Three stocks to Watch: Energy: OXY and DVN and just ONE Biotech: VERU has a coming BLOCKBUSTER?

 Market Talk

The market will have many headwinds as the winter approaches.  Unless we are very selective, it may be better to just forego trading stocks and stash the cash.  However, inflation is eroding the value of cash!   So, what to do?

The remaining part of this post will cover some stocks of interest.

Stock Talk

When the Democrats took control, they declared a war on the oil and gas industry.

After WW II large suburbs in America were built to provide homes for the veterans as they built new lives and families in the new peace in the aftermath of their saving the entire world from tyranny.  These homes are still present and use heating oil in oil burning furnaces.  Since they took office, it now costs over $1500 to fill a typical oil tank for part of the winter.  Before they took office it was less than half that price.

The following oil and gas companies have seen a good stock rise over the past year.

Occidental Petroleum Corporation (OXY)

Devon Energy Corporation (DVN)

The democrats do not seem to have a clue about the impact of rising heating oil costs in America, let alone the harsh cold winter expected in Europe. Their Oil and gas war is not a balanced approach to energy independence of America.

I am watching the above two stocks and have initiated a buy some on both OXY and DVN. I suspect earnings will outperform and am in a few "some" shares of each to see if the stocks will continue higher.  Warren Buffet is also in OXY bigtime.

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A Biotech stock to watch:   VERU

As far as other stocks, I am in some of VERU on the hope that their lead drug, "Sabi", will become a Blockbuster to treat and save lives of Covid patients that suffer from Acute respiratory distress (ARD).

VERU will do well if the key drug "Sabi" is selected by the FDA to gain Emergency Use Authorization (EUA) to treat hospital patients in acute respiratory distress (ARD).  There has been a slight delay in the Advisory meeting to address the relatively small patient population of the phase 3 clinical trial that was stopped on apparent overwhelming efficacy and safety of saving lives of covid patients in ARD.  The FDA advisory committee will weigh in on the EUA decision on November 9.   An FDA nod towards EUA would start VERU's "Sabi" as a coming BLOCKBUSTER to treat many, even beyond Covid. Cancer trials are in progress with Sabi as well 

All I can say is with the FDA one never can actually know what the outcome will be, especially when small Pharma is involved. 

In summary:

•  Energy :   OXY and DVN

•  Biotech :  VERU

Maybe some of the above will outperform, even in a volatile market, and merit watching.  I'm in 50 shares each of OXY and DVN and some of VERU long.  I see VERU as having a coming Blockbuster in Sabi with my "some" shares.

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ALL in my humble opinion, scroll down and read more.

This site does NOT make Buy / Sell recommendations.
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A Jones Report Update ...Thursday October 13, 2022

 

Market Talk

It's been awhile since I've posted my musings with a bearish sentiment on the overall market.  

Let's review the pros and cons about the current world:

It is a costly outcome to life, liberty and world economy with Russia continuing their aggression on Ukraine.  Russia is losing in the conventional warfare arena and losing ground in eastern Ukraine that was illegally annexed by Putin.  But alas, Putin has put a new general in charge that has no morals towards civilians. It can only get uglier before this is over and the world's nuclear clock is ticking closer to midnight.

Inflation is raging as the Fed continues to try to fight it by raising interest rates.

Recession looms as some big companies like Ford and Intel are starting to lay off workers in the US. This points to a possible period of stagflation in the weather forecast.

Stocks are continuing to slowly fade in market value as I projected here months ago.

Where is the good news?

One good thing that happened was NASA successfully altered the trajectory of an asteroid.  

The rest of the good news is how you live your life and you decide what is good news for you.

The word is basically in a wartime status.  The market pundits have mixed predictions about the coming economy.  

The democrats in power want to ignore the definition of a recession, two consecutive quarters of falling GDP.

So, what does this all mean to me about the stock market today?

I am staying defensive in stocks with dry powder.  However, sometimes fence sitting is just a way to bide time when uncertainty and economic signals are sketchy.  For example, will the Federal Reserve be able to mastermind the mythical "soft landing" of the economy by raising interest rates to counter raging inflation?  Or is a recession or worse looming around the corner of time.  Will the country be forced into stagflation with both recession AND inflation at the same time?

The market had enjoyed a bullish run in a bear market. I think we are still in a bear market and favor dry powder (cash) till the dust settles.  The Fed is trying to strengthen the US dollar and taking actions that could cause some pain in the markets.

Stock Talk

I feel the need to refrain on stock talk at the moment.  Except to say that a view of just "some" of a particular stock may be an approach to consider in a dollar cost average mindset.

Why Refrain ?  because of the dynamic:

 "Something always happens" 

Sometimes, it may be better just stand aside due to higher risk and uncertainty.

I had previously posted about the one stock, VERU, that may do well if the key drug "Sabi" is selected by the FDA to gain Emergency Use Authorization (EUA) to treat hospital patients in acute respiratory distress (ARD).  There has been a slight delay in the Advisory meeting to address the relatively small patient population of the phase 3 clinical trial that was stopped on apparent overwhelming efficacy and safety of saving lives of covid patients in ARD.  The FDA advisory committee will weigh in on the EUA decision on November 9.  

All I can say is with the FDA one never can actually know what the outcome will be, especially when small Pharma is involved. 

I hold a small position of VERU with hope that the reason the Independent Data monitoring Committee (IDMC) halted the trial will stand up and EUA on Sabi will happen as winter Flu season approaches along with the new Covid variants that scientists say are coming.

While institutions are seemingly holding VERU, a small VERU position may be warranted for us little people, but I can't say that a large position is smart because with the FDA decisions and stocks ...

 "something always happens"

VERU remains a stock to watch on my list because the European Union has Sabi up for expedited EMA review as well.  If Europe somehow beat the FDA to give Sabi the nod, I would think about doubling down on my VERU holdings.  But alas, we have not seen such indications as of this posting.

Maybe just "some" VERU, depending on the appetite for risk because "if" VERU does gain EUA on Sabi, it's off to the races as a stock to hold long. VERU would rocket on EMA or EUA in my viewfinder. 

The other adage is that "things change"

Until then, keep on keepin' on and check in here for the next update as things change.

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ALL in my humble opinion, scroll down and read more.

This site does NOT make Buy / Sell recommendations.
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