Author: Dorian Holden

Gold could head to $3,000 an ounce, near-term.

That’s according to Bank of America, which says, “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold,” as quoted by Kitco.

Plus, with coronavirus cases mounting around the world, raising fears it could stall the economy again, investors are pushing back into the safe havens of gold.  Even the U.S. Federal Reserve is suggesting the U.S. recovery may be stalling.  

In fact, Atlanta Fed President Raphael Bostic just said the U.S. economy was leveling off, and “There are a couple of things that we are seeing  and some of them are troubling and might suggest that the trajectory of this recovery is going to be bumpier than it might otherwise,” as quoted by MarketWatch.

With such a combination of global bank easing, geopolitical risks, the coronavirus, and a potential global recession, gold price could easily rocket to $3,000, near-term.  

Even Goldman Sachs recently said gold could move to $2,000.  

Elliott Management’s Paul Singer says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.” 

JPMorgan Chase advises investors to hedge their risk with gold, too.

With gold likely to move higher, some of the top gold stocks to keep an eye on include:

·      Barrick Gold Corp. (GOLD)

·      Kirkland Lake Gold (KL)

·      Newmont Corporation (NEM)

·      SPDR Gold Trust (GLD)

·      iShares Gold Trust (IAU)

Until such tensions begin to fade, gold prices are very likely to push much higher. 

The post $3,000 Gold: The Top 5 Stocks to Keep an Eye On in 2020 appeared first on Morningology.

The U.S. may be nearing a coronavirus vaccine.

After all, we’re in desperate need for one with U.S. infections now up to 2.938 million, with more than 530,000 unfortunate deaths.  

States are mandating masks and beginning to shut down again.  In fact, Miami-Dade County, officials reversed course on reopening gyms, party venues, and restaurants.  Hospitals are being overwhelmed, with 89% of Arizona’s intensive care unit beds full, for example.

And Dr. Anthony Fauci just said the U.S. is “still knee deep in the first wave” of the pandemic.

However, we may be getting closer to a potential vaccine.

All after the U.S. government awarded Novavax (NVAX) at $1.6 billion contract to cover the testing, commercialization, and manufacturing of a potential vaccine — the biggest award issued from the White House’s “Operation Warp Speed” program.

“What this Warp Speed award does is it pays for production of 100 million doses, which would be delivered starting in the fourth quarter of this year, and may be completed by January or February of next year,” Novavax Chief Executive Stanley Erck told Reuters.

The award will also cover the cost of a large Phase III trial as well.

“Adding Novavax’ candidate to Operation Warp Speed’s diverse portfolio of vaccines increases the odds that we will have a safe, effective vaccine as soon as the end of this year,” Health and Human Services Secretary Alex Azar said, as quoted by Barron’s.

At the moment, the potential vaccine is in Phase 1/2 trials, which is being funded by a $388 million award from the Coalition for Epidemic Preparedness.  Data from these trials is expected later this month, with Phase 2 to begin shortly after.

Should the company see solid study results, NVAX could explode even higher, near-term.  

The post Novavax Explodes on $1.6 Billion Award from Operation Warp Speed appeared first on Morningology.

The electric vehicle boom is here.

Over the next five years, EVs could account for more than a third of auto sales.  Five years after that, EVs could see market share of 51%, according to the Boston Consulting Group. 

That hope has ignited an incredible EV boom, and is part of the reason Tesla (TSLA) just rocketed to $1,385 a share.  While some analysts warn to stay away from overvalued shares of the EV stock, JMP Securities just boosted its price target to $1,500 a share.

That upgrade came shortly after Tesla reported second quarter deliveries that were above analyst expectations.  In fact, according to Business Insider, TSLA reported 90,650 deliveries, which was well above estimates for 70,300.

“If the company can manage 90K units during an extraordinarily challenging quarter, there is no reason that TSLA cannot be shipping 130K to 140K units a quarter by the end of the year in our opinion,” noted analysts at JMP.  “That puts TLSA on a trajectory to ship 757K units in 2021.”

Other analysts jumped on the bandwagon, too.

JP Morgan for example just upgraded its price target on TSLA to $295 from $275 with an underweight rating. Deutsche Bank boost its price target to $1,000 from $900.  

At the same time, Elon Musk is having some fun at the expense of shorts and the US SEC.

All In tweets that read:

“Tesla will make fabulous short shorts in radiant red satin with gold trim” and “Will send some to the Shortseller Enrichment Commission to comfort them through these difficult times.”

Since the start of 2020, shares of Tesla have exploded from a low of $350.51 to $1,371.58.

The post Electric Vehicle Boom: Here’s Why Tesla is Rocketing Higher appeared first on Morningology.

The U.S. needs more face masks – and fast.

For one, Dr. Anthony Fauci just said the U.S. is “going in the wrong direction” and “would not be surprised if we go up to 100,000 a day if this does not turn around.”

On top of that, some states are just now rolling back reopening.

“The surge of cases in California and the upcoming Fourth of July holiday weekend will force a rollback in the state’s phased reopening plans and stricter enforcement of health orders such as wearing masks, Governor Gavin Newsom said,” as quoted by CBS.

We could see even more states following suit after Goldman Sachs said a “federal face mask mandate would not only cut the daily growth rate of new confirmed cases of Covid-19, but could also save the U.S. economy from taking a 5% GDP hit in lieu of additional lockdowns,” as noted by CNBC.

Making the situation far worse, the U.S. just ran out of free face masks.

All as political leaders from both sides of the aisle urge Americans to wear protective coverings, which can reduce transmission by up to 85%.  With demand outweighing supply, the U.S. could run into a massive problem. 

If we see a boom in face mask demand, some of the top stocks to keep an eye on include:

Alpha Pro Tech (APT)

This is the company that makes disposable face masks for the public, so you can guess why they’ve had such an astounding run lately.

3M (MMM)

3M also makes face masks and respirators, and could see big demand. As recently as April 2020, the company said, “The demand we have exceeds our production capacity.”  That could happen again, we believe, if the virus gets out of control again.

Etsy Inc. (ETSY)

ETSY exploded on face mask demand in recent weeks. “A surge in mask sales on ETSY since April has helped introduce its broader offerings to new shoppers,” wrote the Jefferies analysts, who recommend buying the stock and have a $110 price target,” reported CNBC.

The post The Feds Just Ran Out of Free Face Masks appeared first on Morningology.

Hand sanitizer sales could rocket higher again with the coronavirus.

When the virus first hit, major companies across the U.S. raced to keep up with hand sanitizer demand.  But it was nearly impossible with big demand.  Even the makers of Purell, GOJO Industries found, “We are seeing a substantial increase in demand. We have experienced several demand surges in the past during other outbreaks, and this is on the higher end of the spectrum.”

All after the Center for Disease Control (CDC) strongly recommended using hand sanitizer with at least 60% alcohol.  

Even the World Health Organization noted, “Use an alcohol-based hand sanitizer with at least 60% alcohol. Always wash hands with soap and water if hands are visibly dirty.”

“In the absence of a vaccine or effective antiviral drugs, hand hygiene is a mainstay of efforts to prevent the spread of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), the virus that causes COVID-19,” added Medical News Today.

If we see a similar strong recommendation to use hand sanitizer, some of the top stocks to keep an eye on include:

• Clorox Co. (CLX)
• Kroger Co. (KR)
• Kimberly Clark Corp. (KMB)
• 3M Co. (MMM)

In addition, according to Fior Markets, the hand sanitizer market is expected to grow from $1.2 billion to $2.14 billion by 2027.  With the outbreak of global pandemic, sales of hand sanitizers have already rocketed in most parts of the world. If the virus worsens, demand could go through the roof.

The post Coronavirus: The Top 3 Hand Sanitizer Stocks to Watch appeared first on Morningology.

The new gold rush is here.

With central banks flooding the global economy with stimulus, there’s no doubt gold could hit $3,000, even $5,000 in the next 18 months. Plus, with new economic uncertainties with a “second wave” of the coronavirus, coupled with tensions with China, and even upcoming U.S. elections, gold prices will only accelerate higher.  

“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure,” argue analysts at Bank of America. 

“Investors will aim for gold.”

Goldman Sachs says we’ll see $2,000 an ounce in the next 12 months on low real interest rates and currency debasement concerns.  

Elliott Management’s Paul Singer says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.”

Greenlight Capital’s David Einhorn says, “We believe the implied negative interest rates are bullish for gold and for unlevered real assets with pricing power.”

Some analysts are even calling for $5,000 gold.  

Billionaire Thomas Kaplan recently said, “I do believe gold embarks on the next leg of its bull market and goes past $1,900 and ultimately $3,000 to $5,000, if not a lot higher, depending on macro circumstances that today seem dim but I can’t really quantify.”

Some of the top ways that investors have been trading gold is by buying into:

SPDR Gold Shares (GLD)

SPDR Gold Shares offer investors an innovative, relatively cost efficient and secure way to access the gold market. SPDR Gold Shares are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that interest through the trading of a security on a regulated stock exchange, as noted by SPDR Gold Shares’ site.

iShares Gold Trust (IAU)

The Fund seeks to reflect the price of gold owned by the trust less the trust’s expenses and liabilities. The Fund intends to constitute a simple and cost-effective means of making an investment similar to an investment in gold.

The post This is Why Gold Prices Could Explode Above $2,000 appeared first on Morningology.

Chesapeake Energy (CHK) just filed for bankruptcy protection.

Rocked by $7 billion in debt, and a drop in oil and gas prices, the news comes as no shock.  As recently as May 2020, the company had concerns regarding its long-term viability.

The company just said $7 billion in debt will be wiped out through restructuring, as noted by CNBC.  “The company has secured $925 million in debtor-in-possession financing in order to continue operations during the bankruptcy process.  “Chesapeake has secured an agreement in principle from certain existing lenders for $2.5 billion in debt financing on emergence from bankruptcy, as well as a backstop commitment for $600 million in new equity.”

Earnings have been disastrous in recent months, too.

In the fourth quarter of 2019. Chesapeake posted a net loss of $346 million, or 18 cents, as compared to net income of $576 million, or 57 cents a share a year earlier. Excluding non-recurring items, the adjusted loss per share was 4 cents, which did beat forecasts for a loss of 6 cents.  Revenue fell 31% to $1.93 billion, which missed estimates for $2.02 billion. 

The filing is the largest bankruptcy of a U.S. oil and gas producer since 2015, says Reuters.

The post Chesapeake Energy Forced Into Bankruptcy appeared first on Morningology.

With U.S. presidential elections nearing, we wanted to take a look at some of the top sectors that could benefit from another Trump victory, or a Biden win.

Today, let’s start out with Joe Biden.

“If the election were held today, we believe Vice President Joe Biden would win as part of a Democratic sweep,” Sara Bianchi, head of U.S. public policy and political strategy research at Evercore ISI, said, as quoted by Barron’s.

If that’s the case by November 2020, there’s a possibility of higher highs in the market.

Green Energy Stocks

Green energy stocks, like First Solar (FSLR) and Tesla (TSLA) could benefit, as Biden has made climate change a major theme.  

In fact, on his site, it’s noted that, “Biden believes the Green New Deal is a crucial framework for meeting the climate challenges we face. It powerfully captures two basic truths, which are at the core of his plan: (1) the United States urgently needs to embrace greater ambition on an epic scale to meet the scope of this challenge, and (2) our environment and our economy are completely and totally connected.”

Infrastructure Stocks

The Democrats recently unveiled a $1.5 trillion infrastructure plan.

“The infrastructure bill, known as the Moving Forward Act, includes $25 billion for drinking water, $100 billion for broadband, $70 billion for clean energy projects, $100 billion for low income schools, $30 billion to upgrade hospitals, $100 billion in funding for public housing and $25 billion for the postal service,” according to The Hill. 

Biden has also noted that infrastructure investing is vital to the economy.

Cannabis Stocks

If Biden were to win the U.S. election, we could see further relaxed cannabis laws.  In fact, he has already said he would “decriminalize the use of cannabis and automatically expunge all prior cannabis use convictions,” as quoted by the Boston Globe.

The post How to Invest if Joe Biden Were to Win the U.S. Presidential Election appeared first on Morningology.

The coronavirus just will not die.

“This isn’t confined to a handful of states anymore,” says former US FDA Commissioner Dr. Scott Gottlieb.  “It’s going to be difficult now to get this under control.”

The U.S. saw 45,000 new cases just yesterday.  

The global number is now up to nearly 10 million infections.  

States are starting to pause reopening plans.  

The good news is we may be one step closer to a vaccine, as Moderna Inc. (MRNA) advances its late-stage development of its coronavirus vaccine. Better, it just finalized the Phase 3 study protocol based on feedback from the U.S. FDA.

“We look forward to beginning our Phase 3 study of mRNA-1273 with some 30,000 participants in July,” said Tal Zaks, M.D., Ph.D., Chief Medical Officer at Moderna. “Moderna is committed to advancing the clinical development of mRNA-1273 as safely and quickly as possible to demonstrate our vaccine’s ability to significantly reduce the risk of COVID-19 disease.”

Better, the company and Catalent, Inc., a global provider of advanced delivery technologies, development, and manufacturing solutions for drugs, biologics, cell and gene therapies, and consumer health products, announced a collaboration for large-scale, commercial fill-finish manufacturing of Moderna’s mRNA-based COVID-19 vaccine candidate (mRNA-1273) at Catalent’s biologics facility in Bloomington, Indiana.

As part of the agreement, Catalent will provide vial filling and packaging capacity, as well as additional staffing required for 24×7 manufacturing operations at the site to support production of an initial 100 million doses of the vaccine candidate intended to supply the U.S. market starting in the third quarter of 2020. 

The companies are in discussions to secure fill-finish capacity for continued production of hundreds of millions of additional doses.

If we see successful Phase 3 data, MRNA could become one of the most explosive stocks.

After all, we need a vaccine – and we need it now.

The post This is One of The Top Coronavirus Vaccine Stocks to Watch appeared first on Morningology.

The coronavirus just will not die.

In fact, it’s only getting worse – again.

According to The Hill, “The daily number of new COVID-19 cases in the U.S. is the highest it has been since the height of the pandemic two months ago, as several states around the country experience spikes in cases.”

While panic is forcing markets lower, there are opportunities to be well aware of. 

Alpha Pro Tech (APT) just doubled, as some states order the use of face masks.  California Gov. Gavin Newson just tweeted, “Californians are now REQUIRED to wear face coverings in public spaces.” 

And, according to NPR, Newsom added, “Our numbers are going up, not going down. Hospitalization numbers are just starting to creep back up, and I’m very concerned by what we’re seeing.  We think the most impactful thing we can do, short of going back to a stay-at-home order, is wearing face coverings when we can’t practice physical distancing.”

Inovio Pharmaceuticals (INO) is soaring after receiving a $71 million contract from the US Department of Defense to scale up the manufacturing of CELLECTRA 3PSP smart device and the procurement of CELLECTRA 2000 devices, which are used to deliver INO-4800 directly into the skin.  Dr. J. Joseph Kim, INOVIO’s President and CEO, said, “INOVIO is very pleased to receive this significant funding from the U.S. Department of Defense to continue our rapid scale-up capacity for our breakthrough DNA medicines delivery device CELLECTRA.”

Shares of Moderna Inc. (MRNA) jumped again to $65, and could accelerate higher. 

All after MRNA has advanced late-stage development of its coronavirus vaccine. Better, it just finalized the Phase 3 study protocol based on feedback from the U.S. FDA.

The randomized, 1:1 placebo-controlled trial is expected to include approximately 30,000 participants enrolled in the U.S. and is expected to be conducted in collaboration with the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH). Plus, MRNA has completed manufacture of a vaccine required to start the Phase 3 study, and expects dosing in the Phase 3 study to begin in July.

Novavax Inc. (NVAX) is up after being awarded a contract by the U.S. Department of Defense (DoD) for the manufacturing of NVX‑CoV2373, Novavax’ COVID-19 vaccine candidate. NVX‑CoV2373 consists of a stable, prefusion protein antigen made using its proprietary nanoparticle technology and includes Novavax’ proprietary Matrix‑M adjuvant.

“JPEO-CRBND-EB through funding provided by the Defense Health Program, has agreed to fund up to $60 million to support Novavax in its production of several components of the vaccine that will be manufactured in the U.S. The agreement includes a 2020 delivery of 10 million doses of NVX‑CoV2373 for DoD that could be used in Phase 2/3 clinical trials or under an Emergency Use Authorization (EUA) if approved by the U.S. FDA,” according to a NVAX PR.

The post The Top 4 Coronavirus Stocks Surging with More Cases appeared first on Morningology.