The Only Way to Fast-Track a Vaccine

The race for a COVID-19 vaccine continues... Government contracts and the health of millions... The only way to fast-track a vaccine... Wall Street is hoping for a dip... A big mailbag, including more 'screams from the heart'...

A lot of eyes remain glued to the 'race for a COVID-19 vaccine'...

Here in the U.S., the growth rate of new COVID-19 cases and deaths nationwide has slowed over the past week... But the numbers still aren't trending down yet.

Different things are happening in different places. Only three states – Arizona, Delaware, and Maine – have reported an average daily decrease in cases over the past two weeks... with a half-dozen others about steady... while more than half the 50 states have seen rising numbers of deaths in the same span.

And the positive test rate sits at 8.5%, according to Johns Hopkins University.

These numbers are, of course, backward-looking – like much of the formal economic data out there. Some states have implemented more "social distancing" policy changes in that span and could see better numbers in the weeks ahead.

But the point remains... COVID-19 isn't disappearing tomorrow. And it has already left a lasting mark in places where the virus is considered largely gone, too. As we wrote in the July 14 Digest...

A friend who manages commercial real estate in New York told us about a company with 600,000 square feet of space that had just reopened the office to only 60 employees last week. It's already shut down again after one of those folks tested positive for COVID-19.

And this all happened after the company spent $56,000 just to clean the place.

The point is... even in places where the virus isn't killing people by the hundreds every day anymore, it isn't gone completely. Maybe it never will be.

We were hoping that social-distancing measures would do the job to get our national health and wealth back on track. But unfortunately, that hasn't happened in a lot of places with any sort of dense population – like here, where we're based in Baltimore.

So it's becoming increasingly clear to a lot of folks that a vaccine will probably be a must-have if the "real" U.S. economy – like eating out in restaurants, traveling on airplanes, working in shared office space, and other previously "second nature" activities – is to return to some state of normalcy.

In other words... if we can't do it ourselves, leave it up to a shot (or two) of some science.

We know that this is what the Federal Reserve believes, too, which means a lot when we start thinking about monetary policy and the potential for more "juice" headed to the market.

Forward-looking share prices and government spending seem to indicate this...

Shares of companies involved in the "race" are soaring... For example, biotech firms Novavax (NVAX), Inovio Pharmaceuticals (INO), and Moderna (MRNA) are up 111%, 85%, and 23%, respectively, in the past month alone.

And it seems like we're seeing reports about vaccine developments every time we boot up our computers.

Just yesterday, Stansberry NewsWire analyst Nick Koziol reported that Oxford University and AstraZeneca's (AZN) vaccine candidate has shown encouraging results and "mild" side effects in small but ongoing Phase III trials. From Nick's report...

A neutralizing antibody response was found in 91% of the 35 trial patients when using one testing process. A second testing process showed 100% of trial patients showed an antibody response.

According to a recent report from Bloomberg, this is the front-runner for a vaccine. The report suggests that the Oxford/AZN vaccine is "months ahead" of competitors and could be done with human trials by September.

At the same time, the U.S. government is fronting a lot of money for the research, development, trials, and infrastructure to produce doses of vaccine when one or more is found safe and effective to make available to the public.

As we wrote in the June 29 Digest, Stansberry Venture Technology editor Dave Lashmet's subscribers booked a 1,000% gain in a partial position of Inovio in almost exactly one year after he recommended the tiny company.

The stock nearly doubled in late June on the news that the U.S. Department of Defense announced it was giving $71 million to the company to, as we explained in the Digest, "scale-up its vaccine delivery technology, an indication that the development of the vaccine itself is going well, too."

Massive government contracts and the health of millions of Americans...

That's certainly a lucrative market.

And vaccine development involves more layers than what a lot of folks may imagine. It involves finding a vaccine that works – which a lot of scientists and companies are working on now – and then all the steps to actually make the vaccine and get it out to people.

Certain folks are pushing for a treatment to be approved before the presidential election in November... while others are saying a widely available vaccine likely won't be available until later in 2021 or even 2022.

Either way, like any industry, a supply chain exists... along which a lot of product and money flows. You won't really hear about it in the mainstream news – they usually like the glory and flash of the pure science – but we have editors who are well-versed in how breakthrough drugs and treatments actually come to market. And they know the value of the investment opportunities linked to the drug supply chain.

"The picks and shovels," is how Stansberry Innovations Report editor John Engel described it to subscribers in his May issue, using a gold analogy.

How the medicine is made...

Specifically, John was referring to a key need in the supply chain – contract development and manufacturing organizations ("CDMOs").

John talked about this critical part of the supply chain in a video discussion with our colleague Jessica Stone that we shared in the May 21 Digest. And John wrote in depth about the topic the May issue of the Innovations Report. In part, he noted...

Large, multinational vaccine developers such as Johnson & Johnson, Sanofi, Pfizer, and GlaxoSmithKline have launched COVID-19 vaccine development programs. But many of the lead developers are small and inexperienced in large-scale vaccine manufacturing. Smaller firms completely lack the ability to manufacture at scale. And even some of the larger ones are indicating a lack of manufacturing capacity.

Without adequate manufacturing capabilities, the fast-paced drug development efforts and the FDA's attempts to pull new treatments forward quickly are essentially meaningless.

The solution to this problem isn't obvious. But it's one we're familiar with as biotechnology investors... the need for contract development and manufacturing organizations ("CDMOs").

John explained that CDMOs are essentially for-hire development and manufacturing plants. They're the only way to fast-track the type of vaccine – however hastily tested and developed – that is being pursued to treat COVID-19. As John said of CDMOs...

They give biopharmaceutical companies without their own manufacturing capabilities a way to build capacity and meet demand. These businesses will play a vital role in the supply chain for COVID-19 therapies and vaccines.

John was no less than spot-on...

He recommended subscribers buy shares of one U.S.-based company in particular. This company had a lot of experience working off government contracts to make a variety of drugs, including some that treat opioid-related overdoses and others that fight bioagents like anthrax.

In fairness to John's Innovations Report subscribers, we can't share the name or ticker of the company here. But we can tell you that the company has recently landed two huge multimillion-dollar contracts, including one with the Oxford/AstraZeneca group that appears to have one of the leading candidates for a COVID-19 vaccine.

This small company has ties to other major players in this "race," too. In other words, there's a good chance it ends up making the vaccine that the names you've heard of are trying to create and test right now.

And even better, the company remains in John's "buy" range today.

Check out his latest Innovations Report issue for much more information. And click here to learn how you can subscribe today if you don't already have access to John's research.

In the meantime, a lot of money is still sitting on the sidelines...

NewsWire editor C. Scott Garliss reported this morning that a lot of money managed by institutional Wall Street investors remains out of play, waiting for a drop in stocks...

According to Bank of America's monthly survey of roughly 210 fund managers (who have about $607 billion worth of assets under management), their cash levels rose slightly in June as they continue to wait for a drop in stocks to buy at lower prices.

The average cash level came in at about 4.9%, just above the 10-year average number. More importantly, it's just a hair below the 5% cash level that Scott says many mutual funds can't hold more than, based on their charters.

These investors are certainly anticipating a drop, and they're not alone...

The market's 'fear gauge' is still elevated...

Regular Digest readers know we like to look at the Chicago Board Options Exchange's CBOE Volatility Index ("VIX"). It's considered the market's "fear gauge."

The VIX measures the expected volatility in the benchmark S&P 500 Index over the next 30 days by looking at the prices of call and put options for a wide range of stocks.

While significantly lower than its all-time high set back in mid-March, the VIX remains near 24 today.

In the calmer bull market era over the past several years, the reading typically topped out around that level during the most volatile times. So today, even though investors seem to be a lot less fearful than they've been in recent months, they're clearly still worrying.

How to make money from the fear...

We mentioned this idea a few weeks ago, and it's worth revisiting again today...

The more fearful investors are, the more they'll be willing to pay for "protection."

Put yourself in their shoes if you need to... If you want to hedge your portfolio for whatever reason right now, you're probably willing to pay whatever it takes.

On the flip side, that means selling this protection today becomes that more valuable than usual. What's more, individual investors – who don't have to abide by things like mutual fund charters – can sell this protection at a premium, as Dr. David "Doc" Eifrig shows his Retirement Trader subscribers how to do all the time. As we wrote in the July 6 Digest...

Over the past few months, the VIX has come crashing back down to Earth from its March record high of more than 80. But investors are becoming fearful again... They're starting to consider paying premiums for protection. Another volatility spike could come at any time.

That means this part of Doc's investing strategy – which will hand you cash for selling that protection to fearful buyers – is one that should thrive over the coming months.

Since then, that's exactly what has happened... In a Retirement Trader update on July 17, Doc told subscribers to close out another pair of winning options trades.

The first was a 21% annualized gain by selling options contracts on Warren Buffett's Berkshire Hathaway (BRK-B). Doc said the company was priced "too cheap when we put on our trade in late May and it didn't take long for the market to figure that out."

Recent filings with the U.S. Securities and Exchange Commission have indicated that Buffett has bought back shares of Berkshire stock, as Buffett expert and Empire Financial Research founder Whitney Tilson noted in his free daily e-letter last week.

Earlier this month, Berkshire also spent $4 billion to buy the natural gas assets of Dominion Energy (D), the holding company's first big move since Buffett sold all of his stake in the major U.S. airlines earlier this year.

The second of Doc's recent winners was a trade on the iShares U.S. Home Construction Fund (ITB). We've beat the drum for the tailwinds in the real estate market lately, and all the numbers we see continue to show the strength of the sector. As Doc wrote...

We made this trade last month because we believe the housing market was strong, despite the pandemic. And we were right...

Just last week, mortgage applications to purchase a home were 33% higher than they were a year ago. Buyers have wanted to take advantage of all-time low mortgage rates.

ITB has remained above our $40 strike price and it's currently trading around $47.50 as we write. We'll walk away with a big gain in just over a month thanks to the heightened level of fear in the market.

Kudos to Doc and his research team on two more winners.

We haven't found anyone who explains the concept of options... helps you to become completely comfortable with the process... and walks you through each step of trading them from start to finish... better than Doc and his research team.

Since he started publishing Retirement Trader back in 2010, Doc has amassed an incredible track record... After his latest round of winners, Doc's win rate stands at 93%. He has booked 494 winners out of 532 trades since the publication's inception. Thanks to that performance, he routinely earns grades of "A" or better in our annual Report Card.

And frankly, as we alluded to earlier, the VIX doesn't stay elevated forever. That's why you shouldn't waste any time before learning just how lucrative selling options can be...

If you want to find out how to boost your monthly income in just a few minutes a day, we encourage you to check out Doc's latest presentation.

You can potentially collect thousands of dollars each month... with little risk involved. Last year, this strategy handed some folks the opportunity to make more than $30,000 in extra cash. But don't just take our word on it... Hear how it all works straight from Doc right here.

Can the New Bronco Help Ford?

Following Ford Motor's (F) much-anticipated launch of the new Bronco, Stansberry's Big Trade editor Bill McGilton discusses whether it is enough to make the company attractive to investors.

Click here to watch this video right now. For more free video content, subscribe to our Stansberry Research YouTube channel... and follow us on Facebook, Instagram, and Twitter.

New 52-week highs (as of 7/20/20): Alamos Gold (AGI), Alexco Resource (AXU), ProShares Ultra Nasdaq Biotechnology Fund (BIB), BlackLine (BL), Sprott Physical Gold and Silver Trust (CEF), Cognex (CGNX), Crispr Therapeutics (CRSP), Calibre Mining (CXB.TO), Dollar General (DG), Quest Diagnostics (DGX), Electronic Arts (EA), Franco-Nevada (FNV), Fortuna Silver Mines (FSM), Fidelity Select Medical Technology and Devices Portfolio (FSMEX), VanEck Vectors Gold Miners Fund (GDX), SPDR Gold Shares (GLD), Alphabet (GOOGL), Hecla Mining (HL), Lonza (LZAGY), MAG Silver (MAG), Midas Gold (MAX.TO), Novo Nordisk (NVO), Pan American Silver (PAAS), Palo Alto Networks (PANW), Sprott Physical Gold Trust (PHYS), Sprott Physical Silver Trust (PSLV), ResMed (RMD), ProShares Ultra Technology Fund (ROM), Seabridge Gold (SA), Sandstorm Gold (SAND), Global X Silver Miners Fund (SIL), SilverCrest Metals (SILV), iShares Silver Trust (SLV), Spotify Technology (SPOT), Silvercorp Metals (SVM), TFI International (TFII), Take-Two Interactive (TTWO), Vanguard Inflation-Protected Securities Fund (VIPSX), Vanguard Short-Term Inflation-Protected Securities Index Fund (VTIP), and Wheaton Precious Metals (WPM).

In today's mailbag, feedback on yesterday's Digest about debt and government gaffes... and more of your responses to Dan Ferris' latest Friday Digest. Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.

"Hi, Just to let you know I have been paying taxes for over 60 years and still pay them but I did not get a check. The government must think I am more worthy of assistance dead than alive. Go figure." – Paid-up subscriber Frank D.

Corey McLaughlin comment: If you think the government may owe you money, be sure to check out this IRS page: Economic impact payments: What you need to know.

You can see if you qualify for a payment and find other helpful information regarding the checks there (though we don't see any information on the checks mailed to dead folks).

And for much more detail on the CARES Act, including ideas on what to do with any money you may receive, be sure to check out Doc's latest special report – "Everything You Need to Know About the CARES Act" – in his Retirement Millionaire service.

The report is precisely as it sounds... We haven't seen a better guide to our government's stimulus efforts and what they mean for individual investors anywhere else. Doc and his research team provide practical tips and guidance on how all this record stimulus is supposed to work... and what it could mean for you and your investment portfolio.

If you don't already subscribe to Retirement Millionaire, you can give it a try risk-free today and get instant access to the report. (Stansberry Alliance members and existing Retirement Millionaire subscribers can find it here.)

"No long-term debt [here] but potential to be a 77 year old homeless vet because the owner of the rental procrastinated giving the property managers info to renew the lease in time so it expired and went to a month-to-month status. Then he raised the rent 37% effective 9/1.

"Since I didn't at first see how I could go that high and felt it was unfair, he is insisting I be out on 8/31 and also fired the property managers. This was into the 9th year. Hard to decide where to go next, negotiate it and move with only 45-day notice. I suspect there will be much more of this kind of activity too." – Paid-up subscriber Judith H.

"All those $1200, and $600 extra checks and maybe a repeat, flowing into the REAL day-to-day retail economy are already beginning to raise prices. At 91, and dependent on Social Security and what remains of the money I saved while working, I am very conscious of prices.

"Having recently lost my right to drive after a minor accident, I depend on delivery from stores. My favorite market has stopped charging sale price on items on sale at the store, when I buy for delivery, and charge full price for most things, though they do have a few specials, mostly things I am not interested in. Add in a tip for the driver, and I am spending a good bit more than I used to, though saving on insurance and other driving costs.

"At best, breaking even for now, though if the politicians extend the 'benefits,' and they will, since this is an election year, I expect even more inflation, from our friends in Washington. Covid could delay things a bit, but ultimately make it worse." – Paid-up subscriber Chuck B.

"Re: The dead get checks and the living get screwed... What a headline... Most accurate.

"I have read so many articles about this Pandemic, this Depression, Global reset, and all kinds of predictions.

"The truth is all the money printing is not going to cause inflation, at least not now, not until we are fully recovered. because there are no incomes for many, including REIT owners, and all those money are being circulated through foods, and basics. Through printing, at least food prices will not deflate. If no printing, we will see 1929 hunger lines and deflation in food.

"I am sure there will be a major financial restructure reorganization. All will be well, but it will take time, possibly 2 to 5 years." – Paid-up subscriber Y.A.C.

"[Friday's] Digest is a part of why I love your work. It's like valuable journalism that no media outlet dares to print. It's too honest..." – Paid-up subscriber Robert C.

"Well, Dan, that is the best written and poignant article for the times. I have read for years and enjoyed your ideas and approach. The two videos to make the point worked perfectly. We are at a tipping point in our global universe both financially and politically. I hope this gets circulated widely and people take in what magnitude of change is coming." – Paid-up subscriber Rob H.

"Thank you, Dan Ferris, for the satirical Stansberry Digest, which capped off our crazy week in Wall Street.

"I love your juxtaposition of 2020 to 1933 and President Trump's $2.3T (and growing) free-money experiment to President Roosevelt's 13-year experiment which ended in the Second War to End All Wars!

"If we're lucky, Trump will reign supreme over WW3 by 2023. After all, Trump's next $2T spending bill is for infrastructure. Zoinks! See any parallels to 1935?

"I will Scream inside my Heart, the next time I see someone driving their car, wearing a mask and gloves with the windows rolled up and no one else in the car! It's OK if they are related to Joe Biden! LOL!

"P.S. I shorted Tesla on Monday, two hours before its all-time high peak. We'll see if I outwitted 10,000 day traders! LOL!" – Paid-up subscriber Michael P.

"What causes me to scream inside my heart is the 'uncertainty' and 'confusion' and needless loss of life, created by government officials, mainly Donald Trump, and so called 'medical experts' who daily are putting forth conflicting statements, as if they know the answers, which they don't.

"Our society has become polluted in air, water, and food... and now is polluted by mis-information from those we trusted to guide us." – Paid-up subscriber Jim G.

"That was a great Digest and probably the best I have read yet that Dan has written IMHO.

"My father was a big, powerful man who commanded respect through his actions/deeds and set high expectations for both my sister and I. He had some 'Bridger Walker' moments in his life. if we had a few more fathers like him, we would not have as many kids out rioting because they would have been properly raised.

"My Father, Walter, is now 89 and uses a walker to get around. My mom recently had a stroke and can no longer drive. I think my father thought he needed to step up and start driving again to support the independence they have enjoyed for so long. He asked me this past Monday when he could take me out for a drive to prove he could. I looked him in the eye and told him there was no way that I would trust him behind the wheel with either myself or my kids.

"I also told him that he has lived a great life and is very comfortable and he does not need to take the risk of injury to himself or others and ruin that life. I reminded him that we were going to be honest with them about such topics as driving and when it was time to be done either my sister or I would say so. He teared up a little and I screamed inside my heart. I know he would do the same for me because he was that kind of father and a man's man.

"I have been very lucky to have enjoyed these past couple of decades with both of my parents. Not everyone is so lucky. They taught me right from wrong and stood their ground on all issues that really would matter to help develop their kids into productive members of society.

"My father is my hero and always will be. We need a few more 'Bridger Walkers' and a few more 'Walters' in this world. I agree that we would all be better off with a few more men that act like men... Thanks Dan and Stansberry!" – Stansberry Alliance member John K.

"Just wanted to say I think Dan Ferris is spot on with his comments and analysis. Keep up the great work!" – Paid-up subscriber James V.

"Nice to read someone with sense, instead of what Mencken called the 'booboisie.'" – Paid-up subscriber Lawrence G.

All the best,

Corey McLaughlin
Baltimore, Maryland
July 21, 2020