Ambastha Financial LLC

By Kuldip K. Ambastha

During this past trading week, stocks in the casino sector suffered greatly. After positive daily returns on Monday, September 13, negative daily returns were mostly seen for the rest of the trading week for Las Vegas Sands Corporation (LVS) and Wynn Resorts, Limited (WYNN) per the table seen above (except for a positive daily return for Las Vegas Sands Corporation on Friday, September 17). The worst daily returns of the trading week for these two companies were seen on Tuesday, September 14.

Why the negative returns? Macau is considered the casino capital of China. As a special administrative region (SAR) of China, Macau is the only part of China in which the presence of casinos is legal. The Chinese Communist Party (CCP) is considering regulatory changes which may vastly alter Macau, where currently gambling-related tourism drives about 50% of revenues seen in Macau on an annual basis. On Tuesday, September 14, government officials announced that a 45-day public consultation period will happen, after which new, tighter regulations on gambling will be announced, in line with Chinese authorities cracking down on private businesses overall in the recent past. Aside from public health risks due to COVID-19 making in-person gambling at casinos potentially dangerous to human beings, regulatory risks may hit Macau’s economy hard when officials examine the number of gambling licenses issued, the duration of gambling licenses, a tougher approach towards approving casino operators, and the welfare of employees, among other areas of concern. Also, the government may try to promote and shift resources towards companies in non-gambling sectors, to lessen the reliance of Macau on revenues linked to gambling.

Regulatory risks can be a concern in any sector and for any particular company. Large companies like Las Vegas Sands Corporation and Wynn Resorts, Limited are not immune to these regulatory risks. On one hand in the future, more positive CCP overtures related to casinos may drive positive daily returns for these stocks. On the other hand in the future, more negative CCP overtures related to casinos may drive continued negative daily returns for these stocks. The end result of casino reform in Macau at the moment is uncertain, but Wall Street investors are certainly concerned about this regulatory matter currently.

Keywords – Las Vegas Sands Corporation, Las Vegas Sands, LVS, Wynn Resorts, Limited, Wynn Resorts, WYNN, casino, gambling, economy, revenues, China, Chinese Communist Party, CCP, Macau, special administrative region, SAR, regulation, reform.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in LVS or WYNN.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

On Thursday, September 9, 2021, the stock of Lululemon Athletica Inc. (LULU) had a gain of +10.5%. Lululemon Athletica is a prominent company in the athletic apparel and accessories sector, focused on product offerings for yoga, running, and other physical pursuits. A strongly positive 2Q2021 earnings announcement drove the gain in Lululemon Athletica’s stock price. Despite supply chain issues, figures related to earnings, sales revenues, gross profit, store traffic, and so on exceeded expectations. The coronavirus pandemic is still present as a big public health issue. Nonetheless, Lululemon Athletica was still able to perform well, and Wall Street equity research analysts now expect even better performance going forward.

Keywords – Lululemon Athletica Inc., Lululemon Athletica, Lululemon, athletic, athletics, apparel, accessories, yoga, running, physical pursuits, sports, 2Q2021, supply chain, earnings, sales revenues, gross profit, store traffic, performance.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in LULU.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

On Friday, September 3, 2021, the stock of Forte Biosciences, Inc. (FBRX) stood out for its substantial trading day loss of -82.3%. Forte Biosciences, Inc. is a clinical-stage biopharmaceutical company focused on potential treatments for inflammatory skin diseases. The company released results of a Phase 2 clinical trial of FB-401, related to the treatment of atopic dermatitis. The results did not show statistical significance in terms of a meaningful decrease (specifically, 50% or better) in atopic dermatitis disease severity in clinical trial patients who were given FB-401. The results were made public on Thursday, September 2, 2021 and led to a -4.4% loss for that trading day. On the next trading day, the more significant -82.3% loss was seen due to the clinical trial results combined with the announcement that various law firms are investigating potential securities fraud, unlawful business practices, and other federal securities law violations which may have happened at Forte Biosciences, Inc.

Keywords – Forte Biosciences, Inc., Forte Biosciences, Forte, biopharmaceutical, inflammatory skin disease, atopic dermatitis, FB-401, Phase 2, clinical trial, law.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in FBRX.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Palo Alto Networks, Inc. (PANW) is a leading cybersecurity company with a worldwide client list. On Tuesday, August 24, 2021, the company’s stock had a +18.6% gain for the trading day. This return was the best trading day return ever seen for the stock of Palo Alto Networks. An impressive earnings announcement for the company was the cause of this gain. Earnings, sale revenues, billings, adjusted net income, operating margin, and free cash flow figures for the company all exceeded the consensus estimates of Wall Street equity research analysts. In a dangerous world, the future of Palo Alto Networks may be bright due to the strong demand for cybersecurity tools to prevent ransomware and other potentially expensive hacking attacks. Strong demand may lead to more growth for the company going forward.

Keywords – Palo Alto Networks, Inc., Palo Alto Networks, PANW, technology, tech, cybersecurity, return, earnings, sales revenues, billings, adjusted net income, operating margin, free cash flow, ransomware, hacking, dangerous, danger.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in PANW.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Sonoma Pharmaceuticals Inc. (SNOA) is a specialty pharmaceutical company focused on conditions which could be treated using stabilized hypochlorous acid (HOCl or HClO) in various ways. The company’s stock had a volatile end for this past trading week, with a gain of +50.6% on Thursday, August 19, 2021 followed by a loss of -23.9% on Friday, August 20, 2021. On Thursday, the company announced the release of two new and highly innovative dental offerings – OroGenix Oral Hygiene Rinse and Microdacyn® Oral Care – which left investors impressed and led to the gain in the stock price seen. On Friday in the absence of any new information, it seems investors sold off the company’s stock to realize actual profits from the gains observed on the prior trading day. The stock market can be like a roller coaster going up and down, as seen in the stock price of Sonoma Pharmaceuticals Inc. on these two consecutive trading days.

Keywords – Sonoma Pharmaceuticals Inc., Sonoma Pharmaceuticals, Sonoma, specialty, pharmaceutical, hypochlorous acid, HOCl, HClO, OroGenix Oral Hygiene Rinse, Microdacyn® Oral Care.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in SNOA.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

BioNTech SE (BNTX) is aiming to become a leading biotechnology company with a main focus on individualized cancer medicine. The company has also been successful in offering an mRNA-based, two-shot coronavirus vaccine called BNT162b2 (aka: Comirnaty and Tozinameran), which has become increasingly important due to the rise of the highly contagious Delta (B.1.617.2) variant of COVID-19. On Monday, August 9, 2021, the stock of BioNTech SE had a +15.0% gain. A strong earnings announcement plus significant forecasted demand going forward helped with the stock’s price.

On Wednesday, August 11, 2021, the stock of BioNTech SE had a -13.8% loss. During the trading week, investor reluctance with high valuations led to a broad sell-off mainly in the technology and healthcare sectors, alongside a lesser sell-off in the biotechnology sector. This sell-off hurt the stock’s price. Due to concerns around the Delta variant, more and more new people of various age levels may get coronavirus vaccine shots and supplemental vaccine shot(s) may be needed for an already vaccinated individual. Depending on company-specific and industry-wide biotechnology news in the future, the stock price of BioNTech SE may keep fluctuating akin to what was seen in this past trading week.

Keywords – BioNTech SE, BioNTech, BNTX, biotechnology, biotech, technology, tech, healthcare, health care, COVID-19, coronavirus, pandemic, Delta, B.1.617.2, vaccine, mRNA, BNT162b2, Comirnaty, Tozinameran.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in BNTX.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

On Wednesday, August 4, 2021, General Motors Company (GM), a prominent automotive company, had a -8.9% loss for the trading day. While General Motors posted impressive numbers as part of its earnings announcement on that day, investors were nonetheless concerned about corporate management emphasizing caution for the second half of 2021. General Motors may have difficulties acquiring needed semiconductors going forward. Also, the company could be negatively affected by the spread of the highly contagious Delta (B.1.617.2) variant of COVID-19 lessening consumer interest in new purchases. Automotive insurance, electric vehicle, and autonomous vehicle efforts are ongoing within General Motors, and may or may not be bright spots for the company going forward.

Keywords – General Motors Company, General Motors, GM, automotive, auto, car, vehicle, earnings, caution, Delta, B.1.617.2, COVID-19, coronavirus, pandemic, semiconductors, consumers, insurance, electric, autonomous, future.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in GM.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Robinhood Markets, Inc. (HOOD) is an online brokerage firm offering many investment products at a zero commission per trade for retail investors. Robinhood went public in the past trading week on NASDAQ, with the first day of trading for its stock being Thursday, July 29, 2021. Shares were initially priced at $38, which is the low end of the $38-$42 per share range that Robinhood leadership was targeting. At the end of the first trading day, the closing price was $34.82 per share. At the end of the second trading day, the closing price was $35.15 per share. The initial public offering (IPO) of Robinhood was unique in a way since up to 35% of shares were reserved for retail investors over other parties. For now, shares of Robinhood are trading at less than the inital price of $38 per share. If Robinhood ends up successful over the long run in its mission of revolutionizing the world of investing through a focus on empowering retail investors, the stock price will have a brighter future going forward.

Keywords – Robinhood Markets, Inc., Robinhood Markets, Robinhood, HOOD, online, brokerage, zero commission, retail investors, NASDAQ, initial public offering, IPO, public, trading.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in HOOD.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

On Tuesday, July 20, 2021, the stock of HCA Healthcare, Inc. (HCA) was up by +14.4%. HCA Healthcare, a healthcare services company, reported strong 2Q2021 quarterly results on that trading day. Revenues, net income, and earnings all came in at impressive levels. As public health conditions have improved from the lows of the coronavirus (COVID-19) pandemic, more people are seeking out the services of HCA Healthcare. If public health conditions continue to improve going forward, HCA Healthcare may see continued strong performance in future quarters.

Keywords – HCA Healthcare, Inc., HCA Healthcare, HCA, healthcare, health care, public health, health, coronavirus, COVID-19, pandemic, 2Q2021, quarterly, quarter, future, revenues, net income, earnings.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in HCA.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

On Friday, July 16, 2021, the stock of Moderna, Inc. (MRNA) was up by +10.3% for the trading day. Moderna, a biotechnology company, has been highly successful in its efforts to develop a coronavirus (COVID-19) vaccine. Late on Thursday, July 15, 2021, S&P Dow Jones Indices announced that Moderna will become a component of the S&P 500 Index in the next week. Moderna will become a part of the S&P 500 Index after only one quarter (the most recently closed quarter) of reported net profit as a public company. Due to the company’s success with its coronavirus vaccine offering, the stock price of Moderna has seen a significant increase in the recent past. Going forward, Wall Street equity research analysts are nonetheless expecting even more upward movement in the stock price. Aside from the coronavirus vaccine already in place, Moderna is looking into making more vaccines and drugs around Zika, influenza (flu), HIV / AIDS, and cancer. For our past coverage of Moderna, see below:

What Caught Our Attention in the Investment World? – Week of February 24-28, 2020

Keywords – Moderna, Inc., Moderna, MRNA, S&P Dow Jones Indices, S&P 500 Index, S&P 500, coronavirus, COVID-19, vaccine, USA, biotechnology, biotech, Zika, influenza, flu, HIV, AIDS, health, wellness.

Disclosure – The principals of Ambastha Financial LLC have a short option position in MRNA. The clients of Ambastha Financial LLC have no positions in MRNA.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.