Equity markets posted strong gains on Friday and especially in the final few hours of trading. The gains came as the economic advisor to the White House, Lawrence Kudlow said that there was progress being made.
The comments come in a week where President Trump did not make any mention of the China trade deal. This led the markets to pull back. But on Friday, the Dow Jones rose to 28,004, while the S&P500 rose to 3120.
Euro Gains Despite Tepid Inflation
The euro managed to recover from the losses earlier in the week on Friday. The final inflation estimates for October showed that headline inflation for the eurozone grew 0.7% on the year.
Core inflation, which strips the volatile food and energy prices, was up 1.1%. Inflation continues to remain stubbornly off the ECB’s target rate of 2.0%.
Can the EURUSD Maintain the Upside Momentum?
The gains in the currency pair triggered a strong rebound off the support level of 1.1000 earlier this week. The momentum could see the EURUSD attempting to test the resistance area of 1.1062.
But watch the Stochastics, which is signaling a hidden bearish divergence. This could trigger a pullback to the current rally.
Sterling Maintains Gains Amid a Quiet Day
The pound sterling managed to maintain the bullish momentum. The gains came as a patch of economic data from the United States came out weaker than forecast.
Core retail sales rose just 0.2% on the month, while the headline number was up 0.3%, a slightly better result. But the import prices and industrial production both fell. Meanwhile, economic data from the UK was sparse.
GBPUSD to Settle Into the Range
Following the close above 1.2865 level, the GBPUSD is most likely looking to settle into a range. The sideways range within 1.2865 and 1.2960 will see the accumulation building up.
Unless there is a breakout from this level, price could remain flat. We expect the momentum to rise as we head closer to the December UK elections.
Gold Trades Mixed but Holds on to Gains
The precious metal held its gains despite a strong rally in the risk markets on Friday. The price action sees gold closing with some modest gains after the previous week’s declines. With the Fed signaling that it was done with rate cuts and some news on the trade talks, gold could be pressured in the near term.
XAUUSD to Target the Resistance
After the hidden bearish divergence, gold prices slipped back. But after retesting the support area at 1462, the precious metal is looking to push higher. We expect the gains to take XAUUSD toward the 1483 region. Forming resistance at this level will cap the gains any further. This will also put the focus back to 1462 and eventually to the 1440 level.
The week ahead will be a quiet one, with economic data taking a backseat. In terms of significant events, only the meeting minutes from the ECB and the Federal Reserve stand out.
Canada’s inflation data is due in the middle of the week after the Bank of Canada has just signaled a cautious outlook. While keeping rates steady, the BoC is on the lookout for any potential downside risks. BoC Governor Stephen Poloz will also be speaking.
The week ahead will see the ECB President, Christine Lagarde speaking at a banking event in Frankfurt. This comes as flash PMIs for the eurozone are also due in the coming days.
Here’s a brief look at the key economic events coming up.
Fed Minutes and Perhaps Trade Talks
Last week saw most of the markets reacting to the US-China trade talks.
As a result, this is likely to become the central theme this week. A lack of any major market-moving events will keep investors tuned into any developments on the trade front.
Fed to Release Meeting Minutes
The Federal Reserve will be releasing their meeting minutes this week.
The minutes cover the Fed’s recent monetary policy decision. The central bank cut rates by 25 basis points but signaled that it would pause future rate cuts for now.
It now expects the economy to start gaining momentum. But global headwinds will continue to pose a challenge to policymakers.
Housing Data from the US on the Cards
On the economic front, data over the week will focus on the housing markets.
The building permits are forecast to rise 1.39 million for October. This will mark the same pace of increase as the month before. Housing starts are set to rise by 1.32 million, slightly higher from 1.26 million previously.
Ahead of the report, the NAHB housing market index will give a glimpse into the homebuilder’s sentiment
ECB Speech and Flash PMI’s
Economic data from the eurozone is relatively quiet. The ECB President Christine Lagarde will be speaking at a banking event. Later in the week, the flash PMIs from Markit are due.
Amid the quiet week, the German GDP report for the third quarter will be coming out. No changes are forecast with the general estimates pointing to a 0.1% increase in the three months ending September 2019.
ECB Minutes and Lagarde
The European Central bank will also be releasing its monetary policy meeting minutes this week.
With the new ECB president at the helm, focus will shift more on Lagarde’s speech than the minutes. For the moment, the general consensus is that Lagarde will continue with the current policy toolkit she inherits from Draghi.
As the ECB recently restarted its QE program, the central bank is not expected to spring any major surprises.
Focus on November’s Flash PMIs
IHS Markit will be coming up with the monthly flash PMI reports covering the manufacturing and the services sector.
At an individual level, the reports might not create much of an impact. But for investors, the flash numbers will give an idea into how the economy fared during November.
Manufacturing activity is forecast to tick slightly higher, rising to 46.4 from 45.9 previously. Although, this will still signal a contraction in the sector. Services PMI is forecast to perform better.
Estimates on the services sector point to an increase to 52.4 from 52.2 previously.
By Hussein Sayed, Chief Market Strategist (Gulf & MENA), ForexTime
Trade optimism continues to support equities
China cuts rates on seven-day reverse repurchase agreements
Markets awaiting FOMC minutes on Wednesday
US equities rallied last week to new record levels with the Dow Jones Industrial Average breaching 28,000 for the first time. Soft economic data, Trump’s impeachment hearing, Hong Kong protests, and Middle East unrest were all considered secondary factors in investment decisions. Anticipation of a “phase one” trade deal between the largest two economies continued to be the major driver for stock markets.
Despite no new information on what the trade deal looks like or when and where it will be signed, positive headlines from US and Chinese officials are still driving equities higher. Late Thursday, White House Economic Adviser Larry Kudlow said, “we are coming down to the short strokes.” China’s Vice Premier Liu He had a phone call on Saturday with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, which has been described as “constructive discussions” according to state media outlet Xinhua.
From past experiences, it’s the final stages of the trade agreement where things get stuck. It remains to be seen whether this time we’ll get a breakthrough, but if no agreement is reached, expect to see a nasty selloff in risk assets.
China’s central bank decision to cut rates on seven-day reverse repurchase agreements also supported risk taking. The move by the PBOC reminded investors that there are still monetary tools available to support the economy.
Currency traders are also monitoring trade talks closely. According to the latest CFTC report, speculators raised their bullish bets on the USD, but given the weaker than expected US data, particularly industrial output which dropped to its worst level since May 2018, the greenback sold off against its major peers.
Expect major currencies to remain in tight ranges until the release of the minutes from the Federal Reserve’s October meeting on Wednesday. During his testimony to US Congress last week, Fed Chair Jerome Powell reiterated his message that the current stance of monetary policy remains appropriate as long as incoming information about the economy remain consistent with their outlook of moderate economic growth and a strong labor market.
Powell seemed to convince markets that there isn’t a fourth consecutive rate cut coming in December. According to the CME FedWatch Tool, speculators are seeing zero chance of a rate cut next month. However, they still expect a high probability of easing in 2020. What traders would like to know from the upcoming FOMC minutes is what thresholds are required for additional easing in the upcoming months.
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.
US stocks ended solidly higher on Friday despite mixed data. The S&P 500 advanced 1.0% to fresh record 3120.46, booking 0.9% weekly gain. Dow Jones industrial rose 0.8% to 278004.89. The Nasdaq added 0.7% to 8540.83. The dollar weakening was intact as retail sales growth rebounded in October to 0.3% after a 0.3% decline in September, while the 0.8% decline in industrial output was the steepest in 17 months in October. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.2% to 97.96 and is lower currently. Futures on US stock indices point to higher openings.
CAC 40 led European indexes gains
European stock indexes resumed advancing on Friday. EUR/USD and GBP/USD continued their climbs Friday with both pairs higher currently. The Stoxx Europe 600 Index rose 0.4% with bank shares’ losses capping the gain. The DAX 30 gained 0.5% Friday to 13241.75. France’s CAC 40 advanced 0.7% and UK’s FTSE 100 added 0.1% to 7302.94.
Hang Seng leads Asian Indexes Advance
Asian stock indices are mostly rising today. Nikkei ended 0.5% higher at 233416.76 as yen continued its slide against the dollar. China’s markets are rising as China’s central bank cut its reverse repo rate to 2.5%: the Shanghai Composite Index is 0.6% higher and Hong Kong’s Hang Seng Index is up 1.2%. Australia’s All Ordinaries Index however turned lower 0.4% as Australian dollar kept rising against the greenback though at slower pace.
Brent futures prices are edging lower today. Prices rose on Friday as the oil-field services firm Baker Hughes reported the number of rigs drilling for crude dropped by 10 last week to 674: Brent for January settlement rose 1.6% to $630.30 a barrel Friday.
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Plus Therapeutics shares opened 25% higher today after the firm reported Q3/19 financial and business results. In the most recent quarter, the company completed the change of its name, relocated its headquarters to Austin, and raised $15 million for R&D and working capital.
Late yesterday afternoon, Austin, Tex. based clinical-stage pharmaceutical company Plus Therapeutics Inc. (PSTV:NASDAQ), which is focused on developing treatments for patients battling cancer, announced financial and business results for the third quarter of 2019.
The firm reported that contract revenues in Q3/19 were $4.8 million, compared to $0.5 million for Q3/18. The company further noted that it “received notification that a $4.6 million payment from the U.S. Department of Health and Human Services / Office of the Assistant Secretary for Preparedness and Response / Biomedical Advanced Research and Development Authority (“BARDA”) to reimburse the Company for work performed during fiscal years 2012 through 2019, will be paid in Q4/19.”
For Q3/19, the company reported that net income from continuing operations was $0.526 million, or $0.03 per share., compared to a loss of ($1.396 million) or ($22.27) per share in Q3/18. The firm additionally advised that operating cash burn for the quarter was approximately $2.1 million, and that the firm ended the quarter with approximately $16.8 million of cash and cash equivalents.
Dr. Marc Hedrick, president and CEO of Plus Therapeutics, commented, “Plus Therapeutics emerges from the third quarter with the financial strength, development focus and cost structure to achieve long-term viability and growth…We believe our company is now poised to aggressively move its pipeline through important milestones and to eventual market leadership. We believe that our pipeline has the potential to produce drugs that may provide tremendous benefits to patients and shareholders alike.”
The company stated that it now is “concentrating its development in ways that can leverage the U.S. FDA’s accelerated regulatory pathways and enable it to apply its in-house expertise in nanoparticle drug design, complex formulation, and drug manufacturing to scale-up.”
The firm announced that “its initial development focus will be on DocePLUS (formerly ATI-1123), a complex, injectable, patented, albumin-stabilized pegylated liposomal docetaxel, for which a U.S. Phase 1 clinical trial has been completed and published. The company previously announced that it received feedback from the U.S. FDA that a 505(b)(2) new drug application appears to be an acceptable regulatory approach for DocePLUS.” Docetaxel was approved by the FDA in 1999 and is commonly used for treating cancers of the breast, head, neck, stomach, prostate and lung.
Plus Therapeutics, formerly known as Cytori Therapeutics Inc., is a clinical-stage pharmaceutical company focused on the discovery, development, and manufacturing scale up of complex and innovative treatments for patients battling cancer and other life-threatening diseases. This year the company changed its name and relocated its headquarters from San Diego, Calif. to Austin, Texas. The firm notes that it maintained its manufacturing facility in San Antonio, Tex. and that “the move to Austin was driven in part by significant incentives offered by the State of Texas, whose Cancer Prevention & Research Institute is second only to the federal government in public funding of cancer research”. The company also recently completed an underwritten public offering with gross proceeds of approximately $15 million which it intends to use for research and development, working capital, potential debt restructuring and general corporate purposes.
Plus Therapeutics began the day with a market capitalization of approximately $8.2 million with about 3.443 million shares outstanding. PSTV shares opened nearly 26% higher today at $3.01 (+$0.62, +25.94%) over yesterday’s $2.39 closing price. The stock has traded today on extremely high relative volume between $2.65 to $3.38 per share and is currently trading at $2.67 (+$0.28, +11.72%).
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.
As Newrange Gold shifts its focus to Nevada, it is monetizing its Colombian properties to fund exploration.
Newrange Gold Corp.’s (NRG:TSX.V; NRGOF:OTC) focus is squarely on Nevada, where it acquired the high-grade Pamlico gold project in 2016. The company is in the process of monetizing its Colombian assets to fund Pamlico’s exploration and recently announced the sale of its Yarumalito gold project to GoldMining Inc., while retaining a 1% net smelter returns royalty.
“This now paves the way for us to conclude the sale of Newrange’s subsidiary and remaining projects in Colombia, Newrange CEO Bob Archer said. “The combined proceeds from both transactions will provide significant non-dilutive funds for exploration on the company’s flagship Pamlico Project in Nevada.”
The company expects the sale of its subsidiary and Yarumalito to bring in between $2 and $3 millionboth deals are a mix of cash and sharesover the course of the next 12 to 18 months.
The company made its move into Nevada, where Robert Carrington, the co-founder and chairman of Newrange, who is Nevada born and raised, was able to option the Pamlico project through a family connection. “It encompasses an old mining district that goes back to the late 1800s. At that time, it was known as one of the highest-grade gold districts in Nevada,” Archer explained.
Pamlico is on the Walker Lane Trend, a northwest-southeast oriented trend that is home of many historical and current gold and silver mines, and has produced more than 53 million ounces of gold and 519 million ounces of silver. Nevada is known as “Elephant Country.” The state is the world’s fifth largest gold producer and rated the top jurisdiction for investment on the Fraser Institute’s 2018 survey of mining companies. Nevada produced 5.6 million ounces of gold in 2018 and 169 million ounces from 1835 until the present.
Newrange’s Pamlico property has been in private hands since 1896, passing through three families during this time, and has been optioned out only twice, so the property has seen very little modern-day exploration.
“We have realized that the very high-grade veins and fractures are surrounded by lower grade halos of gold mineralization, and you end up with larger pockets of mineralization that are at surface and amenable to open-pit mining,” Archer said. “Taking it one step further, preliminary metallurgy discovered that the mineralization is also very amenable to heap leaching. So with low-cost mining, low-cost processing and being close to surface, we can approach this project from a very different perspective than others might have in the past.”
The company is now using a new technology, a handheld laser scanner called LIDAR, to survey the inner workings of the old mine tunnels, enabling the company to plot three dimensional models and maps of the underground workings, as well as collect spatially accurate assay data that can be used as part of an NI 43-101 resource. “It’s a very important exploration tool for us and very cost effective in that instead of having to spend hundreds of thousands of dollars or even millions of dollars on drilling, we can go into the mine tunnels and sample them like horizontal drill holes,” Archer explained.
The company has released exploration results for the Good Hope Mine, confirming continuous gold and silver mineralization between the 5570 and 5518 levels of the mine. “Results of sampling in stopes and raises between the two levels show a higher-grade core of mineralization averaging 4.08 grams gold per metric tonne (g/t Au) and 51.5 grams silver per metric tonne (g/t Ag) ranging from 0.3 to 1.0 meter wide, with an average width of 0.7 meters, within a larger mineralized envelope that averages 1.2 g/t Au and 21.8 g/t Ag,” the company reported.
Newrange plans on doing an IP (Induced Polarization geophysics) survey, as well as continuing underground surveying, mapping and sampling.
Archer points out that the old mine tunnels were built into the hills because of ease of access, but there hasn’t been anything done in the little valleys and gulches in between those hills. “One of the zones that has been found in one of those valleys was a blind discovery and never mined by the old-timers. We will be looking for more of those zones.”
The main trend is about 1.5 km by 1 km. “If our exploration model holds true and we are looking at pockets of mineralization in the area, we could end up with an open pit 1.5 km by 1 km and selectively mine these pockets. That’s the theory that we are trying to prove up,” Archer explained.
Newrange has about 97.5 million shares and outstanding, 117 million fully diluted. Insiders own 9%.
Technical analyst Clive Maund wrote on November 12, “This looks like an excellent time to take positions in Newrange Gold. . . The company is continuing to advance towards its objectives in a satisfactory manner and so the stock should do well once gold takes off on the next leg of its new bull market.”
Disclosure: 1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her 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: Newrange Gold. 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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Newrange Gold, a company mentioned in this article.
Additional Disclosures
Clive Maund does not own shares of Newrange Gold and neither he nor his company has been paid by Newrange Gold.
Bob Moriarty of 321gold profiles one of the very few pure gold plays in Peru.
Many gold stocks continue to tumble into yearly lows as we approach the annual Tax Loss Silly Season when the good, the bad, and the ugly get tossed on the bargain table for no reason at all other than they went down in price. For intelligent investors it’s a great chance to pick some low hanging fruit.
I expect a short-term blip higher in the price of gold but the COTs and sentiment suggest the price of gold will continue lower. I think we will see a DSI under ten and a low about the same time dumb investors stop throwing good stocks away. Look for that in mid-December.
I’ve been following a couple of companies trying to work in the Puno Gold Belt.
In 2010 Peru completed construction of the Intercontinental Highway. It helped create a modern day gold rush in the Madre de Dios River basin with tens of thousands of illegal miners having destroyed 700 square km of the Amazon jungle so far. The government of Peru is trying to get the illegal miners under control with a giant lack of success. Mercury pollution is widespread with up to 78% of the residents in the area showing mercury levels 500% higher than WHO recommends.
Andrew Thompson founded Palamina Corp. (PA:TSX.V; PLMNF:OTC.MKTS) in 2015 after Agnico Eagle took over his existing Mexican mining company Soltoro. Thompson’s technical team believed the biggest gold opportunity was in Peru in the Puno Gold Belt next to the alluvial workings in the Madre de Dios gold rush. Palamina has spent over seven million dollars advancing five major projects to the drill ready stage.
In mid-September Palamina announced the sale of two of their Puno Gold Belt properties to Helio Resource Corp. for ten million shares and a 2% NSR. Helio will make an advance royalty payment of $25,000 on the first and second anniversary of the agreement. After that the ARP will double every two years until Helio has completed 5,000 meters of drilling or abandoned the project.
Helio intends to drill test Gaban in 2020. Currently they are conducting the typical groundwork necessary for a successful drill program to include mapping, soil samples and trenching. For the first year Palamina is the operator of the project.
Palamina’s flagship project is called Coasa. The company has spent over $1.8 million on it including a heli-borne survey, a 43-101 and structural studies. They have completed a DIA (environmental study required by the government of Peru).
As with most of South and Central American countries, wading through the bureaucratic swamp of reports and regulations can be cumbersome. Palamina is in the final stages of the drill permit/DIA and has a 2,500-meter program planned for Coasa in 2020.
Coasa has a 1.6 km mineralized gold structure including the recently identified Cayos Zone that has demonstrated a chip sample of 75 g/t Au and a channel sample measuring 3 meters of 35 g/t gold. The Veta discovery zone is where the first 2,500 meters of drilling will take place. The highest gold sample from the Veta zone showed 620 g/t gold and the best channel sample was 1 meter of 123 g/t Au.
Within the stable at Palamina are five projects in total. Each has company making potential. Having done one deal already with Helio, the company would love to partner with a major or a mid-tier on some of their other projects.
Palamina is one of the very few pure gold plays within the country. Clearly the extraordinary gold riches of the Madre de Dios came from somewhere and Palamina believes they have staked the premier ground in the district. Due to a lack of infrastructure, much of the area has had limited systematic exploration and next to no drilling. Roads have been built and access is far better today and this could become a major gold camp.
With a market cap of about $7 million CAD, Palamina is an especially cheap option with two serious drill programs for 2020 in a district that has to contain a lot of gold. Next year should bring some interesting results just as gold buyers learn the effects of “Not QE” on the price of gold.
Palamina is an advertiser. I own shares I bought at a higher price in the last private placement. Do your own due diligence.
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) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Palamina Corp. Palamina Corp. is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector. 2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. 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. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 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 article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Palamina Corp., a company mentioned in this article.
With antibiotic resistance a major health issue, the search is on for effective alternatives to replace antibiotics in livestock feed to promote growth.
A small-cap Canadian company, Avivagen Inc. (VIV:TSX.V), has developed a feed supplement, OxC-beta™ Livestock, which, “by safely supporting immune function, promotes general health and performance.”
Avivagen’s proprietary OxC-beta Livestock has been shown “to be effective and economic as an alternative to the antibiotics commonly added to livestock feeds.” OxC-beta Livestock is currently available for sale in the Philippines, Taiwan, Thailand, New Zealand, the U.S. and Mexico.
One of the first countries to use OxC-beta is the Philippines, and sales remain strong there. Avivagen recently announced that its partner in the Philippines, UNAHCO, has just placed an order for 2.1 metric tons of the product, the third multi-ton order this year and the second in three months, demonstrating high demand in the growing Philippine market.
“UNAHCO seeks to expand use of OxC-Beta Livestock with new application in broilers, creating new market opportunity for expanded use in a wide variety of feeds worldwide,” Avivagen noted.
“We continue to see exceptional growth for Avivagen and innovative applicability of OxC-beta Livestock in the Philippines and throughout Asia-Pacific,” said Kym Anthony, CEO of Avivagen. “In our view, UNAHCO’s application of OxC-beta Livestock for broilers is further evidence that the appetite for alternatives to antibiotics in livestock feed is growing, and that Avivagen has become the trusted long-term provider for feed producers in Asia-Pacific and around the globe.”
Avivagen notes that “OxC-beta Livestock has the potential to eliminate the use of antibiotics as growth promoters in livestock feed, a problem requiring an urgent solution and which represents a multi-million-dollar market opportunity worldwide.”
“UNAHCO continues to see the applicability and benefit of using OxC-beta Livestock as an ingredient to a number of in-demand feeds, including swine and broilers. With continued recurring orders and evaluation for uses in more types of feed, it’s clear that there are opportunities for continued growth and expanded use not only in Asia-Pacific but globally,” stated Anthony.
Avivagen recently received approval to sell OxC-beta Livestock in Mexico for broiler and pigs. That segment of the market consumes approximately 16 million tons of feed annually. The company has contracted with Meyenberg International Group to lead the distribution agreement process in the country.
In addition to OxC-beta LIvestock, Avivagen sells Vivamune™ Health Chews in the U.S., Canada and Taiwan for companion animals, such as dogs. It also has begun discussions with nutraceutical companies to develop products for human consumption.
On October 6, when Avivagen’s shares were trading at CA$0.57, technical analyst Clive Maund wrote, “With the strong volume pattern and volume indicators suggesting that a new bull market is incubating, this looks like a good point to accumulate the stock.” Shares are currently trading at around CA$0.55.
Avivagen has 38 million shares outstanding, with about 5% held by insiders and more than 20% by institutions, including Pathfinder, AlphaNorth and Bloom Burton.
Disclosure: 1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her 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: Avivagen. 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 Avivagen. Please click here for more information. 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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Avivagen, a company mentioned in this article.
Additional Disclosures
Clive Maund does not own shares of Avivagen and neither he nor his company has been paid by Avivagen.
Shares of Exicure Inc. opened 30% higher today after the firm reported that it entered into a collaboration agreement with Allergan to discover and develop SNA-based treatments for hair loss disorders. The terms of the deal provide for a $25 million upfront payment to Exicure with the potential to grow to $750 million.
This morning clinical-stage biotechnology company Exicure Inc. (XCUR:NASDAQ), which is developing therapeutics for immuno-oncology, inflammatory diseases and genetic disorders based on its proprietary Spherical Nucleic Acid (SNA) technology, announced that it entered into a global collaboration agreement with Allergan Pharmaceuticals International Ltd., a wholly-owned subsidiary of Allergan Plc. (AGN:NYSE),to discover and develop novel treatments for hair loss disorders based on Exicure’s proprietary SNA technology.
The firm indicated “under the terms of the agreement, Allergan will receive exclusive access and options to license SNA-based therapeutics arising from two collaboration programs related to the treatment of hair loss disorders. Exicure will receive an upfront payment of $25 million and will conduct discovery and development in two collaboration programs for hair loss disorders. In the event that Allergan exercises an option, Allergan will be responsible for clinical development and commercialization of the licensed products. Exicure will be eligible to receive development and regulatory milestones of up to $97.5 million per program and commercial milestones of up to $265 million per program. Exicure will also be eligible to receive tiered royalties on worldwide net product sales of mid-single digit to mid-teens percentages on worldwide net product sales.”
Dr. David Giljohann, CEO of Exicure, commented, “We are excited to combine our knowledge of nucleic acid therapeutics with Allergan’s deep expertise in medical aesthetics to develop and commercialize innovative treatments for hair loss disorders…This collaboration is an exciting opportunity to advance Exicure’s SNA technology in an important new therapeutic area.”
Regarding the collaboration and hair loss program, the company explains in the report that “one of the most common hair loss disorders and a subject of the collaboration is androgenetic alopecia also known as pattern baldness, which affects approximately 50 million men and 30 million women in the U.S. It is estimated that over $3.5 billion a year is spent on treatments, the majority of which are ineffective.”
The announcement of Exicure’s partnering agreement with Allergan comes just one day after the company proudly announced that its CEO, Dr. David Giljohann, was named to Crain’s Chicago Business magazine’s 2019 Class of “40 Under 40.” The release outlined that “Crain’s “40 Under 40″ recognizes individuals who are reinventing what it means to do business in Chicago through financial impact and community leadership. Dr. Giljohann, along with the other honorees, will be profiled in the November 18 issues of Crain’s Chicago Business.”
Dr. Giljohann responded to the selection by stating, “It is truly an honor to be recognized for my work at Exicure, which has always been driven by my personal goal of positively impacting patients by creating revolutionary new medicines…I am thankful for the support and dedication of the entire Exicure team that is working tirelessly on our programs to address unmet medical needs in genetic disorders, inflammatory disease and oncology.”
The firm noted that Dr. Giljohann has served as CEO of Exicure since November 2013, after first starting out as the company’s founding scientist in 2011 and that he completed his Ph.D. in 2009 in the laboratory of Dr. Chad A. Mirkin at Northwestern University where he developed oligonucleotide-modified nanoparticles, including Exicure’s Spherical Nucleic Acid (SNA) constructs.
Exicure, Inc. is based outside of Chicago, Ill., and in Cambridge, Mass. Exicure is a clinical-stage biotechnology company developing therapeutics for immuno-oncology, inflammatory diseases and genetic disorders based on our proprietary Spherical Nucleic Acid, or SNA technology. SNAs are nanoscale constructs consisting of densely packed synthetic nucleic acid sequences that are radially arranged in three dimensions. Exicure believes that “its proprietary SNA architecture has distinct chemical and biological properties that may provide advantages over other nucleic acid therapeutics and may have therapeutic potential to target diseases not typically addressed with other nucleic acid therapeutics. Exicure’s lead program is in a Phase 1b/2 trial in patients with advanced solid tumors.”
Allergan is headquartered in Dublin, Ireland, and has staff and operations in around 100 countries. The firm describes its business as “a global pharmaceutical leader focused on developing, manufacturing and commercializing branded pharmaceutical, device, biologic, surgical and regenerative medicine products for patients around the world.” The company’s portfolio of products and brands are primarily focused on four key therapeutic areas including medical aesthetics, eye care, central nervous system and gastroenterology.
Exicure started the day with a market capitalization of approximately $186.9 million with about 76 million shares outstanding. XCUR shares opened more than 30% higher today at $3.16 (+$0.76, +31.67%) over yesterday’s $2.40 closing price. The stock has traded today between $2.74 to $3.20 per share and closed at $2.74 (+$0.28, +11.38%).
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.
This week – November 17 through November 23 – central banks from 8 countries or jurisdictions are scheduled to decide on monetary policy: Hungary, Jamaica, China, Zambia, Mauritius, Indonesia, South Africa and Paraguay.
Following table includes the name of the country, the date of the next policy decision, the current policy rate, the result of the last policy decision, the change in the policy rate year to date, and the rate one year ago.
The table is updated when the latest decisions are announced and can always accessed by clicking on This Week.
