Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Semiconductors (SMH,SOXX,NVDA,AVGO) have been leadership since late-2022, but they're extended and starting to see profit taking as market participants rotate into other laggard areas of the market (especially Energy).</li>
<li>The question is whether this new trend lasts a few days, or if this is the start of longer-term trend.</li>
<li>If there will be any lasting rotation away from Technology/semiconductors, SPX and QQQ would need to break strong short-term supports at 5370-5380 and $468-469, respectively. Until then, Tech/semis remain leadership</li>
</ul>


Semiconductors (SMH,SOXX,NVDA,AVGO) have been leadership since late-2022, but they're extended and starting to see profit taking as market participants rotate into other laggard areas of the market (especially Energy).
The question is whether this new trend lasts a few days, or if this is the start of longer-term trend.
If there will be any lasting rotation away from Technology/semiconductors, SPX and QQQ would need to break strong short-term supports at 5370-5380 and $468-469, respectively. Until then, Tech/semis remain leadership


Rotation Is the Lifeblood of a Bull Market; Still Bullish; Supports at SPX 5370-5380, QQQ $468-469

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Dr. Reddy's Laboratories / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dr-reddy-s-laboratories-ltd" target="_blank" data-smartkarma-citation="entities:16406:1" rel="noopener">Dr. Reddy's Laboratories (DRRD IN)</a> started FY24 on a strong note, with Q1FY24 revenue and net profit growing 29% and 18%, YoY, respectively, driven by North America generics business.</li>
<li>Revenue from North America generics increased 79% y/y and 26% q/q to INR32 billion, driven by new product launches, continued momentum in existing products, and favorable forex rates movement.</li>
<li>During Q1FY24, the company has launched six new products in the U.S. With a rich ANDA pipeline of 85 ANDAs, launch momentum is expected to accelerate in the current fiscal.</li>
</ul>



Dr. Reddy's Laboratories (DRRD IN) started FY24 on a strong note, with Q1FY24 revenue and net profit growing 29% and 18%, YoY, respectively, driven by North America generics business.
Revenue from North America generics increased 79% y/y and 26% q/q to INR32 billion, driven by new product launches, continued momentum in existing products, and favorable forex rates movement.
During Q1FY24, the company has launched six new products in the U.S. With a rich ANDA pipeline of 85 ANDAs, launch momentum is expected to accelerate in the current fiscal.


Dr. Reddy's Laboratories (DRRD IN): Q1FY24 Result- US Business Shines; PAT Jumps 18%

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mannkind-corp" target="_blank" data-smartkarma-citation="entities:3629:1" rel="noopener">Mannkind Corp (MNKD US)</a> has multiple revenue stream, with two marketed products. Flagship drug Afrezza, an inhaled insulin recorded 11% YoY revenue growth to $10.8M in Q3.</li>
<li>Due to high R&amp;D and SG&amp;A expenses, Mannkind records operating loss. However, gross profit margin is improving, with Afrezza gross margin improving to 81% in 3Q22 from 61% in 3Q21.</li>
<li>Mannkind’s inhaled clofazimine (MNKD 101) is advancing to Phase 2/3 study for potential treatment of nontuberculous mycobacterial (NTM) lung disease. ~86K people in US are living with NTM lung disease.</li>
</ul>



Mannkind Corp (MNKD US) has multiple revenue stream, with two marketed products. Flagship drug Afrezza, an inhaled insulin recorded 11% YoY revenue growth to $10.8M in Q3.
Due to high R&amp;D and SG&amp;A expenses, Mannkind records operating loss. However, gross profit margin is improving, with Afrezza gross margin improving to 81% in 3Q22 from 61% in 3Q21.
Mannkind’s inhaled clofazimine (MNKD 101) is advancing to Phase 2/3 study for potential treatment of nontuberculous mycobacterial (NTM) lung disease. ~86K people in US are living with NTM lung disease.


Mannkind Corp (MNKD US): Stable Revenue Stream; High Hope for MNKD 101 for Rare Lung Disease

iShares Russell 2000 ETF / Technical Analysis

<ul>
<li>The market continues to send mixed signals - some neutral or healthy signals but some risk-off signals as well.</li>
<li>As long as the Russell 2000 index (IWM) is above $208, Russell Micro Cap index (IWC) is above $134-$135, and the S&amp;P 500 is above 4495, we cannot be bearish.</li>
<li>Treasury yields are not breaking down below 1.40%-1.45% support on the 10-year Treasury yield and 1.76% support on the 30-year Treasury yield.</li>
</ul>


The market continues to send mixed signals - some neutral or healthy signals but some risk-off signals as well.
As long as the Russell 2000 index (IWM) is above $208, Russell Micro Cap index (IWC) is above $134-$135, and the S&amp;P 500 is above 4495, we cannot be bearish.
Treasury yields are not breaking down below 1.40%-1.45% support on the 10-year Treasury yield and 1.76% support on the 30-year Treasury yield.


Continued Absence Of Breakdowns Is A Positive Sign; Many Bottoms-Up Stock Recommendations

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Capital Markets

Miromatrix Medical / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/miromatrix-medical-inc" target="_blank" data-smartkarma-citation="entities:33530:1" rel="noopener">Miromatrix Medical (MIRO US)</a> , a biotechnology and life sciences company pioneering a novel technology for bioengineering human organs, closed initial public offering of ~5.52 million shares of common stock in June. Sole managing underwriter Craig-Hallum Capital Group exercised its option to purchase 720,000 shares at IPO price of $9.00 per share.  </p><p><a href="https://www.smartkarma.com/entities/miromatrix-medical-inc" target="_blank" data-smartkarma-citation="entities:33530:1" rel="noopener">Miromatrix Medical (MIRO US)</a>  was backed by strategic investors such as <a href="https://www.smartkarma.com/entities/baxter-international-inc" target="_blank" data-smartkarma-citation="entities:19975:1" rel="noopener">Baxter International (BAX US)</a> , <a href="https://www.smartkarma.com/entities/davita-inc-9c208e1e-deb0-4599-9f0b-eaae415f5531" target="_blank" data-smartkarma-citation="entities:14938:1" rel="noopener">Davita Healthcare Partners (DVA US)</a> and CareDx. Biotech startup has raised $20 million from Series C private round and ~$45 million of net proceeds from an IPO to start human clinical studies.  First of all, Miromatrix Medical plans to demonstrate bioengineered human organs outside of the patient’s body and during the next stage shift focus to full organ transplantation.</p>

Miromatrix Medical (MIRO US) , a biotechnology and life sciences company pioneering a novel technology for bioengineering human organs, closed initial public offering of ~5.52 million shares of common stock in June. Sole managing underwriter Craig-Hallum Capital Group exercised its option to purchase 720,000 shares at IPO price of $9.00 per share.  Miromatrix Medical (MIRO US)  was backed by strategic investors such as Baxter International (BAX US) , Davita Healthcare Partners (DVA US) and CareDx. Biotech startup has raised $20 million from Series C private round and ~$45 million of net proceeds from an IPO to start human clinical studies.  First of all, Miromatrix Medical plans to demonstrate bioengineered human organs outside of the patient’s body and during the next stage shift focus to full organ transplantation.

Miromatrix Medical: Bioengineering Human Organs. Next Big Medical Breakthrough?

United States

United Therapeutics Corporation develops pharmaceuticals to treat vascular diseases such as pulmonary hypertension and peripheral vascular disease.  The Company's lead products are stable synthetic forms of prostacyclin and are delivered orally or subcutaneously.

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United Therapeutics (UTHR US)

Rotation Is the Lifeblood of a Bull Market; Still Bullish; Supports at SPX 5370-5380, QQQ $468-469

Rotation is the Lifeblood of a Bull Market; Bullish Outlook Intact; Expecting Short-term Support at $SPX 5370-5380 and $QQQ $468-469 (20-day MAs...

Vermilion Research

Dr. Reddy's Laboratories (DRRD IN): Q1FY24 Result- US Business Shines; PAT Jumps 18%

North America sales grew 79% y/y and 26% q/q to INR32 billion, driven by new product launches, continued momentum in existing products, favorable...

Tina Banerjee

Mannkind Corp (MNKD US): Stable Revenue Stream; High Hope for MNKD 101 for Rare Lung Disease

Mannkind’s flagship inhaled insulin Afrezza reports double-digit revenue growth, with expanding gross profit margin. Drug candidate MNKD 101 is...

Tina Banerjee

Continued Absence Of Breakdowns Is A Positive Sign; Many Bottoms-Up Stock Recommendations

As long as the Russell 2000 index (IWM) is above $208, the Russell Micro Caps index (IWC) is above $134-$135, and the S&P 500 is above 4495, we...

Vermilion Research

Miromatrix Medical: Bioengineering Human Organs. Next Big Medical Breakthrough?

We believe that perfusion technology from Miromatrix differentiates from 3D bioprinting and genetically modified xenografts and has more advantages...

Andrei Zakharov

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