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Dow Drop Causes Tech Power Outage

Daniel Chase

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The market is holding on for dear life as it endures its longest slump in the last two years. In a cautious effort to shift the tides, US stocks traded slightly higher on Thursday morning. Investors, far and wide, are trying to pull the Dow out of from the wreckage after the index plunged 832 points on Wednesday. As of Thursday, the Dow crept into calmer waters, with the Nasdaq rising nearly 1%, rebounding from its workday since the introduction of Brexit in June 2016, CNN Business reports. 

  • The Dow (DJI) is currently down 0.74% (-$200.81) , trading at $25,40943 per share, with
  • The S&P 500 Index (SPX) dropped 0.58% ($-18.77), trading at $2,767.82 per share following suit.

The Nasdaq in specific has been riding the struggle bus the last few days, losing 7% to date. Over the course of this week, the Federal Reserve has raised interest rates to protect the economy from inflation, resulting in a mass selloff of bonds, leading to increases in yields on government bonds, specifically the 10-year Treasury note. The Nasdaq index contains many tech stocks, and many tech companies are facing the consequences of the index’s plunge. 

Companies like Netflix (NFLX), Amazon (AMZN), Facebook (FB), and others have dropped significantly this week. The New York Stock Exchange’s FANG+ index includes all of these companies as well as Tesla (TSLA), Nvidia (NVDA), and China’s Alibaba (BABA). This last week, the FANG+ index dropped 8%, causing many of its tech holdings to plummet.

  • Netflix (NFLX) dropped more than 8%, trading at $325.55 per share 
  • Amazon (AMZN) sank nearly 10% in the past few days, trading at $1,730.88 per share
  • Facebook (FB) and Apple (AAPL) each dropped 4% this week, trading at $153.59 and $217.34, respectively 

While all signs are showing that each of these companies will report relatively strong quarterly earnings, they are not impervious to the recent downtick in long-term bond yields and signs from the Reserve that “it plans to keep hiking short-term rates throughout 2019,” according to CNN. This could effectively stifle the economy and harm the growth of these tech giants. 

Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, commented on the rising rates’ effect on the tech industry:

“The first thing to fall will be these momentum names. I think there are a lot of risks overhanging the market. We’re in a rising state environment, and it’s not just that they’re higher, but that they rose so quickly…Rising rates will disproportionately affect the tech sector.”

Chris Zaccarelli, chief investment officer Independent Advisor Alliance.

Though the fiscal integrity of the technology sector seems compromised, Zaccarelli said that we have no reason to believe the industry’s headed “for bear market territory and that there’s no reason to panic.” 

Why tech, why now? 

Generally, the majority of tech companies traded on Wall Street are considered to be “growth investments.” This means that investing in these companies will not pay any dividends when the company reinvests their earnings in their own growth. Netflix (NFLX), for example, uses a large amount of its capital each quarter producing and obtaining new content, CNBC reports, as well as driving subscriber growth overseas. Like Netflix, Amazon (AMZN) reinvests a large percentage of its capital into new business ventures, like Amazon Web Services. 

However, these investments can be riskier in the short run because investor capital is directly proportionate to the company’s share price. 

As trade tensions between the U.S. and China constantly increase, the Chinese economy is starting to show signs of slowing. Last month, President Donald Trump issued 10% tarries on $200 billion worth of Chinese goods, with provisional agreements for those tariffs to hit almost 25% by the end of the year. 

Companies like Qualcomm (QCOM) and Intel (INTC) are facing the consequences of President Trump’s China tariffs. China is one of the industry’s leading producers of semiconductor equipment, technology integral to the production of mass-market electronics. If the production of semiconductors decreases, the global tech industry will be in trouble. 

Closing Words

The fact of the matter is the market will always ebb and flow, it’s the nature of the industry. If the Federal Reserve continues to increase interest rates, tech companies may need to step to the side, while other industries combat the rising bond yields.

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4 Security Penny Stocks To Watch

A. Lawrence

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As Threats Arise, Security Stocks Take Center Stage In 2019

With the Federal Reserve’s meeting coming, the general market is bracing for anything. Meanwhile, penny stocks are continuing to climb at absurd rates. Trading penny stocks as of late has brought many investors fruitful profits and they look to continue this trend. Here are some security penny stocks to watch for the remainder of June 2019:

Security Penny Stock #1
Liberty Defense Holdings (SCAN.V)
Market Cap: $46.404M

Liberty Defense Holdings Ltd. (SCAN.V) is a security company looking to take the industry into the next century. Liberty’s HEXWAVE product is a 3-dimensional scanning device that can detect weapons and threats of any kind. The product can do this both with speed and discretion ensuring privacy for citizens.

Liberty signed a Memorandum of Understanding with the soccer team FC Bayern München to beta test HEXWAVE in their arena. They join an ever-growing list of places that have signed MOU’s to beta test Liberty’s product. This MOU expands its ability to comply with and test the market requirements for their product internationally.

“The reception to our HEXWAVE product has been fantastic and we are excited about working alongside FC Bayern Munich, a team that is a household name in both Europe and North America, […] Our ability to deploy in both indoor and outdoor settings, with covert and overt applications, sets us apart and has also been driving increasing interest from the market.” 

Bill Riker, CEO of Liberty

Security Penny Stock #2
Magal Security Systems (MAGS)
Market Cap: $101.371M

Magal Security Systems Ltd. (MAGS) provides security solutions both online and physical. Some services provided include identifying potential security problems, integrating new systems, and custom designs for any type of security needs.

Recently, Magal received a $5.5 million contract for its advanced perimeter intrusion detection system. The system prevents people from illegally crossing border fences and walls.

Dror Sharon, CEO of Magal, stated, “Magal is a world leader in perimeter intrusion technologies. Our growing wins of orders such as this – providing sensors for active international borders, is due to the decades of experience that we have in providing systems that have more than proven themselves in-the-field.”


Security Penny Stock #3
Rekor Systems (REKR)
Market Cap: $27.502M

Rekor Systems Inc. (REKR) is a company that has developed surveillance technology to enhance public safety, banking, and traffic management. Primarily, the company takes their advanced software, which utilizes machine learning and upgrades IP cameras to the next level. This reduces the cost when collecting highway tolls and helps manage traffic congestion.

REKR stock chart

Throughout June, Rekor Systems has been gaining recognition and application across the US. On June 3rd Rekor obtained a contract to start deploying its Mobile LBR-2 vehicle recognition systems. After this deployment on the 3rd, the LPR-2 system North Carolina law enforcement placed an order. On June 12th, Colorado highway authorities chose Rekor’s cloud system called NUMERUS to read enhance their license plate reading.


Security Penny Stock #4
BIO-key International (BKYI)
Market Cap: $18.03M

BIO-key International Inc. (BKYI) is a security technologies company that is pushing past the limits of fingerprint scanning. BIO-key provides a plethora of finger scanning products that provide security for your computer, hard drive, and the government. They have a partnership with Microsoft to develop biometric sign-in for Windows 10.

The company recently announced that a foreign defense ministry ordered more BIO-key deployment for secure access to Microsoft applications.

“We were delighted that such a capable and prestigious technology team determined that BIO-key met their security and scalability requirements and have now made follow-on investments to grow their user base.  Defense Ministries are constant targets of cyber-attacks, and we are glad to help them step up authentication to the highest assurance with NIST-verified accuracy and FIPS compliance.”

Jim Sullivan, SVP of BIO

security stocks
Disclaimer: Pursuant to an agreement between MIDAM VENTURES, LLC and Liberty Defense Holdings Inc. Midam was hired for a period from 04/15/2018 – 5/15/2019 to publicly disseminate information about Liberty Defense Holdings Inc. including on the Website and other media including Facebook and Twitter now extended through June 21, 2019. We were paid $350,000 (CASH) for & were paid “0” shares of restricted common shares. We may buy or sell additional shares of Liberty Defense Holdings Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. FULL DISCLAIMER HERE

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Stock Price Pre Market Update – June 19, 2019

Joe Samuel

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Big Investments Are Signaling The Green Light For A ‘Hot Market’ With Cancer-Fighting Stocks

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How Tech Is Making Life Easier?

The Answer Is ONE CLICK Away


Healthcare Penny Stocks To Watch

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Is Palatin Technologies (PTN) A Penny Stock To Buy Or Sell?

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Biotechnology

Is Palatin Technologies (PTN) A Penny Stock To Buy Or Sell?

Joe Samuel

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Will Shares Of Palatin Technologies (PTN) Head Higher As Biotech Stocks Rally This Month?

Biotech stocks are rallying this month.  Despite the “pop and drop” this sector saw earlier in the year, June has been a big month for biotechnology companies and people investing in this sector. 

IBB ETF chart

In fact, the iShares Trust Biotechnology ETF (IBB) has climbed by more than 8% since the start of June. This sector has been famous for producing volatile returns for investors. Furthermore, biotech penny stocks have increased that potential.

Palatin Technologies (PTN) Is A Biotech Penny Stock To Watch

One of the best performing penny stocks in the biotechnology sector this month has been Palatin Technologies Inc. (PTN). On January 2, this penny stock opened the year at $0.71 and has seen a 2019 high of $1.74. What’s more is that even though PTN stock has consolidated, it has continued to trade above $1.20.

So what’s all the excitement about? Palatin Technologies, Inc. is a biopharmaceutical company developing targeted, receptor-specific peptide therapeutics for the treatment of diseases with significant unmet medical need and commercial potential.

The company’s main strategy is to develop products and then form marketing collaborations with industry leaders in order to maximize their commercial potential.

[New Research] Big Investments Are Signaling The Green Light For A ‘Hot Market’ With Cancer-Fighting Stocks

The recent excitement seems to have started in April after the company reported positive top-line results of its oral clinical study of PL-8177. The treatment is designed to address ulcerative colitis and other inflammatory bowel diseases.

“The main objective of the study was to demonstrate release of polymer-bound PL-8177 in the lower gastrointestinal tract after oral administration. Top line data showed favorable pharmacokinetics, and demonstrated PL-8177 was released in the lower gastrointestinal tract, supporting oral administration of PL-8177 using the delayed release polymer formulation.”

New Milestones From Palatine Technologies (PTN) Triggers New Highs

After hitting new highs on May 17th after posting quarterly earnings, shares of PTN stock have consolidated. Regardless, the company continues to progress. Earlier this month the company obtained orphan drug designation for PL-8177. Yes, this is the same one that I talked about above when the company received positive topline results earlier in the year.

Why is orphan drug designation important? This is a good question especially if you’re newer to biotech penny stocks or biopharmaceutical stocks, in general. In the exact words of the FDA:

“The Orphan Drug Act (ODA) provides for granting special status to a drug or biological product to treat a rare disease or condition upon request of a sponsor. This status is referred to as orphan designation (or sometimes “orphanstatus”).”

Essentially it gives companies incentives above and beyond competitors. These incentives include a partial tax credit for clinical trial expenditures, waived user fees, and eligibility for 7 years of marketing exclusivity. The obvious response would be favorable, which has been seen in the market over the past few trading sessions.

Dr. Carl Spana, President and Chief Executive Officer of Palatin Technologies, said in a press release, “Unlike corticosteroids, immunosuppressive agents, and biological therapies targeting specific cytokines or receptors, melanocortin receptor 1 peptides work to resolve chronic inflammations and restore normal immune function. We look forward to initiating clinical trials with PL-8177 for non-infectious uveitis, a high medical need disease with limited treatment options.”

But Here’s Why Palatin Might Be Set For More Excitement

It’s all about sex drive. You read that right. And something that hasn’t really been fully publicized is this “big FDA date.” You see on June 23rd, the application for Vyleesi (bremelanotide), a drug developed by Palatin and licensed to AMAG Pharmaceuticals (AMAG) will be up for review by the FDA as a New Drug.

Vyleesi is a novel melanocortin 4 receptor agonist under evaluation for restoring a natural sexual desire in premenopausal women with HSDD. Think of this like female Viagra. Will this become the sexiest biotech penny stock this month or will stock traders get blue balled?

Like This Article? Check Out: Small Cap Biotech Stocks See Boost From Large Cap M&A

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