Biotech stock breaks out for 146% 🚀

Premarket Report - Nov. 29th, 2023

Author

Chris Dinello
November 29, 2023

Good Morning! 

It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.

Today is Wednesday, November 29th. I hope you have a great day in the market.

Now, let's get ready to trade!

Markets 📈

Large-cap stocks notched modest gains on Tuesday. The Dow and Nasdaq added 0.2%, while the S&P 500 edged 0.1% higher. On the other hand, the small-cap Russell 2K slid to a 0.4% loss.

Futures are moving higher in early trading. S&P 500 contracts are up 0.4% in early premarket trading.

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Premarket Highlights 🔎

🫡 RIP Charlie Munger: The Sage of Omaha Dies at 99

The finance world is bidding farewell to a titan.

Charlie Munger, the revered chairman of Berkshire Hathaway and Warren Buffett's right-hand man, has passed away at 99. His departure marks the end of a remarkable chapter in the annals of investing.

📈 Berkshire's Stellar Legacy Under Munger:

Back in '88, Buffett told Fortune about Munger's immense influence on him, hinting at the powerhouse duo they'd become.

Under Munger's watchful eye, Berkshire Hathaway's Class B shares have been a paragon of stability, bucking the market trend with only six downturns in 26 years. Even behemoths like Apple and Walmart have seen more fluctuations.

🚀 Munger's Investment Masterclass:

Munger steered Buffett away from fleeting "cigar-butt" investments, guiding him towards buying outstanding businesses at reasonable prices.

Their strategy led to significant stakes in heavy hitters like American Express, Apple, Chevron, and Johnson & Johnson.

📊 Berkshire's Winning Streak:

Even in a bearish market, Berkshire's Class B shares managed a 3.3% gain against the S&P 500's 19% loss.

Since 2000, Berkshire has seen a 10% annualized return, outpacing the S&P 500's 6.8%.

Munger's passing is a somber moment for investors everywhere. As tributes pour in, they reflect not just on his financial genius but on a legacy that will continue to inspire and guide future generations of investors.

Featured Earnings 💲

  • PDD Holdings [PDD] ... AM

  • Intuit [INTU] ... PM

  • Workday [WDAY] ... PM

  • CrowdStrike Holdings [CRWD] ... PM

  • Splunk [SPLK] ... PM

  • Hewlett Packard Enterprise Company [HPE] ... PM

  • NetApp [NTAP] ... PM

  • The Azek Company [AZEK] ... PM

  • Fluence Energy [FLNC] ... PM

  • Alvotech [ALVO] ... PM

  • Leslie's [LESL] ... PM

Economy 🏗

  • GDP (first revision) [Q3] ... 8:30a

  • Advanced U.S. trade balance in goods [Oct] ... 8:30a

Running Hot 🔥

Gainers

  • Wheeler REIT [WHLR] >> +35.3%

  • Spyre Therapeutics [SYRE] >> +32.2%

  • Biomea Fusion [BMEA] >> +26.8%

Decliners

  • Seelos Therapeutics [SEEL] >> (41.6%)

  • Leslies [LESL] >> (22.3%)

  • PetCo Health & Wellness [WOOF] >> (16.6%)

General Motors [GM] - Last Close: $28.89

GM is taking off after a premarket earnings report.

The legacy automaker is rallying after reinstating its full-year 2023 earnings guidance, announced a share buyback, and raised its dividend.

GM recently resolved a a labor dispute with the United Auto Workers, which caused a $1.1 billion EBIT-adjusted impact from lost production.

However, the resolution of the dispute also allowed GM to reinstate its FY2023 guidance, along with a $10 billion share buyback, and raised its quarterly dividend by 33% to $0.12 per quarter.

GM is leading the S&P 500 with an 8.5% gain, and it’s the most actively traded large-cap stock in today’s premarket.

My Take: GM has been on a long slide down over the past 5 months, but it’s beginning to look like the bottom is in. There could be some healthy upside left on the table here, but GM is definitely facing some macro headwinds.

Vivos Therapeutics [VVOS] - Last Close: $4.39

A regulatory breakthrough is rallying shares of Vivos Therapeutics.

This morning, the tiny biotech said the FDA granted 510(K) clearance to its CARE oral device treatment for severe obstructive sleep apnea.

The CARE appliance includes Vivos’ flagship DNA oral appliance, the mRNA oral appliance and the mmRNA oral appliance.

“Vivos is the first company to bring to market a clear alternative treatment to CPAP or surgical neurostimulation implants for patients with severe OSA.”

VVOS is leading the premarket with a 146.3% gain on accelerating trading volume.

My Take: This is a huge spike for VVOS, but there’s still a lot of room between its current price point and its previous 52-week high. Eventually, the gap could translate to upside if VVOS can keep up its momentum.

RedHill Biopharma [RDHL] - Last Close: $0.3155

RedHill Bio has landed on our list for a third day in a row.

The tiny biotech began rallying on Monday, after it was awarded an additional 5-year exclusivity term for its bacterial infection treatment.

The initial rally blossomed into a full-on short squeeze, which continued on Tuesday. RDHL closed the day with a 128.0% gain after several trading halts.

RDHL is rallying again in today’s premarket, likely a result of short sellers scrambling to cover their positions. Shares are up 31.9% on elevated volume.

My Take: The short sellers are really taking it on the chin with this one. RDHL is on fire, and this move has paid off big for a lot of crafty traders. However, a pullback is virtually inevitable at some point, so tread lightly.

Avenue Therapeutics [ATXI] - Last Close: $0.1875

Avenue Therapeutics is rallying on institutional investor interest.

Recent SEC disclosures revealed angel investor Mark Davidow has amassed a sizeable position in the tiny biotech firm.

According to a Form 3 filing published in Wednesday’s aftermarket, Davidow has amassed a 14.5% passive stake in Avenue Therapeutics.

No word on what Davidow’s intentions are just yet, but the market is following the “Smart Money” on this one.

ATXI is the most active stock in today’s premarket, and it’s up 37.3%.

My Take: ATXI has seen better days, but Davidow’s interest could mark the beginning of a comeback pivot. I’m adding this one to my watchlist.

That's it for today! Thanks for reading, and good luck out there!

Best Regards,

— Chris D.
Elite Trade Club

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