Tiny Pharma Stock Surging 104%

Good morning. It's December 24th, and in today’s edition, we’ll look at American Airlines’ crashing stock after a technical issue grounded its planes nationwide, Limoneira’s lowered forecast, and a tiny pharma stock surging 100%+ in premarket trade.

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Previous Close 📈

U.S. stock markets closed higher yesterday, buoyed by gains in technology stocks. Advancements in chip companies like Nvidia and Broadcom contributed to the market's upward trajectory.

Futures

Futures are showing mixed signals ahead of today's holiday-shortened trading session. Dow Futures are down slightly by 8.00 points (-0.02%), S&P Futures are rising by 6.00 points (+0.10%), and Nasdaq Futures are up by 31.50 points (+0.14%).

What to Watch

The November Durable Goods Orders report will be released at 8:30 a.m. ET. Later, at 10:00 a.m. ET, Consumer Confidence (December) and New Home Sales will also be released.

There are no major earnings reports scheduled for today.

Airlines

Technical Issue Forces Nationwide Grounding of American Airlines Flights, Shares Tank

American Airlines (NASDAQ: AAL) is grounding all its flights across the United States today due to a technical issue, according to both the company and a notice posted by the Federal Aviation Administration (FAA).

The airline has not disclosed the specific nature of the problem but stated that efforts are underway to resolve it as quickly as possible.

In response to a passenger inquiry on social media platform X, American Airlines assured that teams are working to rectify the issue but did not provide an estimated timeline for the resolution.

The FAA has not issued additional comments at this time.

The grounding has sent ripple effects through American’s operations and has impacted thousands of travelers. The airline's shares are falling by 3.8% in premarket trading following the news, reflecting investor concerns over the disruption.

Steel

U.S. Steel Takeover Decision Heads to Biden After Security Panel Deadlock

The fate of United States Steel Corp.'s proposed $14 billion acquisition by Nippon Steel Corp. now rests with President Joe Biden, following a deadlock by the Committee on Foreign Investment in the United States (CFIUS). The review panel failed to reach a consensus, referring the decision to Biden on Monday, which was the deadline for their evaluation.

Biden, who has consistently opposed the deal, has 15 days to make a final determination. The president has maintained that U.S. Steel should remain domestically owned and operated, citing national security concerns. The White House confirmed it had received CFIUS’s findings, and spokesperson Saloni Sharma stated that Biden would review them before making an announcement.

Nippon Steel expressed frustration with the process, urging Biden to consider its significant commitments to growing U.S. Steel and strengthening American jobs. U.S. Steel echoed these sentiments, framing the deal as essential for competing with China's steel industry.

The proposed merger has sparked political controversy, drawing criticism from the powerful United Steelworkers union. The union opposes the deal over concerns about unionized plants. Meanwhile, some local officials and lawmakers have supported the transaction, citing potential benefits for industry competitiveness.

With the merger at stake, U.S. Steel faces mounting challenges, including falling steel prices and weak European demand. The company’s stock edged 0.5% lower in pre-market trading, reflecting ongoing market uncertainty.

Agriculture

Limoneira Projects Significant Drop in Avocado Yield, Shares Fall

Shares of Limoneira are down 6.7% in premarket trading today, following a revised forecast that anticipates a sharp decline in avocado crop yields for 2025.

The California-based agricultural company expects to produce between 7 million and 8 million pounds of avocados next year, a steep drop from the 15.1 million pounds harvested in 2024.

Despite ending the regular trading session up 2%, the revised outlook dampened investor sentiment. The company also projected fresh lemon volumes in the range of 5 million to 5.5 million cartons for 2025, continuing to signal challenges in its production outlook.

Limoneira narrowed its net loss to 11 cents per share for its fiscal fourth quarter, compared to a 20-cent loss in the same quarter last year. Adjusted loss stood at 9 cents per share, while revenue rose 6.8% year-over-year to $43.9 million.

Limoneira’s stock remains up 30% year-to-date, but the lower forecast raises questions about the company’s production strategies and ability to navigate shifting agricultural conditions in the coming year.

AI

The artificial intelligence revolution has already created massive opportunities for investors, with companies like Nvidia and Meta leading the charge. But Wall Street veteran Marc Chaikin believes the next breakout star is still flying under the radar.

His renowned system—which previously flagged Novavax, Blink Charging, and RIOT Blockchain before their explosive runs—has just identified a small A.I. stock with extraordinary potential.

This company, recently partnered with a major A.I. powerhouse, could be trading at just a fraction of its future value. According to Chaikin, the time to act is now.

Movers and Shakers

Clearmind Medicine Inc. [CMND] - Last Close: $1.22

Clearmind Medicine is up by more than 104% in premarket trade.

The company announced an Institutional Review Board (IRB) approval for its FDA-regulated clinical trial of CMND-100 at a second clinical site today.

This marks a pivotal step in advancing Clearmind's psychedelic-derived therapeutics aimed at addressing under-treated health issues.

The market's positive reaction reflects investor optimism about the company's progress in developing innovative treatments.

My Take: This is a tiny biotech stock with a low float and high volatility. Despite the good news for CMND-100, this is still a risky stock to enter. Make sure to keep this on your wait and watch list.

Carbon Revolution PLC [CREV] - Last Close: $3.89

CREV shares are surging 46% in premarket trading today.

This is due to the announcement of a $25 million financing agreement with OIC to support the company's liquidity and growth initiatives.

Carbon Revolution manufactures advanced carbon fiber wheels for original equipment manufacturers (OEMs).

In recent months, the company's innovative products have attracted partnerships with major automotive brands, including Chevrolet, for which it supplies carbon fiber wheels for the Corvette ZR1.

My Take: While the $25 million financing agreement is a positive sign, the company recently got a non-compliance notice from Nasdaq. So make sure to hedge your bets if you wish to enter this stock.

NeueHealth, Inc. [NEUE] - Last Close: $4.31

NeueHealth, Inc. shares are surging 61% in premarket trading after the announcement of a definitive merger agreement with New Enterprise Associates (NEA).

Under the terms of the agreement, NEA will acquire NeueHealth at an enterprise value of approximately $1.3 billion, with shareholders receiving $7.33 per share in cash—a premium of about 70% over the closing price on December 23, 2024.

Upon completion, NeueHealth will become a privately held company, with its executive leadership team expected to continue in their roles and roll over 100% of their equity interests into the new entity.

The merger agreement includes a 30-day "go-shop" period, allowing NeueHealth to solicit alternative acquisition proposals until January 23, 2025.

My Take: The acquisition by NEA at a significant premium indicates strong confidence in NeueHealth's business model. You should evaluate the certainty of the cash offer against the potential for higher bids during the "go-shop" period before investing.

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Everything Else

  • The CFPB targets Rocket Homes for anti-competitive practices driving up housing costs.

  • US Consumer Confidence dropped sharply in December, signaling rising economic uncertainty.

  • TSMC rides AI momentum to record highs, anticipating strong quarterly results.

  • Adler agrees to a €423 million Cosmopolitan portfolio sale to investment firms.

  • Telegram's revenue surpasses $1 billion despite scrutiny over illegal content.

  • China targets advanced manufacturing and subsidies with an unprecedented $411 billion treasury bond issuance.

  • China is set to increase its fiscal deficit to stabilize the economy, focusing on boosting livelihoods and local aid.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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