The U.S equity markets are headed for a positive start to the day. This comes after global markets show increased optimism despite China’s decision to sanction U.S lawmakers. On top of that, the markets are optimistic that the world is inching closer to a COVID-19 vaccine and possibly a cure.
Yesterday, a U.S biotech company announced that clinical trials on its COVID-19 cure for people with severe respiratory problems had a 100% success rate. This comes days after major biopharma companies announced that they were working on a COVID-19 vaccine manufacture and distribution. Besides hopes of a COVID-19 vaccine, market confidence has been bolstered by President Trump’s economic bailout executive orders. In this environment of optimism, stocks with positive news are gaining momentum. Some of the top performers ahead of markets are:
Pfenex Inc. [NYSE: PFNX]
Pfenex Inc. is a top performer pre-market and is up by 60%. This follows news that the company would be acquired by Ligand Pharmaceuticals Incorporated for $12 a share. The acquisition will either be in cash or in equity value at a cost of $438 million. On top of that, Ligand will offer an additional $2 per share as a Contingent Value Right totaling to $78 million if certain milestones are met by December 31st, 2021. The transactions is expected to be completed in Q4. These developments could reflect in the stock price when markets open.
Oxbridge Re Holdings Limited [NASDAQ: OXBR]
Oxbridge Re Holdings Limited is another top performer this morning and is up by over 100% pre-market. This follows the company’s release of strong Q2 results. The company announced that in Q2, its net income increased to $165,000 compared to a loss of $205,000 in a similar quarter in 2019. The company’s premium income also increased due to a normalized recognition of premiums in 2020. It also announced that all through the 2020 financial year, it had not made any losses. Commenting on the results, the company CEO, Jay Madhu stated that, they were optimistic about the core reinsurance business, and that they continued to evaluate growth opportunities to help diversify risks.
Koss Corporation [NASDAQ: KOSS]
Koss Corporation is another pre-market mover and is up by 25%. The stock’s strong performance is largely price-action driven. Yesterday’s price action points to strengthening upside momentum as bulls took control in a highly volatile day. Its pre-market price action has seen it clear out a recent high that was acting as an intra-day resistance. This could play a role in determining the stock’s price action when markets open.