An update on Sarepta and upcoming news that the markets are waiting for
Chris Temple kicks off today with an update on Sarepta and the FDA press release about expanding the “compassionate use” policy. We discuss how this impacts Sarepta moving forward in terms of finances and approval likelihood. We then shift focus to the many news stories that are coming today and tomorrow which are holding back any major moves in the markets.
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I think Sarepta will get bought out now – might be a buy if it gets back down to 11 bucks.
Chris Temple ? What you THINK ? thank’s !
As I mentioned, BioMarin is front and center as the likely acquirer.
You are spot on Chris – they either have to raise money or be bought out now. Just a coin toss which is the outcome.
If you bought in a long time back you are onto a winner anyway in the longterm I guess. Buying now, and the stocks continues to fall back down to about 10 or 11 bucks, and then they get bought out would be painful.
WE ARE IN A SLOW MOTION ROLLING COLLAPSE. WAIT TILL ALL THE BUBBLES IMPLODE
The Texas Tribune. “Thousands have been laid off. Tax collections are plummeting. Many are on the brink of homelessness. Rows of drilling rigs and white company trucks sit idle — there’s no telling for how long. And, yet, amid the worst oil bust in decades, the energy capital of West Texas hasn’t slowed down much.”
“If the signs of impending comeback are all around, though, so too are the ones of fallout. Pawn shops are bustling, and several fancy, new pickup trucks slapped with ‘for sale’ signs can be seen sitting on the side of the road. While housing costs have decreased significantly since then and availability is no longer an issue, officials say people who have been laid off, had their hours cut or taken lower-paying jobs are struggling to stay in their homes. Midland, which had the highest median home prices in the state in 2014, is still one of the most expensive places to live in Texas, said Jim Gaines, chief economist at the Texas A&M; Real Estate Center, while noting the entire state is considered affordable.”
“The median home price in the Midland, which topped $280,000 in mid-2014, had fallen to $205,000 last month, according to the Permian Basin Board of Realtors. Average rent has decreased from about $1,200 per month for a 1-bedroom in 2014 to $900 per month now, said Rhonda Lesley, the head of the Permian Basin Apartment Association. Still, she said she recalls a time before the boom when average rent was more like $500. Apartment occupancy, which reached almost 100 percent in 2014, has fallen to 80 percent, she said.”
“Juan Carlos Pacheco, a Child Protective Services worker in Odessa who struggled to find affordable housing during the boom, said he and his co-workers are worried about the state eliminating a $1,000 monthly housing stipend it put in place to offset housing costs during the boom and boost recruitment. If that happens, he said, ‘we’re going to be facing a different problem because people are not going to be able to afford to be here.’ Pacheco said he bought a house in December 2014 and paid more for it than he wanted to, but still considers himself ‘not a miracle, but … lucky.’”
( My own observations last few weeks I have seen people rolling their huge suit cases
down the streets like they just got evicted from their place.) People are struggling and can’t afford the high rent The Club created and by way of The Fed. Complete lawlessness and corruption. Hang Em High !!!!
Does SRPT have anything else in the pipeline besides this?
Several drugs, though eteplirsen is by far the most advanced. In my report I direct attention to the appropriate page on their web site to check out all their various drugs in different stages of trials
Overnight Markets and News
Jun E-mini S&Ps (ESM16 -0.11%) are down -0.07% and European stocks are up +0.30% ahead of today’s ECB interest rate decision. No change in interest rates or additional stimulus is expected, although ECB President Draghi will unveil the ECB’s latest economic and price-growth forecasts at a press conference following today’s meeting. The markets are also focused on today’s OPEC meeting in Vienna and tomorrow’s monthly U.S. payrolls data. Asian stocks settled mixed: Japan -2.32%, Hong Kong +0.47%, China +0.40%, Taiwan -0.48%, Australia -0.83%, Singapore +0.16%, South Korea +0.25%, India +0.48%. Japan’s Nikkei Stock Index dropped to a 1-week low as exporter stocks declined and led the overall market lower after USD/JPY tumbled to a 2-week low, which reduces the prospects for exporters’ earnings.
The dollar index (DXY00 -0.16%) is down -0.16%. EUR/USD (^EURUSD) is up +0.10% at a 1-week high on expectations that the ECB will refrain from additional stimulus at today’s policy meeting. USD/JPY (^USDJPY) is down -0.54% at a 2-week low after Japanese Prime Minister Abe said that a sales-tax increase will be postponed until 2019 from April 2017.
Sep T-note prices (ZNU16 +0.12%) are up +3 ticks.
In today’s OPEC meeting in Vienna, Saudi Arabia proposed that OPEC restore a production target scrapped at the cartel’s last meeting in December, although Iran opposes a production target as it wants to boost its oil production to pre-sanction levels. The odds of any cut in OPEC production are small after Iranian Oil Minister Bijan Namdar Zanganeh said “a general quota for OPEC with no country quota has no meaning.”
U.S. Stock Preview
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +2.3% with purchase sub-index +4.8% and refi sub-index +0.4%), (2) revised-May Markit U.S. manufacturing PMI (expected unrevised at 50.5, preliminary-May -0.3 to 50.5), (3) May ISM manufacturing index (expected -0.5 to 50.3, Apr -1.0 to 50.8), (4) Apr construction spending (expected +0.6%, Mar +0.3%), (5) Fed Beige Book, (6) May total vehicle sales (expected 17.30 million, Apr 17.32 million).
There are 4 of the Russell 1000 companies that report earnings today: Donaldson (consensus $0.39), Joy Global (-0.01), Cooper Cos (1.92), Broadcom (2.38).
U.S. IPO’s scheduled to price today: Sensus Healthcare (SRTSU).
Equity conferences during the remainder of this week include: Bank of America Merrill Lynch Global Technology Conference on Wed-Thu, Cowen and Company Technology, Media & Telecom Conference on Wed-Thu, RBC Capital Markets Consumer & Retail Conference on Wed-Thu, Bernstein Strategic Decisions Conference on Wed-Fri, Credit Suisse Engineering & Construction Conference on Thu, Keefe, Bruyette & Woods Asset Management Conference on Thu, American Society of Clinical Oncology (ASCO) Meeting on Fri.
Market Comments
June E-mini S&Ps (ESM16 -0.11%) this morning are down -1.50 points (-0.07%). Wednesday’s closes: S&P 500 +0.11%, Dow Jones +0.01%, Nasdaq -0.08%. The S&P 500 on Wednesday closed higher on the unexpected +0.5 point increase in the U.S. May ISM manufacturing index to 51.3 (stronger than expectations of -0.5 to 50.3) and the mostly upbeat Fed Beige Book that said the U.S. economy expanded at a “modest pace” across most of the country since mid-April. Stocks were undercut by the OECD’s cut its U.S. 2016 GDP estimate to +1.8% from its Feb estimate of +2.0%. Stocks were also undercut by global growth concerns after the German May Markit/BME manufacturing PMI was revised lower to 52.1 from 52.4 and the China May manufacturing PMI was unchanged at 50.1.
September 10-year T-note prices (ZNU16 +0.12%) this morning are up +3 ticks. Wednesday’s closes: TYU6 -4.50, FVU6 -4.75. Sep T-notes on Wednesday rallied to a 1-1/2 week high but fell back and closed lower. T-notes were undercut by the unexpected +0.5 point increase in the May ISM manufacturing index and by increased inflation concerns after the May ISM prices-paid sub-index rose +4.5 to a 4-3/4 year high of 63.5. T-notes were supported by the OECD’s cut in its U.S. 2016 GDP forecast to +1.8% from +2.0% and by carryover support from a rally in German bunds to a 2-week high.
The dollar index (DXY00 -0.16%) this morning is down -0.156 (-0.16%). EUR/USD (^EURUSD) is up +0.0011 (+0.10%) at a 1-week high. USD/JPY (^USDJPY) is down -0.59 (-0.54%) at a 2-week low. Wednesday’s closes: Dollar Index -0.436 (-0.45%), EUR/USD +0.0056 (+0.50%), USD/JPY -1.19 (-1.07%). The dollar index on Wednesday closed lower on the tumble in USD/JPY to a 1-1/2 week low after Japanese Prime Minister Abe said he will postpone an increase in Japan’s sales tax, which fueled speculation the BOJ will delay expanding stimulus. In addition, there was strength in EUR/USD after the OECD raised its Eurozone 2016 GDP forecast to +1.6% from +1.4%.
July WTI crude oil (CLN16 -0.24%) this morning is up +5 cents (+0.10%). July gasoline (RBN16 +0.98%) is up +0.0194 (+1.20%). Wednesday’s closes: CLN6 -0.09 (-0.18%), RBN6 +0.0019 (+0.12%). July crude oil and gasoline on Wednesday settled mixed. Crude oil prices were undercut by demand concerns after the OECD cut its U.S. 2016 GDP estimate to +1.8% from +2.0% and by expectations that OPEC members will be unable to agree on production cuts when the cartel meets on Thursday in Vienna. Crude oil prices found support on a weaker dollar and on expectations that Thursday’s weekly EIA data will show that U.S. crude oil inventories fell by -2.5 million bbl.