April 27, 2017 6:48pm
… Overbought and was proven right yet again
Pressure will mount as the weekend beckons and being long
Pre-open indications: 2 hit and 6 miss – not exact but, still early
Out and about: Biostage (BSTG) 8-K announces a reverse of 1 for 2 and not greater than 1 for 20. Cash is getting VERY short; a reverse will lower shares outstanding and a warrant exercise will re-elevate the shares outstanding yet again, They NEED to do the “exercise” ASAP as BSTG does NOT want to identify their cash position without an exercise or capital raise which is NOT realizable based on current depreciation and dilution factors and ultimately pricing .
Remember, reverses have their institutional and historic downdrafts … BEWARE – there’s more …!
The truth is harsh, but reality is what it is!
I answer one question, in which company should investors commit and keep their money
RMi’s daily and continual “reads” of the goings-on of the SCG&RT sector can improve investor’s and trader’s odds - just because a stock underperforms the market doesn’t mean you have to lose money.
Henry’omics:
From the pre-open’s investor’s newsletter “the trend was NOT your friend, but just a short-term acquaintance. I’d be cautious …!”
- Reiterating, “Sentiment might be strong for a couple of days, but fragile in the short-term!”
The NASDAQ ended up 0.4% at 6,048, marking a fresh record -its second all-time closing high for the week.
I haven’t seen ANY game changing news as we prepare for Q1/17 financial results.
Out and about:
Biostage (BSTG) an 8-K announced a – coming - reverse of 1 for 2 and not greater than 1 for 20.
Cash is getting VERY short; a reverse will lower shares outstanding and a warrant exercise will re-elevate the shares outstanding yet again. They NEED to do the “exercise” ASAP as BSTG does NOT want to identify their cash position without a capital raise. Remember, reverses have their institutional and historic downdrafts … BEWARE – there’s more …!
- “The total number of shares of capital stock which … Biostage … shall have authority to issue is one hundred twenty-two million (122,000,000) shares, of which one hundred twenty million (120,000,000) shares shall be a class designated as common stock, par value $0.01 per share, and two million (2,000,000) shares shall be a class designated as undesignated preferred stock, par value $0.01 per share (the “Undesignated Preferred Stock”).” <8-K>
Let’s NOT forget, management VOTED themselves another 4 million shares for their equity incentive plan!
- Double, Triple, quadruple beware(s)!
Even with a reverse to execute the warrants, BSTG will NEED and offering in the resulting six (6) months IF they get the IND filed and approved for human clinical trials!!!
- Also to be noted, there is 1.85 million shares short versus the previous month’s 920.43 K of the current float of 34.1 million shares – that is 13.97%
BSTG closed up +$0.02 to a wholesome $0.336 … it’s criminal in my OPINION!
What analytics were there on Thursday day and why it was important in today’s sector outcomes?
- One answer … the DOW closed up +0.04% while the NASDAQ closed up +0.39% … adding to what I said yesterday, emotional influence takes its toll, but investors need to be careful of the depreciating indexes!
Today’s lows were hard pressed to sustain the last three (3) days of “ups” as I had stated support was going to drop dramatically !
… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 10.77…
· As Wednesday and Tuesday traded near 10.8, Monday traded 10.9 – down -25.6% followed by Friday trading near 14.67 after last Thursday’s near 14;
… The iShares Russell 2000 (IWM) indicated a positive +0.19% at the pre-open was and closed DOWN -0.03%;
… The iShares NASDAQ Biotechnology (IBB) indicated a negative -0.14% at the pre-open and closed UP +0.04%
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The open was negative with an A/DL of 18/23 and 2 flats;
· The mid-day stayed negative with an A/DL of 15/28 and 0 flat;
· The close was negative with an A/DL of 18/25 and 0 flat;
… Decliners ranged from -0.19% <KITE> to -5.36% <ADVM> in25 equities;
… Gainers ranged from +0.29% <BTX> to +6.35% <BSTG> in 18 equities;
Pre-open indications: 2 hit and 6 miss
· Asterias Biotherapeutics (NYSEMKT: AST) closed down -$0.20 – hit;
· bluebird bio (BLUE) closed up +$0.40 – miss;
· Cellectis SA (CLLS) closed up +$0.34 – miss;
· Intrexon (XON) closed UP +$0.14 – miss;
· Kite Pharma (KITE) closed down -$0.16 – miss;
· Juno Therapeutics (JUNO) closed down -$0.23 – miss;
· Mesoblast (MESO) closed down -$0.03 – hit;
· Spark Therapeutics (ONCE) closed up +$0.60 – miss;
Percentage gainers:
· Biostage (BSTG) +6.35% <+$0.02>,
· MiMedx (MDXG) +3.73Z%,
· AxoGen (AXGN) +2.53%,
· uniQure (QURE) +2.25%,
· Vericel (VCEL) +1.92%,
Percentage losers:
· Adverum (ADVM) -5.36% following Wednesday’s +5.66%,
· Asterias Biotherapeutics (NYSEMKT: AST) -4.94% after Wednesday’s +8% following Tuesday’s +10.29% after Monday’s+9.68%,
· International Stem Cell (ISCO) -4.29% following +7.36%,
· Stemline (STML) -4.23%,
· Opexa (OPXA) -4.20%
Dollar gainers:
· Spark Therapeutics (ONCE) +$0.60 after Wednesday’s +$0.32 following Tuesday’s +$2.08 after Monday’s +$2.34,
· bluebird bio (BLUE) +$0.40 after Wednesday’s +$0.90 following Tuesday’ +$2.10 after Monday’s +$3.25,
· Cellectis SA (CLLS) +$0.34,
· MiMedx (MDXG) +$0.30,
· AxoGen (AXGN) +$0.30,
Dollar losers:
· Stemline (STML) -$0.40 after Wednesday’s +$0.35 following Tuesday’s +$0.35,
· Regenxbio (RGNX) -$0.25,
· Juno therapeutics (JUNO) -$0.23,
· Asterias Biotherapeutics NYSEMKT: AST) -$0.20,
· Kite Pharma (KITE) -$0.19 following Wednesday’s +$2.23 following Tuesday’s -$1.68,
Flats:
· 0
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
