Can someone get them a GPS? | The Daily Peel | 7/12/21

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Stamps.com ($STMP) – Stamps.com had to jump 64% in a single day for me to realize that stamps are still a thing. They must do at least a little more than that however to attract a $6.6bn buyout from PE firm Thomas Bravo. After closing on Thursday with a $3.6bn market cap, investors pushed the share price of the shipping services firm up to the buyout level because, well, everyone wants a piece of the pie.

Didi ($DIDI) – Somebody please get this ride sharing company a GPS because its stock has no idea where it’s going. Up 7.3% on Friday while down 20% on the week, the Chinese government’s crackdown on tech companies has thrown investors for a loop, not knowing what to expect next from Beijing.

Tempest Therapeutics ($TPST) – Confirmed big brain and also CEO of small-cap biotech firm Tempest Therapeutics, Sam Whiting has investors beyond excited. The anticipation for an upcoming webcast sent shares well above 100% intraday on Friday, to eventually close 49% higher. The webcast, or more accurately, the super sciencey-nerd conference, will discuss research related to immuno-oncology therapies, and Dr. Sam appears to have a big announcement in store. 

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Biogen ($BIIB) – “Hahaha, pranked ya!” is what the FDA probably said to Biogen. After approving the pharma firm's new Alzheimer’s drug just a few weeks ago, the FDA pulled the rug and decided to investigate itself and the process behind the scenes of the approval, sending shares down almost 3%. Not a good look for Biogen, and a really bad look for the FDA, but a classic prank nonetheless.

Virgin Galactic ($SPCE) – Shares in Virgin Galactic have always been volatile and founder Richard Branson’s flight is not helping. While up 35% in the last month, $SPCE fell back to Earth a bit on Friday, closing 6.6% lower. With mostly positive news leading up to yesterday's launch, I believe this absolute roast from Blue Origin is what triggered the selloff. With Branson being up in the sky, we’ll have to see if the stock joins him up there today.

Peloton Interactive ($PTON) – Fitness hardos must’ve taken a rest day on Friday as shares in the annoyingly popular exercise equipment company took a 5% hit. That, or maybe it was the news that CEO John Foley sold 100,000 shares. Despite the drop, Peloton was a big winner during the pandemic, returning 461% in 2020. Can you blame Foley for taking some winnings off the table? 

Labor Market: Despite what many economics professors might say, the only certainty in economics is uncertainty, and after the effects of the pandemic uncertainty reigns supreme. This is particularly true for the labor market, with both job openings and job seekers pushing past 9 million. As a byproduct, the ratio of job openings per hire reached a new record, indicating that the only thing more out of balance than the labor market is my confidence in trading vs. my actual returns.

Food for Thought: Next week is peak earnings szn, and all eyes are on the big U.S. banks. Pretty much all of the big names are reporting, and because of bank performance's relationship with the overall economy, investors are waiting for the numbers like a dog waits for a treat. Judging by the various banks options chain, Wall Street appears to be expecting somewhere between 3-4% moves for each. The only question is, in which direction?

“Don’t tell me what you think, tell me what you have in your portfolio.”

― Nassim Taleb

Happy Investing,

The Daily Peel

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