Core Insights - The discussion emphasizes a "barbell approach" to investing during periods of market volatility, focusing on both high dividend income stocks and AI growth stocks to balance risk and return [9][10][41]. Investment Strategy - The quant system used by the company allows for a broader analysis of approximately 4,500 stocks, compared to traditional analysts who typically cover only 15 to 20 stocks [15][12]. - The quant model incorporates a GARP (Growth at a Reasonable Price) approach, focusing on momentum and positive analyst revisions, which enhances diversification and minimizes risk [13][14]. Market Conditions - Recent market volatility has been influenced by factors such as the government shutdown and uncertainty regarding Federal Reserve interest rate cuts, leading to a rotation towards safer sectors like energy and utilities [21][24][26]. - The CNN fear and greed index indicates a shift from greed to extreme fear in market sentiment, suggesting a cautious outlook among investors [30]. Stock Recommendations Dividend Income Stocks - **Merck (MRK)**: A strong buy with a market cap of $230 billion, a 40% return on equity, and a forward PE of 10.4 times, indicating it is undervalued compared to its sector [43][44][50]. - **Alpine Income Property Trust (PINE)**: A REIT with a market cap of $252 million, offering a forward yield of 6.94% and ranking highly within its sector [51][52]. - **OneMain Holdings (OMF)**: A financial company with a market cap of $6.7 billion, providing a yield of 7.36% and strong growth metrics [64][65]. AI Growth Stocks - **Micron Technology (MU)**: A large-cap company with a market cap of $271 billion, showing significant growth and improved valuation metrics, with a revenue growth rate of 34% [68][70]. - **CommScope Holdings (COMM)**: A smaller company in the communications sector, with a market cap of $3.69 billion, demonstrating strong profitability and growth metrics [73][76]. - **Celestica (CLS)**: A company in the electronic manufacturing services sector, with a market cap showing substantial growth and improved profitability metrics [78][80]. Performance Metrics - The Seeking Alpha quant strong buys have outperformed Wall Street analysts and the S&P 500 over the past five years, with a return of 219% compared to 33% for Wall Street [19]. - The average yield of the recommended dividend stocks is 5.93%, significantly higher than the S&P 500's average yield of 1.1% [81].

Core Insights - Cidara Therapeutics Inc. has experienced a 717% share price surge year-to-date, making it the top stock among SMID-cap stocks in 2025 [1] - Merck & Co. announced an all-cash acquisition of Cidara at $221.5 per share, valuing the deal at $9.2 billion, which represents a 109% premium over Cidara's closing price prior to the announcement [2] - Following the acquisition announcement, several analysts downgraded Cidara's stock rating, with Guggenheim's analyst raising the price target to the offer price of $221.5 [1][5] Acquisition Details - The acquisition by Merck is expected to close in the first quarter of 2026, pending necessary approvals [2] - A Merck subsidiary will acquire all outstanding shares of Cidara through a tender offer [2] Strategic Importance - Merck aims to enhance its infectious disease portfolio with Cidara's lead drug candidate, CD388, which is a late-stage antiviral for preventing influenza in high-risk individuals [3] - CD388 has received Breakthrough Therapy and Fast Track designations following positive Phase 2b results and is currently in Phase 3 trials [3] - Merck's CEO emphasized that CD388 is a crucial growth driver for the company over the next decade, especially in light of anticipated revenue declines from patent expirations of its key drug, Keytruda [4] Market Reactions - Following the acquisition announcement, Cidara's stock price increased by over 105% to close near the offer price [4] - Analysts from various firms, including H.C. Wainwright, JPMorgan, and RBC Capital, have also downgraded Cidara's stock to Hold, while Morgan Stanley raised its price target to the offer price [5]

Investment Rating - The report maintains an investment rating of "Outperform" with a rating of A [7] Core Insights - The report highlights significant advancements in small nucleic acid drugs for the treatment of hepatitis B, particularly the promising data from the drug AHB-137 presented at the AASLD 2025 conference, indicating its potential as the best small nucleic acid drug for hepatitis B [3][22] Summary by Sections Weekly New Drug Market Review - From November 17 to November 23, 2025, the top five gainers in the new drug sector were: - LaiKai Pharmaceutical (+13.34%) - Beihai Kangcheng (+2.67%) - Jiahe Biotech (+2.19%) - Yongtai Biotech (+1.94%) - Youzhi You (+1.14%) - The top five losers were: - WuXi AppTec (-15.75%) - Adi Pharma (-14.56%) - Mengke Pharma (-14.34%) - Yiming Oncology (-13.40%) - Kain Technology (-13.04%) [1][16] Weekly Focused Investment Targets - The report suggests focusing on several promising targets due to upcoming catalysts, including: 1. Products with high certainty for overseas expansion certified by MNCs: Sanofi, Federated Pharmaceuticals, and Kelun-Botai 2. Products with overseas data catalysts: Betta Pharmaceuticals, Hutchison China MediTech, and Yiming Biotech 3. Potential blockbuster products for overseas licensing by MNCs: Fuhong Hanlin, CSPC Pharmaceutical Group, and Yifang Biotech 4. New innovative drug technology breakthroughs: small nucleic acids, in vivo CAR-T, fat reduction and muscle gain, autoimmune CAR-T/bispecific antibodies, and gene therapy [2][20] Weekly New Drug Industry Analysis - The report emphasizes the breakthrough data for small nucleic acid drugs in treating hepatitis B, particularly the two-phase follow-up data for AHB-137, which shows a high potential for becoming the leading small nucleic acid drug in this field [3][22] Weekly New Drug Approval & Acceptance Status - No new drug or new indication approvals were reported this week, but six new drug or new indication applications were accepted [4][24] Weekly New Drug Clinical Application Approval & Acceptance Status - This week, 42 new drug clinical applications were approved, and 44 new drug clinical applications were accepted [5][26] Domestic Market Key Events TOP3 - Key events included: 1. Zean Biopharma's strategic collaboration with GSK to develop up to four "first-in-class" candidates in oncology [11] 2. Innovent Biologics announcing successful Phase III clinical study results for a drug in moderate to severe obesity [11] 3. Fuhong Hanlin's FDA approval for a biosimilar product [11] Overseas Market Key Events TOP3 - Key events included: 1. Merck's presentation of key Phase III trial results at the AHA Scientific Sessions [12] 2. Johnson & Johnson's acquisition of Halda Therapeutics for $3.05 billion [12] 3. The EMA's recommendation for the approval of a gene therapy product [12]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Merck, Altria, and Genuine Parts recently announcing dividend hikes and offering yields up to 7% [1] Merck - Merck & Co. has raised its dividends for 14 consecutive years, with the latest increase on Nov. 19 raising the quarterly payout from $0.77 to $0.81 per share, resulting in an annual figure of $3.24 per share [3] - The current dividend yield for Merck is 3.49% [3] - As of Sept. 30, Merck's annual revenue was $64.23 billion, and Q3 2025 revenues were reported at $17.28 billion with an EPS of $2.58, both exceeding consensus estimates [4] Altria - Altria Group has a remarkable track record of increasing dividends for 56 years, with the most recent hike on Aug. 21 raising the quarterly payout from $1.02 to $1.06 per share, equating to an annual figure of $4.24 per share [5] - The current dividend yield for Altria is 7.29% [5] - Altria's annual revenue as of Sept. 30 was $20.17 billion, with Q3 2025 revenues of $6.07 billion and an EPS of $1.45, both surpassing consensus estimates [6] Genuine Parts - Genuine Parts Co. has consistently raised its dividends for 69 years, with the latest increase on Feb. 18 raising the quarterly payout by 3% to $1.03 per share, resulting in an annual figure of $4.12 per share [8] - The current dividend yield for Genuine Parts is 3.24% [8]

Core Viewpoint - Merck has recommended that its shareholders reject Tutanota's "Mini-Tender" offer, indicating concerns over the offer's terms and potential implications for shareholders [1] Group 1: Company Actions - Merck's board of directors has expressed strong disapproval of Tutanota's offer, emphasizing that it is not in the best interest of shareholders [1] - The company has provided guidance to shareholders on the potential risks associated with accepting the Mini-Tender offer [1] Group 2: Shareholder Impact - The rejection of the Mini-Tender offer is aimed at protecting shareholders from potentially unfavorable terms that may not reflect the true value of their shares [1] - Merck encourages shareholders to remain informed and consider the implications of such offers on their investments [1]

Core Viewpoint - Merck has received FDA approval for KEYTRUDA and KEYTRUDA QLEX in combination with Padcev for the treatment of muscle-invasive bladder cancer in adult patients [1] Group 1 - The FDA approved KEYTRUDA (pembrolizumab) as a neoadjuvant treatment and continued as adjuvant treatment after cystectomy for muscle-invasive bladder cancer [1] - KEYTRUDA QLEX, a combination of pembrolizumab and berahyaluronidase alfa-pmph, has also been approved for the same indication [1] - The treatment is specifically for adult patients diagnosed with muscle-invasive bladder cancer (MIBC) [1]

Group 1 - The article emphasizes the opportunity to join a community focused on achieving high dividend yields of 6-7% while maintaining conservative risk-taking strategies [1] - Scott Kaufman, known as Treading Softly, is highlighted as the lead analyst for Dividend Kings, providing insights into high-quality dividend growth and undervalued investment opportunities [1] - The goal of the community is to achieve a robust total return through cash dividends and strong capital gains [1]

Group 1 - The article emphasizes the importance of enabling Javascript and cookies in browsers to avoid access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Group 1 - The author has a background in private credit and commercial real estate (CRE) mezzanine financing, indicating expertise in financial analysis and investment strategies [1] - The author has collaborated with prominent CRE developers, suggesting a strong network and experience in the real estate sector [1] - The author is a fluent Mandarin speaker, which may provide advantages in understanding Asian markets and investment opportunities [1] Group 2 - The article expresses personal opinions and analysis, highlighting the author's independent research approach [2] - The author holds long positions in several pharmaceutical companies, indicating a focus on the healthcare sector for investment [2] - There is no business relationship with the companies mentioned, ensuring an unbiased perspective in the analysis [2]

Core Insights - Merck announced positive top-line results from a pivotal late-stage study for its investigational HIV treatment DOR/ISL, demonstrating non-inferiority to Gilead's Biktarvy [1][4][6] Group 1: Study Results - The phase III MK-8591A-053 study evaluated DOR/ISL in treatment-naïve adults with HIV-1, showing comparable efficacy and safety to Gilead's Biktarvy [3][4] - The study met its primary endpoint, with a significant percentage of patients achieving HIV-1 RNA levels below 50 copies/mL at week 48 [4][8] - DOR/ISL's safety profile was found to be similar to that of Biktarvy, supporting its potential as a treatment option [4][8] Group 2: Regulatory and Market Implications - A regulatory filing for DOR/ISL to treat virologically suppressed adults on antiretroviral therapy is under FDA review, with a decision expected on April 28, 2026 [2] - Merck plans to present detailed results from the MK-8591A-053 study at a future medical conference and is preparing applications for approval to treat treatment-naïve HIV patients [5][6] - Year-to-date, Merck's shares have decreased by 4.4%, contrasting with the industry's growth of 14.5% [5] Group 3: Additional Developments - The European Commission approved the subcutaneous formulation of Keytruda, enhancing patient convenience and potentially increasing adoption rates [10][12] - The SC version of Keytruda can be administered in as little as one minute, compared to at least 30 minutes for the IV formulation, easing the burden on healthcare facilities [12][13]