Washington Blinks: Will Seek Partnership With China-Led Development Bank

Washington caves.

http://www.zerohedge.com/news/2015-03-22/washington-blinks-will-seek-partnership-china-led-development-bank

So essentially this is just the old “if you can’t beat ‘em, join ‘em” strategy disguised as an attempt to bring the AIIB into the fold of US-dominated multinational institutions.

But make no mistake, this is at best an example of Washington cutting its losses and at worst an outright surrender, as no one should pretend that the AIIB, which is starting with $50 billion in capital, will remain subservient to the AD...

DSCO

One of my laggards had a big day last night, after their meeting with their FDA. I suppose I could exit with a small gain after averaging down, but after the trials and tribulations of the former incompetent CEO, I'm tempted to wait it out until FDA approval. Surfaxin will save many lives with Respiratory Distress Syndrome, so I will hang in there.

http://philadelphia.bizjournals.com/philadelphia/stories/2009/09/28/daily17.html?ana=yfcpc

There was a chance Discover Laboratories (symbol "DSCO") would be forced to shut its doors, but there was just too much technology for it to collapse. A partnership, and accompanying cash, should enable DSCO to reach the finish line.

Disclosure: I am long shares of DSCO.

Biotechs getting some run

With health conference season in full swing, biotechs are showing green on a daily basis. In between rubber chicken luncheons, CEO's are pitching their companies on the next game-changing treatment for various human ills through endless PowerPoint presentations. Many will fail to live up to their promise, but a few will actually make it through the FDA approval--estimates are 1 in 5 succeed.

The DNDN effect is providing even biotech penny stocks new life, as no one wants to miss out on the next blockbuster. Some companies have also had impressive price appreciation, including VNDA, who received a surprise FDA approval, despite a rejection last year. Partnership and buyout rumors are floating around these conferences, with big pharmas looking to replenish their drug portfolios, as their pipelines dry up due to patent expiration. This effect is driving up premiums for clinical-stage, microcap biotech companies, whose share prices were decimated by the credit crunch and financial crisis last year.

Let's hope the overall market doesn't take away the punch bowl.