11:11 am on 11/11/24….SMID rally continues led by ETFs and seasonally XBI up 0.85% to $105 level.
STRONG MOVERS: ARKG, ADPT, CRBU, CRMD,CYRX, DNLI, EVH, PACB, VCYT etc
SMID Biotech Stocks are Primed for GOOD GAINS
- With election uncertainty over and a benign MACRO with rate cuts, small cap biotechs should do well.
- Small cap ETFs show good momentum in 2024: IJR, IWC, IWM, IWD.
- NASDAQ and S&P show good gains today.
SMID biotech stocks still see a lot of speculative interest except for a brief sell-off on August 5 when the XBI touched $91. The XBI is near its 2024 high in the $103 range. The IBB has also maintained higher lows since early June and is now in the upward mid-channel.
Here is our SMID biotech update from one month ago.
Here are some notable movers from our Trading List today :
Guardent Health (GH) up 13% we added a small position the other day at $23+because of the Exact Sciences miss. Revenues increased by 34% to $191.5M.
Catalyst Pharma (CPRX) beat with revenues of $128.7 for the recent quarter. Eannings were $0.57 per share. The stock is up 43% since we bought it 3 mos. ago.
CorMedix was up 5% to after dipping briefly below $10. Earnings were announced on October 30 when the Company reported net sales of $11.5 million for the third quarter, largely driven by successful implementation by an initial anchor customer, a mid-sized dialysis operator. The stock was up 3% to $10.63.
Other notable 2% + movers are: CRSP, ILMN, NTRA, NVAX,VCEL. See previous post on GILD and VCYT. Novo Nordisk (NVO) and LLY recovered a bit today from lows hit last week after the LLY announcement. ADPT was up 4% after hours on report of a 42% in crease in Sales to $46.4M.
Quidel/Ortho (QDEL) reported today after hours with good gains on stock AH, Still expect a 2025 turnaround.
The FED Cut Rates by 1/4% As Expected
Powell seems to be in sync with the bond market so one more rate cut in 2024 should do it. Issue might be softening jobs market in a softening economy. Longer term risk might be rising rates in a slower economy. The dollar moves with interest rates and is stable unless we get shocks from the CPI or higher tariffs. So things look normalized for now. Rates have gone up and so have stocks so we appear to be in a “goldilocks” mode for now.