Earlier on Friday, 29 May, I shared with you news of the above mentioned collaboration but what is the significance of it?
A poster on ihub who works in the pharmaceutical industry, shared with the readers his insights:
1) MSK has deep ties with Bristol Myers Squibb (BMY) that goes beyond the normal clinical trial management and execution. It has access to top management level with regards to product development strategy and opportunities.
2) MSK has deep knowledge of BMY products.
3) MSK has been building a Cancer Immunology "Dream Team" since 2012.
4) MSK has been on the lookout for products can could create multiple pathways for the treatment of cancer
My opinion? Normally a reputed research centre such as MSK works behind the scenes and very seldomly would make an announcement identifying other parties or their drugs unless they are of major significance. Therefore Bavituximab and PS-targeting must be of great importance to MSK in their continual search for the best cancer immunotherapy treatment which can align with BMY objectives.
This invariably puts the pressure on the other Big Pharma like Pfizer, Roche, Abbvie, Merck etc, on the defensive and makes them wonder if PPHM could provide what they desperate need to improve their own drugs efficacy and safety.
Definitely, PPHM is on the threshold of something big. At US$1.41 it is a screaming BUY.
My disclosure: I am long PPHM.
Still, always do your own research and investing is a pharma start up carries with it some high risks. It is up to you to determine the risk to reward ratio.
Saturday, May 30, 2015
Friday, May 29, 2015
US OIL RIGS COUNT DROPPED 13 FOR THE WEEK
Read it all here:
US oil rigs count dropped another 13 for the week. Read it all here:
http://www.reuters.com/article/2015/05/29/energy-oil-rigs-baker-hughes-idUSL1N0YK13K20150529
US oil rigs count dropped another 13 for the week. Read it all here:
http://www.reuters.com/article/2015/05/29/energy-oil-rigs-baker-hughes-idUSL1N0YK13K20150529
PPHM AND MEMORIAL SLOAN KETTERING TO LAUNCH CANCER COLLABORATION
After some months of little news, Peregrine Pharmaceuticals(PPHM) announced a collaboration with Memorial Sloan Kettering to collaborate on cancer research.
They will explore cancer-fighting treatments that combine PPHM's PS targeting agents - including its lead drug candidate, Bavituximab - with other checkpoint inhibitors or immune stimulating agents.
Note the comment by MSK:
"This collaboration will allow us to focus on the role and contribution of PS blockade therapy in determining which combination of the current and next generation of immune modulators is likely to increase the extent and amplitude of anti-tumour response," Taha Merghoub, Ph.D., associate attending biologist with MSK's melanoma and immunotherapeutics service, Ludwig Collaborative and Swim Across America laboratories, said in a statement.
"This important preclinical and translational work will potentially guide the design of the next generation of clinical studies with Bavituximab," added Dr Merghoub, who will direct the collaboration's studies in MSK.
I view this as extremely positive as MSK is a reputed cancer research centre with a proud history. I can only see this as potentially opening more doors to combine bavituximab and PS-targeting agents with various form of cancer treatments, including immunotherapy.
Learn more about MSK here:
https://mskcc.org/about
And more about the news here:
http://www.genengnews.com/gen-news-highlights/peregrine-memorial-sloan-kettering-launch-cancer-collaboration/81251330/
My disclosure: I am long PPHM.
Thursday, May 28, 2015
Sunday, May 24, 2015
CHINA'S PMI FELL BELOW 50 IN APRIL. WHAT ARE THE IMPLICATIONS
China's April PMI fell below 50 for the third straight month. A reading below 50 indicates a contraction.
In the last six months, China had reduced interest rates three times. China had also lowered the banks' required reserved ratio in April. All this points to adding more liquidity into the market. Buy why? China is facing economic slowdown. All these actions are intended to spur the economy to grow more robustly.
But China is already facing a tremendous debt burden with many state owned firms owing the banks trillions of dollars, with much of the money going into building the infrastructure and providing financing to developers to build luxurious properties. Several luxurious projects had later become ghost towns. A number of developers are now on the verge of defaulting on their debts. Only as recently, the public listed Kaisa Group defaulted on its debt.
Will adding more liquidity in the system helps the economy or delaying the inevitable fact that a bubble is coming, and by virtue of pumping more liquidity into the market serves only to enlarge the bubble.
The major worrying factor in China is the shadow banking which economists predicted at roughly 3 - 4 times the banks' loans.
A recent study by McKinsey Global Institute estimated that China's total debt has grown from US$7.4 trillion to US$28.2 trillion in the period from 2007 - 2014. This is akin of the debt growing from 158% of GDP to 282% of GDP in the same period of time.
China slowdown will impact many Asian economies. A spate of interest rates reduction have been triggered across Asia in the past one year. When a Central Bank decides to lower interest rates, it is a sign that the country's economy is not performing to expectations.
There is no denying that Asia is facing increasing headwinds. Incidentally, many Asian economies like China have been racking up debts due to the cheap credit available.
It is therefore prudent for investors to assess the risk levels in all type of investments.
One investment option is to invest in financially sound companies with consistent dividend payouts and a yield which is superior to the current Fixed Deposit Rate.
Another option, is to park some amount of money (5% - 10%) of your portfolio into financially sound gold mining companies. These companies have seen their market cap fallen by more than 70% due to the decline in Gold price. In times of crisis, Gold will be in demand and this could potentially result in capital appreciation in these companies.
I use the term financially sound because these companies must have the financial muscle to weather through critical times.
Also set aside cash for future purchases in the event an economic slowdown materialised.
The above are my own opinion. But please do your own research always.
In the last six months, China had reduced interest rates three times. China had also lowered the banks' required reserved ratio in April. All this points to adding more liquidity into the market. Buy why? China is facing economic slowdown. All these actions are intended to spur the economy to grow more robustly.
But China is already facing a tremendous debt burden with many state owned firms owing the banks trillions of dollars, with much of the money going into building the infrastructure and providing financing to developers to build luxurious properties. Several luxurious projects had later become ghost towns. A number of developers are now on the verge of defaulting on their debts. Only as recently, the public listed Kaisa Group defaulted on its debt.
Will adding more liquidity in the system helps the economy or delaying the inevitable fact that a bubble is coming, and by virtue of pumping more liquidity into the market serves only to enlarge the bubble.
The major worrying factor in China is the shadow banking which economists predicted at roughly 3 - 4 times the banks' loans.
A recent study by McKinsey Global Institute estimated that China's total debt has grown from US$7.4 trillion to US$28.2 trillion in the period from 2007 - 2014. This is akin of the debt growing from 158% of GDP to 282% of GDP in the same period of time.
China slowdown will impact many Asian economies. A spate of interest rates reduction have been triggered across Asia in the past one year. When a Central Bank decides to lower interest rates, it is a sign that the country's economy is not performing to expectations.
There is no denying that Asia is facing increasing headwinds. Incidentally, many Asian economies like China have been racking up debts due to the cheap credit available.
It is therefore prudent for investors to assess the risk levels in all type of investments.
One investment option is to invest in financially sound companies with consistent dividend payouts and a yield which is superior to the current Fixed Deposit Rate.
Another option, is to park some amount of money (5% - 10%) of your portfolio into financially sound gold mining companies. These companies have seen their market cap fallen by more than 70% due to the decline in Gold price. In times of crisis, Gold will be in demand and this could potentially result in capital appreciation in these companies.
I use the term financially sound because these companies must have the financial muscle to weather through critical times.
Also set aside cash for future purchases in the event an economic slowdown materialised.
The above are my own opinion. But please do your own research always.
Saturday, May 23, 2015
Friday, May 22, 2015
WHY IGB REIT COULD BE A GOOD LONG TERM INVESTMENT
Due to many requests from the audience, I will occasionally feature some good Malaysian stocks for long term investment. With Bursa trading at multi year highs, finding a company that is undervalued with growth potential is becoming increasingly difficult. But some gems do exist. I'll start with IGB REIT.
Q1 2015 Result
Revenue Growth 9.9%
Profit Growth 21.1%
EPS Growth 20.1%
Current Ratio 1.97
Gearing Ratio 0.28
SP/NAVPS 1.23x
Distribution Yield (2014) 5.8%
IGB REIT had a roaring start in Q1 2015. Should the trend continue, we could see a further increase in the Income Distribution. Last year, the Income Distribution increased by 10.8% vs 2013.
Looking at the Current Ratio and Gearing Ratio, IGB REIT seems to be managing its debts rather well too.
With the Bursa trading at multi year highs, investors should reduce their expectations for capital appreciation, but rather look at stocks with long term growth in its dividend.
I have a BUY recommendation for IGB REIT as long as it remains below RM1.40. Any price above RM1.40 will see its yield falling below 5.5%. which will render it less attractive to hold for long term investment. But because our risk tolerance differs, it is important that you do your own research as well.
Q1 2015 Result
Revenue Growth 9.9%
Profit Growth 21.1%
EPS Growth 20.1%
Current Ratio 1.97
Gearing Ratio 0.28
SP/NAVPS 1.23x
Distribution Yield (2014) 5.8%
IGB REIT had a roaring start in Q1 2015. Should the trend continue, we could see a further increase in the Income Distribution. Last year, the Income Distribution increased by 10.8% vs 2013.
Looking at the Current Ratio and Gearing Ratio, IGB REIT seems to be managing its debts rather well too.
With the Bursa trading at multi year highs, investors should reduce their expectations for capital appreciation, but rather look at stocks with long term growth in its dividend.
I have a BUY recommendation for IGB REIT as long as it remains below RM1.40. Any price above RM1.40 will see its yield falling below 5.5%. which will render it less attractive to hold for long term investment. But because our risk tolerance differs, it is important that you do your own research as well.
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