occur, including Guillain-Barré syndrome in adults and, microcephaly in infants of women infected during pregnancy. There is no approved vaccine against ZIKV, although a number of companies have announced vaccine development efforts. Novavax is currently conducting IND-enabling preclinical studies, including studies in non-human primates and other animal models, with the goal of initiating a Phase 1 clinical trial of our ZIKV envelope dimer nanoparticle vaccine candidate in 2017. 

Influenza

After many years of developing virus-like particle-based influenza vaccine candidates, the Company has identified advantages of developing nanoparticle-based seasonal influenza vaccines. In particular, influenza nanoparticles can display conserved antigenic regions, which have the potential to elicit broadly neutralizing antibodies that may offer protection against a range of drifted strains. Additionally, nanoparticles offer improved purity and manufacturability and advantages for co-formulation with other nanoparticle-based vaccines. Nanovax expects to continue to develop their nanoparticle influenza vaccine program in 2018 with an ongoing goal of generating additional proof-of-concept data. 

Given the ongoing development of the Company's RSV F Vaccine and the desire to develop a combination respiratory vaccine with the potential to protect against both RSV and seasonal influenza, Novavax made the decision to shift our influenza vaccine development focus from VLP-based seasonal influenza vaccines to nanoparticle-based seasonal influenza vaccines. Early preclinical development efforts now gives the Company the confidence that such a combination vaccine is feasible. 

Vaccine Technology
The Company's recombinant protein nanoparticle vaccine technology is based on self-assembly of surface protein antigens from pathogenic organisms including viruses, bacteria or parasites. The conformations of these nanoparticles are similar but not identical to the natural structure of surface antigens of disease organisms, and lack the genetic material required for replication and therefore are not infectious. Potential immunological advantages of protein nanoparticles may be associated with the nanoparticle conformation and the presentation of key functional epitopes that are often immunologically hidden in the native pathogen. This leads to efficient recognition by the immune system’s antigen presenting cells that trigger robust immune responses. Recognition of the nanoparticle vaccine’s repeating protein patterns by the antigen presenting cells’ toll-like receptors to stimulate innate immunity and the high purity and lack of synthetic material adds to the potential safety of recombinant nanoparticle vaccines. Protein nanoparticle vaccine technology has expanded our early-stage vaccines in development to include both virus and non-virus disease targets. The Company's most advanced protein nanoparticle vaccine candidate is their RSV F Vaccine, which self-assembles from highly purified F-protein antigen.
Matrix Adjuvants
Adjuvants are predominantly used to enable a vaccine to increase the amplitude of the immune response and qualitatively change it, broaden its specificity to provide protection against related microorganisms and allow for effective immunization with much lower doses of antigen. Novavax AB has developed a number of adjuvant formulations, all based on their proprietary MatrixTM technology. These adjuvant formulations possess excellent immunostimulatory features with the ability to increase and prolong the protective benefits of vaccines. 

While adjuvants based on novel, poorly characterized substances have been hampered by safety concerns and limited efficacy, Matrix adjuvants stimulate strong antibody and cell-mediated immune responses. Matrix adjuvants may allow for lower antigen doses, longer-duration immune responses and carry a lower risk for allergic reactions or other adverse events. The Company's Matrix technology typically induces strong cellular activation of both Th1 and Th2 types, thereby generating all classes and subclasses of antibodies, as well as potent cellular responses, including cytotoxic T lymphocytes. The Company's Matrix-M adjuvant provides a potent adjuvant effect that has been well tolerated in clinical trials. They also believe that the strong immune response and opportunity to reduce the quantity of antigen dose can significantly reduce the production cost of our vaccines. This means that their Matrix-M adjuvant has the potential to be of significant value when there is inadequate vaccine manufacturing capacity during an emerging disease threat such as an influenza pandemic. 


My Path Forward

Like all Biotechs in their clinical stage of development there's a lot of risk involved in buying their shares. And in the case of Novavax, there really isn't much information available on future estimates of fundamentals. so there's nothing screaming "Buy" when I look at these shares. But I see there may be potential here to solve some of the world's health problems by a company that's been around for awhile and therefore will probably stay around for awhile. Therefore, I believe there's merit in taking a position near here or on any pullback.

I think there's potential for a 50% move. Or even a double from this level. There's also potential for a larger company developing medications in this area of respiratory disease to buy them out. At a price just above $2, it's pretty small change to take a chance on this company.  

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Finding Uptrend Support

2/11/2018

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In a falling market it seems like everything falls aimlessly. But some shares stop at support and wait for the pullback to stop. These are usually the companies that rise first and the fastest once the carnage ends. Below you'll find eleven companies in a confirmed uptrend channel that have fallen but have found support near the bottom of the channel. Assuming this support holds, these should be the companies that move high as the market re-establishes its previous uptrend. And based upon the severity of the recent downturn, that shouldn't take long. 
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Park Electrochemical Corp., through its subsidiaries, develops, manufactures, markets, and sells high-technology digital and radio frequency/microwave printed circuit material products primarily for the telecommunications and Internet infrastructure, enterprise, and military/aerospace markets. It also provides composite materials, primary and secondary structures and assemblies, and tooling products for the aerospace markets. The company's printed circuit materials are used to fabricate complex multilayer printed circuit boards and other electronic interconnection systems, such as multilayer back-planes, wireless packages, high-speed/low-loss multilayers, and high density interconnects. It markets and sells its printed circuit materials to printed circuit board fabricators, electronic manufacturing service companies, and electronic contract manufacturers, as well as electronic original equipment manufacturers in the computer, networking, telecommunications, wireless communications, aerospace, military, instrumentation, and automotive industries. The company has operations in North America, Europe, and Asia. Park Electrochemical Corp. was founded in 1954 and is headquartered in Melville, New York.
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Exelixis, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of new medicines with the potential to enhance care and outcomes for people with cancer. The company's products include CABOMETYX for the treatment of patients with advanced renal cell carcinoma, who have received prior anti-angiogenic therapy; and COMETRIQ for the treatment of patients with progressive, metastatic medullary thyroid carcinoma. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, and VEGF receptors, which has shown clinical anti-tumor activity in approximately 20 forms of cancer and is the subject of a broad clinical development program. It also offers COTELLIC (cobimetinib), a selective inhibitor of MEK, in combination with vemurafenib for the treatment of patients with BRAF V600E or V600K mutation-positive advanced melanoma in the United States; and in combination with vemurafenib in other territories, including the European Union, Switzerland, Canada, Australia, and Brazil. Exelixis, Inc. has collaboration and license agreements with Ipsen Pharma SAS, Genentech, Inc., GlaxoSmithKline, Bristol-Myers Squibb Company, Sanofi, Merck, and Daiichi Sankyo Company Limited for the development and commercialization of various compounds and programs. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was founded in 1994 and is headquartered in South San Francisco, California.
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Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines in Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa, and North America. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. In addition, it provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2016, the company owned a fleet of 237 aircraft, including 188 single-aisle narrowbody jet aircraft and 49 twin-aisle widebody jet aircraft. Air Lease Corporation was founded in 2010 and is based in Los Angeles, California.
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RealPage, Inc. provides software and data analytics for the real estate industry in the United States. It offers OneSite, a property management solution for multi-family, affordable property, rural housing, military housing, senior and student living, and commercial property types; and Propertyware for accounting, maintenance and work order management, marketing, spend management, portal services, and screening and payment solutions. The company also provides Kigo, a vacation rental property management system; spend management solutions for property owners and managers; The RealPage Cloud, an application infrastructure to outsource portions of the information technology (IT) operations; SmartSource that provides back-office accounting, and IT management and support services; and EasyLMS, a learning management system for property management professionals and their staff. In addition, it offers Online Leasing, Contact Center, Websites and Syndication, MyNewPlace, Lead2Lease, and Resident Screening solutions that manage leasing and marketing processes, including Websites and syndication, paid lead generation, organic lead generation, lead management, automated lead closure, lead analytics, real-time unit availability, automated online apartment leasing, and applicant screening. Further, the company provides resident services solutions, such as Resident and Utility Billing, Resident Payments, Resident Portal, Contact Center Maintenance, and Renter's insurance for utility billing, renter payment processing, service requests, lease renewals, renter's insurance, and consulting and advisory services; asset optimization solutions covering yield management, business intelligence, and asset and investment management platforms; and professional services, such as consulting and implementation, as well as training services. Additionally, it offers IT infrastructure and product support services. RealPage, Inc. was founded in 1998 and is headquartered in Richardson, Texas.
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Carnival Corporation operates as a leisure travel and cruise company. It offers cruises under the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn brands in North America; and AIDA, Costa, P&O Cruises (Australia), Cunard, and P&O Cruises (UK) brands in Europe, Australia, and Asia. The company operates approximately 100 cruise ships. It also owns Holland America Princess Alaska Tours, a tour company in Alaska; and the Canadian Yukon, which owns and operates hotels, lodges, glass-domed railcars, and motor coaches. In addition, the company is involved in the lease of cruise ships. It sells its cruises primarily through travel agents and tour operators. The company was incorporated in 1972 and is headquartered in Miami, Florida. Carnival Corporation is a subsidiary of Carnival Corporation & plc.
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AMETEK, Inc. manufactures electronic instruments and electromechanical devices worldwide. Its Electronic Instruments Group segment offers advanced instruments for the process, power and industrial, and aerospace markets; process and analytical instruments for the oil, gas, petrochemical, pharmaceutical, semiconductor, and automation markets; instruments for the laboratory equipment, ultraprecision manufacturing, medical, and test and measurement markets; and vision systems to inspect surfaces. This segment also provides aircraft and engine sensors, monitoring systems, power instruments, data acquisition units, and fuel and fluid measurement systems for the aerospace industry; power quality monitoring and metering devices, industrial battery chargers, uninterruptible power supplies, programmable power and electrical test equipment, and gas turbine sensors; and dashboard instruments for heavy trucks and other vehicles, as well as timing controls and cooking computers for the food service industry. Its Electromechanical Group segment offers thermal management systems, specialty metals, and electrical interconnects; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; engineered electrical connectors and packaging products to protect sensitive electronic devices; floor care and specialty motors; and metal tubing products. This segment also provides high-purity metals, metal strips, shaped wires, and advanced composites for various industrial applications; and motors used in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, industrial blowers, and vacuum cleaners, as well as operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and education communication solutions for hospitals, health systems, and educational facilities. AMETEK, Inc. was founded in 1930 and is headquartered in Berwyn, Pennsylvania.
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Eastman Chemical Company manufactures and sells materials, specialty additives, chemicals, and fibers in the United States and internationally. The company's Additives & Functional Products segment offers specialty coalescents, specialty and commodity solvents, paint additives, and specialty polymers; hydrocarbon and rosin resins; sulfur and antidegradant rubber additives; performance resins and amine-derivative-based building blocks; heat transfer and aviation fluids; formic-acid based solutions; and metam based soil fumigants, thiram and ziram based fungicides, and plant growth regulators. Its products are used in coatings, tires, consumables, building and construction, animal nutrition, care chemical, crop protection, and energy markets. Its Advanced Materials segment provides copolyesters, cellulose esters, polyvinyl butyral (PVB) sheets, specialty (PVB) intermediates, and window film and protective film products for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The company's Chemical Intermediates segment offers Olefin derivatives, acetyls, ethylene, and commodity solvents; primary non-phthalate and phthala plasticizers, and a range of niche non- phthalate plasticizers; and methylamines and salts higher amines and solvents used in industrial chemicals and processing, building and construction, health and wellness, and agrochemicals markets. Its Fibers segment offers Estron acetate tow and Estrobond triacetin plasticizers for manufacturing cigarette filters; Estron natural and Chromspun solution dyed acetate yarns for use in apparel, home furnishings, and industrial fabrics; and cellulose acetate flake and acetyl raw materials for other acetate fiber producers, as well as acetyl chemical products. The company also offers aviation turbine engine oil; wet-laid nonwovens; and specialty films. Eastman Chemical Company was founded in 1920 and is based in Kingsport, Tennessee.
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Centene Corporation operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. It operates through two segments, Managed Care and Specialty Services. The Managed Care segment offers Medicaid and Medicaid-related health plan coverage to individuals through government subsidized programs, including Medicaid, the State children's health insurance program, long-term care, foster care, and dual-eligible individual, as well as aged, blind, or disabled programs. Its health plans include primary and specialty physician care, inpatient and outpatient hospital care, emergency and urgent care, prenatal care, laboratory and X-ray services, home health and durable medical equipment, behavioral health and substance abuse, 24-hour nurse advice line, transportation assistance, vision care, dental care, immunizations, prescriptions and limited over-the-counter drugs, specialty pharmacy, therapies, social work services, and care coordination. The Specialty Services segment provides pharmacy benefits management services; health, triage, wellness, and disease management services; vision services; dental services; correctional healthcare services; in-home health services; and integrated long-term care services, as well as care management software that automate the clinical, administrative, and technical components of care management programs. This segment offers its services and products to state programs, healthcare organizations, employer groups, and other commercial organizations. The company provides its services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in St. Louis, Missouri.
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Bio-Techne Corporation, together with its subsidiaries, develops, manufactures, and sells biotechnology reagents, instruments, and clinical diagnostic controls worldwide. It operates through three segments: Biotechnology, Protein Platforms, and Diagnostics. The Biotechnology segment offers native and recombinant proteins, monoclonal and polyclonal antibodies, immunoassays, biologically active chemical compounds, and in situ genomic hybridization assays for the research and clinical diagnostics markets. It also provides various products, which serves as predictive biomarkers and therapeutic targets for various human diseases and conditions, including cancer, autoimmunity, diabetes, hypertension, obesity, inflammation, neurological disorders, and kidney failure. The Protein Platforms segment develops, manufactures, and sells tools, such as Biologics platform that enables researchers interrogate protein purity and identify contaminants during the development and production of biologics; Simple Western platform for protein analysis and identification; SimplePlex platform, an enzyme-linked immunosorbent assay for use in research and clinical diagnostics; and Single Cell Western platform to elucidate the properties of individual cells to understand cell behavior. The Diagnostics segment offers controls and calibrators for hematology clinical instruments; blood chemistry and blood gas quality controls, diagnostic immunoassays, and other bulk and custom reagents for the in vitro diagnostic market; bulk purified proteins, enzymes, disease-state plasmas, infectious disease antigens, and processed serums to the clinical diagnostic industry; and Paratest, a novel and convenient stool collection and test device for the veterinary market. The company was formerly known as Techne Corporation and changed its name to Bio-Techne Corporation in November 2014. Bio-Techne Corporation was founded in 1976 and is headquartered in Minneapolis, Minnesota.
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L3 Technologies, Inc. provides aerospace systems, and communication and electronic systems and products used on military and commercial platforms in the United States and internationally. The company operates in three segments: Electronic Systems, Aerospace Systems, and Communication Systems. It offers components, products, subsystems, and systems, as well as related services to military and commercial customers in various business areas, such as precision engagement and training, aviation products and security, power and propulsion systems, sensor systems, warrior systems, and advanced programs. The company also provides fleet management sustainment and support services, such as procurement, systems integration, sensor development, modifications, and periodic depot maintenance for intelligence, surveillance, and reconnaissance, as well as special mission aircraft and airborne systems. In addition, it offers strategic and tactical signals intelligence systems, network and communication systems, secure communications products, radio frequency components, satellite communication terminals and space, microwave and telemetry products, and secure data links. Further, the company provides night vision and image intensification equipment, and security and detection systems; and simulation and training, engineering, modernization, upgrades and sustainment, maintenance, and logistics support services for military and government aircraft, ground vehicles, personnel equipment, and other platforms. It serves the United States (U.S.) Department of Defense and its prime contractors, the U.S. Government intelligence agencies, the U.S. Department of Homeland Security, foreign governments, and domestic and international commercial customers. The company was formerly known as L-3 Communications Holdings, Inc. and changed its name to L3 Technologies, Inc. in December 2016. L3 Technologies, Inc. was founded in 1997 and is headquartered in New York, New York.
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TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States. The company's Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, databus and power controls, hoists, winches and lifting devices, and cargo loading and handling systems. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, and cargo delivery systems. It serves manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Non-aviation segment offers seat belts and safety restraints for ground transportation applications; mechanical/electro-mechanical actuators and controls for space applications; and refueling systems for heavy equipment. It serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. The company also offers aerospace pneumatic and hydraulic components and subsystems for commercial transport, regional, business jet, and military applications; extruded plastic interior parts for use in the commercial aerospace industry; faucets and related products for use on commercial transports and regional jets; and unit load devices. TransDigm Group Incorporated was founded in 1993 and is headquartered in Cleveland, Ohio.
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Here Come the Small BioTechs

2/6/2018

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One of the strongest technical areas of the markets these days is the small capitalization BioTech companies. Today I'm going to look at six companies and their stock charts. Each has been technically strong lately and I expect they'll continue to be strong as the continue toward the commercialization of the products they're developing. While this article may only be an overview of these companies, it provides a nice starting point for additional research and analysis. There's most likely one or more gems listed here that will provide investors with a small fortune. 
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Adverum Biotechnologies, Inc., a gene therapy company, engages in discovering and developing novel medicines that offer therapeutic benefit to patients suffering from chronic or debilitating disease. It primary focuses on developing AVA-101, which is in a Phase IIa trial for the treatment of wet age-related macular degeneration (AMD). The company is also developing AVA-201, a product candidate for the prevention of wet AMD; AVA-311 that is in preclinical studies for the treatment of juvenile X-linked retinoschisis, a rare genetic disease of the retina with no approved therapy; and AVA-322 and AVA-323 for the treatment of color vision deficiency. Avalanche Biotechnologies, Inc. has a collaboration agreement with Regeneron Pharmaceuticals, Inc. to research, develop, and commercialize gene therapy products. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was founded in 2006 and is headquartered in Menlo Park, California.

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AnaptysBio, Inc., an antibody development company, engages in the discovery and development of therapeutic antibodies for inflammation and immuno-oncology in the Unites states. It is developing ANB020, a pro-inflammatory cytokine antibody that inhibits the activity of interleukin-33; and ANB019, an antibody that inhibits the function of the interleukin-36-receptor. The company was formerly known as Anaptys Biosciences, Inc. and changed its name to AnaptysBio, Inc. in July 2006. AnaptysBio, Inc. was founded in 2005 and is based in San Diego, California.

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Iovance Biotherapeutics, Inc., a clinical-stage biotechnology company, focuses on developing and commercializing cancer immunotherapy products to harness the power of a patient's immune system to eradicate cancer cells. The company's lead product candidate is LN-144, an adoptive cell therapy that is in Phase II clinical trial using tumor-infiltrating lymphocytes (TIL), which are T cells derived from patients' tumors for the treatment of patients with refractory metastatic melanoma. It is also developing LN-145 to treat cervical and head and neck cancers. The company has a patent license agreement with the National Institutes of Health for technologies relating to autologous TIL adoptive cell therapy products for the treatment of metastatic melanoma, lung, breast, bladder, and HPV-positive cancers; cooperative research and development agreement with the National Cancer Institute to develop adoptive cell immunotherapies that are designed to destroy metastatic melanoma cells using a patient's TIL, as well as for the treatment of cervical, head and neck, lung, bladder, and breast cancer; and manufacturing services agreement with Lonza Walkersville, Inc. and WuXi Apptech, Inc. to manufacture, package, ship, and handle quality assurance and quality control of clinical trials for TIL products. In addition, it has collaboration and license agreements with Medimmune, Inc. to conduct clinical and preclinical research in immuno-oncology; H. Lee Moffitt Cancer Center and Research Institute to research and develop adoptive TIL cell therapy; PolyBioCept, AB to develop, manufacture, market, and genetically engineer TIL; and the University of Texas MD Anderson Cancer Center for multi-arm clinical trials for TIL therapy. The company was formerly known as Lion Biotechnologies, Inc. and changed its name to Iovance Biotherapeutics, Inc. in June 2017. Iovance Biotherapeutics, Inc. was founded in 2007 and is headquartered in San Carlos, California.

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Mirati Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops a pipeline of oncology products. The company's clinical stage product candidates include glesatinib, an orally-bioavailable, potent, small molecule kinase inhibitor that is in Phase II clinical trials for the treatment of non-small cell lung cancer (NSCLC) patients with genetic alterations of MET; and in Phase Ib clinical trials in patients with genetic alterations of MET and Axl in NSCLC and other solid tumors. Its clinical stage product candidates also comprise sitravatinib, an orally-bioavailable, potent, small molecule spectrum-selective kinase inhibitor, which is in Phase II clinical trials for the treatment of solid tumors, such as NSCLC and metastatic Renal Cell Carcinoma, as well as in Phase Ib clinical trials to treat NSCLC patients with RET, CHR4q12, CBL, and AXL genetic alterations; and mocetinostat, an orally administered spectrum-selective Class 1 histone deacetylase inhibitor, which is in Phase Ib/II clinical trials in combination with durvalumab for the treatment of patients with NSCLC. The company has a collaboration agreement with Foundation Medicine, Inc. and Guardant Health, Inc. to explore development of their platforms as companion diagnostics for glesatinib. Mirati Therapeutics, Inc. is headquartered in San Diego, California.

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Nektar Therapeutics develops drug candidates based on its PEGylation and polymer conjugate technology platforms in the United States. Its product pipeline includes drug candidates in therapeutic areas comprising cancer, auto-immune disease, and chronic pain. The company offers MOVANTIK, an oral peripherally-acting opioid antagonist for the treatment of opioid-induced constipation in adult patients with chronic non-cancer pain; MOVENTIG for the treatment of opioid-induced constipation in adult patients who have an inadequate response to laxatives; and ADYNOVATE for use in treating Hemophilia A. Its drug candidates in clinical development stage comprises BAY41-6551, which is in Phase III clinical trial to treat gram-negative pneumonias; NKTR-214 that is in Phase 1/2 stage to treat cancer; NKTR-181 that is in Phase III clinical trial for treating chronic pain; and NKTR-358 to treat autoimmune diseases. The company's drug candidates in clinical development stage also include ONZEALD, a topoisomerase I inhibitor that is in Phase III clinical trial for metastatic breast cancer, as well as completed Phase II clinical trial stage for refractory ovarian cancer and second-line metastatic colorectal cancer; and in combination with 5-fluorouracil/leucovorin to treat refractory solid tumor cancers, which has completed Phase I clinical trial. In addition, it holds license, manufacturing, and supply agreements with Ophthotech Corporation for Fovista; and UCB Pharma for dapirolizumab pegol. Further, the company holds license, manufacturing, and supply agreements with Amgen Inc.; Allergan, Inc.; Merck & Co., Inc.; Pfizer, Inc.; and F. Hoffmann-La Roche Ltd (Roche). It has a research collaboration agreement with Takeda Pharmaceutical Company Limited to explore the anti-cancer activity of NKTR-214; and a strategic collaboration with Eli Lilly and Company to develop and commercialize NKTR-358. Nektar Therapeutics was founded in 1990 and is headquartered in San Francisco, California.

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Sorrento Therapeutics, Inc., a clinical stage biotechnology company, primarily engages in the discovery and development of therapies focused on oncology and the treatment of chronic cancer pain worldwide. It develops therapeutic products for the treatment of auto-immune, inflammatory, neurodegenerative, and infectious diseases. The company offers resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for the treatment of intractable pain at end-stage disease. Its preclinical human therapeutic antibodies include antibody drug conjugates, bispecific approaches, and T-Cell Receptor, as well as Chimeric Antigen Receptor-T Cell (CAR-T) for adoptive cellular immunotherapy for the treatment of solid and liquid tumors. It is also involved in the development of T-007, an anti-CD38 CAR-T cellular therapy for the treatment of multiple myeloma, as well as for additional potential indications, such as amyloidosis and graft-versus-host disease; and T-009, an anti-CD123 CAR-T cellular therapy for the treatment of acute myelogenous leukemia. The company has license and collaboration agreement with Les Laboratoires Servier for the development, manufacture, and commercialization of products using its human immuno-oncology anti-PD-1 mAb STI-A1110. Sorrento Therapeutics, Inc. was founded in 2006 and is based in San Diego, California.

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Using the MACD to Trade Options

2/1/2018

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Every day I’m looking at stock charts for specific situations in which to sell options to generate income for my accounts. Options to me are a short term trading strategy so there’s really no reason to do much fundamental analysis of the underlying company. This is really a chart based trading strategy and I like to enter and exit these things within the limits of a work week, if possible. I like weekends off just like everyone else.

My two favorite stock price indicators for trading options are Bollinger Bands and the MACD. Bollinger Bands I’ll leave for another discussion. Right now I’d like to lay out my strategy for using the MACD. As I pointed out in an earlier post, crossing the signal line is most effective when the MACD is below the zero line and crosses the signal line from below or above the zero line and crosses the signal line from above. I also pointed out that correctly crossing the signal line is the initial trading signal and subsequently crossing the zero line is confirmation of that decision. Finally, I warned that an MACD crossing a signal line from below when it is above the zero line and crossing from above when it is below the zero line is generally a false signal and shouldn’t be used as a reliable trading signal.
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 "We simply attempt to be fearful when others are greedy, and to be greedy only when others are fearful."
-- Warren Buffett

​As I’m reviewing stock charts I’m initially looking at the stocks that I already own for a chance to do some covered call writing. Afterwards I look at charts of stocks that I don’t currently own for the chance to do some covered put writing. Both strategies are generally executed for the sole purpose of generating cash for future stock buys. As you can see, this becomes one of the engines that fuels the portfolio.

When I’m looking at charts of stocks that I already own, I’m looking for an MACD line that is above the zero line and starting to flatten out. This tells me the momentum of the stock price is waning. What’s even better is if the MACD has not only flattened out but started to fall sufficiently enough to cross below the signal line. In that case the momentum is beginning to deteriorate rapidly. It is at this point when the probability of successfully selling covered calls is high. If the MACD continues to fall and crosses the zero line then the trade will most likely be a success. At that point I can either buy the calls back at a price lower than I sold them or simply let them expire worthless. Either way this would be a successful trade.

When I’m looking at charts of stocks that I don’t own, I’m looking for an MACD line that is below the zero line and starting to flatten out. This tells me that the momentum of the stock price is improving. What’s even better is if the MACD has not only flattened out but started to increase sufficiently enough to cross above the signal line. In that case the momentum is beginning to improve rapidly. It is at this point when the probability of successfully selling covered puts is high. I should mention at this point that I do not sell naked puts. All of my put selling is covered with cash. Now if the MACD continues to increase and crosses the zero line then the trade will most likely be a success. At this point I can either buy the puts back at a price lower than I sold them or simply let them expire worthless. Either way this would be a successful trade.

So far, so good. In both cases above the trade was successful. The stock acted exactly like you expected it to. The options were sold, the stock moved appropriately, and money ended up in your account. And if the whole thing happened during the span of one work week, you’d have the weekend free for other things (like photography!). But what if it didn’t go as plan? That’s when your contingency plan or exit strategy is executed. I simply would not go into a trade like this unless I'd have thoroughly thought out my exit strategy and have it laid out well in advance of the trade.

I'll save my thoughts on exit strategies for another blog post.
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    I am an Individual Investor with specific interest in long term growth and then enhancing my returns with income from dividends and derivatives. I don't recommend stocks to anyone (it's a good way to lose friends) and no one reading this should misinterpret my blog as a recommendation for any type of investment. I am writing this solely for myself and my kids.


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