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Five Defense Stocks to Buy as Ukraine Fights to Preserve Its Freedom

Five defense stocks to buy as Ukraine fights to preserve its freedom, since a Feb. 24 invasion by Russian troops, offer investors their choice of a broad-based…

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1 year ago

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Five defense stocks to buy as Ukraine fights to preserve its freedom, since a Feb. 24 invasion by Russian troops, offer investors their choice of a broad-based industry fund and four large-cap aerospace giants.

The five defense stocks to buy as Ukraine attempts to defend itself from an unrelenting attack by Russia’s forces gives investors opportunities to pursue profits from the biggest military conflict to occur in Europe since the end of World War II. Many Western countries have provided military equipment to Ukraine as it attempts to fend off Russia’s attacks, and the use of ammunition and destruction of other weapons requires replenishment to stop the invaders’ troops from overrunning the country.

The horrors of war also have resulted in estimates that tens of thousands of Ukrainians and more than 35,000 Russian troops have been killed. Many Russian deaths include conscripts who were among those sent across their shared border with Ukraine and ordered by their leaders to attack civilian, industrial, cultural and military targets. Despite Russia’s President Vladimir Putin calling the attack of Ukraine that he ordered a “special military operation,” leaders of the European Union, the United Nations and some countries have countered that the invasion of a sovereign country is a clear violation of international law and involve outright war crimes against civilians.

Five Defense Stocks to Buy as Ukraine Seeks to Stay Free Show Paradigm Shift

The war in Ukraine has caused a paradigm shift from using military forces as a deterrent to avoid invasions by other countries to direct combat with Russia’s troops that attacked their neighboring nation and have continued the onslaught with no end in sight. Amid the multi-month fighting with heavy armaments, stockpiles of weapons and ammunition have been depleted and need replacement.

Russia’s sustained assault on Ukraine has spurred leaders of many nations to voice support for fortifying their national defenses and operational readiness. European nations, in particular, are on high alert due to the proximity of the battle in Ukraine to their own borders, amid threats from Putin and other Russian leaders that their ultimate plan is to seize the territory of other nations.

Despite the devastation, defense companies will benefit from the increased military spending. U.S. defense spending specifically will continue to grow with strong congressional support through inflation adjustments and additional aid packages.

Five Defense Stocks to Buy May Benefit from Rising Federal Spending

“The Department of Defense (DoD) has also included special provisions to major contractors to alleviate supply chain and worker constraints impacting critical programs such as the Virginia class submarine,” according to a recent research note from BofA Global Security’s defense and aerospace analyst Ron Epstein. “We anticipate defense spending levels to remain elevated and could reach about $1 trillion by 2025 or 2026.”

Defense stocks have remained somewhat “insulated” from the worst of the market’s recent retreats and outperformed on a relative basis due to their low beta nature, Epstein continued. The increase in defense modernization priorities, inflation pass-through on contracts, and few substitutes will support the defense market in outperforming the general markets, he added.

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Putin’s Policies Precipitate New Economic Penalties on Russia’s Defense Entities 

Putin has caused sanctions to be placed on his country in direct response to his attack, and he is blocking the important grain exports from Ukraine, preventing food from reaching people as far away as Africa, where people are enduring famine conditions as a result. Not only is he insisting that other nations cease their restrictions on his country’s goods before he allows grain exports to resume, but his troops have shelled civilian targets in Ukraine mercilessly.

Russian troops have decimated hospitals, schools, residential areas, churches, nuclear power plants, oil refineries and a theater used as a shelter, amid reports his soldiers raped, tortured, kidnapped and executed Ukrainian civilians. In the latest high-profile civilian attack by Putin’s forces, a Russian missile strike hit and caused deaths at a crowded shopping center with 1,000-plus civilians on Monday, June 27, in the central Ukrainian city of Kremenchuk, an industrial city of 217,000 and home of the country’s biggest oil refinery before Russia’s Feb. 24 invasion.

At the G7 meeting in Germany on Tuesday, June 28, the United States, the United Kingdom, Canada and Japan announced that they agreed to stop importing Russia’s gold, the largest non-energy revenue source that totaled $15.47 billion for the country last year. The U.S. Treasury and State Department each announced on June 28 that they were sanctioning a combined 115 entities and 48 individuals that are “critical” to Russia’s defense industrial base.

“The United States reaffirms our commitment to working alongside our allies and partners to further impose severe consequences on President Putin and his supporters for Russia’s unprovoked and unjustified war against the government and people of Ukraine,” the State Department announced.

Pension Fund Head Recommends Defense ETF to Buy

Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter, spoke favorably about an defense industry exchange-traded fund (ETF) Invesco Aerospace and Defense (PPA). The fund is more focused on defense than aerospace and seeks to track the SPADE Defense Index, which is composed of stocks of companies that are systematically important to the industry, Carlson continued.

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

About 86% of the fund is in stocks classified in the industrial sector by S&P and about 13% are in the technology sector, Carlson counseled. The fund recently held 55 stocks and 55% of the fund was in the 10 largest positions. Top holdings in the fund recently included major U.S. defense stocks.

Chart courtesy of www.stockcharts.com

The fund is down 4.19% in the past month, 11.63% over the last three months, 3.43% for the year to date and 7.19% over the previous 12 months. However, it has outperformed the market and is up 2.03% in the last week.

General Dynamics Garners a Buy Rating from Intelligence Report Head

General Dynamics (NYSE: GD), a global aerospace and defense company based in Reston, Virginia, is a recommendation of stock picker Jim Woods in his monthly Intelligence Report investment newsletter. The company’s products include combat vehicles, nuclear-powered submarines and communications systems to provide safety and security.

General Dynamics employs more than 100,000 people worldwide and generated $38.5 billion in revenue in 2021. Woods highlights that the company also pays a dividend that currently yields 2.3%.

Paul Dykewicz meets with Jim Woods, leader of the Successful Investing and Intelligence Report newsletters, plusHigh Velocity Options and Bullseye Stock Trader.

General Dynamics also received a “buy” recommendation from BofA, which set a price objective of $305, based partly on a 5.0% 2025-2030 growth rate and 2.8% long-term growth rate, as well as increased defense budget expectations. BofA wrote that the company’s defense program exposure to land and sea priorities, coupled with its Gulfstream business jet manufacturing segment, could provide near-term and medium-term organic growth.

Other plusses are the company’s strong balance sheet and solid cash generation to help sustain dividend growth and share repurchases, BofA wrote.

Potential downside risks to reaching that price target, according to BofA, are a possible downturn in business jet sales due to an exogenous factor and the pricing of business jets in dollars, making the company vulnerable to an unexpected devaluation of the U.S. dollar that could significantly impact orders. Further, any adverse impact on margins for defense programs and unforeseen government budget cuts could limit growth in the medium- and long-term.

Chart courtesy of www.stockcharts.com

L3Harris Lands a Buy Recommendation from BofA

L3Harris (NYSE: LHX), a Melbourne, Florida-based defense contractor and information technology services provider that produces C6ISR systems and products, wireless equipment and tactical radios, also netted a buy recommendation from BofA. The defense company, consisting of Integrated Mission Systems; Space & Airborne Systems, and Communication Systems, received a $285 price objective from BofA.

The valuation is in line with the median for a pure play defense stock, BofA wrote. However, an improved sentiment on defense spending should sustain a relative valuation slightly above historical average, the investment firm added.

Potential reasons for the company to beat its price target include winning more business on new and existing programs versus BofA’s current expectations. Downside could occur if integration of past acquisitions put a strain on its cash and impact free cash flow estimates.

Chart courtesy of www.stockcharts.com

Northrop Grumman Gains Recommendation from Money Manager

Northrop Grumman (NYSE: NOC), a multinational aerospace and defense technology company headquartered in Falls Church, Virginia, is one of the world’s largest weapons manufacturers and military technology providers with 90,000 employees and $30 billion-plus in annual revenue. It also is a recommendation of BofA and has the potential to rise 20-25% in the next 12-18 months compared to the company’s current share price, said Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management.

Michelle Connell, CEO, Portia Capital Management

Increased geopolitical tensions do not look likely to end soon and defense stocks should continue to have an allocation in an investor’s portfolio, Connell counseled. Until the “exacerbated pullback” in the markets, defense stocks such as Northrop Grumman had performed very well, she added.

Northrop Grumman stands out from the defense pack, Connell said, partly due to:

-Developing the first B-21 bomber for the Air Force, after the company passed its first round of tests about the efficacy of the bomber that is expected to be released in 2023.

-Preparing next-generation ballistic missile systems under the name of Sentinel.

-Growing three-year revenue and profits strongly, even though sales were weak in the last quarter due to shortages of labor and supply chain issues that could continue into the rest of 2022.

Interested buyers of the stock may want to wade in with purchases and take a first step before July 29 to receive the next dividend payment, Connell advised.

Institutional Buying of Northrop Grumman Has Been Taking Place

“I take some solace in knowing that before the recent pullback, the stock volume and institutional buying for NOC had increased,” Connell said.  

BofA derived a $550 price objective on the stock, partially due to a 4% year over year growth rate for 2025-2030 estimates and a 2.5% long-term growth rate. In addition, the U.S. Defense Budget Authorization has grown at a 1.8% compound annual growth rate (CAGR) in constant dollars since post World War II, BofA’s Epstein wrote.

Northrop Grumman’s growth rate may exceed the industry norm with the most profitable production phase of the B-21 Raider program starting in about 10 years and the U.S. Air Force’s Ground Based Strategic Deterrent (GBSD) entering production at the end of this decade. The GBSD is the replacement weapon system for the aging LGM-30 Minuteman III intercontinental ballistic missile (ICBM) system.

Potential risks to the stock include possible defense program cost overruns and margin contractions. Further stumbles could come from unexpected cancellations to both the company’s commercial and military programs.

Chart courtesy of www.stockcharts.com

Raytheon Technologies Ranks Among Five Defense Stocks to Buy

Raytheon Technologies Corp. (NYSE: RTX), of Waltham, Massachusetts, is another buy recommendation of BofA. The multinational aerospace and defense conglomerate is one of the largest aerospace, intelligence services and defense manufacturing providers in the world by revenue and market capitalization. The stock has a $130 price objective from BofA. Those projections include the risk of a potential impact of the research and development (R&D) amortization tax change to reflect conservatism, BofA wrote.

Risks to Raytheon reaching that price target include a downturn in commercial aviation due to the natural business cycle or an exogenous event such as a terrorist attack. A severe global economic slowdown would affect top-line growth, since 45% of sales are generated outside the United States. 

In addition, any execution risk on defense programs could result in cost overruns and margin contractions. Orders from international programs also are difficult to time due to the complexity of the process, BofA wrote.

“Thus, we could see some lumpiness with regard to international orders,” according to a recent BofA research note. “Unexpected cancellations to programs in both commercial and military could materially impact RTX.”

Chart courtesy of www.stockcharts.com

Supply Chains Remain Vulnerable to China’s Lockdowns

China’s President Xi Jinping said Wednesday, June 29, that the Communist Party’s strategy of lockdowns to curb the COVID-19 pandemic was “correct and effective,” as well as worth keeping. As the world’s most populous country, it would have suffered “unimaginable consequences” had it adopted a hands-off strategy, he added during a June 28 visit to the central city of Wuhan where the virus first was reported.

Meanwhile, a fresh COVID-19 outbreak in China is affecting the country’s technology hub of Shenzhen, spurring stepped-up testing and leading to lockdowns of certain neighborhoods. In addition, the gambling mecca of Macau, an hour away by car, is responding to an outbreak of the virus for the first time this year.

Those new cases are coupled with positive news from major metropolitan areas of Beijing and Shanghai that have used lockdowns to stop the spread of new cases. However, the U.S. ambassador to China criticized China’s “zero-COVID” policy on June 17 for potentially causing serious damage to the global economy and foreign business with the resumption of lockdowns.

Disrupted supply chains for products such as rice, oil and natural gas are lessening in Shanghai, home to 25 million residents and the world’s largest port. China’s recent lockdowns have affected an estimated 373 million people, including roughly 40% of the country’s gross domestic product (GDP).

U.S. COVID Deaths Top 1.016 Million

U.S. COVID-19 deaths rose to 1,016,766, as of June 29, according to Johns Hopkins University. Cases in the United States climbed to 87,221,661 on that date. America still holds the dubious distinction as the nation with the largest number of COVID-19 deaths and cases.

COVID-19 deaths worldwide totaled 6,332,611, up more than 11,000 since Friday, June 24, according to Johns Hopkins. Worldwide COVID-19 cases have reached 545,473,714, up nearly 5,000 since June 24.

Roughly 78.1% of the U.S. population, or 259,426,758, have obtained at least one dose of a COVID-19 vaccine, as of June 28, the CDC reported. Fully vaccinated people total 222,123,223, or 66.9%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 105.1 million people.

The five defense stocks to buy as Ukraine fights to defend its freedom from Russia’s invasion give investors a chance to protect their portfolios from the worst of its volatility, collect dividends for staying patient and position themselves for future profitability. With the highest inflation in 41 years and further interest rate hikes by the Fed still ahead, the allure of defense stocks remains, despite sustained supply chain disruptions and Russia’s unrelenting attacks on Ukraine.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

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A Climate Of Fear

A Climate Of Fear

Authored by James Gorrie via The Epoch Times,

The medical, media, and political elites’ focus has shifted from facts…

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12 hours ago

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September 30, 2023

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A Climate Of Fear

Authored by James Gorrie via The Epoch Times,

The medical, media, and political elites’ focus has shifted from facts to fomenting and magnifying fear.

In Franklin D. Roosevelt’s first inaugural address in 1933, the new president told a nation in the depths of the Great Depression that “the only thing we have to fear is fear itself.”

Those words were true and rightfully spoken at that time. Roosevelt knew that fear is a powerful emotion that limits our ability to reason, act wisely, and work together. It’s also an emotion that’s contagious and not easily diminished or dissipated.

The Power of Fear to Fragment Society

Unfortunately, Roosevelt’s words are even more applicable today.

On a personal level, decisions made under the emotional duress of fear are rarely the best ones and often the worst. Fear can bring out the best in us, but can often bring out the worst. That’s more likely to occur the more fragmented a society becomes. Fear among different groups of people creates an us-versus-them context in the minds of individuals, or even an “every-man-for-himself” attitude, which pits one group against another or even each of us against each other.

Now elevate that sense of fear to the level of the national electorate. A people or a nation that's paralyzed with fear makes rash decisions based on their fears of what could happen, not necessarily what the current situation truly is. When that happens, a society can quickly degenerate, where our base instincts determine our behavior in a law-of-the-jungle social environment.

Roosevelt knew this, as do our leaders today. The difference is that today, rather than seeking to dispel fear, our political and media elites create it, expand it, and revel in it. Rather than promote hope and strength of character in us, in a Roosevelt- or even a Reagan-like fashion, they traffic in fear and its fellow traveler social division in order to fragment our society.

It’s the old but effective divide-and-conquer strategy, and sadly, it works far too well. The mechanism for divide and conquer is the constant drumbeat of the Big Lie, which is also a tried and true method for controlling society. It was first practiced and perfected by Joseph Goebbels in Nazi Germany using the mass media, but has been successfully used by the USSR and every other communist and dictatorial regime in the world since the 1930s.

Social Media Is Magnitudes More Powerful Than Legacy Media

The difference today is the massive and pervasive presence of social media. Its reach and social saturation throughout society are magnitudes greater than have ever been possible before. What’s more, our political and media elites create and exaggerate fear without even mentioning the word. “Fear” is driven into our collective psyches under the guise of our government keeping us “safe,” while demonizing anyone who challenges that narrative.

The repetition by the media and the pharmaceutical industry of how to stay safe from COVID-19 always involves more drugs and less freedom. That’s by design. The elites that run society know that once enough of our friends, neighbors, coworkers, and others with whom we interact become more fearful than rational, they’re easily manipulated and divided into confrontational groups.

Does that sound like a conspiracy theory?

Yes, it probably does, but it’s also how the Stasi, the East German security agency, turned virtually every neighbor into an informant. The result was that people were fearful of doing anything that could be construed as being against the communist East German government. In light of what we’ve been through the last three years—and what looks to be on the horizon—the conspiracy theory accusation has lost its sting.

From Conspiracy Theory to Fact

Recall, for example, how those who received the COVID-19 vaccine turned against those who remained unvaccinated. The contrast and social division couldn’t have been clearer or more deliberate. Vaccinated people were characterized by the media and government agency spokespeople as selfless, smarter, and better human beings than those who refused the vaccine.

On the flip side, the “anti-vaxxers,” as they came to be called, were publicly derided by the medical, pharmaceutical, media, and government elites. They were accused of being low-intelligence conspiracy theory nuts who wouldn’t or couldn’t “follow the science,” even when they followed the science from experts such as Robert Malone, one of the inventors of the mRNA technology, and other medical doctors in Europe and Asia, including former Pfizer Vice President Dr. Michael Yeadon, all of whom were de-platformed from mainstream media and social media.

In fact, any “alternative” remedy to the experimental and highly dangerous mRNA vaccines, such as ivermectin, was summarily dismissed, even though nations that used ivermectin had the lowest mortality rates. As noted above, many media personalities and even medical experts with contrary opinions were silenced, shamed, and shunted into professional oblivion, being substituted by compliant replacements. That practice continues to this day, with Russell Brand being the latest example of being de-monetized by YouTube.

In light of vaccine injuries and deaths, and the staggering profits that vaccines have delivered to the pharmaceutical industry, the number of people who believe the mainstream media, the government, and in the vaccines, is much smaller today than three years ago.

Conspiracy theory narratives have become conspiracy facts.

The Endgame of Fear

So, what’s the endgame of promoting and enforcing a climate of fear throughout society?

It’s simple. Fearful people are far more compliant and, therefore, are easily controlled, pacified, monitored, and dehumanized. Next thing you know, we’ll all be eating bugs and liking it.

The antidote to fear, of course, is freedom and access to real and contrary information so that each person can make up his or her own mind. The encouragement, enablement, and empowerment of private individuals to exercise informed judgment about their health and their livelihoods are also part of the solution. A vibrant, thinking, and active society of informed individuals isn't nearly as vulnerable to the polarizing climate of fear our elites are foisting upon us.

In short, to live in fear is to live in bondage.

Tyler Durden Sat, 09/30/2023 - 20:50

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COVID-19 Vaccine Found In The Hearts Of Dead People: Study

COVID-19 Vaccine Found In The Hearts Of Dead People: Study

Authored by Zachary Stieber via The Epoch Times (emphasis ours)

COVID-19 vaccine…

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2 days ago

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September 29, 2023

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COVID-19 Vaccine Found In The Hearts Of Dead People: Study

Authored by Zachary Stieber via The Epoch Times (emphasis ours)

COVID-19 vaccine was detected in patients who died within a month of vaccination, according to a new study.

COVID-19 vaccines in Massachusetts in a file image. (Joseph Prezioso/AFP via Getty Images)

U.S. researchers analyzed tissue samples from the autopsies of 25 people, including 20 who were vaccinated.

Samples from the hearts of three patients, all of whom died within 30 days of a Pfizer shot, tested positive for messenger ribonucleic acid (mRNA).

Eight bilateral axillary lymph node samples, from people who died within 30 days of a Moderna or Pfizer vaccine, also tested positive. The companies' shots utilize mRNA.

The research shows "the vaccine can persist for up to 30 days, including in the heart," Dr. James Stone, with the departments of pathology at Massachusetts General Hospital and Harvard Medical School, told The Epoch Times via email.

The study was published by npj Vaccines. Authors declared no conflicts of interest. They said the research was supported by Massachusetts General Hospital, which is in Boston.

In testing of heart and bilateral axillary lymph node tissues from other vaccinated people who died, no vaccine was detected.

Additionally, no vaccine was detected in the liver, spleen, or mediastinal lymph nodes—vaccine was detected in the liver and spleen in preclinical rodent studies before—nor was any detected in tissues from the unvaccinated patients.

The Pfizer and Moderna vaccines are known to cause myocarditis, a form of heart inflammation that can result in death.

The people who had mRNA detected in the heart did not have myocarditis, though they did have detectable heart injuries, researchers found.

The researchers said they believed the heart injuries stemmed from underlying diseases and not the vaccines.

"There is no indication as yet that the vaccine in the heart is causing any problems in these patients; neither the causes of death nor the causes of the myocardial injury were linked to the vaccines in that study," said Dr. Stone, one of the authors of the paper.

A health care worker prepares a dose Pfizer/BioNTEch COVID-19 vaccine at The Michener Institute, in Toronto, Canada, on Dec.14, 2020. (Carlos Osorio/POOL/AFP via Getty Images)

That position was challenged by Dr. Clare Craig, a British pathologist who reviewed the research.

"The vaccine should not have been there. There was evidence of heart damage. Those three people are now dead," Dr. Craig told The Epoch Times in a message.

She said the researchers were setting too high of a bar for causality.

"At postmortem if there is significant narrowing of the coronary arteries then heart damage is attributed to it on the balance of probabilities. Here this is a clear cut association, an unusual picture of myocardial injury, and a failure to call it out for what it is," Dr. Craig said.

More on Research

The tissues were collected from autopsies performed between January 2021 and February 2022 at the Massachusetts General Hospital. Researchers excluded tissues from some dead people, including from patients who had no clear history of vaccination or non-vaccination and those who had a documented prior COVID-19 infection.

The researchers wanted to test the tissue for vaccine in light of research that has found both spike protein and mRNA persisting in axillary lymph nodes and blood for weeks or even months after vaccination. The testing would help "gain a better understanding of the biodistribution and persistence of SARS-CoV-2 mRNA vaccines," they said. SARS-CoV-2 is the virus that causes COVID-19.

Researchers ended up with tissues from 20 vaccinated patients, including six who received one dose, 12 who received two doses, and two who received three doses. They also formed a control group of five unvaccinated patients.

Six bilateral axillary lymph node samples were available for people vaccinated with Moderna's shot. Two tested positive for the vaccine. Thirteen were available for people vaccinated with Pfizer's shot. Six tested positive for the vaccine.

Overall, of the 11 bilateral axillary lymph node samples from patients who died within 30 days of a shot, eight tested positive. None of the samples from patients who died beyond 30 days of vaccination tested positive.

Researchers also examined samples from each of the vaccinated people from the cardiac left ventricle and cardiac right ventricle. Of those, four samples tested positive across three patients. These were the three who received Pfizer's shot within 30 days of dying. The samples also tested negative for COVID-19.

Vaccine was not detected in any of the unvaccinated people.

The vaccinated patients were on average older, with a mean age of 64 compared to 57. A higher percentage—55 percent to 20 percent—had recent heart injury.

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Tyler Durden Fri, 09/29/2023 - 18:20

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T2 Biosystems (NASDAQ: TTOO) Breaks Ground: FDA Clearance, Market Trends, and Healthcare Impact

Shares of T2 Biosystems (NASDAQ:TTOO) are soaring up over 20% today on the heels of receiving a 510(k) clearance for its T2Biothreat from the FDA. This…

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2 days ago

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September 29, 2023

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Shares of T2 Biosystems (NASDAQ:TTOO) are soaring up over 20% today on the heels of receiving a 510(k) clearance for its T2Biothreat from the FDA. This unique test directly detects six biothreat pathogens from a blood sample.

Spotting Biothreats Faster:

T2Biothreat Panel is a game-changer, being the first and only FDA-approved product that can spot these critical biothreat pathogens simultaneously. T2 Biosystems proudly stands as the first U.S. company to achieve this milestone, reshaping the field of biothreat detection.

Big Investor Sells:

Interestingly while celebrating this achievement, a significant investor, CR Group (CRG), decided to sell off a substantial chunk of shares. This sell-off, totaling 24.81 million shares, took place between Sept. 20 and Sept. 26. The timing of this sell-off alongside the FDA clearance raises some eyebrows.

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New CDC Guidelines:

Regardless of CR Group selling, there still appears to be a massive opportunity according to many retail investors. Following new CDC guidelines, the U.S. government now mandates that all hospitals in the country must adopt rapid testing protocols to combat the sepsis pandemic by 2026, or risk losing Medicare funding.

Buying opportunity of the year!!! Update
byu/den1183 inTTOOstock

T2 Biosystems stands as the exclusive FDA-cleared product capable of achieving 100% accurate sepsis detection within 3 to 5 hours. Anticipating widespread adoption of T2 instruments in hospitals, the CEO foresees significant revenue generation, potentially reaching $1.3 billion annually, given the mandate.

This development drastically alters the landscape, potentially influencing the stock’s trajectory positively. With the ongoing surge in manufacturing hires and likely acceleration in orders, coupled with potential government contracts or international sales, many beleive T2 Biosystems presents an undervalued opportunity for investors.

What Borrowing Costs Tell Us:

Another interesting indicator to look at is the cost to borrow (CTB) fee. In terms of TTOO’s case, the stock has seen a massive surge in CTB fees, indicating a high demand from short sellers. When compared to the average CTB fee for other stocks, it’s pretty drastic. While this is typically not a very positive sign, retail investors seem to be buzzing with interest, given there also could be a potential short squeeze if enough buying comes in to trap the shorts.

Better News for Patients:

But let’s not forget the real impact and that’s what TTOO can do for patients. @ChengKeki a user from Twitter also shared an article about Butler Memorial Hospital and their approach to Sepsis. The hospital came up with a 2 step approach to expedite patient care.  They’re utilizing the Beckman Coulter automation line to identify changes in a person’s blood cells that might indicate the development of sepsis. Which apparently has only been used in Europe and they’re the first in the US with the technology. Then shortly after, they use T2 Biosystems panels that as you know, quicken the process from 36 hours, to just 3-5 hours.

Catching sepsis quickly is crucial because it’s a life-threatening condition that rapidly progresses throughout your body and can lead to death if not promptly diagnosed and treated. Sepsis occurs when the body responds improperly to an infection, causing widespread inflammation and potentially damages multiple organ systems. Early detection allows for immediate medical intervention.

Conclusion:

T2 Biosystems is hitting major milestones, not only in the market but in improving critical healthcare processes. The company is also a major hit with retail investors and continues to trade an astronomical amount of shares daily, the current average is ~115M shares. The FDA approval and its implications, along with the positive shift in sepsis diagnosis, showcase T2 Biosystems’ growing role in healthcare. Keep an eye on how this progresses—it’s exciting for both investors and patients alike.

We will update you on TTOO when more details emerge, subscribe to Microcapdaily to follow along!

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Picture by jarmoluk from Pixabay

 

The post T2 Biosystems (NASDAQ: TTOO) Breaks Ground: FDA Clearance, Market Trends, and Healthcare Impact first appeared on Micro Cap Daily.

The post T2 Biosystems (NASDAQ: TTOO) Breaks Ground: FDA Clearance, Market Trends, and Healthcare Impact appeared first on Micro Cap Daily.

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