Market Talk
The recent Fed speak seems to indicate that the previously thought interest rate cuts may not even be coming this year.
"The Federal Reserve held its ground on interest rates, again deciding not to cut as it continues a battle with inflation that has grown more difficult lately. The federal funds rate has been between 5.25%-5.50% since July 2023, when the Fed last hiked and took the range to its highest level in more than two decades."
For today at least the overall markets may be shrugging off the updated view as it shifted from rate cuts coming to - no rate hikes for awhile. This could affect things like car and home sales which in turn may affect jobs. A stagflation scenario is not completely off the table of the future (yikes!).
Stock Talk
Since the market may meander awhile, let's look at some stocks that are capturing interest here at the Jones report.
With gold and copper levels at all time highs - Kinross Gold (KGC) and Taseko Mines (TGB) are on the watch list here. Both could be acquisition targets as well.
Intel (INTC) : This stock has seen some rough days lately in share price from the $40's down to $30. BUT the downward trend may change. Yes, the new foundry business is losing some while the build-out continues but the cpu business earnings outweigh the foundry loss to show positive eps. On top of it, Intel is getting chip act grants around $20 billion, and coming out with new AI chips that will power PCs in the world of AI. Perhaps INTC is a start to accumulate "some" shares for the long run.
Let's shift gears to a few other sectors - the war in Ukraine is not abating as Putin's Russian aggression continues to attack the defenders and more Russians get killed in droves and Ukraine territory is bombed regularly. War is hell. The advent of drones and longer range supersonic Mach 3 missiles like ATACMS and even F-15's being sent to the defenders will change the tone of the war.
There are two upcoming drone companies that are on stock watch:
AVAV drones seem to be effectively being used to defend Ukraine. A recent upgrade that involves AI to overcome jamming attempts and identify targets seems to give AVAV an advantage in the drone business.
KTOS uses GPS navigation in drones. But KTOS recently also had an impressive military communications demonstration seemliness connecting operations across the globe thru a multi satellite network.
AVAV has a lot less shares outstanding than KTOS. Neither company is profitable and may be a little lofty thereby attracting short sellers. For the times we are in maybe - AVAV - has the edge with the AI aspect. But AVAV is already over $160 a share, so how can the average retail person get too involved at this point? And, KTOS has so many shares outstanding that sp gains could be hard fought and possibly lack luster. just watching both on the sidelines as a study.
Let's shift gears to the biotech sector. Two stocks:
TG Therapeutics (TGTX): This one has an approved drug to treat relapsing
forms of multiple sclerosis. Interesting story, sales are increasing yet earnings declined.
https://finance.yahoo.com/news/tg-therapeutics-inc-tgtx-surpasses-123417768.html
Interesting story there. Note that in this current Quarter " the company secured a national contract with the Department of Veterans Affairs, making BRIUMVU the preferred anti-CD20 antibody for RMS".
TGTX has potential to move higher as their FDA approved drug to treat recurring MS takes the lead and earnings improve.
Let's move on to another biotech... No, lets wait to see how Oncolytics Biotech (ONCY), with the stock a tad over a $1 , yes a buck a share now- stands up to their latest plans.
The Goblet trial with three subset indications in Germany . The key point seems to confirm that Pelareorep , called "Pela", can indeed trigger immune T fight cells to target and attack cancer. A most compelling report in those suffering with advanced Pancreatic cancer was noted by many. And who are they confirming this with? Big Pharma and/or the FDA?
Here's the bottom line. At least a few of us retail stocker's suspect that Pelareorep does indeed activate T fight cells to duplicate and target and kill cancer, even a most deadly form like Pancreatic cancer. There is evidence it may. Some even suspect Pela may be the best treatment from the immunity side. There is some talk about the blood test results show that therapeutic tumor-infiltrating lymphocytes (TILs) can be a proven marker that an agent (like Pela) - is working.
Abstracts will be published on the ASCO Annual Meeting website at 5:00 p.m. ET on May 23, 2024.
"About Oncolytics Biotech Inc.
Oncolytics is a clinical-stage biotechnology company developing pelareorep, an intravenously delivered immunotherapeutic agent. Pelareorep has demonstrated promising results in two randomized Phase 2 studies in metastatic breast cancer and Phase 1 and 2 studies in pancreatic cancer. It acts by inducing anti-cancer immune responses and promotes an inflamed tumor phenotype -- turning "cold" tumors "hot" -- through innate and adaptive immune responses to treat a variety of cancers.
Pelareorep has demonstrated synergies with multiple approved oncology treatments. Oncolytics is currently conducting and planning combination clinical trials with pelareorep in solid and hematological malignancies as it advances towards registrational studies in metastatic breast cancer and pancreatic cancer, both of which have received Fast Track designation from the FDA. For further information, please visit: www.oncolyticsbiotech.com or follow the company on social media on LinkedIn and on X @oncolytics."
ONCY is a "spec stock" for sure. Coming Goblet trials are on the venue to study the mechanism of action and possibly confirm T cell activation to attack and kill cancer.
For now, we close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time. But trying to look ahead a few months into the future may be a way to do things. If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor. In all - we use the word maybe "some", not "too much" and play it accordingly. Remember never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
_____________
