- Elite Trade Club
- Posts
- Biotech Stocks soar on Big Pharma Deals 🚀
Biotech Stocks soar on Big Pharma Deals 🚀
Premarket Report
Chris Dinello
December 26, 2023
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
I hope you all had a great holiday weekend.
Now, let's get ready to trade!
Markets 📈
The stock market went into the holiday weekend with a mostly positive performance. The Dow was the day’s only notable lose with a small fractional loss.
|
|
Today, futures are up slightly in early trading. S&P 500 contracts are up 0.1% in early premarket trading.
Sponsored
While hindsight is 20/20, we're only human and mistakes happen!
So wouldn't it be nice if there was a way to catch a losing trade BEFORE you placed it?
With expert trader Tom Busby's "Little Black Book", you can learn the secret to spotting a losing trade in just 2 minutes!
Plus, you’ll get a bonus “lifeboat strategy” that can protect your account from major losses in the future!
Premarket Highlights 🔎
🇨🇳 China’s Yuan Makes Strides in Global Payments
Despite a challenging year for Chinese assets, the yuan is quietly carving a niche as a preferred option for international payments.
This trend is significant, considering the restrictions posed by China's own capital controls.
💹 Implications for China's Economy:
The increased use of the yuan for trade transactions could provide a buffer for China's economy against potential sanctions in any future conflicts with Western countries.
Even with projections of slower Chinese growth, the yuan's growing international presence could offer structural support to the currency itself.
📊 Key Statistics:
Trade Settlement Growth: The value of China's cross-border yuan settlement for merchandise trade has more than doubled since mid-2020. It now equals over a quarter of China's total goods trade, a significant jump from around 13% in 2019.
Swift Data: According to Swift, the global financial-messaging service, 3.6% of international payments were made in yuan as of October. This is a rise from less than 2% in January and just shy of September’s record high of 3.7%.
Potential Underreporting: The real volume of yuan transactions might be even higher, as some, especially those involving U.S. sanctioned entities, likely bypass Swift.
📈 Yuan's Growing Global Presence:
These developments highlight the yuan's increasing role in global trade and payments, marking a shift in the international financial landscape and illustrating China's efforts to internationalize its currency.
What to Watch Today 👀
Thin Volume
The week between Christmas and New Year’s has a notorious reputation for thin trading volume. Many of the Smart Money investors and Wall Street types are on vacation for the holidays and won’t return until next week. As a result, there’s likely to be a lot less cash floating around the market today, so keep a close on eye on trading volume if you’re planning on making any stick-and-move trades this week.
Featured Earnings 💲
None
Economy 🏗
S&P Case-Shiller home price index (20 cities) [Oct] ... 9:00a
Running Hot 🔥
Gainers
ARB IOT Group [ARBB] >> +122.3%
Chicken Soup [CSSEL] >> +81.6%
Imac Holdings [BACK] >> +30.1%
Decliners
MBIA [MBI] >> (56.3%)
Vast Renewables [VSTE] >> (37.5%)
LeddarTech [LDTC] >> (30.0%)
RayzeBio [RYZB] - Last Close: $30.57
Yet another Big Pharma buyout is sending shares of this tiny biotech soaring.
Fresh off another big deal on Friday, Bristol Myers Squibb [BMY] has agreed to acquire the radiopharmaceutical firm in a $4.1 billion all-cash deal.
RYZB shareholders will get $62.50 per share of common stock under the agreement, a 104% premium from its close on Friday.
The deal will be executed via a tender offer, which RayzeBio’s board recommends shareholders accept. The deal is expected to close in 1H 2024.
RYZB is one of this morning’s top stocks with a 99.5% gain on 300K shares traded.
My Take: BMY has been on a shopping spree lately, but I’m sure RYZB shareholders aren’t complaining. Not a lot of upside potential left here so I’d move on if you’re not already in it.
Gracell Biotechnologies [GRCL] - Last Close: $6.19
Not to be outdone by its Big Pharma rival, Astra Zeneca [AZN] has landed a deal to acquire this tiny biotech for $10 per American depository share.
The cash deal also includes a $1.50 CVR per ADS, bringing the total premium over Friday’s close to 62%.
The deal’s total transaction value weighs in at $1.2 billion with the CVRs triggered, and it’s expected to close in Q1 2024.
GRCL is up 60.9% on 2.3 million shares traded.
My Take: The Big Pharma Christmas shopping spree is on, apparently. I’d say the same about the GRCL deal as I did about the one above: not enough upside left to chase.
Volcon [VLCN] - Last Close: $0.95
On Friday, this tiny automobile company released a business update that is boosting its shares in the return from the weekend break.
In the update, Volcon said it’s on schedule and “confident in our timeline” to complete the initial shipment of its Stag model to the U.S. Army Corps.
The company says it expects to initiate shipments in Q1 2024, and added that it’s very close to commencing manufacturing of the vehicles.
VLCN is one of this morning’s top stocks with a 95.4% gain on 57.5 million shares traded.
My Take: VLCN is seeing a ton of volume on this move, so it seems that a lot of investors are buying this opportunity. The stock could get another boost when if it can complete its first Stag shipment in the coming months.
Aerwins Tech [AWIN] - Last Close: $0.1201
A recently announced letter of intet with a helicopter technology company is rallying shares of this self-described Japanese “air mobility platform.”
On Friday, Aerwins announced a LOI with an unnamed helicopter company for the design, development, manufacturing, and sales of a single-seat air vehicle.
Under the terms of the deal, Aerwins has agreed to provide up to $1.7 million to finance the effort over an initial term of 12 months.
AWIN is up 32.2% on 13.2 million shares traded in the premarket.
My Take: AWIN had a 3.24 short percentage as of Nov. 30th, so some of this move’s momentum could be attributed to a squeeze but it’s hard to say for certain since this data is several weeks old.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
Text ELITE to 47121 or click here to get our alerts on your mobile device, and never miss another fast-moving stock!
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.