WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) – the “Berkshire Hathaway of Tech-Enabled Healthcare” – Could Be the Next Giant Healthtech Conglomerate

When Warren Buffett first bought Berkshire Hathaway in 1962, it was nothing more than a struggling textile mill.

Today, it is a $600+ billion conglomerate juggernaut,[1] owning businesses ranging from insurance and utilities to railroads and chemicals.

Berkshire’s journey from humble mill to giant conglomerate is incredible. Unfortunately, the Berkshire of today is far too huge to generate the kind of returns that can truly change individual investors’ lives.

It has become “just another” blue-chip stock – and one that some think has come in late or missed the boat entirely on many disruptive technologies.

But there’s one fast-growing company that is in a position to have a profound impact on investor returns. It has learned from companies like Berkshire, incorporating what is arguably Berkshire’s greatest strength – its operating structure

Where the holding company acts like a giant institutional investor, seeking out operating companies to invest in that can generate the highest ROI…

And letting these subsidiaries operate independently with minimal interference, while the holding company does what it does best – efficiently allocating capital.

But this company has learned from Berkshire’s mistakes – and even improved on its operating model.

What’s this company, you may ask? None other than WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF).

WELL firmly understands that technology is the future, and is committed to fully capitalizing on this wave

Plus, it is only focused on acquiring companies within the multi-trillion-dollar healthcare sector, which allows it to generate powerful value-boosting synergies among its acquisitions (something that Berkshire does not focus on due to its divergent scope of investments).

And its biggest investor? Multi-billionaire Sir Li Ka-Shing – ranked the 43rd richest person in the world with a networth of $34.6 billion[2] and nicknamed “Superman Li” for his business prowess.

That’s why it could be no exaggeration to say that…

WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) is the “Berkshire Hathaway of Tech-Enabled Healthcare” – and the Company Could Be on the Cusp of a Major Growth Spurt

Much like Berkshire started in the textile business, WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) began as a humble medical clinic operator.

And in just a few short years, it has grown to become a billion-dollar omni-channel company with 7 different healthcare business lines, including health clinics, electronic medical records (EMR), telehealth, digital apps, billing and cybersecurity…

WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) owns 27 primary healthcare clinics in North America – the largest network in BC and the third-largest in Canada…

It operates a multi-national EMR business including its OSCAR Pro EMR asset, which is the third-largest EMR service provider in Canada (a $26.1 billion global market that’s expected to hit $39.4 billion within 5 years[3])…

Its leading Canadian telehealth service conducts thousands of patient visits daily using its software.

All this was done through disciplined and accretive acquisitions, with shareholder dilution always being carefully managed.

And although its stock has shot up by 313% since 2020[4]

WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) Remains Substantially Undervalued Compared to Its Peers…

Even though…

Its EBITDA already turned positive in the fourth quarter of 2020, with a 53% revenue growth for the year

It’s just completed a major acquisition that would add approximately C$175 million in revenues and C$72 million in EBITDA to its earnings

WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) has 10 signed letters of intent that could add another C$100+ million to its annual revenues by the end of 2021

And it’s planning a US IPO by the end of the year.

CompanySymbolMarket Cap (USD)*Share Price (USD)*Revenue  (USD)EV/Sales
WELL HealthTSX:WELL OTC:WLYYF$991M$6.05$220M+**[5][6]5x
Veeva SystemsNYSE:VEEV$40.8B$268.29$1.1B[7]37.1x
Teladoc HealthNYSE:TDOC$29.0B$188.11$1.1B[8]26.6x
Oak Street HealthNYSE:OSH$14.1B$58.57$883M[9]16.0x
American WellNYSE:AMWL$4.1B$17.23$245M[10]16.7x
1Life HealthcareNASDAQ:ONEM$5.8B$42.49$380M[11]15.3x
Hims and HersNYSE:HIMS$2.3B$12.29$149M[12]15.7x

*Share Price and Market cap taken from Yahoo Finance on April 14, 2021

**This revenue figure is inclusive of the company’s recent (completed) acquisition of CRH Medical, estimated to be on a runrate basis based on consensus estimates.

When compared to others in the industry, WELL’s peer group trades at 10x to 20x revenue multiples, while WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) trades at an EV to sales multiple of just 5x.

This means that although the company is far from being a risky early-stage startup company…

It still has plenty of room to grow, particularly as it continues to ramp up its acquisitions…

Which could place WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) in the perfect risk-reward “sweet spot” for investors

But this window of opportunity may be closing, as analysts expect its valuations to increase to a range more in line with its peers once the US IPO happens.

8 Reasons WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) Could Be the Healthtech Play of the Future

  1. Multi-channel Capability: With healthcare clinics, EMR services, telehealth offerings, digital apps, and more, the company is truly multi-channel, multi-service, and omni-channel in nature – able to offer both in-person and digital solutions to patients, healthcare professionals, and clinics. This allows the company to not only benefit from all aspects of the healthcare industry, but also provides defensive diversification qualities.
  1. Track Record of Accretive Acquisitions: WELL Health (TSX: WELLOTC: WLYYF) has a solid track record of buying profit-generating companies that can continually add value to its bottom line – all with carefully-controlled shareholder dilution. For instance, due to its acquisition of CRH Health, it is expected to experience 120% accretion to revenue and 800% accretion to EBITDA on a per share basis. However, shareholder dilution was limited to a mere 17%.
  1. Value-Boosting Synergies Within Business Lines: Post-acquisition, the company also has multiple opportunities to add further value to its acquisitions via internal synergies within its business lines. For example, the company is planning to cross-sell its digital services to CRH Health’s network of over 3,000 Gastroenterologist physicians, which are currently generally digitally underserved.
  1. Rapid Acquisition and Growth Strategy: Within the first three months of 2021 alone, WELL Health (TSX: WELLOTC: WLYYF) has already announced six acquisitions – one of which is a major US player. The company also has another 10 signed letters of intent that could add C$100+ million to annual revenues. Further, recent acquisition CRH Medical is itself a proven M&A player with a track record of 32 acquisitions and over 500 active deal targets.
  1. Strong Investor Base: Multi-billionaire Li Ka-shing is a strategic investor in the company, among other institutional investors such as Manulife, CI Investments, Sentry Investments, Iconiq Capital, Fiera Capital, and the PenderFund Capital. Li Ka-shing and his partner personally led a C$302.5 million equity raise for the CRH Medical acquisition with their own investment of C$100M at an unprecedented 25% premium to market (based on the 5 day VWAP before announcement) – the additional C$202.5M came from the other institutional investors at the same premium.
  1. Well Funded With a Strong Balance Sheet: WELL Health (TSX: WELLOTC: WLYYF) boasts C$87 million in cash as at end-2020 – with zero debt. Only recently did the company take on some debt as part of the CRH Medical acquisition. However, even said debt facility was obtained at highly cost-effective rates of between 1.5% to 3.25% depending on leverage ratios.
  1. Future US IPO Listing: The company’s targeted US IPO in late 2021 will provide an additional cash infusion that it can use to turbocharge its acquisition strategy. Further, analysts also expect a US listing to push the company’s valuation upwards to a level more in line with its peers. WELL is grossly undervalued when compared against US comps.
  1. Proven Management Team with Skin in the Game: WELL Health’s (TSX: WELLOTC: WLYYF) management team are all veterans of Tio Networks, a multichannel bill payment processor that was acquired by PayPal for C$304 million in 2017.[13] They’re also all heavily invested in the company, with the CEO personally investing approximately C$6 million in company stock – and never having sold a single share or taken a dollar of cash as salary thus far.

With all these factors in its favor, WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) is…

Well-Positioned to Capitalize on the Massive Digital Transformation Wave Sweeping Through the Healthcare Industry

The health crisis has accelerated digital transformation in all areas, and healthcare is no exception.

For proof of this, look no further than telehealth.

In 2019, research firm Fortune Business Insights[14] estimated the size of the global telehealth market at “only” $61.4 billion…

By 2027, it expects that number to hit $559.5 billion, a compound annual growth rate of over 25%. That’s an astounding growth rate that shows just how big the digital transformation opportunity in healthcare is.

Because although telehealth could soon be worth hundreds of billions, it’s still just one part of the larger digital transformation opportunity…

And WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) is strongly positioned to benefit from all aspects of this opportunity thanks to its multi-pronged approach to healthcare tech.

Beyond that, each new acquisition generates incremental opportunities for its existing subsidiaries, meaning the whole is truly greater than the sum of its parts.

Just like how…

WELL’s (TSX: WELLOTC: WLYYF) Recent Acquisition of CRH Medical Could Soon Turn the Company into a North American Digital Health Powerhouse

CRH Medical is a major player in the US gastroenterology (GI) market, with 72 GI ambulatory service centers, 411 GI providers, and over 3,200 GI providers trained to use its products and services.

This alone is already enough to generate over C$175 million in annual revenues, with an incredible 26% free cash flow margin.

Yet as investment bank Eight Capital said in a recent research report[15]

“CRH’s +72 clinic footprint remains digitally underpenetrated, providing a greenfield opportunity for cross-sell. We expect the introduction of a telehealth offering to optimize consumer reach and patient in- and outflow. Plans for the development of a GI-focused app will expand CRH’s reach, increase traffic to clinics, and push product sales.”

In other words, the additional C$175+ million in revenues – not to mention C$72 million in EBITDA and C$45 million in free cash flow – is just the beginning of CRH Medical’s potential

Because once WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) integrates its digital health offerings with CRH Medical, it could be well on its way toward becoming the next North American digital health powerhouse.

Not to mention that CRH Medical is itself planning to swiftly expand its network and offerings through acquisitions (it has 500 active deal targets in its pipeline)…

Meaning the cross-sell synergies will have a powerful multiplier effect even years down the line.

The best part? All this was done with only a 17% shareholder dilution for Well Health’s (TSX: WELLOTC: WLYYF) shareholders.

It’s all thanks to the support of the company’s strong investor base, who were all too happy to put in their money at a 25% market premium (investors in this round included every member of its board and most of its management team, including the CEO and CFO of the company)…

Because they realized that the CRH Medical acquisition puts WELL Health in a great position for a US listing…

A powerful catalyst that is widely expected to drive its valuations up toward the ranges offered by its peers.

But while much focus has been (rightfully) given toward the company’s CRH Medical acquisition…

WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) Has Been Steadily Conquering the Digital Healthcare Industry, One Acquisition at a Time

WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) is a diversified healthtech conglomerate that is rapidly making inroads in all aspects of digital health…

Just look at all of its businesses that it already has:

Like the $26.1 billion EMR market, an industry that is quickly growing as clinics scramble to digitize…

Because EMR is the “enterprise backbone” of a clinic, a system that manages everything from the backend database to the frontend point of sale…

Meaning clinics are unlikely to be able to remain competitive in the modern healthcare market for long without an EMR system.

WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) is already the third-largest player in Canada for EMR…

Its main EMR offering – OSCAR Pro – is also open source, giving it greater versatility compared to its competitors. It has been a market share taker in Canada because of its strong interoperability with a large community of third-party app developers.

The company is also quickly adding to its EMR business line with other acquisitions, such as IntraHealth, an enterprise class EMR vendor with customers in Canada, Australia and New Zealand.

Meanwhile, it’s also transitioning clinics owned by newly-acquired subsidiaries over to its EMR platform – showing just how easily the company can generate internal synergies.

Another example is its acquisition of Silicon Valley – and Y Combinator-backed – company Circle Medical.

WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) completed a majority stake investment in Circle Medical in November 2020.

Yet in the past four months, Circle Medical’s revenues have nearly doubled

This highlights Well Health’s (TSX: WELLOTC: WLYYF) specialty – strategically allocating capital to undervalued companies that are usually on the cusp of greater growth, which makes the company…

A Fast-Growing, Diversified, and Undervalued Healthtech Play With Multiple Catalysts on the Horizon

Investors looking to invest in the digital transformation that is happening in the trillion-dollar healthcare industry face a common dilemma…

The industry is so vast, with so many different sub-sectors (both B2B and B2C) that they may not even know where to start.

Even if they did know about the various sub-sectors, they would need to invest in many different companies to have a truly holistic and diversified exposure…

Or, they could choose to invest in the large multi-billion dollar health conglomerates – where most of the major returns have already been snatched up years ago by early investors.

WELL Health Technologies Corp. (TSX:WELL) could be the answer to that dilemma…

It offers investors:

  • Diversified exposure to the entire tech-enabled healthcare market with a single investment…
  • Strong near-term growth opportunities thanks to multiple catalysts on the horizon – such as its expansion into the US from its CRH Medical acquisition plus its planned US IPO, as well as its 10 pending signed LOIs…
  • Long-term value from disciplined and accretive acquisitions that also benefit from internal synergies…

All at a price that analysts consider substantially undervalued.

So, instead of spending all that time and effort untangling the complex web that is healthtech, just to find a company that may or may not pan out…

Why not look at a company whose sole specialty is finding undervalued profit-generating companies across the entire healthtech spectrum, and then consolidating and modernizing them to create even more value?

In other words, why not let WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) do the work for you?

There’s a reason the company was recognized as a TSX Venture 50 company for three years in a row[16]

Plus, its management team’s track record speaks for itself.

WELL Health Technologies Corp.’s (TSX: WELLOTC: WLYYF) Has a Management Team Consisting of Nothing but Proven Veterans

Hamed Shahbazi – Chairman & CEO

With over 20 years as a technology-focused operator, Shahbazi has a razor-sharp understanding of the intricacies of identifying opportunities and generating value in the sector. He was the founder of TIO Networks, originally a kiosk solution provider before Shahbazi transitioned it into a multichannel payment solution provider specializing in bill payments and other financial services. As a result, the company was acquired by PayPal in 2017 for C$304 million.

Shahbazi has extensive experience in strategic mergers, acquisitions, and divestitures, both as an operator and board member, with more than a dozen successful transactions. He is also the Lead Independent Director for mediatech company BBTV Corp, as well as the owner and operator of Impactreneur Capital Corp, which has over a dozen investments in leading digital content, ehealth, insurtech, and other technology inspired companies.

Dr. Michael Frankel – Chief Medical Officer

Dr. Frankel has 29 years of experience as a general practitioner in the Lower Mainland, giving him a wealth of experience in the medical industry. But more than just being a doctor, Dr. Frankel is also a healthcare investor and businessman, owning and operating a portfolio of successful primary healthcare facilities. This gives him a deep understanding of what healthcare facilities are lacking and how they can be improved – a crucial piece of WELL Health’s (TSX:WELL) strategy.

Eva Fong, FCCA, CPA, CGA – Chief Financial Officer

As the VP in charge of corporate strategy and M&A at TIO Networks, Fong intimately understands the full lifecycle of M&A transactions, from prospecting to integration and regulatory compliance management.

Her 25 years of experience includes Fortune 500 public company management, M&A, corporate strategy development, risk and compliance, and finance and business shared services programs. She’s held senior leadership positions in various high-tech sectors including PayPal, TIO Networks, SAP, and 360networks, where she led business units and built best-in-class corporate culture.

Amir Javidan – Chief Operations Officer

In his over 15 years of experience as a technology and operations executive, Javidan has been involved in two successful exits. Most recently, he was the SVP of Operations for TIO Networks, overseeing its C$304 million buyout by PayPal. Before that, he was at Avigilon, an integrated cloud and AI-powered solutions company, where he helped scale the business from a “stealth mode” startup to a public company worth over C$1 billion. He also helped take its revenue to over C$100M in five years.

RECAP: 10 Reasons Investors Should Seriously Consider Adding WELL Health Technologies Corp. (TSX: WELLOTC: WLYYF) to Their Portfolios

  1. It is a multi-channel, multi-product healthtech conglomerate that has the capability to benefit from multiple areas of the industry
  1. A proven track record of accretive acquisitions of profit-generating businesses – all with carefully controlled dilution
  1. Internal synergies from cross-selling can further boost the value of its acquisitions
  1. Rapid acquisition and growth strategy gives it strong potential in a lucrative industry
  1. Significantly undervalued compared to its peers; for example, its peer group trades at 10x to 20x revenue multiples, while WELL trades at 5x EV to Sales multiple.
  1. Planned US IPO listing is widely expected to bring its valuations to a range more in line with its peers
  1. Strong investor base including multi-billionaire Li Ka Shing plus other institutional investors, all of whom have shown willingness to pump in capital to support acquisitions
  1. Proven management team with skin in the game that have executed successful M&As and exits
  1. Multiple business lines within the healthtech industry provides defensiveness plus a hybrid physical-virtual competitive moat
  1.  Already a significant player within multiple lucrative business lines (such as EMR and telehealth) but with plenty of room to grow remaining

SOURCES:

[1] https://finance.yahoo.com/quote/BRK-A?p=BRK-A&.tsrc=fin-srch (15 Apr 2021)

[2] https://www.forbes.com/profile/li-ka-shing/?sh=38d286ff523f

[3] https://www.pharmiweb.com/press-release/2020-12-15/electronic-medical-records-emr-market-2020-size-and-growth-factors-study-and-estimate-4medica-a

[4] https://finance.yahoo.com/quote/WELL.TO?p=WELL.TO&.tsrc=fin-srch (from Jan 1 2020 to Apr 15 2021)

[5] https://www.newswire.ca/news-releases/well-health-achieves-record-revenue-and-positive-adjusted-ebitda-in-q4-2020-driven-by-400-yoy-growth-of-software-and-services-revenue-861878058.html

[6] https://www.newswire.ca/news-releases/crh-medical-corporation-announces-2020-fourth-quarter-and-year-end-results-825729519.html

[7] https://ir.veeva.com/investors/news-and-events/latest-news/press-release-details/2020/Veeva-Announces-Fiscal-2020-Fourth-Quarter-and-Fiscal-Year-2020-Results/default.aspx

[8] https://www.mobihealthnews.com/news/teladoc-health-outlines-year-knockout-growth-q4-2020-earnings-call

[9] https://www.businesswire.com/news/home/20210309005989/en/Oak-Street-Health-Reports-Fourth-Quarter-2020-Financial-Results

[10] https://www.fool.com/earnings/call-transcripts/2021/03/25/american-well-corporation-amwl-q4-2020-earnings-ca/

[11] https://www.globenewswire.com/news-release/2021/02/25/2182928/0/en/One-Medical-Announces-Results-for-Fourth-Quarter-and-Full-Year-2020.html

[12] https://www.businesswire.com/news/home/20210318005928/en/Hims-Hers-Health-Inc.-Reports-Fourth-Quarter-and-Full-Year-2020-Financial-Results

[13] https://www.businesswire.com/news/home/20170718005456/en/PayPal-Completes-Acquisition-of-TIO-Networks

[14] https://www.fortunebusinessinsights.com/industry-reports/telehealth-market-101065

[15] Title “WELL accelerates scale in NA with CRH; US IPO on deck”, dated Feb 18, 2021

[16] https://www.well.company/for-investors/news-releases/well-health-recognized-as-a-tsx-venture-50–company-for-the-third-year-in-a-row


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There are two types of healthcare companies that stand out as the biggest potential winners of 2021: companies that are able to produce a widely used vaccine or treatment for certain virus’, and resilient firms that held tough through the worst of 2020 and can benefit from a gradual return to normalcy.

Healthcare technology, commonly referred to as “healthtech,” refers to the use of technologies developed for the purpose of improving any and all aspects of the healthcare system. From telehealth to robotic-assisted surgery, our guide will walk you through what it is and how it’s being used. 

Healthcare technology refers to any IT tools or software designed to boost hospital and administrative productivity, give new insights into medicines and treatments, or improve the overall quality of care provided. Today’s healthcare industry is a $2 trillion behemoth at a crossroads. Currently being weighed down by crushing costs and red tape, the industry is looking for ways to improve in nearly every imaginable area. That’s where healthtech comes in. Tech-infused tools are being integrated into every step of our healthcare experience to counteract two key trouble spots: quality and efficiency.

The way we purchase healthcare is becoming more accessible to a wider group of people through the insurance technology industry, sometimes called “insurtech.” Patient waiting times are declining and hospitals are more efficiently staffed thanks to artificial intelligence and predictive analytics. Even surgical procedures and recovery times are being reduced thanks to ultra-precise robots that assist in surgeries and make some procedures less evasive.

This is a very broad sector that can go in many directions, for more information on this sector please enter your email address in the box provided on this page and we will be more than happy to let you know when more information becomes available.

One thing constant in this world is change. There are changes in every aspect of daily existence with new technological breakthroughs and advancements in knowledge every day. One of the industries that face many changes is biotechnology with constant research, tech improvements, and scientific discoveries. Imagine in the past century, babies born prematurely don’t have a fighting chance. But because of new knowledge and advancements in machines, babies as young as twenty-four weeks survive in high-tech NICUs (neonatal intensive care units) around the world.

In this field, all businesses, research institutions, and organizations that deal with the improvement of the quality of life of all organisms are taken into account. In terms of human health, this includes an understanding of diseases so mankind can benefit from the studies and research and fight against these health pandemics. Here are some of the top ten trends in biotechnology that the world should expect to see in the forthcoming 2021:

1. The Production of Personalized Medicine Thanks to Advancements in Genetics

With the research industry becoming more expansive, many scientists and field experts discover a lot of things discover conditions that are inherited because of genetics. The implications of these are healthcare can be more personalized and customized based on human DNA and some other genome characteristics. This paves the way for the production of a more personal kind of medicine, including procedural healthcare requirements.

2. The Collaboration Amongst the Innovation Discoveries of Life Sciences Companies

The areas studying the life sciences are continuously developing and evolving. Its collaborative nature also means that its discoveries are dependent on past and present learnings. In 2021, biotech companies are expected to join forces and collaborate with other healthcare-related science organizations, so they can all together push the industry and aim for better results.

To illustrate, this can be seen in the collaboration efforts of four biotech companies in May 2019. The four lab giants called Arzeda, Twist Bioscience, Labcyte, and TeselaGen have set up a partnership to create their own state-of-the-art assembly platform for the DNA. Their primary objective for this endeavor was to craft food products such as sweeteners and other industry essentials. Their discoveries set forth to reduce the necessity to harvest or mine DNA supplies because they can now construct them from their laboratories.

3. The Developments and Improvements in Drug Research

In 2021, one of the continuing trends in biotech is the continued improvement and development of drug research. The advent of smart technology will continue to allow the possibility of improving and assessing diagnosis and treatment using medications. Think along the lines of telehealth, where technology is leveraged to bridge time and space so patients no longer have to leave the comforts of their own home to get a thorough check-up.

There will be a boost in the integration of assessment devices that will incorporate various methods like MRI scans, lab equipment, and in-patient monitoring in their management tools for better patient care. Because of this multi-method approach, doctors can combine the necessary data and provide a more accurate diagnosis and better treatment path for their patients. Because of these high-tech assessment mechanisms, they can now rely on more objective data.

4. A Boost in the Volume of Research in the Field

With advancements in biotech, many researchers can now focus on many different life sciences fields that can improve quality of life, such as precision surgery, immunotherapy, and genetics.

To illustrate, in the aspect of precision surgery, there has been a rise in the studies of robotics to improve surgical procedures and their corresponding surgical outcomes. Surgeons can now leverage AI or artificial intelligence tools to perform less invasive and more accurate surgical operations on their patients. On top of this, AI also offers better insight for doctors with regards to their chosen method of treatment.

5. An Increase in the Digital Assessment, Diagnosis, and Treatment of Patients

The transformation and evolution of the digital aspect of businesses have been around for centuries. All of these have set forth better access for consumers and more enhance marketing strategies for corporations. In 2021, there will definitely be an increase in the digitalization aspect of biotech through the possibility of online and remote assessment, diagnosis, and treatment of patients around the world.

To date, there are numerous physicians and healthcare practitioners that are accredited to continue their practice online. With companies like Virtual Health that provide wireless device assistants, virtual diagnostics are possible. Some general physicians can even prescribe medicines through their virtual clinics with their online database access via LiveHealth Online or Teladoc. Telepractice is now a developing and growing trend in the biotech world.

6. A More Value-Based Pricing of Biotech Products

There are more laws, regulations, and protocols that are passed to drive down the prices of these biotech products produced in pharmaceutical and nutraceutical laboratories. In fact, more and more companies are now showcasing real live demos of their drug efficacy. The reason for this is so the consumers can get a first-hand glimpse of the real value of these products. Doing this can actually dampen the cost of medicine; at the same time, it provides valuable evidence to the key consumers of the products.

7. More Data Management and Integration Through Cloud

Back in the beginning, data management in this area was difficult to collate, organize and interpret. But because of the new development of cloud management, it is much easier to store and handle the volume of information produced in laboratories. Now, data management professionals can organize this information, so biotech professionals can easily access, analyze, and interpret data.

8. An Improvement in the Approval Timeline of Various Drugs

In the past, critical medications were held for a long period because of the long approval process of the FDA or Food and Drug Administration. Thanks to technological advancements, government regulatory boards can now improve drug testing speed. They can do much better trials for their candidate patients, too.

A perfect illustration of this is the Real-Time Oncology Review (RTOR) pilot project that rally aims to accelerate the approval of drugs that are connected to the treatment of cancer.

9. Incorporate More Genetic Treatment

With the improvements in biotech, there will be an increase in using genetic information in the assessment, diagnosis, and treatment of illnesses, chronic diseases, and disorders. On top of that, genetic technology will help researchers and scientists identify genome sequences that can be used to predict illnesses, chronic diseases, and There will also be an increase in integrating genetic information in the assessment of chronic illnesses and treatment of disorders in both humans and animals.

Today, there are many experiments in the area of gene studies that could be used to potentially prevent the onset of diseases and other conditions that are inherited from the parents. These types of studies will continue to grow as more conditions are studied and seen to be of genetic origin.

10. More Intense Focus on Immune Cell Function

Immunity is one of the growing areas of study under the biotech branch of science because it has the power to prevent the spread of harmful diseases. Failure to address this could bring devastating results and even epidemics. Thus, there is an increase in the interest and study of the immune cell function so it can be noted what types of viruses and bacteria can be treated effectively. All of this has a big effect on the field of immunotherapy.

The above mentioned are the anticipated developments in the field of biotech as more funding and interest is granted in the research areas of technology, science, and healthcare. These improvements remind everyone that biotech is a critical part of society because it can improve lives and the welfare of people, as well as forthcoming generations.

Biotech Industry Stats and Growth Projections in 2021

1. There has been $428 billion dollars spent on meds.

This data goes to show how critical the pharma industry is when it comes to human health. Thus, policies should be implemented to lower costs without compromising efficacy so more can access them.

2. The nutraceutical division is an industry that still needs more scientific evidence.

Natural supplements abound, but they still lack proof and data to back up their claims. Scientists are needed to provide research in this category.

3. The environmental sciences sector needs public awareness and more innovations.

The issues regarding the environment are still a big problem, and biotech can have a hand in addressing this. Today, 14 billion pounds of trash is dumped into the oceans, and landfills are the main source of soil pollution. Scientific output regarding this sector must be increased to put a stop to this problem.

4. There are 1 in 6 global deaths caused by cancer.

It is sad, but cancer is a pervasive illness that has affected 16% of the population of the world. In order to take preventive measures, advancements in the area of biotech that studies this are necessary.

5. Ten percent of deaths around the globe are due to neurological disorders.

Breakthroughs in biotech like brain mapping can help improve outcomes.

6. There are many undiscovered areas in marine biology.

The deep-sea diving technology made it possible to discover marine life. However, there are still more areas of the vast ocean with its marine life that have remained untapped.

7. Genetech is credited for starting the modern biotechnology industry.

Genentech, now a subsidiary of Roche, started this industry in 1976. Their most notable discovery happened in 1978 when they genetically engineered human insulin.

8. Biotech can impact the economy and job growth.

The innovation within this field is forever evolving. Those governments that focus on this area notice an improvement in their economy and job growth. To illustrate, the state of Florida is able to support 83,000 heads under this industry.

9. The top pharma companies in the US are in New Jersey and Connecticut.

The top pharmaceutical companies within the top 10 ranks are Pfizer and Johnson & Johnson, located in Groton, Connecticut, and in New Brunswick, New Jersey, respectively.

10. Investors should be careful of fraudulent biotech startups.

Theranos’ CEO Elizabeth Holmes is now battling fraud charges for failed partnerships between other companies. Thus, it is critical to know the history of biotech companies and the efficacy of their products.

With so many companies coming to the front line during these trying times, we did a ton of research to find a company with the best structure, and more importantly, the strongest fundamentals with the most upside potential as an investment for you to look at.

Take a look at the company we’ve outlined below. It’s relatively unknown (at the moment), but that won’t last for long. This is a great example of one of those stories you hear about when that ‘guy’ bought a stock really cheap, and 6 months later was a millionaire, and for good reason!



We all agree we need a vaccine for the COVID-19 pandemic, but the current vaccines still require people to wear masks, social distance and big-pharma still doesn’t really know if even after you take their vaccine, if you can pass the virus on, and/or get it again.

We believe this company is about to change that landscape, forever!

Emerging Biotech developer BioVaxys Technology Corp. (CSE: BIOV, OTC: BVAXF) is making headlines by offering a potentially exceptional entry point with its unique, patented assets.


MOST RECENT NEWS: BioVaxys Bioproduction Partner WuXi Biologics Completes Synthesis Of Recombinant SARS-CoV-2 s-proteins for BVX-0320 and CoviDTH Programs


Prior to 2020, majority of the population only had a passing interest in vaccines and their development. But after a year or more of ongoing lockdowns, hysteria, and confusion, many have dug deeper into the potential for vaccines to get us out of this mess.

We’ve seen medical miracles take place, including the results of Operation Warp Speed, which helped to significantly reduce the preparation and testing time of multiple vaccines designed to attack the SarsCov2 virus.

Now the topic of vaccines is dominating discussions around the world, in terms of their availability, efficacy, costs, and side effects.

And while much of the attention is still being given towards the COVID-19 battle, other MAJOR developments are being made in other illnesses that have until more recently baffled researchers. It’s almost as though our war against COVID-19 has unlocked all types of potential treatments, that only years ago would’ve been shuffled off into the realm of science fiction.

In some regards, it’s been said that “we had the vaccine the whole time”.

Now, under “emergency use” designations, Operation Warp Speed is lending itself to allowing researchers to conduct clinical trials simultaneously, rather than sequentially.[1]

The result has been an exceptional year of new vaccines and therapeutics being delivered, including many for ailments that have plagued humanity for much, much longer than the current crisis has.

A new development gaining headlines is a therapeutic vaccine—meaning it can be used a treatment for those who are already ill—that’s believed could significantly extend lives.[2]

And its primary target is for ovarian cancer, of which 21,410 women will be projected to receive a new diagnosis in 2021, while approximately 13,770 will die from it.[3]

It’s a deadly serious cancer, especially because it’s often not spotted until far too late when tumours have spread to the rest of the body.

At its core, this treatment is built upon over $100 million in prior R&D investment, and a proven technology—a haptenized cell vaccine.

The technology is incredibly versatile, and is now being developed out by a single company with the team to back it up.

Now after some promising testing results in Europe begin to roll in, and with an emergency use application being prepared for the US FDA for a major breakthrough diagnostic approach to COVID-19, this company has multiple assets worth getting excited over.

Excitement over these forms treatment is coming from a single relatively small cap biotech company with a growing portfolio of very promising assets, including a COVID-19 vaccine, therapeutic vaccines for ovarian cancer and HPV, as well as a potential breakthrough diagnostic platform designed to identify COVID-19 T-cell immunity.

Big things are coming, from a company that’s still very small… for now.


Meet the Up-and-Coming Developer Behind This Platform: BioVaxys Technology Corp.

Vancouver-based BioVaxys Technology Corp. (CSE: BIOV, OTC: BVAXF) is an early stage biotech company that’s developing viral and oncology vaccine platforms, as well as immuno-diagnostics.

Among these developments, BioVaxys is advancing multiple breakthrough vaccines based on its unique, patented haptenized viral protein technology, including vaccines for both SARS-CoV-2 and ovarian cancer.

At the core of these platforms is a haptenized technology approach, with its SARS-CoV-2 vaccine based upon a haptenized viral protein technology, and an anti-cancer vaccine using a haptenized autologous cell vaccine, initially developed for ovarian cancer.

Also in development is a diagnostic for evaluating the presence or absence of a T cell immune response to SARS-CoV-2, the virus that causes COVID-19. 

BioVaxys (CSE: BIOV, OTC: BVAXF) has two issued US patents and two patent applications related to its cancer vaccine, and pending patent applications for its SARS-CoV-2 (Covid-19) vaccine and diagnostic technologies.

What the company is proposing is a new and different approach than other RNA-based vaccine solutions. To those paying closer attention to the space, BioVaxys is certain that they’re on route to multiple big breakthroughs to come.

What is the “New” Haptenization Platform?

BioVaxys’ approach is based on the established immunological concept that modifying proteins— whether they are viral or tumor antigens—with simple chemicals, called haptens, makes them more visible to the immune system.

The process of haptenization “teaches” a patient’s immune system to recognize and make target proteins more “visible” as foreign, thereby stimulating an immune response. This idea has a long history, beginning with the work of the immunologist and Nobel laureate Karl Landsteiner, who showed in animal models that attaching a small chemical (a hapten) to a protein allowed that protein to be recognized by the immune system even if the animals were originally unresponsive to the protein.

A Proven Platform Used in Ovarian Cancer Trials

BVX-0918A is BioVaxys’ lead haptenized tumor cell vaccine for ovarian cancer.  Their cancer vaccine is created by extracting a patient’s own (e.g. ‘autologous’) cancer cells, chemically treating them with a hapten, and re-injecting them into the patient to induce an immune response to proteins which are otherwise not immunogenic. 

Haptenization as an immunotherapeutic approach in cancer treatment has been evaluated in both regional and disseminated metastatic tumors. A first-generation single-hapten vaccine achieved positive immunological and clinical results in Phase I/II trials.  And so BioVaxys has enhanced this original vaccine approach to now utilize two haptens (“bihaptenization”), which they believe will yield superior results. They also plan to combine the use of their vaccine with anti-CTLA4 and anti-PDA checkpoint antibodies.

Now they’ve secured a partnership with leading privately-held European pharmaceutical company, Procare Health, in Spain to jointly conduct a Phase 1 Clinical Study of BVX-0918A.


“Survival was two to three times what one would expect [in women with advanced ovarian cancer]. There were a couple with five-year survival. “

– Dr. David Berd, Founder & Chief Medical Officer of BioVaxys


As per the terms of the partnership, BioVaxys Technology Corp. (CSE: BIOV, OTC: BVAXF) will be responsible for the core technology and vaccine production, with Procare Health overseeing and making an in-kind investment in the clinical program and regulatory planning, CRO management, patient/clinical center recruitment, marketing, and opinion leader management.

Already, the development of the treatment has garnered major headlines in the UK. It’s clear that with other therapeutic vaccines gaining headlines for their ongoing successes—including 4 years later—there is something big happening here.

Headline from the Daily Mail

Joining the Fight Against Sars-CoV-2

BioVaxys’ lead vaccine candidate in preclinical development for SARS-CoV-2 is BVX-0320, a haptenized s-Spike protein which is critical to the virus’ ability to bind to and enter human cells.

Already, the company has witnessed that BVX-0320 elicits a neutralizing antibody response against SARS-CoV-2, as evidenced by further analysis of sera samples from a preclinical animal study of its haptenized viral protein vaccine technology.

Under a BioVaxys-sponsored research collaboration with The Ohio State University (“OSU”) Wexner School of Medicine, OSU researchers observed in a pooled sample that BVX-0320 elicited the production of neutralizing antibodies to SARS-CoV-2. It’s worth noting that OSU is one of the few institutions that has the laboratory capability to study live SARS-CoV-2 virus.

BioVaxys’ antiviral approach entails haptenizing those SARS-CoV-2 viral proteins that are critical to the ability of the virus to bind to and enter human cells. BioVaxys intends to haptenize the S protein or one of its subunits, and evaluate immunogenicity, with the intent of using prior safety and toxicity data of similar haptens from its prior/concurrent autologous cell cancer vaccine program.

Studies have demonstrated that patients recovering from SARS-CoV-2 infection carried helper T-cells that recognized the SARS-CoV-2 S-spike protein, and virus-specific killer T-cells were detected in 70% of the test subjects. As haptenized proteins are known to induce potent T cell responses, the BioVaxys approach could have an advantage over other developing SARS-Cov-2 vaccines.

Upon successful completion of this preclinical phase, BioVaxys plans to take further steps to pursue regulatory approval for a study of its SARS-CoV-2 vaccine in humans.

Preclinical animal studies have already delivered a 96.4% positive antibody immune response from an In Vivo Murine Model Study.

In addition to the vaccine candidate, BioVaxys has also filed a patent application for novel Covid-19 diagnostic for T-cell immunity. As well, the US Food and Drug Administration has tentatively agreed to permit that BioVaxys can file for pre-Emergency Use Authorization for the technology, called Covid-Ttm.

The BioVaxys method is based on measuring an immune response in a human showing no signs or symptoms of an active SARS-CoV-2 infection by administering a skin test of a subunit of the SARS-CoV-2 S-protein.

If ultimately successful, the diagnostic is intended to provide a low-cost, easy-to-administer, and accurate way to test for the presence of T-cells against SARS-CoV-2. Currently, the available methods of measuring T-cell immunity require a blood draw from the test subject followed by the time-consuming and expensive analysis of the blood sample at specialized laboratories.

BioVaxys’ CEO, James Passin stated, “We are thrilled to further develop and move our novel diagnostic for SARS-CoV-2 T-cell immunity towards commercialization. The mass availability of our low cost and easy-to-administer T-cell immunity diagnostic could help to complement antibody testing and various public health risk mitigation strategies.”

Using New Technology May Be the Exact Key That Unlocks the Door

Now that vaccines are being rolled out around the world, there still remains a need to develop additional vaccine options and solutions, not only for COVID-19, but for some of the world’s most dreaded cancers and afflictions.

BioVaxys has the background and experience in new biotechnology and already has ramped up its research in order to rapidly contribute to the search for effective haptenized vaccines.

BioVaxys Technology Corp. (CSE: BIOV, OTC: BVAXF) has worked intensively with a haptenization process to develop cancer treatments.

Using its haptenization knowledge, BioVaxys already has a patent application related to its SARS-CoV-2 vaccine technology.

BioVaxys Chief Medical Officer Dr. David Berd, has stated, “Given our positive experience with haptenized cancer vaccines, we are optimistic about the potential prospects for developing a haptenized SARS-CoV-2 protein vaccine, since viral proteins are foreign to the human immune system. We look forward to advancing our vaccine technology through the clinical approval process.”


Feature Company:

BioVaxys Technology Corp.
Trade Symbols: CSE: BIOV / OTC: BVAXF
Market Cap: ~$15 Million


Standing on the Shoulders of Giants

BioVaxys may be a relative newcomer in the biotech space, however their platform is the result of nearly a century of well-respected research and over $100 million invested into the concept that supports the platform developed by a legacy company.

The force behind the development is Dr. David Berd, Founder and Chief Medical Officer of BioVaxys. Berd is a medical oncologist with a lifelong record of clinical research in medical oncology and cancer immunotherapy. He cofounded cancer immunotherapy company AVAX Technologies, is the inventor of the cancer vaccines MVax™ and OVax™ and served as Chief Medical Officer 2005-2008. As National Director for Immunotherapy at Cancer Treatment Centers of America, Dr. Berd investigated the application of the AC vaccine to ovarian cancer.

Previously, Dr. Berd was Professor of Medicine at the renowned Thomas Jefferson University, where he conducted clinical research on melanoma immunotherapy for 20 years. Dr. Berd has published more than 85 original papers in numerous medical journals alongside dozens of editorials, reviews and abstracts and has ten issued patents dealing with cancer vaccines.

Berd is paired with an equally successful operations officer, Kenneth Kovan. Kovan is Founder, President and Chief Operating Officer of BioVaxys with over 30 years of experience in biopharmaceuticals commercial development. He is Corporate Licensing/M&A Partner with Horizon Discovery plc in the United Kingdom, a world leader in gene editing, and Managing Principal & Owner of BinghamHill Ventures, a lifesciences advisory practice that specializes in corporate development, technology licensing, and business planning.

Like Dr. Berd’s experience, Kovan’s professional background includes ties to Thomas Jefferson University in several years of technology transfer with Strategic Marketing with GSK, and Global New Product Development with Wyeth-Ayerst. Kovan also holds a US Patent for a synergistic infectious disease drug combination.

Facing the market is Founder and Chief Executive Officer James Passin, who is a former Fund Manager at FG2 Advisors, LLC, an affiliate of New York-based Firebird Management LLC. Passin has directed and managed over $155 million of equity and debt investment into biotech companies, including Avax Technologies Inc., one of the world’s first cellular immunotherapeutic vaccine companies. He’s currently a director for several public companies.

With experienced veterans like Berd, Kovan and Passin at the helm, BioVaxys is positioned to take advantage of the depth knowledge gained through proven research to pursue a vaccine and leverage its platform.


8 Solid Reasons to Look at BioVaxys Technology Corp. (CSE: BIOV, OTC: BVAXF)

  1. BioVaxys is applying a new platform to developing a COVID-19 vaccine based on legacy investment of $100+ million in research
  2. The company’s platform is very well established supported by a well-understood mechanism of action, and promising clinical data
  3. BioVaxys has patented its platform and controls all products that use their unique approach
  4. BioVaxys’ platform for haptenized treatment has equal promise in treating forms of cancer; this is no one trick pony
  5. BioVaxys has also filed a patent application for a novel diagnostic platform for detecting T-cell activity, and has been given tentative permission from the FDA to file for pre-Emergency Use Authorization.
  6. No single dominant player can guarantee that they will provide and safe an effective vaccine for COVID-19, leaving the field open for first movers
  7. Big pharma is already seeking collaborations with small biotechs to find solutions that can make their approaches more effective; BioVaxys could be a target
  8. The management team are leaders in the areas of biotechnology and vaccine development with lifetime careers in creating the breakthrough BioVaxys platform

The Editors
USA News Group

SOURCES

Sources

[1]https://nymag.com/intelligencer/2020/12/moderna-covid-19-vaccine-design.html

[2]https://www.dailymail.co.uk/news/article-9257503/New-ovarian-cancer-drug-women-years-life.html

[3]https://www.cancer.org/cancer/ovarian-cancer/about/key-statistics.html


DISCLAIMER

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Biotech Insider is a wholly owned subsidiary of Market IQ Media Group (“MIQ”). MIQ has been paid a fee for BioVaxys Technology Corp. advertising and digital media from the company directly. There may be 3rd parties who may have shares of BioVaxys Technology Corp. and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of BioVaxys Technology Corp. which were purchased in the open market and through a private placement with the company. MIQ reserves the right to buy and sell shares of BioVaxys Technology Corp. in the open market and/or through other investment vehicles, and will buy and sell shares of BioVaxys Technology Corp. commencing immediately without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, we currently own shares of BioVaxys Technology Corp. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Weekly Market Review – October 10, 2020

Stock Markets

Stocks climbed last week, with the S&P 500 recording the best weekly gain since early July, while long-term government yields rose to a four-month high. The driver behind the equity-market strength was the anticipation that another stimulus package will eventually be passed despite the shaky negotiations so far. The White House increased its fiscal stimulus offer to $1.8 trillion from $1.6 trillion, which partly bridges the gap but is still short of the $2.2 trillion package the House has already approved. Analysts believe a deal for further relief is likely, even if it ends up arriving after the election, as both sides agree on the need for more spending to offset the pandemic’s hit to incomes and certain industries.

US Economy

Two forces were in the driver’s seat last week: policy and politics. While it may be hard to tell the two apart, analysts think there are elements of each that pose particular implications for the market ahead. Analysts expect politics (election) to keep a hand on the wheel in coming weeks, while policy developments (specifically, fiscal and monetary stimulus) will be a more persistent driving force behind the economic recovery ahead.

Markets fluctuated widely last week as expectations for another round of financial aid for households and businesses bounced between doubtful and hopeful. Stock markets sold off as Washington negotiations over another round of fiscal relief broke down. Then the markets regained strength amid the prospects that smaller and more targeted aid packages could potentially find some agreement among policymakers, or that a more comprehensive bill may still be reachable.

Metals and Mining

Safe haven support sent the gold price higher this week as more cases of COVID-19 were reported in the White House, causing disruption in the market. A weaker US dollar also worked in the yellow metal’s favor, with investors looking to hedge against currency debasement and inflation. The other precious metals also benefited from the rally and were sitting in the green on Friday morning. The broader base metals sector performed positively too and edged higher throughout the week. After a brief dip to US$1,876.50 per ounce, gold was on track for a second consecutive week of gains. Renewed optimism that a US stimulus deal could be reached in the coming weeks pushed it higher.

Gold exchange-traded funds also continue to grow at a record-setting pace. They added US$60 billion (1,000 tonnes) worth of gold to their holdings from January to September, as per the World Gold Council. Silver also climbed higher this session, starting the period at US$23.95 per ounce and moving as high as US$24.70 on Friday morning. Having added as much as 37 percent to its January start price of US$18.02, silver is keeping pace with its sister metal, and according to many analysts it is bound to outperform the yellow metal. Platinum made a modest uptick mid-week but was subsequently pushed lower later on. Despite starting the period at US$881 per ounce, the metal edged as high as US$893 before shedding those gains. By the end of the week, platinum was back in territory seen on Monday). On Friday, platinum was trading for US$880. Palladium registered the largest gain this week, climbing from US$2,250 per ounce on Monday to a six-month high of US$2,384. The 5.9 percent uptick marks one of the metal’s best weekly performances since January. Since the start of the year, palladium has risen more than 18 percent, but is still well off its year-to-date high of US$2,614, seen in February. On Friday, palladium was selling for US$2,368.

As mentioned, the base metals were able to edge higher this week, with nickel making the most significant gains. Starting the session at US$14,360 per tonne, the metal added 2.2 percent to its value to sit at US$14,687. The value increase was attributed to the return of Chinese business and deals following a week-long national holiday. Nickel was holding in the US$14,687 range on Friday. Copper ended the five-day session in the green. The red metal surged higher mid-week, going from US$6,509 per tonne on Tuesday (October 6) to US$6,611.50 by Thursday. Since hitting a year-to-date high in September, copper has shed some of it gains. Despite the losses, it still remains well above its year-to-date low of US$4,617.50, seen on March 23. Copper was selling for US$6,611.50 on Friday. Zinc was able to pull out a modest gain for the week, edging from US$2,298 per tonne to US$2,356. Despite the broad gains benefiting the sector, analysts are awaiting some clarity when a report from the Chinese congress is released later this month. Lead ended the week slightly higher, reversing three weeks of losses. While the metal squeaked out a small gain, it is still well short of the US$2,000 per tonne value it attained earlier in the year. Lead ended the week at US$1,779.

Energy and Oil

Oil prices have posted strong gains this week, although opened trading on Friday slightly down. WTI was trading at $41 and Brent was close to $43, putting crude close to a 10 percent gain from last week. Saudi Aramco said it intends to increase oil production in the years ahead in an attempt to monetize its oil reserves with an eye on peak demand. Even in a world of lower oil prices, Saudi Arabia has some of the lowest production costs in the world, allowing it to undercut the competition. Aramco is aiming to increase its production capacity to 13 mb/d from 12 mb/d currently.  The oil market has already priced in the slowing global demand recovery and the growing uncertainties about the economy amid resurging coronavirus cases in many parts of the world. Analysts largely concur that oil prices are not expected to move much higher than current levels of around $40 a barrel until the rest of the year, but neither are they likely to fall much as bearish factors have been priced in.

Natural gas spot prices rose at most locations this week. The Henry Hub spot price rose from $1.63 per million British thermal units (MMBtu) last week to $2.03/MMBtu this week.

At the New York Mercantile Exchange (Nymex), the price of the November 2020 contract increased 8¢, from $2.527/MMBtu last week to $2.606/MMBtu this week. The price of the 12-month strip averaging November 2020 through October 2021 futures contracts climbed 2¢/MMBtu to $2.919/MMBtu.

World Markets

European shares rose on hopes that the U.S. government would pass additional measures to stimulate the economy. In local currency terms, the pan-European STOXX Europe 600 Index ended the week 2.11% higher, while Germany’s DAX Index rose 2.85%, France’s CAC 40 advanced 2.53%, and Italy’s FTSE MIB added 2.79%. The UK’s FTSE 100 Index climbed 1.94%.

Brussels shuttered cafes, beer halls, drinking establishments, and tea rooms for a month as part of a lockdown to counter soaring coronavirus infections and hospital admissions. COVID-19 cases continued to rise sharply in Spain, Italy, France, and the UK despite targeted measures to control the disease’s spread. Fatalities and hospital admissions rose in the UK, where the government was poised to close pubs and restaurants in northern England as the increase in cases threatened to overwhelm the health care system. France is ready to place more cities on maximum alert after the daily case count rose above 18,000 for a second consecutive day. Spanish Prime Minister Pedro Sanchez is considering whether to declare a state of emergency in the Madrid region, after the regional High Court ruled against the central government’s latest measures to restrict people’s movement, Spanish newspaper El Pais reported.

China’s stock markets rose Friday after being closed from October 1 to 8 for the national Golden Week holiday. The Shanghai Composite A-share Index rose 1.7% and the large-cap CSI 300 Index gained 2.0%. Bonds sold off after the People’s Bank of China (PBOC) set out to drain a net RMB 560 billion of liquidity from money markets via open market operations. The yield on China’s 10-year sovereign bond increased 4 basis points to 3.21%.

The PBOC’s more hawkish stance, along with the relatively higher yields on Chinese bonds, added to the carry appeal of the renminbi over other currencies. The U.S. dollar/renminbi exchange rate rose 1.3% on Friday to close at 6.702. The dollar’s relative weakness against other Asian currencies has reduced concerns that the renminbi has become stretched. However, many analysts believe that the PBOC wants to support the currency ahead of U.S. elections in early November, which is expected to spur heightened volatility in foreign exchange markets.

The Week Ahead

Economic data being released include inflation on Tuesday and retail sales and consumer sentiment on Friday.

Key Topics to Watch
                       

  • NFIB small-business index
  • Consumer price index
  • Core CPI                                 
  • Producer price index
  • Initial jobless claims (regular state program, SA)
  • Initial jobless claims (federal & state, NSA)
  • Continuing jobless claims (regular state program, SA)
  • Continuing jobless claims (federal & state, NSA)
  • Philly Fed index
  • Empire State index
  • Import price index
  • Retail sales
  • Retail sales ex-autos
  • Industrial production index
  • Capacity utilization
  • Consumer sentiment index
  • Business inventories

Market Summary

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Netflix Inc. stock rises Tuesday, still underperforms market

Shares of Netflix Inc. NFLX, +0.78% inched 0.78% higher to $491.17 Tuesday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.05% rising 1.05% to 3,315.57 and the Dow Jones Industrial Average DJIA, +0.51% rising 0.52% to 27,288.18. This was the stock’s second consecutive day of gains. Netflix Inc. closed $84.20 below its 52-week high ($575.37), which the company achieved on July 13th.

The Best Way To Pick The Next Big Stock

When considering valuation metrics, price-to-earnings ratio has always been the obvious choice. This is because calculations based on earnings are easy and come in handy. However, price-to-sales has emerged as a convenient tool to determine the value of stocks that are incurring losses or are in an early cycle of development, generating meager or no profits.

While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales could indicate the hidden strength of its business. This underrated ratio is also used to identify a recovery situation or ensure that a company’s growth is not overvalued.

A stock’s price-to-sales ratio reflects how much investors are paying for each dollar of revenues generated by a company.

If the price-to-sales ratio is 1, it means that investors are paying $1 for every $1 of revenues generated by the company. So, it goes without saying that a stock with a price-to-sales below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.  

Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.

Price-to-sales is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.

However, one should keep in mind that a company with high debt and low price-to-sales is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, rise in market cap and ultimately a higher price-to-sales ratio.

In any case, the price-to-sales ratio used in isolation cannot do the trick. One should also analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.

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Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Biotech Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). Individuals are strongly encouraged to not use this publication as the basis for any investment decision.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in any of our reports is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

QuestCap Inc. – The Social Impact Investment Company Targeting Pandemic Response Technologies and Therapies

QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) is an investment issuer listed on the Canadian Securities Exchange dedicated to acquiring equity, debt, or other securities of publicly traded or private companies. It provides financing in exchange for pre-determined royalties or distributions, or for the acquisition of all or part of one or more businesses, portfolios, or other assets.

QuestCap bills itself as a social impact investment focused company.[1] “Impact investing” is a strategy through which investors aim to make a positive societal impact in addition to financial gains.

According to a report from the Global Impact Investing Network, published in April 2019, the global size of the impact investing market at that time exceeded half a trillion dollars.[2] More than half (58%) of the funds invested are from the United States and Canada.

Now, here’s where things get really interesting from an investment point of view:

QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) is composed of three divisions: MedQuest, ClimateQuest, and TechQuest.[3] It is currently focused on developing MedQuest, which invests in near-market technology and therapies to combat the current global health crisis. Reports indicate that, as the pandemic stretches on, more funds will flow into the impact investing sector.[4] [5]

Through MedQuest, the company is targeting three aspects of the pandemic response: testing for the virus, assessing the evolution and biology of the pathogen to potentially source effective therapies, and regulating certain social institutions so as to expedite the post-crisis “restoration period.”[6]

Here are some investment highlights for QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1):

  1. Through a profit sharing agreement with More Than Just Rice Inc (“MTJR”), QuestCap will receive 40% of any profits earned by MTJR from IgG/IgM antibody test kit sales in North and South America.
  2. By acquiring 49% of Athletics and Health Solutions Inc., QuestCap will help implement the “Standard for Safe Sport” for the Division Mayor del Fútbol Colombiano. As a part of the program, QuestCap will earn profits by providing technical expertise and from the sale of MTJR’s tests.
  3. QuestCap will also receive royalties generated by any commercial product developed by Sinai Health Foundation related to the research done by the Lunenfeld-Tanenbaum Research Institute towards an alternate diagnostic test for SARS-CoV-2.
  4. In exchange for a $1 million investment, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) will receive a 3.5% royalty on any revenues earned from the commercialization of the research done by the Sunnybrook Translational Research Group for Emerging and Respiratory Viruses (SERV).
  5. QuestCap has also invested $1 million in order to acquire 40% of Amino Therapeutics Inc., which is working on a  “novel approach” to developing a drug candidate to address the global pandemic.
  6. The company’s management team includes Stan Bharti.  Bharti’s most successful project was Consolidated Thompson Iron Mines which began as a $1 million dollar exploration iron ore company which later sold to Cliffs Natural Resources for $4.9 billion in cash.[7] QuestCap’s advisory board also includes medical experts and broadcasting legend Larry King.

Rapid, Point-of-Care Serological Tests

On April 7, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) announced that it entered into a profit sharing agreement with MTJR to exclusively distribute, market, and sell IgG/IgM antibody tests in both North and South America.[8]

Through a small blood sample, these tests provide rapid, point-of-care results to identify individuals who may be infected with SARS-CoV-2, the virus behind the current pandemic. This is done by analyzing the patient’s blood for antibodies to COVID-19. All necessary components come included in the kits and the results are available  in 10 to 15 minutes.

“Highly sensitive and specific tests for antibodies … will likely be a component of an essential toolkit for understanding who might have immunity and to help inform health authorities on where we stand on controlling the worldwide outbreak.”

  • Dr. Lawrence Steinman, Member of the Board of Advisors for QuestCap

Though they haven’t been approved by the FDA, the regulatory body has permitted the distribution and marketing of the tests in the US based on its public health emergency policy. They are already being sold and distributed in the European Union, certain Asian countries, and South Korea where their clinical effectiveness is being assessed.

QuestCap will help finance MTJR’s purchase of the antibody test for distribution in the Americas, and will receive 40% of any profits earned from the sale of these tests.

Mike McCarthy—former Senior Policy Advisor to the Minister of Health of Ontario and another Member of the Board of Advisors for QuestCap—says that the strategic partnership to distribute these antibody tests will help “our society return to a ‘new normal’.

“Standard for Safe Sport” Protocol

Despite the research being done to address the global crisis, it is far too early to begin reliably forecasting a return to normalcy, especially for large-scale social events like concerts, conventions, and sporting events.

In fact, according to Dean Winslow, an infectious-disease doctor at Stanford, the return of large spectator sports “may even have to be delayed a little bit longer” than most other forms of gathering.[9]

This, however, brings us to another key element of QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) impact investment portfolio.

On April 17, the company executed a share purchase agreement to acquire 49% of Athletics and Health Solutions Inc. Just days earlier, Athletics and Health Solutions itself signed an LOI with DIMAYOR—the organization responsible for operating professional football leagues and tournaments in Colombia—to restart football activities in that nation.[10]

A major part of this plan is the implementation of a “Standard for Safe Sport Medical Screening, Interpretation and Reporting” protocol. Created by Glenco Medical Corp.—whose CEO, Glenn Copeland, is a Special Advisor to QuestCap—the Standard for Safe Sport involves:

  • Extensive screening using antibody tests supplied by MTJR;
  • Self-assessment, self-reporting, and self-regulation on the part of all those involved in the league, including players, staff, and support personnel;
  • Collaboration with governing bodies;
  • Enforcement of medical recommendations and measures for recovery.

Through its previously discussed deal with MTJR, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) will receive 40% of any profits earned from the sale of the tests. The company expects this test will provide the confidence to return the players back to the field in a controlled ecosystem.

Another Potential Diagnostic Test

While QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) works to bring the IgG/IgM antibody tests to the American market, its investment is also enabling a team of researchers in Ontario to develop another potential diagnostic test.

Led by Dr. Anne-Claude Gingras, the team operates out of Lunenfeld-Tanenbaum Research Institute (LTRI), one of the world’s top biomedical research institutes. Their aim is to gain a better understanding of SARS-CoV-2 biology and evolution. This, they believe, could lead to the development of an alternative test to identify the virus.

On April 9, QuestCap—in partnership with Sinai Health Foundation—announced that it will provide $500,000 to advance the LTRI team’s efforts to develop commercial applications related to the team’s research.[11]

“We are committed to putting our capital to use where we can to aid in the fight against this global pandemic, and this investment illustrates how public and private enterprises can work together in this time of crisis.”

  • QuestCap Co-Chair, Stan Bharti

In exchange, the company will receive royalties generated by any commercial product developed by Sinai Health Foundation related to their research.

QuestCap Invests $1 Million to Establish Research Group For Emerging And Respiratory Viruses

QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) made one of its biggest moves at the beginning of April when it invested $1 million to establish the Sunnybrook Translational Research Group for Emerging and Respiratory Viruses (SERV).[12]

Led by infectious diseases physician and microbiologist Dr. Samira Mubareka—who, along with clinical microbiologist Dr. Robert Kozak and a team of close collaborators, were the first to isolate SARS-CoV-2,[13] the agent behind the ongoing global outbreak—SERV’s work will focus on three crucial streams of research:

  1. Virus Biology – this approach provides precision genomic data, which will be essential for outbreak investigation.
  2. Vaccines and Therapeutics – the SERV team will share its findings within the Canadian research and diagnostic community, thereby driving further innovative solutions to the pandemic.
  3. Transmission Prevention – SERV will also build a simulation space for live virus experiments to help evaluate the risks posed to healthcare workers

With the $1 million investment, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) will receive a 3.5% royalty on any revenues earned from the commercialization of the research done by SERV. The company believes that its investment can aid researchers in Canada and across the world in their efforts to develop better diagnostic testing, treatments, and vaccines.

“On behalf of Sunnybrook, I would like to extend my deepest thanks to QuestCap for stepping up with this inspiring investment. Your support will have a direct impact on the lives of countless people in our communities, across Canada and around the world.”

  • Dr. Andy Smith, Sunnybrook’s President and CEO.

As Dr. Mubareka herself explains, QuestCap’s investment will help optimize this “extremely time-sensitive research.” While no timeline for commercialization can be provided, the team will no doubt be working quickly as possible.

QuestCap Acquires 40% of  Life Science Company Developing Biologic Pharmaceuticals

Just a day after the Sunnybrook deal was announced, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) announced another major impact investment— a 40% stake in Amino Therapeutics Inc.[14]

Through its parent company, Exponential Genomics Inc., Amino has exclusive rights to leverage the XenoArray platform to engineer a potential treatment for the virus behind the global pandemic.

If successfully developed, the treatment would be a small molecule drug candidate based on peptide protease inhibitors. By selectively bonding with specific proteases, these inhibitors could potentially fight the virus’s ability to reproduce.

Amino’s President and CEO, David Preiner, described this as a “novel approach” to developing a drug candidate, and described his team as being “optimistic” about potentially yielding effective treatments.

“We are working on ways to accelerate the drug development timeline for novel biologics to start regulatory processes, demonstrate patient safety, and bring patients treatments.”

  • David Preiner, President and CEO of Amino Therapeutics

As with the Sunnybrook deal, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) invested $1 million for its 40% acquisition of Amino. The closing of the deal was announced on April 13.[15]

QuestCap’s Management Team and Advisory Board

Neil Said – President and Chief Executive Officer. Said has worked as an officer and legal consultant to numerous Canadian listed companies in the technology, cannabis, mining, oil & gas, and healthcare industries. He began his career as a securities lawyer at Osler, Hoskin & Harcourt LLP, where he worked on a variety of corporate and commercial transactions. Neil is also currently the head of legal for the Forbes & Manhattan group of companies.

Deborah Battiston – Chief Financial Officer. In addition to her work at QuestCap, Battiston serves or has served as CFO at a number of other companies, including Origin Gold Corp., Trigon Metals, Inc., Jourdan Resources, Inc., Q-Gold Resources Ltd., Savanna Capital Corp., Yukoterre Resources, Inc., Sulliden Mining Capital, Inc., QMX Gold Corp., Russo-Forest Corp. and Tangelo Games Corp. She is also on the Board of Directors at Savanna Capital Corp. and Sulliden Mining Capital, Inc.

Stan Bharti – Co-Chairman. Bharti is the founder of Forbes & Manhattan, a merchant bank with a focus on resource-based sectors. In May 2011, Forbes & Manhattan took Consolidated Thompson Iron Mines—then a $1M dollar exploration iron ore company—was later able to develop and sell it to Cliffs Natural Resources Inc. for $4.9 billion in cash. Over the last ten years, Bharti has invested and raised over US$10 billion and has listed over 50 companies on different stock markets including Toronto, London, Australia, South Africa and New York.

G. Scott Moore – Co-Chairman. In addition to his position at QuestCap, Moore is also Chairman at Vilhelmina Mineral AB; President, CEO, and Director at Euro Sun Mining, Inc; and COO and Vice President at Forbes & Manhattan Inc, as well as President and CEO at its subsidiary, Potash Atlantico Corp. Together with his previous positions, Moore has served at the helm of nine companies.

Richard Dolan – Member of the Advisory Board. Dolan began his career in the wealth management industry. Following a ten-year record of raising over $3 billion in assets, he was invited to design and deliver a certificate program at Schulich School of Business’s Executive Development Centre in York University on the subject of marketing and selling wealth management services. Since 2006, he has toured with US Presidents Bill Clinton, George W. Bush, Barack Obama, and Donald J. Trump as well as Secretary of State Hillary Clinton.[16]

Jim RogersMember of the Advisory Board. Mr. Rogers co-founded the Quantum Fund, a global-investment partnership. Over the next 10 years, the portfolio gained 4,200%. After retiring at age 37, he continued to manage his own portfolio and serve as a professor of finance at the Columbia University Graduate School of Business.

Dr. Lawrence Steinman – Member of the Advisory Board. Steinman is Professor of Neurology, Neurological Sciences and Pediatrics at Stanford University and Chair of the Stanford Program in Immunology from 2001 to 2011. His research focuses on antigen specific tolerance in autoimmune disease and in gene therapy for degenerative neurologic diseases. He was a postdoctoral fellow in chemical immunology at the Weizmann Institute of Science and has received numerous honors. He also co-founded several biotech companies, including Neurocrine, Atreca, 180 Therapeutics, and Tolerion. He was a Director of Centocor from 1988 until its sale to Johnson and Johnson.[17]

Dr. Glenn Copeland – Member of the Advisory Board. As an expert in the treatment and diagnosis of lower extremity sports medicine injuries, Dr. Copeland has offered invaluable advice and service since 1979 in his significant role as one of the team doctors of the Toronto Blue Jays of Major League Baseball. Furthermore, Dr. Copeland has overseen the lower extremity health and wellbeing as Consultant to Major League Baseball Umpires for over 20 years. He still continues in that capacity. Dr. Copeland was entrenched as Medical Director for Ottawa Sports and Entertainment Group, the Ottawa REDBLACKS of the CFL as well as the Ottawa 67’s of the OHL in 2013. He still continues in this role. Dr. Copeland’s more recent appointment was to the Atlanta Braves of Major League Baseball as a foot and ankle Consultant in 2017, where he currently remains operating in that position.

About Mike McCarthy – Member of the Advisory Board. As a volunteer Vice-President of the Canadian Hemophilia Society, McCarthy was the national spokesperson for Canadians infected by blood tainted with Hepatitis C. Presently, Mike is a Principal at Grosso McCarthy and provides counsel to clients in both the not-for-profit and for-profit sectors. In 2003, he provided strategic support and counsel to the government of Ontario during the SARS outbreak. McCarthy has more than 14 years of experience with the Ontario Ministry of Health and Long-Term Care and 24 years in health policy and delivery. He previously spent 18 years as a psychiatric nurse.

Larry KingMember of the Advisory Board. King has conducted more than 40,000 interviews over his 60-year career and can still be seen hosting “Larry King Now” on Ora TV, Hulu and RT. Celebrities, politicians, athletes and newsmakers from around the planet have experienced Larry King’s unique disarming interview style and come to trust him as a friend and talented professional. From JFK and Vladimir Putin, to the Dalai Lama and Lady Gaga, anyone having an impact on the world has sat across the desk from Larry King.

Editorial Team
USA News Group


Sources:

[1] http://questcapinc.com/

[2] https://thegiin.org/research/publication/impinv-market-size

[3] https://www.globenewswire.com/news-release/2020/03/30/2008778/0/en/QUESTCAP-APPOINTS-NEW-CEO-OUTLINES-NEW-INVESTMENT-STRATEGY-AND-PROVIDES-CORPORATE-UPDATE.html

[4] https://www.barrons.com/articles/impact-investments-rise-amid-covid-19-pandemic-01586086243

[5] https://www.fnlondon.com/articles/covid-19-shows-the-case-for-impact-investing-20200420

[6] http://questcapinc.com/medquest/

[7] https://en.wikipedia.org/wiki/Stan_Bharti

[8] http://questcapinc.com/questcap-announces-profit-sharing-on-exclusive-distribution-contract/

[9] https://www.boston.com/sports/sports-news/2020/04/05/how-long-sports-return

[10] https://www.globenewswire.com/news-release/2020/04/17/2017801/0/en/REPEAT-QuestCap-to-Acquire-49-Percent-of-Athletics-and-Health-Solutions-Inc-With-Intent-to-Deploy-COVID-19-Standard-for-Safe-Sport-With-Colombian-Professional-Soccer-League.html

[11] https://streetsignals.com/questcap-made-investment-in-sinai-health-foundation

[12] https://www.globenewswire.com/news-release/2020/04/02/2010455/0/en/QUESTCAP-TO-INVEST-1-MILLION-WITH-SUNNYBROOK-RESEARCH-INSTITUTE-TO-ESTABLISH-THE-SUNNYBROOK-TRANSLATIONAL-RESEARCH-GROUP-FOR-EMERGING-AND-RESPIRATORY-VIRUSES.html

[13] https://sunnybrook.ca/research/media/item.asp?f=covid-19-isolated-2020&i=2069

[14] https://www.globenewswire.com/news-release/2020/04/03/2011571/0/en/QUESTCAP-SIGNS-BINDING-LOI-TO-ACQUIRE-INTEREST-IN-AMINO-THERAPEUTICS.html

[15] https://www.globenewswire.com/news-release/2020/04/13/2015184/0/en/QuestCap-Completes-Acquisition-of-Amino-Therapeutics.html

[16] https://www.globenewswire.com/news-release/2020/04/08/2013289/0/en/QuestCap-Appoints-Richard-Dolan-and-Jim-Rogers-to-Advisory-Board.html

[17] https://www.globenewswire.com/news-release/2020/04/02/2010668/0/en/REPEAT-QUESTCAP-TO-INVEST-1-MILLION-WITH-SUNNYBROOK-RESEARCH-INSTITUTE-TO-ESTABLISH-THE-SUNNYBROOK-TRANSLATIONAL-RESEARCH-GROUP-FOR-EMERGING-AND-RESPIRATORY-VIRUSES.html

Disclaimer:

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for QuestCap Inc. advertising and digital media in Canada and Europe from the company directly. Please note, as we are shareholders of the company MIQ reserve the right to advertise this company Worldwide, and will advertise the company Worldwide. There may be other 3rd parties who may have shares of QuestCap Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of QuestCap Inc. which were purchased as a part of a financing offered by the QuestCap Inc. We also reserve the right to buy and sell, and will buy and sell shares of QuestCap Inc. in the open market at any time without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, we currently own shares of QuestCap Inc. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Once in a while a sector in a sector (Sub-sector) gets ignored. This can happen for a variety of reasons, but usually it’s because of World events and market activity thatis taking all the attention away.

This can sometimes present us with some very interesting opportunities within these sub-sectors, and it’s situations like this we like to look at.

The best part about these types of situations, is that 9 times out of 10 it’s only a matter of time until these sub-sectors catch up, and if we can dig out some solid looking companies before they get caught up with, it can result in good buying opportunities.

If you’re interested in hearing about some of the companies we look at in this space, then simply enter your email in the box provided below, and we will email you once we’ve concluded assembling the information we’ve found.

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Biotech Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). Individuals are strongly encouraged to not use this publication as the basis for any investment decision.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in any of our reports is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Weekly Market Review – January 18, 2020

Stock Markets

What analysts call better-than-expected economic data, encouraging corporate earnings from U.S. banks, and the signing of the “phase-one” trade agreement helped raise U.S. stocks to fresh record highs last week. A surge in housing starts bolstered by strong retail sales point to a resilient consumer that is supported by a continued strong labor market. The “phase-one” trade agreement between the U.S. and China was formally signed last week, fulfilling expectations for a deal that was already done. Important terms of the deal included commitments from China to increase purchases by $200 billion over the next two years ($78 billion of manufactured goods, $52 billion in energy, $32 billion of agricultural products, and $38 billion in services). Analysts agree that the agreement removes significant uncertainty, however, they say trade issues will likely continue as a source of volatility through 2020.

U.S. Economy

The closing of stocks at record highs last week was driven by the U.S. and China reaching the “phase-one” trade agreement. Analysts believe the recent trade agreement is a significant step in the de-escalation of the trade tensions between the two superpowers. It takes away much of the threat that new tariffs create and creates confidence that a more comprehensive deal is achievable. Still, tariffs remain in place on two-thirds of U.S. imports from China. So, attention now shifts to implementation and enforcement. Potential failure to meet the terms of the deal could create temporary setbacks which could stretch as far as additional new tariffs. Further tariff relief and more complete trade cohesiveness that would include including structural fundamentals, like industrial subsidies, is likely to be in place by the time we reach the U.S. election. The current agreement gets rid of significant uncertainty, but all agree that trade issues will likely create some volatility in the coming year. Analysts expect stocks to continue to rise but at a slower pace than they have over the past decade. This is widely supported by ongoing economic growth, modest earnings growth, and accommodative central banks.

Metals and Mining

The precious metals sector was two sided this week, with gold and silver remaining in a channel, while both platinum and palladium climbed. Platinum was up 4.4 percent from last week, exceeding US$1,000 per ounce for the first time in two years. The precious metal had been sidelined for much of the growth that palladium and gold experienced in 2019. Now it’s starting to see a benefit from the same motivators that drove those metals. Rallying from US$976 (January 10) to US$1,037 (January 16), Platinum exhibited its best performance year-to-date. It is on track to surge to highs not experienced since 2015. The phase one trade deal between China and the US countered some of the volatility that entered the market earlier in this month. The exchange traded-funds sector (ETF) may help motivate the platinum’s price too, since last year, platinum ETFs grew by 12 percent with investors purchasing 90,000 ounces or 11 percent of global supply. Easing geopolitical tensions moved against gold’s momentum, putting it on course to record its weakest performance in nearly two months. News of the phase one deal pushed gold below US$1,550 only to rebound supported from a weaker equity market and lower US dollar. Another round of increased buying from central banks and monetary policy are also projected to impact the value of gold in 2020. Palladium continued its upward trend this week. The precious metal star climbed 14 percent to trade at an all-time high of US$2,429 on January 17. Palladium’s hyperbolic performance has now moved the industrial metal beyond platinum and gold’s record highs, making it the most valuable of the four exchange-traded precious metals. The German bank pointed to the prolonged supply deficit as the current catalyst behind palladium’s best historic performance. Like gold, silver remained locked in a range staying below US$18 an ounce for much of the week. Silver has exhibited the poorest price growth of all four precious metals. It ended the week without any gains.

Energy and Oil

As expected, China has been the key oil price driver this week. The phase one trade deal drove prices higher before worrying economic data from the country dragged prices lower. Oil prices regained a bit of ground by week’s end. That was based on optimism surrounding the Phase 1 U.S.-China trade deal only. The global oil market managed to dodge a bullet after the U.S. and Iran backed away from war talk and eased tensions. But the geopolitical risk has not disappeared. In any case, non-OPEC oil supply is expected to continue to grow faster than demand this year. Once again that leaves the market with a persistent supply surplus, according to the IEA. The result is tremendous pressure on OPEC+, which may find that it needs to cut even further than current levels. In the U.S. Permian basin, the industry is suffering through bankruptcies, slower growth and investor scrutiny. Many analysts suggest that production should grow this year, however skeptical investors are starting to see a potential for peak in supply over the near-term period. Natural gas spot price movements were mixed this week. The Henry Hub spot price fell from $2.08 per million British thermal units (MMBtu) last week to $1.98/MMBtu this week. At the New York Mercantile Exchange (Nymex), the price of the February 2020 contract decreased 2¢, from $2.141/MMBtu last week to $2.120/MMBtu this week. The price of the 12-month strip averaging February 2020 through January 2021 futures contracts declined 3¢/MMBtu to $2.290/MMBtu.

World Markets

Stock in Europe rose this week as trade tensions eased, and investors welcomed strong Chinese economic data. The pan-European STOXX Europe 600 Index ended the week 1.33% higher, and the UK’s FTSE 100 Index gained 1.30%. Germany’s DAX Index advanced 0.3%. For the UK, poor economic data, combined with recent dovish speeches and comments by Bank of England (BoE) Monetary Policy Committee (MPC) members, set speculation in motion that an interest rate cut is in the cards at the January 30 policy meeting. What was suggested as a quarter-point reduction in the benchmark Bank Rate, from 0.75% to 0.50%, just rose to 80% on expectations.  Analysts see rate cut as a form of insurance given the sharp slowdown at the end of the year. This move that probably should have occurred at the end of 2019 but was weigh laid by the general election. Analysts also expect data to begin improving as uncertainty has receded since the Conservative Party election victory, so purchasing managers’ surveys of the construction, manufacturing, and services sectors, will still be key to policymakers’ voting intentions.

China’s stock market moved slowly ahead of the signing of the phase one trade deal with the U.S. and did not rebound after the announcement. The Shanghai Composite lost 0.8% during the week while the CSI 300 large-cap index edged down 1.2%. The trade deal was already baked into the market came largely as expected. Many observers in the region viewed the deal as driven primarily by U.S. election politics and as a band-aid rather than a solution. For its part, China has pledged to import much more from the U.S.  There are worries that the target of a USD 200 billion increase in imports of goods and services from the U.S. over the next two years may be very difficult to achieve and could fall short. Regional skeptics also doubt China’s claim that other countries will not suffer as it redirects purchases back to the U.S.

The Week Ahead

U.S. markets will be closed on Monday to observe Martin Luther King Jr. day. Important economic data being released include pending home sales, the leading index on, and the Markit Purchasing Managers’ Index on Friday. This is an important week in the corporate earnings season as another 43 companies of the S&P 500 will be reporting fourth-quarter earnings.

Key Topics to Watch

  • Chicago Fed national index
  • Existing home sales
  • Weekly jobless claims
  • Leading economic indicators
  • Markit manufacturing PMI (flash)
  • Markit services PMI (flash)

Markets Index Wrap Up

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