Tag: palnet

Amarin Corporation plc, a pharmaceutical company, engages in the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States.

The company’s lead product is Vascepa, a prescription-only omega-3 fatty acid capsule, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia. It is also involved in developing Vascepa for the treatment of patients with high triglyceride levels who are also on statin therapy for elevated low-density lipoprotein cholesterol levels.

About a year ago, Amarin published results from a study that show patients who took Vascepa in addition to a statin experienced a 25% reduction in risk of a heart attack, stroke or other serious cardiac event, compared with patients who took a placebo instead of Vascepa. Thus, Amarin wants to get Vascepa approved for other use, which could potentially generate up $2 billion in sales.

Assuming avg. P/E of 15-24 for companies in the pharmaceutical space and Amarin’s market cap, if Vascepa sales can reach $2 billion in the years to come, the stock would be worth approx $125.

Yesterday, the FDA approved the label extension for Vascepa, but the stock price seem bored by the announcement.

Amarin (AMRN) investors are scratching their heads as to why the stock tumbled following the announcement that the FDA has approved the label extension of the company’s fish oil drug, Vascepa.

That’s good news for Amarin, but less good news for long-term investors. You see, according to the principle of “buy the rumor, sell the news,” the major catalyst for Amarin stock to rise has now been removed, and traders who were awaiting the FDA approval have now reaped all the gains they’re going to get from that particular catalyst. Hence, they’re selling the stock today.

One of these sellers, Stifel’s Derek Archila, wrote in a research note to clients, “We are taking profits post approval and heading to the sidelines.” Indeed, the analyst downgraded AMRN from Buy to Hold, while slightly raising the price target to $28 (from $26), which still implies about 20% upside from current levels.

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Many think Amarin’s stock price at $22.88 is a steal and think the stock is worth $50 in the future.    According to FiercePharma, market chatter is now valuing the company at a $20 billion market cap, or $55 a share, if the company is acquired.  So is the stock still worth a buy?

NOTE: since Sept of 2018, the stock has increased from $3 to a little over $20 in 14 months.

To answer the question if the stock is still worth a buy or not, you have to know your time horizon.  Once you know your time horizon, than you can select your target price.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States.

Diabetes is a chronic disease that occurs either when the pancreas does not produce enough insulin or when the body cannot effectively use the insulin it produces. Insulin is a hormone that regulates blood sugar. Hyperglycaemia, or raised blood sugar, is a common effect of uncontrolled diabetes and over time leads to serious damage to many of the body’s systems, especially the nerves and blood vessels

More than 100 million U.S. adults are now living with diabetes or prediabetes, according to a new report released today by the Centers for Disease Control and Prevention (CDC). The report finds that as of 2015, 30.3 million Americans – 9.4 percent of the U.S. population –have diabetes. Another 84.1 million have prediabetes, a condition that if not treated often leads to type 2 diabetes within five years.

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The company’s flagship product is the t:slim X2 insulin delivery system that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set. It also provides t:slim X2 Insulin Delivery System with Basal-IQ Technology; t:slim X2 with G5 Integration; and Tandem Device Updater that allows users to update their pump’s software

Tandem’s t:slim X2 is the smallest durable insulin pump on the market at present and is the only pump in the US market that offers remote software updates. Also, the insulin pump integrates with Dexcom’s G6 continuous glucose monitoring (CGM) system, is the first automated insulin-delivery system approved for use in children as young as six years old.

Tandem Diabetes Care (TNDM) also sells disposable products that are used together with pumps and are replaced every few days.These disposable products are great because they produce reoccurring revenue (think of the disposable razors for the Gillette razor blade…which I hate buying because I know they are overpriced).

Since 2012,Tandem has sold over 72,000 pumps in the US, but 63,000 pumps have been sold in the last four years. In addition, Tandem is also going international to capture opportunities after Johnson & Johnson’s exit from the insulin pump market. This is good because Tandem has penetrated less than 1% of the total addressable diabetes market worldwide.

In recent weeks, Tandem attained Health Canada approval for the t:slim X2 insulin pump with Basal-IQ technology. This approval is expected to accelerate Tandem Diabetes’ global pump shipments and expand its customer base.

But just the other day, Tandem got better news.

Tandem Diabetes (TNDM) nabbed Food and Drug Administration clearance for a new diabetes management system Friday — prodding TNDM stock to pop midday.

The FDA cleared a diabetes management system dubbed Control-IQ to work with Tandem’s insulin pump, dubbed t:slim X2. The closed loop system works with Dexcom’s (DXCM) continuous glucose monitor. The devices automatically adjust insulin to prevent high and low blood sugar.

With the clearance, the FDA also created a new category for interoperable medical devices, known as an automated insulin dosing system. This diabetes management system has the potential to rival devices from Medtronic (MDT).

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The potential to take on Medtronic is a big deal as Medtronic is the 800 lb gorilla in the room. One should keep Tandem on their radar screen and the levels to pay attention to are the weekly zones near $80 and near $45.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Taiwan Semiconductor Manufacturing Company Limited (TSM), together with its subsidiaries, engages in manufacturing, selling, packaging, testing, and computer-aided design of integrated circuits and other semiconductor devices. The company manufactures masks and electronic spare parts; researches, develops, designs, manufactures, sells, packages, and tests color filters; and offers customer and engineering support services.

(TSM) is the world’s largest manufacturer of semiconductors.  TSM has been involved with chip design since the 1980s and today produces chips for some of the largest clients in the world. 

One such company is Apple.  TMS produces chips for Apple and gets 20% of its sales from Apple.

Two months ago Apple reportedly boosted component orders for the iPhone 11.  In particular, Apple bumped up orders for the $699 iPhone 11 and the $999 iPhone 11 Pro.  Some analysts are thinking Apple can sell up to 185 million iPhone 11s.   In addition, according to one analyst, Apple AirPods are seeing a surge of demand and could face holiday shortage.

Are you connecting the dots yet?

Apple (AAPL) iPhone chip supplier Taiwan Semiconductor Manufacturing (TSM) saw healthy sales growth in November thanks to strong demand for smartphone processors. Taiwan Semiconductor stock spiked to a record high on the news Thursday.

Taiwan Semi reported revenue of $3.54 billion in November. Sales rose 1.7% from the previous month and popped 9.7% year over year in local currency.

“We think this is largely due to smartphones (seasonal ramp) along with a recovery in data center chips,” RBC Capital Markets analyst Mitch Steves said in a report to clients

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The chart suggests to look for a pull back to go long near the $52 level.

Another derivative play on Apple is Qualcomm.  Qualcomm Incorporated designs, develops, manufactures, and markets digital communication products worldwide and the company happens to be right in the center of 5G.

Qualcomm just announced their Snapdragon 865 5G chip which is capable of processing 2 gigapixels per second while delivering speeds of up to 7.5Gbps 5G connectivity.

Apple has plans on selling four new iPhones next year that could all be compatible with ultra-fast 5G wireless networks.

The chart suggests Qualcomm will continue to move higher to at least the $100 level.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Trading is nothing but a numbers game…you hope your loses are smaller and hope your winners are much larger than your loses.  Take the billionaire, Bill Ackman of Pershing Square.  The hedge fund’s returns fell 4% in 2017, dropped 13.5% in 2016 and declined 20.5% in 2015, but lets look at some of his recent winners.

A year ago, billionaire, Bill took a $1 billion size position in home improvement Lowe’s because he thought there were opportunities to improve its supply chain to serve customers better and enhance the customer experience through strategic brands and differentiated in-store experiences.  I personally thought Bill was going to take another lost, but boy was I wrong. Bill got in the stock in May of 2018 and thus far that $1 billion is now worth $1.3 billion, a nice paper profit of $300 million thus far.

But Bill’s bigger win was in Chipotle.  Back in 2016, Bill’s Pershing Square bought almost 10% of the shares.  Bill thought Chipotle had a strong brand, differentiated offering, enormous growth opportunity, and was undervalued.

The following year Chipotle hired a new CEO, Brian Niccol.  At Taco Bell, Niccol was known for food menu innovation as well as driving technological advancements to the customer ordering process.  Under Brian’s leadership, digital sales quickly grew as Brian had hoped is that more and more customers will skip other eateries and just order their food at Chipotle.  And then a year later, Brian introduced a loyalty program.

And look what the stock has done since 2016….WOW.

And Chipotle is the gift that keeps on giving as Chipotle made up of 14% of Bill’s hedge fund returns of through mid-2019.

In the most recent news, Bill bought 2.9 million shares in Agilent Technologies on Monday. Agilent provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide.  Essentially Agilent is a lab testing equipment maker.

Billionaire investor William Ackman’s hedge fund Pershing Square Capital Management said Monday it bought shares in testing equipment company Agilent Technologies Inc, only its second new investment this year as the fund has reported a 51% return.

Agilent Technologies’ stock price jumped nearly 5% in after-hours trading after Ackman’s investment was made public in a regulatory filing. Ackman’s $7 billion fund earlier in the year bought Berkshire Hathaway Inc shares.

The filing did not say whether the Agilent investment will be active or passive, and Ackman’s spokesman declined to comment. The filing showed that Pershing Square owned 2.9 million shares at the end of September and did not say how big the position is currently. At Monday’s stock price, that stake would be worth $246 million.

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The fact that Bill and Warren Buffett own Agilent, something must be up. I really like the monthly demand near $60, but something tells me price isn’t going to get there anytime soon.

But there is also a great level at the weekly demand at $70 to go long as well.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

The other day, I revealed why Warren Buffett is so success.  So, if you want to emulate Buffett’s successful, just buy companies that pay dividends and buy back their stock.  Did you know financials almost make up 50% of Berkshire Hathaway’s portfolio.  So if you really want to emulate Buffett’s success, just buy financial stocks.

Berkshire’s 8 biggest
positions in financial stocks going back to the third quarter were:

Bank of America Corp.
(BAC), $25 billion,

American Express Co.
(AXP), $19 billon,

Wells Fargo & Co.
(WFC), $18 billion,

U.S. Bancorp (USB), $6.7
billion,

JPMorgan Chase & Co.
(JPM), $6.2 billion,

Goldman Sachs Group Inc.
(GS), $3.6 billion,

Bank of New York Mellon
Corp. (BK), $3.4 billion,

Moody’s Corp. (MCO), $5.1
billion

The word “dividend” tends
to have this calm, soothing effect on investors because you know the company
offering dividend has a profitable and viable business model so in good times
and bad times, you can sleep better at night and dividends act like compound
interests if reinvested to grow ones portfolio exponentially.   For example, Wells Fargo and Bank of America
are set to bring in more than $1.5 billion in dividend income for Buffett over
the next year.  That $1.5 billion is almost
2% of his net worth.

Because I’m on this dividend
discovery journey, highest dividend yielding companies within Buffett’s
portfolio are the following:

Occidental Petroleum
Corporation (8.32% yield), together with its subsidiaries, engages in the
acquisition, exploration, and development of oil and gas properties in the
United States and internationally. The company operates through three segments:
Oil and Gas, Chemical, and Midstream and Marketing. 

The Kraft Heinz Company (5.16%
forward yield) manufactures and markets food and beverage products in the
United States, Canada, Europe, the Middle East, and Africa. Its products
include condiments and sauces, cheese and dairy, meals, meats, refreshment
beverages, coffee, and other grocery products, as well as infant and nutrition
products

General Motors Company (4.30%
forward yield) designs, builds, and sells cars, trucks, crossovers, and
automobile parts worldwide. The company operates through GM North America, GM
International, GM Cruise, and GM Financial. It markets its vehicles primarily
under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling
brand names

Suncor Energy Inc (4.07% forward
yield). operates as an integrated energy company. The company primarily focuses
on developing petroleum resource basins in Canada’s Athabasca oil sands;
explores, acquires, develops, produces, and markets crude oil and natural gas
in Canada and internationally; transports and refines crude oil; markets
petroleum and petrochemical products primarily in Canada.

Wells Fargo & Company
(3.83% forward yield), a diversified financial services company, provides
retail, commercial, and corporate banking services to individuals, businesses,
and institutions. It operates through three segments: Community Banking,
Wholesale Banking, and Wealth and Investment Management.

STORE Capital Corporation
(3.50% forward yield) is an internally managed net-lease real estate investment
trust, or REIT, that is the leader in the acquisition, investment and
management of Single Tenant Operational Real Estate

United Parcel Service,
Inc (3.34% forward yield) provides letter and package delivery, specialized
transportation, logistics, and financial services. It operates through three
segments: U.S. Domestic Package, International Package, and Supply Chain &
Freight.

Phillips 66 (3.20%
forward yield) operates as an energy manufacturing and logistics company. It
operates through four segments: Midstream, Chemicals, Refining, and Marketing
and Specialties (M&S).

Restaurant Brands International
Inc (3.05% forward yield). owns, operates, and franchises quick service
restaurants under the Tim Hortons (TH), Burger King (BK), and Popeyes (PLK)
brand names.

The PNC Financial
Services Group, Inc (3.02% forward yield). operates as a diversified financial
services company in the United States. The Retail Banking segment offers
deposit, lending, brokerage, insurance, and investment and cash management
services to consumer and small business customers through a network of branches.  The Corporate & Institutional Banking
segment provides secured and unsecured loans, letters of credit, equipment
leases, global trade services, as well as foreign exchange, derivative, etc.

The Coca-Cola Company (2.95%
forward yield)., a beverage company, manufactures and distributes various
nonalcoholic beverages worldwide. The company provides sparkling soft drinks;
water, enhanced water, and sports drinks; juice, dairy, and plant based
beverages; teas and coffees; and energy drinks.

Dividend stocks offer a number of advantages to investors, but I would say the number one reason is best said by Buffett himself.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.