US stock market ended modestly higher on Thursday. The Federal Reserve announced the opening of temporary dollar swap lines with central banks in response to heightened global demand for dollars. And Congress continued discussing a fiscal stimulus package of more than $1 trillion. The S&P 500 rebounded 0.5% to 2409.39. The Dow Jones industrial average advanced 0.9% to 20081.19. Nasdaq composite index recovered 2.3% to 7150.58. The dollar strengthening slowed further as the manufacturing index from the Philadelphia Federal Reserve Bank plunged to its lowest since June 2012 while the number of Americans who filed for unemployment insurance for the first time rose last week: live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 1% to 101.76 but is lower currently. Futures point to higher openings today.
CAC 40 leads European indexes’ rebound
European stocks’ drop halted on Thursday after European Central Bank announced a new “Pandemic Emergency Purchase Programme” on Wednesday night to buy bonds worth 1.1 trillion euros throughout this year. Both EUR/USD and GBP/USD continued their declines yesterday with both pairs higher currently. The Stoxx Europe 600 index rebounded 2.9% led by telecom shares. Germany’s DAX 30 gained 2% to 8610.43 despite the steep decline in German business sentiment as evidenced by the preliminary ifo Business Climate Index drop. France’s CAC 40 rose 2.8% while UK’s FTSE 100 added 1.4% to 52151.61 as the Bank of England announced another 15 basis points rate cut to 0.1% and increased its bond purchases program.
Asian indexes rebound while Nikkei falls
Asian stock indices are are mostly higher today after modest gains on Wall Street overnight. Nikkei however ended down 1% at 16552.83 as yen resumed its climb against the dollar. Markets in China are rising after reports of no new infections on Wednesday in the province of China where the virus emerged in December: the Shanghai Composite Index is up 1.6% and Hong Kong’s Hang Seng Index is 4.3% higher. Australia’s All Ordinaries Index rebounded 0.7% despite continued climb of the Australian dollar against the greenback.
Brent futures prices are extending gains today. Prices rebounded yesterday from 20year lows after talk the Trump administration may intervene in oil-price war between Saudi Arabia and Russia with diplomatic pressure to get the Saudis to cut oil production and threats of sanctions on Russia. May Brent crude jumped 14.4% to $28.47 a barrel on Thursday.
Gold rises as Dollar resumes declining
Gold prices are accelerating gains today. Prices bounced yesterday: April gold edged up 0.1% to $1479.30 an ounce on Thursday.
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It’s been another very volatile week for gold. Prices extended last week’s declines to trade lows of 1451.
The sell-off this week has continued amidst the ongoing sell-off across a broad range of instruments. And equities and commodities are leading the fall lower.
The week has seen a further slew of central bank policy announcements. The Fed, the BOJ, the RBNZ, the BOE & the RBA each announced further rate cuts.
The Fed has now moved its policy rate down to 0% for the first time in history. The coordinated action from central banks this week has, however, been unable to boost sentiment in market. This is due to the worsening crisis of coronavirus which has fuelled a surge in uncertainty.
Gold would typically be rallying against a drop in USD and equities. But the sell-off we are currently has been attributed to a need to fund margin calls in equity positions as markets continue to tumble.
With the US announcing 30-day travel restrictions and major cities such as Los Angeles and New York on lockdown, sentiment remains very bleak both in and away from the market.
For now, however, it seems that gold will continue to fall in tandem with other assets as a broad move into cash takes place.
Technical Perspective
Gold prices are posting a strong reversal candle on the monthly timeframe here which is worth monitoring. Having broken above the top of the bullish channel, gold prices have since sold off heavily. They are now trading back within the channel.
From here, a retest of the 1381.74 level looks likely. This will be a decisive level for gold. If this level holds, further upside is likely, while a break below will open up a test of the rising channel low.
Silver
Silver prices have been equally hard hit this week, tracking the moves seen in gold. Silver has now fallen through major support levels as the metals complex continues to shed value.
A loss of both industrial demand in China and expectations of demand, linked to falls in equities, is weighing on silver prices here. This looks set to keep price subdued in the short term.
Technical Perspective
The sell-off in silver prices this week has seen price breaking down through the 13.72 level. It has, therefore, tested the bottom of the long term bearish channel which has framed price action over the last six years.
From here, unless price can recover and trade back above the 13.72 level, we are likely to see a continued move lower. The 8.47 level is the next downside zone to watch for support.
The Dollar is taking a breather after soaring for the past eight sessions, as the Dollar index (DXY) tests the 103 support level while still remaining near its highest levels since Q1 2017. This is offering some slight reprieve for the rest of the world, with all G10 and Asian currencies, except for the Indonesian Rupiah, seeing gains against the US Dollar.
The Fed has established Dollar liquidity-swap lines with 14 central banks around the world, ensuring that more US Dollars can be supplied to meet the overwhelming demand from companies and financial institutions amid a liquidity crunch. Such a move may only result in a temporary dampener on the DXY’s rise, as global demand for the Greenback is expected to remain elevated amid raging uncertainties and fears surrounding the coronavirus outbreak.
Gold, Oil take a breather from recent drop
The easing Dollar is allowing the likes of Gold and Oil to take a beak from their recent slump. Bullion prices have wiped out their year-to-date gains this week, now lower by more than two percent since 2020 began. Meanwhile, Brent Oil is being allowed to breach the $30/bbl line for air, but is still set to wrap up four consecutive weeks of declines.
While Gold’s luster is expected to eventually shine through once the Dollar-liquidity crunch eases, Oil prices are in need of a fundamental intervention. Until OPEC+ can overcome their differences and slash their output levels, the world risks being flooded with cheap supplies at a time when global demand is being severely curtailed by the collapsing demand levels due to increasing travel limitations and quarantine measures that are pulling the brakes on economic activity worldwide.
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It’s ironic that the Covid-19 outbreak came come to the fore at the same time that precious metals – gold and silver – were building out lengthy technical bottoms formed in 2016 and 2019, implying much higher prices to come.
For gold, a new all-time nominal high attempt at $2,000 could take place this year. For silver, spear thrusts at $26-$30 are within the realm of possibility.
Given current market action trading down to $12, this may seem hard to believe. But silver can surprise on the upside just as easily.
Gold and silver – for those who have prepared by “stacking” it – and in the relatively short time remaining for those making that choice now, are poised once again to effectively carry out their historic insurance roles.
What’s fascinating to me – after more than two decades of personal experience – is the parallel role silver plays as a vital health tool.
I cannot give medical advice per se, but you can certainly “look over my shoulder.”
Consider the evidence here, do some additional research, and maybe take a “test drive.” I use exactly this same process myself!
For several decades, I’ve used a brand of colloidal silver spray for health maintenance. This came in handy three times during the many mining tours I’ve taken to research and write reports for The Morgan Report – once each in Mexico, Argentina, and in Guandong, China. A spray into each eye (contacts in), quickly turned a dangerous if-untreated eye infection into, as my South American friends would say, “no hay problema.”
Just before visiting a high-altitude silver mine in Bolivia, a dropper-full of colloidal silver took a severe ear infection down for the count in a few minutes. Years of struggle with sinusitis, frequent colds and flu have become non-events. At the first sign of a problem – I spray nostrils, throat and eyes.
What about “blue skin”? This fear goes back many years to when people tried to make their own ionic silver without controls on sanitation, or the ability to measure the silver content.
“Colloidal silver generator” devices are still for sale on the Internet, but it’s a good idea to avoid this temptation. “Blue skin” is not a risk from taking modern structured silver (or silver hydrosol).
Even so, I’ve underappreciated the virtues of structured silver water. But now, the impressive “math” and methodology can play a role in the creation of a personalized “anti-Covid-19 plan.”
You can see several videos of David Morgan interviewing the product’s inventor here and here. I receive exactly zero compensation from anyone trying it and pay full retail for my own supply. If someone reading this is helped, such “payment” is more than enough.
In their book, “The Most Precious Metal” Dr. Gordon Pederson and Dr. Bryan Frank say:
Silver is nature’s finest germ killer. Simply by being silver, this most precious metal’s elemental properties are toxic to pathogenic microorganisms while simultaneously being non-toxic to healthy cells and probiotic bacteria. Thanks to recent technological development, the newest forms of silver kill germs even more effectively than synthetic pharmaceutical drugs. [And] They do this without side effects.
But don’t take my word for it. Like the closing tag on some of my reports says: “Do the research. Do the math. The decision must be yours!”
Silver (and gold) for your Wealth. Jim Rickards, one of the most widely read and interviewed analysts (several times by Money Metals), has this to say:
For the first time since 2008, it looks like central banks are losing control of the global financial system. Gold does not have a central bank. Gold always inspires confidence because it is scarce, tested by time and has no credit risk.
We’re in the early stages of a similar super-spike that could take gold to $10,000 per ounce or higher. When that happens there will be one important difference between the new super-spike and what happened in 1980.
Rickards notes that in 1980, you could buy gold at several price points along the way, staying on for most of the ride. He concludes that this time it will be different:
Gold will be in such short supply that only the central banks, giant hedge funds and billionaires will be able to get their hands on any. The mint and your local dealer will be sold out. That physical scarcity will make the price super-spike even more extreme than in 1980.
Why did I just spend so much time talking about gold, when our primary topic is silver?
Because gold’s strong rise will occur first. This is demonstrated by the silver-gold ratio continuing to hold above 90, meaning it still takes 90 ounces of silver to buy one ounce of gold. At this writing it’s even risen to an all-time high – so far – spiking to over 120:1! But when silver begins to close that gap, the move will catch most everyone by surprise. The run will be disbelieved as it explosively surges upward.
Silver sales are turning on the proverbial dime!
Don’t be a fish out of water. Don’t take too long to decide, because things are changing as we speak.
At a small stream near where I live, salmon congregate near the mouth during low water, waiting for fall rains to raise the level so they can move upstream and spawn, completing their life cycle. It’s interesting how short The window of opportunity for them to “get it right” is very short!
Often, it’s just a couple of days before the rising water level drops back. The fish who time it right get to create the next generation.
The stragglers who are even slightly late can be left – quite literally – high and dry on a sandbar.
If your timing is a bit off in getting the physical gold and silver you need to carry you forward financially, odds are you’re going to find yourself “beached,” as supplies dwindle, premiums rise, and life, along with the great profit potential that goes along with it, passes you by.
The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.
James Kwantes of Resource Opportunities discusses the investment thesis behind this Discovery Group company operating in “the prolific Abitibi Greenstone Belt.”
For veteran speculators, the latest hits to junior mining share prices feels like déjà vu all over again. Sentiment is gloomy and market capitalizations are depressed.
But gold, in U.S. dollar terms, is still up more than 25% year-over-year. And US$1,500 gold translates to more than CA$2,150, an exceptional price for Canadian projects whose expenses are measured mostly in loonies.
Gold producers that deplete their reserves with every shift and every scoop still rely on junior exploration companies to find the deposits that will replenish their ore. Most juniors, meanwhile, had yet to respond even before the coronavirus correctionswhich has further pummeled the sector. Expectations are very low, along with share prices.
For exploration companies with strong management and backing, a flush treasury and potential for high-grade discoveries, it’s not a bad setup. Genesis Metals Corp. (GIS:TSX.V; GGISF:OTC) fits the bill. The Discovery Group company has $3.5 million in the treasury to drill its flagship Chevrier project in Quebec’s Chibougamau mining district. Chevrier is located in the eastern portion of the prolific Abitibi Greenstone Belt (180 million ounces [180Moz] of historical gold production).
Genesis is drilling an initial 2,500 meters (10 holes) at Chevrier, part of a planned 8,000-meter drill program this year. The initial program is designed to tap into high-grade shoots within the Chevrier Main zone deposit, expanding the higher-grade domain. Genesis’s market cap of about $7.9 million is backstopped by existing gold resources at Chevrier totaling 395,000 ounces Indicated grading 1.45 g/t Au and 297,000 ounces Inferred at an average grade of 1.33 g/t, at the Chevrier Main and East Zones.
The company has already identified high-grade areas within the depositassays announced on Jan. 22, 2018 included 8.73 g/t over 21.35 meters and 4.26 g/t over 19.4 meters at the Main Zone. But those results went unappreciated, with gold trading at US$1,330/ounce on its way down to $1,200. Later this year, Genesis plans to test targets elsewhere on the 295-square-kilometer property that were identified through last year’s property-wide glacial till survey.
Overseeing the exploration program is new CEO David Terry, an economic geologist who was appointed president and CEO on Dec. 2, 2019 (Jeff Sundar remains as executive director). Terry obtained a PhD in Geology from Western University in Ontario. He’s also well schooled in the vagaries of bull and bear market mining cycles, through decades in the industry running projectsboth large and smallfor majors and helming explorecos. Terry is currently a director of several active exploration companies, including Golden Arrow Resources Corp. (GRG:TSX.V; GARWF:OTCQB; G6A:FSE), Aftermath Silver Ltd. (AAG:TSX.V) and Great Bear Resources Ltd. (GBR:TSX.V; GTBDF:OTCQX). Great Bear, also a Discovery Group company, is drilling high-grade gold along kilometers of strike at its Dixie project in Red Lake, Ontario.
Economic geologist David Terry, the Genesis CEO, on site at a project in San Juan, Argentina.
For Terry, the Great Bear directorship is a kind of return to Red Lake. His first summer job in exploration included mapping and sampling in the prolific district for a large mining company called Goldfields while he attended Western in the 1980s. He later worked for several years as a contract geologist with Cominco (which sponsored his PhD thesis) in Alaska, followed by a stint with Hemlo Gold exploring back in the Abitibi.
After obtaining his PhD, Terry worked for Westmin Resources, then Boliden, as a geologist and project manager. When Boliden exited Canada with the mining sector in a post Bre-X slump, Terry took a position as a regional geologist for the British Columbia (BC) Geological Survey in southeastern BC for three years. He spoke at the closing ceremony for Teck Resources Ltd.’s (TCK:TSX; TCK:NYSE) legendary Sullivan mine, which operated for nearly a century and produced 160 million tonnes grading 12% zinc/lead and 67 g/t silver. Since 2004 he has worked in management, director and advisory roles with a number of juniors exploring and advancing precious and base metal projects in both North American and a number of Latin American countries.
Terry joined the Great Bear board in July 2016, before the Dixie project was the company’s flagship. Great Bear’s mineralized LP fault is now recognized as one of the best gold discoveries of recent years, globally. But Terry remembers when the team operated in relative obscurity, with GBR shares trading for dimes not dollars.
As for Genesis, adopting a go-slow approach in 2019 laid the groundwork for an active 2020. Instead of drilling in the depths of a bear market, former president and CEO Jeff Sundar focused on building out the team and raising a war chest. Genesis joined the Discovery Group of companies and added Discovery principals John Robins and Jim Paterson as strategic advisors. The Discovery Group has an impressive record of wins in recent years, including the $520-million sale of Kaminak Gold to Goldcorp and the $117-million sale of Northern Empire Resources to Coeur Mining Inc. (CDE:NYSE). Rob Carpenter, the cofounder and former CEO of Kaminak, also came on as a strategic advisor.
Genesis’s successful financings were done in conjunction with a 5-for-1 share consolidation and the appointment of Terry as CEO. Rollbacks have a bad reputationand rightly sobut consolidations done in conjunction with management changes and large financings can set the stage for success. Great Bear is another example of a successful rollback, its tight share structure helping to propel the stock post-discovery.
Chevrier is located in a prolific district of high-grade gold resources. Directly to the southwest is the Monster Lake gold discovery, where joint venture partners IAMGOLD Corp. (IMG:TSX; IAG:NYSE) and TomaGold Corp. (LOT:TSX.V) have identified an Inferred resource of 433,000 ounces at 12.14 g/t gold. At the Nelligan project further southwest, Vanstar has delineated 3.1 million ounces of gold (Inferred) at about 1 g/t, but last year hit 6 meters grading 56.46 g/t Au. IAMGOLD recently increased its interest in the project to 75%.
South of Chevrier, the Joe Mann gold mine produced 1.2 million ounces of gold at 8.26 g/t, as well as silver and copper. Infrastructure is excellent at Chevrier: a highway and power line runs through the property and the regional airport is a few minutes drive to the north.
With Discovery Group backing, a strong management and technical team, and a full treasury to drill high-grade gold targets at Chevrier, Genesis has laid the foundation for success. And high-grade gold discoveries get rewarded by the market, even in these tumultuous times for juniors.
Genesis Metals (GIS:TSX.V) Price: 0.18 Shares outstanding: 43.76 million (59 million fully diluted) Market cap: $7.9 million
James Kwantes is the editor of Resource Opportunities, a subscriber supported junior mining investment publication. Kwantes has two decades of journalism experience and was the mining reporter at Vancouver Sun, the city’s paper of record.
James Kwantes Disclosure: James Kwantes owns Genesis Metals shares and Genesis is one of three Resource Opportunities sponsor companies. Genesis is a speculative, high-risk exploration stock that may not be suitable for all investors. This article is not intended as financial advice and all investors should conduct their own due diligence and/or consult an investment advisor.
Streetwise Disclosure: 1) James Kwantes’ disclosures are listed above. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Great Bear Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Aftermath Silver. Please click here for more information. Within the last six months, an affiliate of Streetwise Reports has disseminated information about the private placement of the following companies mentioned in this article: Aftermath.. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Arrow Resources, Aftermath Silver, Coeur Mining and Newmont Goldcorp, companies mentioned in this article.
Resource Opportunities Disclaimer: Readers are advised that this article is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. The information is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data.
Every time the price of gold and silver go down in a big way, the manipulation/conspiracy crowd come creeping out of their rat holes to start preaching about naked short selling and a disconnect between physical metals and paper markets. As you will see, both issues tend to reveal how little these guys understand about how markets and people work in the real world. And an utter display of their basic ability to think for themselves.
A little Econ 101 first.
Commodity markets go down because of an excess of motivated sellers. Anyone who actually knows how commodity markets work understands that for every contract there is one buyer and one seller. That’s why it is impossible for there to be anyone doing “naked short selling.” You can sell first or you can buy first but you will do both eventually. If somehow someone managed to dump trillions of dollars worth of commodity contracts “naked” on the market, at some point they would have to buy those contracts back.
A lot of people like to believe that commodity prices go down because there are more sellers than buyers but since every contract requires an equal and opposite party on the other side, if ten contracts are sold, someone has to buy ten contracts. There is never any other alternative. One buyer, one seller. Both margined or having the ability to fulfill the contract either as a supplier or a consumer.
So if the prices of gold and silver have plummeted, and they have, why are people reporting shortages of the physical metals? And let me remind my readers, there were people predicting this crash with great accuracy.
I’ll give you a hint: none of the manipulation/conspiracy crowd got it right. They never do call anything correctly but are always forgiven because they tell people what they want to hear, just like TV preachers and successful politicians.
To understand why there is an apparent shortage of physical metals, you have to try thinking for yourself.
Pretend you want to go into the business of buying and selling silver bars. You have rented a shop, hired an assistant, set up an accounting program. On the 6th of March a customer walked in, your first. He wanted to sell this nice shiny 100-ounce silver bar. You looked at either Kitco or the futures market to see what you should pay, there being zero difference between the physical and paper market at the time.
For the 6th of March the spot silver price varied between a low of $17.08 and a high of $17.55. Since as a businessman you have to make money you pay him $1700 for the bar. He’s thrilled; you’re thrilled with your first purchase.
Time passes and since you are new to the game you don’t do any business. After all it takes time to build a customer base. But the bell rings and another potential customer walks in. Lucky for you, he wants to buy a 100-ounce silver bar, shiny if possible, and you just happen to have one in stock.
The two of you go to Kitco or look at the spot price of silver on the futures market and it shows $12.27. What do you do? Do you sell it for $12.27 and a small premium or do you tell him you are out of stock? At this point, the price of physical and paper is the same.
Or alternatively do you point out that the “experts” are saying customers are willing to pay a 50% premium. So you tell him that the price is $1800 for the bar. If you quote him $1800, just how likely do you think it is that he will bite?
If you charge him $12.27 an ounce, you go out of business. If he is willing to pay a 50% premium, give him my contact details because I have all the silver in the world at a 50% premium.
The price of silver went down because the sellers were more interested in dumping than buyers were in scarping it up. There is no shortage of silver and there is no disconnect between the price of physical and paper. If you really believe dealers are short of silver, take in a 100-ounce bar and see just how much the physical price varies from the paper price.
I can tell you. It’s zero. If you own gold or silver you paid for it with paper and if you sell gold or silver you are going to be paid based on the paper price.
Supply and demand really does work. If the price of silver bars stays low, all the people who rushed to buy at the top will be just thrilled to sell at the bottom. They always do.
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
Disclosure: 1) Statements and opinions expressed are the opinions of Bob Moriarty and not of Streetwise Reports or its officers. Bob Moriarty is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Bob Moriarty was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
iBio Inc. shares traded higher after the company reported that it has filed several provisional patents for its SARS-CoV-2 Virus-Like Particle platform with the U.S. Patent and Trademark Office.
Biologics contract manufacturing firm iBio Inc. (IBIO:NYSE.Amex) today announced its “progress towards developing vaccine candidates for preventing infection from the SARS-CoV-2 virus that causes the COVID-19 coronavirus disease.”
The company reported that “it created its SARS-CoV-2 Virus-Like Particle (VLP)-based constructs in just a few weeks using its FastPharming System to produce the nanoparticles in, and purify them from, plants.” The firm noted that the manufacturing platform is capable of providing rapid development of research quantities of product. In addition the company indicated that high-quality material is readily scalable in order to produce doses for both clinical and commercial use.
According to the report, “the company filed four provisional patent applications with the U.S. Patent and Trademark Office in support of the VLP platform, as well as other technologies for treating or preventing infections with the SARS-CoV-2 virus.”
iBio’s Co-Chairman and CEO Tom Isett commented, “We are pleased with both the speed of our development activities and the quality of the VLPs our technology is yielding in practice…The tightly controlled particle size allows for uniform antigen display, which should translate to a consistent dose response and a highly efficient production process, facilitating a ramp-up to tens of millions of doses if we are successful in the clinic.”
The company advised that its FastPharming Facility was established in 2010 to facilitate rapid delivery of medical countermeasures in response to a disease pandemic. The firm’s noted that its factory is equipped with automated hydroponics and vertical farming systems able to produce a wide variety of biological medicines.
Dr. Sylvain Marcel, iBio’s VP of Protein Expression Sciences, added, “I am optimistic about the potential of our COVID-19 vaccine program…In addition to our core VLP production capabilities, we are coating VLPs with oligomannose so that their glycosylation profile closely resembles that of naturally occurring SARS-CoV-2 viruses. This may allow for more efficient uptake of the vaccine by human antigen presenting cells via their mannose receptors. If so, it could result in enhanced protection against SARS-CoV-2. We look forward to providing further updates on our progress as developments unfold.”
iBio describes itself as “a global leader in plant-based biologics manufacturing that uses its FastPharming System which combines vertical farming, automated hydroponics, and glycan engineering technologies to rapidly deliver gram quantities of high-quality monoclonal antibodies, vaccines, bioinks and other proteins.”
IBio has a market capitalization of around $86.9 million with approximately 76.2 million shares outstanding and a short interest of about 6.1%. IBIO shares opened nearly 23% higher today at $1.40 (+$0.26, +22.81%) over yesterday’s $1.14 closing price. The stock has traded today between $1.38 and 1.88 per share and is currently trading at $1.61 (+$0.47, +45.23%).
Disclosure: 1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. 3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
The firm’s three upcoming potential stock movers are reviewed in a ROTH Capital Partners report.
In a March 17 research note, ROTH Capital Partners analyst Zegbeh Jallah presented the events that could positively impact Turning Point Therapeutics Inc.’s (TPTX:NASDAQ) stock in 2020. The biopharma is working to design and develop small molecule tyrosine kinase inhibitors (TKIs) for use in the treatment of various oncology indications, singularly or in combinations.
The next anticipated catalyst is preclinical updates on combinations with repotrectinib (Turning Point’s lead drug candidate) and TPX-0131, an anaplastic lymphoma kinase inhibitor, noted Jallah. Turning Point will present these sometime in Q2/20. It was slated to do so at the annual American Association for Cancer Research meeting, but that was cancelled.
“Although seemingly less significant, we believe that these updates are going to be very important for Turning Point,” Jallah commented. This is because “the preclinical combination data for repotrectinib should allow for life cycle management and the opportunity to develop combinations that can lead to even more durable responses.”
Regarding TPX-0131, the preclinical data and the inhibitor’s potential 2021 move into the clinic should expand the company’s pipeline and strengthen Turning Point’s position in the tyrosine kinase inhibitor (TKI) space.
Also toward that end, the company hired Dr. Siegfried Reich as executive vice president and chief scientific officer, Jallah pointed out. Yet, despite Reich’s wealth of experience, “the market hasn’t given Turning Point much credit for his hire. We expect that with time, his value add will become even more obvious.”
Jallah indicated that two catalysts are expected in H2/20. A “major” one for the biopharma is release of interim data from the pivotal Phase 2 TRIDENT trial of repotrectinib in patients with ROS1/NTRK+ solid tumors. Enrollment for it is underway, with 40% of the sites already active. If the data from this study are positive, the development and review process should be expedited because Turning Point has fast track status for patients with ROS1+ advanced nonsmall cell lung cancer patients pretreated with platinum-based chemotherapy and a ROS1 TKI.
Also, Turning Point is expected to announce interim data for TPX-0022, a MET/CSF1R/SRC inhibitor and its second clinical program. Jallah highlighted that TPX-0022 is “one of the most potent mesenchymal to epithelial transition (MET) inhibitors” and the first with a macrocyclic structure that targets MET/CSF1R/SRC kinases at the same time. These differentiating features afford TPX-0022 a strong competitive advantage, particularly over certain MET inhibitors such as capmatinib (Novartis) and tepotinib (Merck) that are in development for treatment of patients with solid tumors with genetic MET alterations.
Finally, Jallah noted that the California company ended full-year 2019 with $409 million in cash, cash equivalents and marketable securities.
ROTH has a Buy rating and a $65 per share target price on Turning Point, the stock of which is trading now at about $33.03 per share.
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Disclosures from ROTH Capital Partners, Turning Point Therapeutics Inc., Company Note, March 17, 2020
Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Turning Point Therapeutics. Inc. and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.
A sense of stability returned to financial markets on Thursday after big bazookas from central banks slightly soothed fears over the coronavirus outbreak and global economy.
The European Central Bank (ECB) went all out by launching a mammoth €750 billion Pandemic Emergency Purchase Programme (PEPP) to calm markets and help the Eurozone economy. Down under, the Reserve Bank of Australia cut its official cash rate to a fresh historic low of 0.25% to cushion the economic impact of the coronavirus pandemic. South Africa’s central bank also pulled the monetary policy trigger by reducing the repo rate by 1% to 5.25%.
Even in the United Kingdom, the Bank of England cut interest rates to 0.1%, in a second emergency cut triggered by the coronavirus fuelled market chaos.
Repeated intervention from global central banks may offer a temporary lifeline to equities. However, fears revolving around the coronavirus and how badly it will hit global growth should limit appetite for riskier assets.
The S&P 500 attempted to stabilize on Thursday as prices kept above 2400. The improving market mood may encourage a move towards 2500 in the short term. If markets wake on the wrong side of the bed tomorrow, then prices could sink back below 2350.
Oil rebounds 20% as central banks fire away
Oil prices roared back to life on Thursday, bouncing off their lowest levels in 20 years as investors digested central bank and government support measures to support economic growth.
WTI Crude has appreciated almost 20% its multi-year lows and could extend gains in the short term amid stimulus hopes. While a technical rebound is on the cards, the fundamentals still remain in favour of bears. For as long as demand fears and oversupply concerns remain dominant themes, Oil is positioned to weaken further.
Looking at the technical picture, WTI Oil may rebound towards $30 in the short term before bears re-enter the scene.
Currency spotlight – EURUSD
The EURUSD is falling like a stone thrown into the ocean with no real floor in sight.
Euro has weakened against every single G10 currency, shedding over 2% against the Dollar despite the ECB launching a big bazooka.
Prices are heavily bearish on the daily charts as there have been consistently lower lows and lower highs. A solid daily close below 1.0650 should open the doors towards 1.0580.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
