Weekend Update #69

Apr 9

Welcome to Blue Room's Weekend Update. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.

Indexes continued to slump this week as the S&P500 and Nasdaq saw decreases of 1.3% and 3.8%, respectively. Conversely, the 10- and 30- year Treasury yields have risen to the highest levels since 2019, trading above 2.7% and 2.746%, respectively. The market moves come as the Fed issued more hawkish statements this week. Federal Reserve officials announced plans to shrink the balance sheet by over $1 trillion a year, or $95 billion per month, while also signaling accelerated rate hikes of 50 basis points or more. The Fed Minutes came in as the strong labor market continues to tighten with initial jobless claims coming in at 160,000 — the lowest level in 53 years.

Various developments in the Russia-Ukraine war also influenced the market. Although Russia reported withdrawing troops from Kyiv and Chernihiv, evidence of war crimes and civilian executions continue to mount, spurring various nations to impose new sanctions on the country. Congress passed a ban on Russian oil, gas and coal imports in addition to prohibiting any new investment in Russia by Americans. The government also expanded the sanctions list to include Putin’s daughters and other Russian officials. The US also implemented full sanctions on two of Russia’s largest banks, Sberbank and Alfa Bank, as well as some state enterprises.

The European Union imposed similar bans to Russian coal, the EU’s first hit to energy imports, with existing contracts to be terminated by August. The EU also implemented export bans for certain technologies and jet fuel.
Showing solidarity with the US and Europe, Japan will also freeze assets of Sberbank and Alfa Bank in addition to banning imports of all Russian coal, and will look to quickly secure alternative sources. In addition to energy sanctions, all of the countries mentioned plan to ban additional Russian goods and commodities such as vodka, seafood and timber.

Thank you Blue Room Analyst NICK PEART.

Novavax at the Cowen 42nd Annual Health Care Conference

March 8, 2022 9:50am - 10:20am EST

Moderator:Georgi Yordanov — Cowen, Inc

Speakers:Filip Dubovsky, MD — Executive Vice President and Chief Medical Officer

John Trizzino — Chief Commercial Officer and Chief Business Officer

Technology

EntheogeniX Biosciences — AI-enabled computational biophysicsplatform designed to optimize and accelerate drug discovery
Introspect Digital Therapeutics — digital therapeutics platform dedicated to improving patient outcomes through personalized care
InnarisBIo — a formulation technology company developing a sol-gel based, intranasal excipient technology
PsyProtix — Metabolomics-based biomarkers that stratify patientswith TRD with the aim to improve patient outcomes through a precision psychiatry approach
Psyber — electroencephalography, or EEG, -based brain-computer interface technology for psychiatric use
IntelGenx Technologies, or IntelGenx — oral thin film (OTF) drugdelivery system manufacturer (Viridia VLS-01)

Georgi Yordanov

All right. Welcome, everyone. I'm really excited to have Novavax management, specifically John Trizzino, Chief Operating Officer and Chief Business Officer; as well as Filip Dubovsky, who is the Chief Medical Officer of Novavax.

So obviously, you guys just had your quarterly call last week, issued your 2022 guidance of $4 billion to $5 billion. So maybe we can just get right into it and then maybe you can just walk us through the different components that make up this guidance, and then we can take it from there.

John J. Trizzino

Yes. Sure. Georgi, first of all, thanks for having us. I think it was an exciting earnings call, chock-full of a lot of information about where the company is. The accomplishments certainly over—especially over the last several months, but certainly over the last 12 months highlighted in this latest update of the many regulatory approvals that we have across the globe. We are truly now a global organization, not only in regulatory approvals, but shipping product into Europe, into Australia, Indonesia, South Korea, et cetera. So we're thrilled with the progress that we've made, the infrastructure that's in place, and executing against all of our strategic plans.

Georgi Yordanov

Yes. That's great. And then just going to the $4 billion to $5 billion guidance—maybe can you just walk us through what are the different components to make up that guidance in terms of how should we be expecting in terms of product sales versus government contracts that you have remaining with OWS?

John J. Trizzino

Yes. So, as we've talked about before, we don't get into the absolute details of breaking down that number. But for sure, the most significant portion of that is product-related revenue, both from a direct revenue perspective on the Novavax side as well as product-related royalty revenue coming from sales of product, whether that's at Serum or SK Bio or any of our other licensee partners. And that's a number that we're extremely confident in and backed up with the APAs that have been in place for some time now.

Market Capitalization: $20,736 million

Corporate Profile: Best Buy Co., Inc. was incorporated in the state of Minnesota in 1966. The company is driven by its purpose to enrich lives through technology. Best Buy Co., Inc. has operations in the U.S. & Canada.

Overview: Best Buy is a multinational retailer with 1,144 stores in the United States and Canada, operating under the Best Buy, Best Buy Express, Best Buy Mobile, Best Buy Health, CST, Geek Squad, GreatCall, Lively, Magnolia and Pacific Kitchen & Home Sales banners. Best Buy’s operations in the United States make up more than 90% of the retailer’s total sales. The company recently discontinued its operations in Mexico after failing to find success in international markets (China, UK, Barbados, & Bermuda), which may be a warning sign of a potential cap to growth by expansion.

The company generates roughly:

43% of its total revenue from computers and mobile phones;
32% from consumer electronics;
11% from appliances;
6% from entertainment sales;
5% from sales of services.

This concept tracks the value of new orders received during the reference period. Orders are typically based on a legal agreement between two parties in which the producer will deliver goods or services to the purchaser at a future date.

Factory orders examines trends within industries. For example, Durable Goods may account for a broad category, such as computer equipment, whereas the Factory Orders report will detail figures for computer hardware, semiconductors, and monitors. It includes four sections, including New Orders, Unfilled Orders, Shipments (current sales) and Inventories, which indicate the strength of current and future production.

Factory orders registered a -0.5% month-over-month decrease from January to February. This comes after mostly 0.4% or greater percent increases in the months following the shutdowns in March and April of 2020.

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Anti-Hero Short Film Fest

TUESDAY APRIL 22

Join MCA DENVER at the Holiday Theater on Tuesday, April 22 for a special showing of the Anti-Hero Short Film Fest.

ABOUT THE EVENT:

* Anti-Hero; someone who is unconventional, misunderstood, marginalized, subversive, anti-establishment, unseen or something in between.

It is time to question the biased norms and standards placed upon us throughout our intertwined histories and champion new perceptions: how the insight from those who have been othered need to be viewed. The Anti-Hero Film Festival seeks to share and celebrate perspectives, narratives, and experiences that have been left out of history by highlighting the voices of women, BIPOC, and LGBTQIA+ communities.

LOCATION:
The Holiday Theater. 2644 W 32nd Ave, Denver, CO 80211

TICKETS