Wall Street’s Mixed Nuts
It was another one of those days on Wall Street today. Nothing overly positive, and nothing Fed-shakingly catastrophic.
Remember, for this market rally to break, the news has to be bad enough to outweigh the Federal Reserve’s unlimited stimulus. We’re not there … yet.
Sure, there were some major headlines that the financial media obsessed over: the Russian COVID-19 vaccine and something about a vice president pick.
But we covered Sputnik V yesterday, and it’s too early to worry about Kamala Harris at this point. If you’re interested in where Harris stands on key investing issues, click here.
Instead of recapping the market’s somehow ho-hum insanity, let’s take a quick look at some stories that slipped through the cracks:
- The U.K. economy contracted 20.4% in the second quarter, entering official recession territory. Can you say, “incoming stimulus?” Sure you can.
- Stein Mart filed for bankruptcy, as the retail apocalypse claims another victim. I’m pretty sure we all saw this coming.
- Microsoft Corp. (Nasdaq: MSFT) announced that its dual-screen Surface Duo smartphone will launch next month with a price tag of $1,399. Who’s this for? Do we really need dual-screen smartphones? Let us know.
- Pot stocks are smokin’! Well … Canopy Growth Corp. (NYSE: CGC) is anyway. The company beat Wall Street’s second-quarter expectations, as first-quarter revenue jumped 22%. CGC jumped nearly 8% on the news earlier this week.
Now, I know that cannabis stocks haven’t been the brightest tools in the shed this year. It’s a relatively new market (legally anyway) that struggles with distribution and legal issues. However, the political gears are turning in the U.S., and cannabis is in the early stages of a bounce back.
We’re not talking all that “new market CBD” hype either — that hype went up in smoke last year. We now have a leaner and more stable cannabis market headed up by a few equally levelheaded cannabis companies.
That said, don’t crush that Kush before you have all the facts. Click here to find out more!
Good: Tesla Visits Splitsville
Have you ever wanted to buy Tesla Inc. (Nasdaq: TSLA) stock, but that $1,500 price tag was just too high?
Well, my friend your luck is about to change! At the end of this month, Tesla stock will undergo a five-for-one stock split. That means if you already own one share of TSLA, you’ll have five shares on August 31. And that $1,500-per-share price? Slashed to just $300.
All in all, this split initially means little to existing shareholders. Since there are technically no “new” shares, there will be no earnings dilution. The company won’t suddenly be more profitable or start paying out a dividend.
However, that cheaper price for TSLA shares should mean increased demand from retail traders. You just know that there are hundreds of Robinhoodlums salivating over the chance to snap up TSLA for around $300 per share.
Combine this stock split with Tesla’s all-but-guaranteed addition to the S&P 500, and we’re looking at a potential explosion of TSLA activity we haven’t seen since the company introduced “Plaid” mode.
So, sit back off the edge of your seats. Fasten your seat belts and make sure your tray tables are in the upright and locked position. This Tesla ride is about to take off … fast.
Better: Moderna Major General
Moderna is the very model of a modern major biotech. They’ve information vegetable, animal and mRNA.
They know the “king” of U.S.A., and secured a deal historical … from Maine to California, in order categorical.
The Pirates of Penzance? Really?
Hey, I’m just as confused as you are. Let’s straighten this out…
The U.S. government just struck a massive $1.52 billion deal with Moderna Inc. (Nasdaq: MRNA) to secure 100 million doses of the company’s COVID-19 vaccine.
If you’ve kept track — and who hasn’t? — Moderna has now received about $2.48 billion from the U.S.’s Operation Warp Speed for its COVID-19 vaccine program.
Moderna’s vaccine is currently in phase 3 testing with about 30,000 participants. Trial results could come as early as November, with mass production and distribution to follow shortly after.
Take that, Sputnik V.
For MRNA investors, this is really good news. The cash infusion and the confidence boost put Moderna nearly neck and neck with AstraZeneca PLC (NYSE: AZN) in the race to certify a COVID-19 vaccine.
MRNA spiked more than 8% this morning, before profit-taking set in. Year to date, MRNA is up more than 280%, so profit-taking is to be expected.
When it comes to investing in MRNA … if you’re in, stay in! If you’re not … think long and hard before buying in at this point. Few stocks have been more volatile this year than biotechs chasing the vaccine dream.
Best: Hey, Got Any Grapes?
Duck Creek Technologies walked up to the IPO stand, and it said to the man running the stand: “Hey! Got any grapes?”
The man said: “No, this is where you file for an initial public offering (IPO).”
And that’s just what Duck Creek did … but not before boosting the price range for its IPO above initial expectations. This morning, the company updated its filing with the Securities and Exchange Commission to increase its IPO range from the $19 to $21 per-share range to between $23 and $25 per share.
The new range’s midpoint values Duck Creek at $3.21 billion, up from $2.69 billion.
So, just what is Duck Creek?
The company provides cloud-based systems and services for the property and casualty insurance industry. That’s the “P&C” insurance biz for those in the know.
Now, you may not have heard about Duck Creek, but you likely buy insurance from one of its customers. AIG, Progressive and Geico all run on Duck Creek software. Stop me if you’ve heard this one: Flo, a gecko and a duck walk into an IPO…
The company isn’t profitable just yet, posting a second-quarter loss of $8.5 million. But that loss is down sharply from last year’s $41.1 million loss. Furthermore, sales ramped up 24% year over year to $153.3 million.
If you’re not waddling away from this billion-dollar IPO (waddle waddle), Duck Creek begins trading under the ticker DCT this Friday, August 14.
OK, so I kinda fibbed before: We are talking about the Russian vaccine … in today’s Poll of the Week.
Up for discussion is whether or not you would personally feel safe enough taking it.
Based on your reactions in our inbox to yesterday’s news, I think I know how this is going to play out. But, just to confirm, I want to hear from all you non-repliers out there. Click below and let us know!
Now, if you’re curious about last week’s poll, we dug into that whole “discount broker” boom, with everyone and their mother offering free trading to out-Robinhood good ol’ Robinhood.
From the bigwigs like Schwab and TD to local trading services like New Zealand’s “Hatch” for overseas markets (shout-out to Brian W. for the low-down) … we saw a decent split from your response to last week’s poll.
Just over 6% of you are on Robinhood, 18% on Schwab, 33% on TD, while another 41% of you wade in the diverse discount broker soup.
Now, no matter where you trade, no matter if you’re a newbie investor or hard as nails market lifer…
I guarantee you there’s an easier way to invest … and it only costs $4 per month for some of the greatest stuff around — take it from Mr. Great Stuff!
Click here to see how to get the latest market-wide investing research, up-to-the-minute insights and active trade alerts — all for just $4 per month.
Did I mention it’s risk free to try, too?
Great Stuff: Greater by the Dozen
Thanks to all of you out there who wrote in to us this week! Our inbox has been a revolving door of the zany, crazy and (sometimes) hazy.
No matter what’s on your mind — the market, your money, Russian vaccines or Big Tech schemes — why not write us about it? Drop us a line at GreatStuffToday@banyanhill.com. We’d love to hear your thoughts, questions, rants or feedback.
Of course, you can also follow along with social media: Facebook, Instagram and Twitter.
Until next time, stay Great!
Joseph Hargett
Editor, Great Stuff