A look at GDP, Acadia, Microsoft
Michael Kramer and the Clients of Mott Capital own shares of ACAD
What a boring day, with the S&P 500 finishing the day only up by 11bps.ย The index stalled out right at 2,672 and just held there all day long. It was a solid end to the week, and I think the market will continue to rise over the near-term.
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Yields
10-year yield backed are back down to 2.96 percent, after that 2.3 percent GDP growth rate for the first quarter that was less than stellar in my opinion, and way below where I would like to see it.ย But then again,ย it is all from the point of view one uses.
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GDP
Even looking at data from GDP can be tricky, because remember the latest reading we got this morning is the seasonally adjusted annual rate. I like to look at GDP on a quarterly basis seasonally adjusted just on y/y metric, and that shows a differentย picture. That shows us that GDP on a y/y basis grew by 2.9 percent and that the improvement in GDP growth has been steady and linear.
It would be nice if GDP growth could continue in a such a linear path over the next several quarters, we could even be heading towards a 4 percent handle. Crazy I know.
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Predictions Update Now 1 For 5
So I decided to go back and revise my 0 for 5 call on my earnings predictions, after a day of trading is complete, and changing my record to 1 for 5. Microsoft, actually played out just as I had written.
I think the chart is self-explanatory.ย Yes! 1 for 5 :).
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Acadia
Did you see that Acadia news today, I sureย did.
The stock is still struggling to recover from CNN doubling down on its Sell rating on the stock. The two analysts should probably get a better handle on the database and how it actually works.
If you haven’t seen the actual testimony the article referred to and the “grilling”; it is below for you to watch.ย It starts at the 1-hour mark. When I first found the video and posted it, there were only 45 views; it has grown quite a bit since.ย
Then there was this commentary from Acadia:
There was no increase in mortality detected in users of NUPLAZID.
- 6 of the 88 patients treated with NUPLAZID died (compared to 5 out of 14 in the group that never started NUPLAZID).
But still the damage is done, and hopefully, in time, the stock shall recover.
I’m done.
-Mike
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