A return to cyclicals - is a story circulating on Monday. We're not through the idea of summertime uncertainty, or 'dog days' and growth uncertainty. All that is academic, most markets held gains as the total backdrop has not changed. Lots of money managers are eager to see a decline, to put more money 'in', but the market hasn't cooperated by dropping 'much'.

Unsplash

Neither is it taking off to the moon, although there could be a growth-spurt we talked about 'if' you get 'peak COVID' in the weeks ahead, and people realize it. First of all we don't know that 'peak' is forthcoming (there is vital debate about that in medical circles) and we don't know what the Fed's response would be.

When there's volatility in terms of decline, the Fed often steps in, however we have had these easy-money policies for so long that the next move should be tightening, or at least tapering of the bond-buying programs. Most longer-term concerns center around Debt issues, and those will be valid real concerns.

Tonight, I'm primarily going to focus on Sorrento. I'm just a bit dizzy (more than usual lol) due to poorly-aimed pest control spraying (and no I'm not pesky). So let's give the round-up of (SRNE)'s big day a title:

Insanity, or unique advantage to leverage... that's the question.

Meanwhile.... behavior of Sorrento in the wake of 2nd Quarter earnings after Friday's close, was just as I suspected and hoped for: initially down as weaker holders deserted on basically irrelevant prior quarter (though expenses were high due to significant expansion of research and 'trial' activities), and then up as the optimists took advantage of the price concession to add to positions.

One member sent this summary purported to clarify where Sorrento stands at this time with a number of projects. I'll post it with the caveat that I don't know the source (actually could have been reflections from the controversial CEO), and that many statements could be inaccurate, though sound reasonable for the near-to-intermediate term for Sorrento. So it's here without any assurance as to accuracy or completeness or even the sources for claimed information. That's not all, that post was before the afternoon 'vaccine' presentation..

(I only have the 'image' of the post, hence I cannot make bullet points nor any edits. What you see is just what was online, again no accuracy assurance, so please understand the Company hasn't really summarized things, so the logic to share this is that it possibly gives a 'thumbnail' glace better than they have.)

That wraps-us-up with reflections on 'peak COVID', which I've mentioned might be possible sooner rather than later, although globally it's not going to be over anytime soon, unfortunately. Dr. Brilliant says no way ending, Dr. Gottlieb has the peak COVID perspective. My view remains vaccines plus MaB's or pills for treatment, as many people, including vaccinated, with get some COVID case of course mostly milder. But people who thought they'd be unleashed by getting a vaccine were naive, because it's more like an annual Flu Shot than vaccine, hence misnamed from the start. However a broader spectrum (variants rather specifically targeted) such as Sorrento is now talking, would be lots better.

Highlights of Sorrento's new presentation include:

• MultiValent COVID Vaccine candidate comprised of proprietary designer Spike-encoding mRNAs designed to elicit cellular and humoral immunity against tearly WA-1 virus as well as the predominant variants of concern (VOCs), Alpha, Beta, Gamma, Delta, and Lambda.

• mRNA construct engineered to remove a furin cleavage site in the native spike protein. This cleavage site could potentially lead to spike protein being cleaved off cells expressing the protein, then entering circulation.

• Thermostable mRNA lipid nanoparticle (LNP) formulation that potentially allows for provision of vaccine doses without the need for frozen storage after time of manufacture, during transport, prior to dose / j administration.

• Development of equipotent lyophilized dose forms that may further enhance the potential for vaccine delivery to underserved populations due to cold-chain storage and transportation issues.

• Micro-epidermal infusion patch device potentially elicits a superior immune response thought to be due to the direct lymphatic dose delivery. MultiValent COVID Vaccine administered via Sorrento's proprietary Sofusa® MuVaxx™ system achieved equivalent serum IgG responses at one tenth of the dose compared to intramuscular administration in mice based on preclinical studies. (So results in humans when, a year later?)

In-sum:

Key to me on Sorrento is not the stock's action (actually restrained if you look at the history of vaccine stock moves), nor the presentation. The key is if they can deliver a non-needle vaccine that doesn't have to be controlled or stored in super-cold temperature, well that's a game-changer especially in areas of the world where that's even tougher. If they can do that, traders will be paying more attention to Sorrento. Could it possibly even run big-time?

Sorrento adding some focus to mRNA vaccines is genius. They’ve been doing research on COVID since the start of it. What are the main issues with Pfizer (PFE) and Moderna vaccines? Well, they don’t really work well on 'broad spectrum' COVID coverage it seems. So, if SRNE has a vaccine that goes through trials and actually works on all variants, and the funding then, well it goes 'in-play'. But that has to happen and we don't know to what degree Federal money last year elicited enough documented knowledge 'if' Sorrento needed that, nor will we know if they are working behind-the-scenes with another mRNA developer (I mentioned that last week when I first caught a whiff of such vaccine work).

I guess moves like AMD (AMD) or watching Moderna (MRNA) tickle the fancy, but why not?

COVID is the hinge upon which the path to higher prices ultimately arrives, or a trap-door that takes the S&P (SPY) down, if indeed multiple waves still threaten our future growth in this Nation, and certainly it's an even larger global concern.