The markets today, Thursday, viewed several hours before the opening bell, look set to open choppy with most major indices in the red at time of writing.
As expected, the U. S. Federal Reserve left its key rate unchanged yesterday and barring a change in its stance the markets know what to expect about rates until 2023.
As well as a strong anticipation about the Federal Reserve decision, the past two weeks have seen a laser focus on investment in vaccine stocks – whether those of smaller companies or major corporations. The suspension and then re-start of trials by AstraZeneca with the accompanying share price swings underlined this.
However, those looking for investment opportunities in the medical sector can continue looking to the NASDAQ for clues about other investment opportunities in the same sector providing some promise but less sensitive to the vaccine issue.
On Tuesday, Outset Medical Inc. specializing in small dialysis machines, launched its IPO at US$27.00 and closed the day at US$60.68 for a gain of almost 125%. The IPO had a list of blue-chip underwriters including BofA Securities, Morgan Stanley and Goldman Sachs.
On Wednesday, the shares closed at US$60.68.
While no two IPO’s bring the same results, it can be expected that other medical companies will see Outset Medical’s success as a template for their own potential success. It is also reasonable to check for other IPO’s being rushed through the NASDAQ before the federal election.