Madrigal S-NASH-es Monday’s Trading

Argentina isn’t the only team that’s scored big lately. $MDGL pulled off a hat trick by more than tripling in pre-market and continuing to drive higher throughout the day. 🚀

Analysts attribute today’s massive price spike to the test results of a treatment for nonalcoholic steatohepatitis – NASH. NASH is a progressive disease that causes fibrosis – inflammation of the liver.

The test was completed with 950 NASH diagnoses patients. After one year, 30% of patients on the highest dose saw a two-point (out of eight total points) improvement in their symptoms. Additionally, their fibrosis did not become worse.

In another 26% of patients, at least one stage (out of five stages of fibrosis) improved with no increase in their symptoms.

Madrigal is requesting FDA approval for its oral treatment (pill), Resmetirom

After years of failures to find treatment for this disease, Madrigal’s would be the first to hit the market. 💉

Housing Slowdown Comes Home To Roost

The Federal Reserve has outright told investors that it’s trying to slow the housing market and bring prices down. And throughout 2022, it had some success in that, with price growth slowing and overall activity declining significantly as mortgage rates hovered around 6%.

And despite all the headwinds, homebuilders remained cautiously optimistic during their earnings calls. 

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Analysts Pump Two Tech Stocks

Two tech stocks jumped today on analyst action early in the day. 👍

First up is Fastly, which received a rare “double upgrade” from a Bank of America analyst. Tal Liani noted that the company’s core technology and new management could allow it to achieve profitability next year. As a result, he upgraded the stock from “underperform” to “buy.” 

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Retailers’ Rocky Start To ’23

As companies and investors alike shake off their holiday slumber, the time for results has come. Earnings season is kicking off on Friday with the banks, but in the meantime, several retailers have already preannounced that their holiday quarter didn’t go as well as they had hoped. 👎

Kicking off the weakness was Lululemon, which told investors at the ICR conference that its Q4 net revenue will be between $2..66 to $2.70 billion. This was marginally higher than its previous guidance, but its higher earnings per share range of $4.22 to $4.27 missed expectations.

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Party In The USA (Bankruptcy Courts)

Yesterday we heard that Bed Bath and Beyond is concerned about its future. And today, another struggling retailer joined the mix, expressing concerns of its own. ⚠️

Party City announced today that it’s preparing to file for bankruptcy within weeks. Like Bed Bath & Beyond, it’s burned through its cash trying to turn the company around. However, sales have remained weak and pressured by inflation and the softening economy.

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