These are the top stocks to watch for the second week of February. These are not stocks that you just buy and hold and hope they go up, you must implement your strategies, have a plan, and execute that plan. THIS IS NOT FINANCIAL ADVICE, TRADE AT YOUR OWN RISK.

1. DVAX

The first stock on watch this week is Dynavax. Dynavax is a company that specializes in making adjuvants for vaccines, as well as working in other spaces of the medical field.

WHY WE ARE WATCHING:

• Dvax is working with several different Companies working to create a COVID-19 vaccine. They have multiple avenues for success, multiple different companies that they are working with, and have been successful in all the phases trials up to this point. They are also working to take a large stake of the Hepatitis-B market, with hopes of getting approval in the European Union, WHICH WOULD MORE THEN DOUBLE THEIR CURRENT MARKET. The CHMP (Committee for Medical Products for Human Use) issued a positive opinion for DVAX’s Heplisav B, essential their treatment for hepatitis-B, on December 10th, below we will see how long it takes the EC (European Commission) on average to come to a decision after the CHMP has given their opinion.
• Valneva SE is a pharmaceutical company based out of France that is working to create a vaccine for COVID-19, they use the Adjuvant that was created by DVAX, CPG-1018, in their vaccine.
• Below is a recent press release that states that the UK government has exercised the right to buy a total of 100 million vaccines from Valneva SE, and still has the potential to buy another 90 million throughout the next several years.

The latter of these images is what will give DVAX long term growth potential as that would, as stated earlier, expanded their market by more than double. The CHMP gave opinion on December 10, 2020. It has been 59 days as of the publication of this watch list (February 7, 2021) We should see a decisions by the EU . The fact that DVAX has been able to work with multiple different partners, all of which you can find on DVAX website under press releases, to pursue COVID-19 vaccines has allowed them to increase there revenues very quickly and in a very short amount of time, and is what gives the stock price lots of potential to move in the short term.

To put some of this into perspective, in 2019 DVAX had a total of $35 million. If we are to take a very conservative estimate that DVAX would make $0.30 per vaccine with Valneva, they would basically reach their total revenue just from that deal. That doesn’t include their main revenue sources in years prior, Heplisav B, which again could have a their potential market more than double within the next month or so. It also does not take into account the other COVID-19 vaccines that DVAX is working on, as well as years down the road, a universal flu vaccine.

TECHNICAL ANALYSIS

Now all the fundamentals seem to be in DVAX favor, but we should also do some technical analysis, essentially looking at the charts, in order to find good entry points.

Above there are some things that we can learn from this chart.

1. The fact that DVAX has ran up on previous new releases is a good sign, that means with potential news coming we can hope to see another run.
2. After DVAX runs, there is a consolation period, price does not drop back to lower levels, and also didn’t have much movement until news was released.

If you were to look on a daily chart for DVAX you would see that it is overbought on the RSI, this doesn’t look good for DVAX on a technical level, but I can point to multiple main stream examples where even when overbought prices continued to rise, TSLA being the main example I can think of off the top of my head. Within this week and throughout February there should be some price fluctuations, wait for the right time to buy, and hold if the fundamentals still look good (If the EC does not approve DVAX vaccine, there will be downward price action, and it may be a while before price is able to recover). Based off of how DVAX has done in the past I believe that they will get approved and in the short term we could see 50% upside.

Full Disclosure: Currently holding 1,000 shares at $6.20 valued at $9,530 currently. Have recently added as high as $8.80 a share. Do your own Research and see if you think taking a position is worth while.

2. CCIV

CCIV is technically not even a company yet, but rather an SPAC (Special Purpose Accusation Company). Basically what these do is they become ‘publicly traded’ and are in talks with merging with another company. The company that CCIV hopes to merger with is Lucid Motors, and electric vehicle company based out of the USA.

WHY WE ARE WATCHING:

• Lucid Motors is basically Tesla Motors drop outs. They have many different Employees that have formally worked for the stock angle that is TSLA.
• When looking at SPACS we have to look at the possibility that the merger will not go through. So what are the reasons that we think the merger will happen with LUCID? The first is the fact that when asked about the situation Lucid Motors has declined to say yes or no, giving more of a luke-warm answer. Under SEC rules, if there are rumors out there, like CCIV having the potential to be LUCID motors, the company must answer the rumors or else they will face consequences. The second is the number of institutions that are currently holding CCIV, remember the institutions always win. The third is the fact that an operating partner at CCIV also works as a chairman for Lucid Motors. This is a section taken from the Los Angeles Times in which they talk about Lucid planning to go public.

You can look into other reasons as to why CCIV has a lot of potential to be in partnership with Lucid yourself, I believe the potential outweighs the risk.

TECHNICAL ANALYSIS

I think if we could get a lower price somewhere near the 50 sma (red line on chart) that could be a good entry point. So if you can get in at the $31-$28, if it falls to $25 I would absolutely jump in. Seems like MACD and RSI are at a high point right now and should hopefully pull back so we can take a position right near ~$30.

Full disclosure: Currently holding 5 shares at $33.70 pps (price per share) valued currently at $174.65 in personal account, and 2 shares at $33.20 pps valued at $69.84 currently. These are small positions and am looking to add to this next week, to roughly 10%-15% of total account value.

OTHER POTENTIAL PLAYS

• IPOD & IPOF & CLOV
  Another three SPAC plays, ran by a legend in terms of SPACs Michael Klein. You can do more research more into each of these