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Hot Stock: PL Drops on Earnings; ACAD Jumps on Regulatory Hopes; SAFM Sets New High; CWH Hits 52-week Low

Daniel

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Wall Street received a boost from the Federal Reserve on Wednesday, regaining some of the losses it has posted lately. The rally came as the Fed hiked rates by 75 basis points and left open the possibility of a similar increase at its next meeting.

Acadia Pharmaceuticals (NASDAQ:ACAD) was among the standout gainers on the session. The stock posted a double-digit percentage climb on hopes that the firm will receive regulatory approval to expand the use of its antipsychotic drug to Alzheimer’s patients.

Elsewhere, Sanderson Farms (SAFM) rallied to a new 52-week high after an analyst said the poultry producer had upside potential as a standalone company.

Turning to the downside, Planet Labs (PL) dropped on earnings news. At the same time, Camping World (CWH) extended recent losses to establish a new 52-week low.

Standout Gainer

Acadia Pharmaceuticals (ACAD) rallied nearly 16% after U.S. regulators published details related to an expanded use for one of the firm’s drugs ahead of an advisory committee meeting later this week.

The U.S. Food and Drug Administration released briefing documents related to the firm’s pimavanserin, an antipsychotic therapy that ACAD is hoping to use for patients with Alzheimer’s disease. The move came ahead of Friday’s advisory committee meeting.

ACAD’s pimavanserin is currently sold for use in Parkinson’s disease psychosis. The FDA is slated to make a decision in early August about expanding use of the drug to Alzheimer’s patients.

Standout Loser

A weak earnings report prompted a significant downdraft in Planet Labs (PL), sending shares of the Earth-imaging company lower by more than 11%.

The firm revealed a net loss for its latest quarter that widened from last year. Meanwhile, revenue climbed almost 26%.

Analysts had a negative reaction to the results, with several price target reductions. The Wall Street community cited mounting losses and reduced valuations in the sector for the moves.

Weighed down by the news, PL dropped 59 cents to finish Wednesday’s trading at $4.56.

The stock, which came public in a SPAC deal late last year, reached a post-SPAC low of $3.70 in May. It bounced well off that mark to approach its 2022 highs by the end of the month. However, shares have been dropping again lately, losing about a quarter of their value so far in June.

Notable New High

Despite a deal to be acquired, Sanderson Farms (SAFM) closed above its takeover price again during Wednesday’s session. The stock received a boost from an analyst’s assessment that SAFM had upside potential as a standalone company.

After a choppy session, the stock finished higher by 1%. However, this was enough to take it to a new 52-week high.

SAFM gained $2.37 on the session, reversing losses seen during the middle of the day. Shares finished at $209.78, above the $203 per share contemplated in its planned sale to Continental Grain/Cargill.

Shares also touched an intraday 52-week high of $210.22. The gains added to a longer-term upswing for the stock. SAFM has climbed 12% in the last month.

A note from Barclays pushed the stock higher, with the firm noting, “we continue to see very strong cash generation ahead and if the takeover by Cargill & Continental Grain were to fall through, we could see upside for SAFM from current level.”

Notable New Low

Camping World Holdings (CWH) added to its recent weakness, as investors showed skepticism about the company’s aggressive expansion plans amid signs of slumping demand. The latest slide took the stock lower by another 4%, with CWH reaching a new 52-week low.

The seller of recreational vehicles finished Wednesday’s trading at $24.44, a decline of $1.01 on the session. During the day, CWH reached an intraday 52-week low of $24.29.

Taking the most recent dip into account, the stock hasn’t had a winning day in the past five sessions. CWH dropped about 8% over the past week.

During its recent losing streak, data were released that showed that RV retail sales had dropped 31% in April.

Meanwhile, CWH announced this week that it had reached an agreement to purchase a dealership in Arizona. A little more than two weeks ago, the company announced plans to expand in seven states this year.

For more of the day’s biggest winners and losers, head over to Seeking Alpha’s On The Move section.

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Great Panther to Sell Mexican Mining Assets in $14.7M Deal

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Great Panther Mining (NYSE:GPL) +12.2% post-market after saying Wednesday it agreed to sell the Guanajuato mine complex, the Topia mine, and the El Horc?n and Santa Rosa projects, all located in Mexico, to Guanajuato Silver Company for $14.7M plus up to $2M in potential additional payments.

Great Panther (GPL) said the sale of the Mexican mines will allow it to focus on maximizing the full potential of the Tucano gold mine in Brazil and complete the pivot to gold started in 2019.

The company said it expects Tucano will return to steady-state production in this year’s H2 and plans to continue investing to unlock value both from the underground as well as the regional potential of the district.

While production is expected to rise sharply in H2, Great Panther (GPL) “will still have some of the weakest margins sector-wide, making it much higher risk than its junior producer peers,” Taylor Dart writes in an analysis published recently on Seeking Alpha.

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Turbulent Oil, Gas Markets to Persist ‘for Some Time to Come,’ Shell CEO Says

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The world is headed for a “turbulent period” in oil and gas markets “for some time to come,” as “spare capacity is running very, very low,” Shell (NYSE:SHEL) CEO Ben van Beurden said Wednesday.

Global demand for oil and gas is still recovering despite economic and COVID-19 challenges, but the world’s oil refining system is running flat out, van Beurden said, driving up refining margins and prices of gasoline and diesel.

Russia has curbed gas supplies to Europe, forcing buyers to turn to liquefied natural gas imports and causing concerns about supplies ahead of peak demand this winter, but van Beurden believes “it will be impossible to cover the entire pipeline gas capacity out of Russia with LNG.”

LNG export capacity amounting to 32M tons are set to come onstream this year, with possibly another 30M in the next few years, resulting in a “very significant shortfall.”

Europe could extract as much as 50B cm/year of additional gas from the controversial Groningen gas field in The Netherlands, but that would be a last resort for the Dutch government, the Shell (SHEL) CEO said.

Van Beurden’s outlook for oil is not much better, saying spare capacity from OPEC “isn’t as much as the market thinks or hopes,” while demand has reached pre-pandemic levels and will continue to increase for years.

The CEO also pointed to a $1T decline in investment in the oil and gas industry during the past three years that would have happened in “normal circumstances.”

Exxon CEO Darren Woods indicated recently that energy prices likely will remain elevated, but “the cure for high prices is high prices.”

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U.S. Refiners to Urge Biden Administration Not to Ban Fuel Exports – Reuters

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U.S. oil refiners will try to convince the Biden administration not to ban exports of domestic fuel to combat record-high gasoline prices during tomorrow’s scheduled meeting with Secretary of Energy Jennifer Grandholm, Reuters reported on Wednesday.

Refining executives reportedly will seek to make the case that an export ban would anger allies and lead to refining production cuts as companies lose access to global markets that have become crucial to revenues, ultimately raising prices.

Potentially relevant tickers include (NYSEARCA:XLE), (NYSEARCA:CRAK), (XOM), (CVX), (VLO), (MPC), (PSX), (PBF), (DK), (CVI)

The U.S. is the world’s biggest exporter of refined products, and Mexico, Canada and Japan are among the top buyers of those partners, while Europe has increased purchases in recent weeks to make up for lost Russian supply.

“If refiners aren’t allowed to export, they’re just going to slow down production and cut the refinery utilization rate,” Mizuho’s director of energy futures Bob Yawger told Reuters, adding that excess products likely would be sent into inventories, which are at multi-year lows.

U.S. capacity to refine crude oil into fuel and other products has dropped below 18M bbl/day to hit its lowest level since 2014, according to the Department of Energy’s latest annual refinery capacity report.

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Original Source: seekingalpha.com

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