May 10, 2018 8:02am
Lends meaning to volatility
Q1/18 releases: ATHX, BLFS, BSTG, BTX, CLBS, FATE, HSGX, PSTI, SLDB and VYGR
More bland and starched messages concerning performance ...
I want more of WHY did it happen!
Pre-open indications: 6 SELL
This newsletter speaks for a return on investment and a definition of risks. Anxious investors need to understand that return on an investment is achieved in the short-term (in “our” sector) which validates the tender of your capital.
The understanding of indications sheds light on share pricing!
A flat open expected
Dow futures are barely UP +0.02% (+6 points) and NASDAQ futures UP +0.16% (+11 points)
US stocks set for a flat open amid earnings, inflation data and political news
Markets in Europe fluctuated around the flat line, as investors awaited a monetary policy decision by the Bank of England,
Markets in Asia closed higher on the back of higher oil prices
Data docket: At 8:30 a.m. ET, jobless claims and consumer price index (CPI) figures are set to be published, followed by the monthly treasury statement at 2 p.m. ET.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is NOT indicating in Thursday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating an UPSIDE of +0.08% in Thursday’s pre-open
Henry’omics:
Today’s moves: The day feels like there is a hole in my pocket as the loss-per-share cents of Q1 results travel down my leg to the gutter. Performance by shares during this period of announcements in the sector has been anticipated just another pitiable reaction which adds to share pricing volatility. But, what does it do to – sentiment – it sinks even lower!
From Wednesday’s night’s newsletter: a new ball game; forget about the yesterday’s slide. Things are different in today’s game. The circumstances will change in the next session … the bases are loaded.”
Review the past 5 session of 45 covered companies – new batting line-up:
- Wednesday closed POSITIVE with 12 decliners, 24 advancers and 2 flats;
- Tuesday closed NEGATIVE with 28 decliners, 16 advancers and 1 flat;
- Monday closed POSITIVE with 15 decliners, 29 advancers and 1 flat;
- Friday closed POSITIVE with 8 decliners, 34 advancers and 3 flat
- Last Thursday closed NEGATIVE with 29 decliners, 11 advancers and 5 flats;
A re-cap:
- A new month to measure … in the second week’s sessions in May, five (5) positive and two (2) negative closes;
- In the last five (5) sessions, the iShares NASDAQ Biotechnology (IBB) was down in three (3) and up in two (2) session for an aggregate of negative -0.27% after Wednesday’s +1.35%, Tuesday’s -0.57%, Monday’s +0.64%, Friday’s +1.06%, Thursday’s -1.36% and last Wednesday’s -1.32%;
- Wednesday’s decliners ranged from -0.38% <HSGX -$0.01> to -7.49% <MDXG -$0.60 > in 12 equities;
- Wednesday’s gainers ranged from +0.24% <VSTM +$0.01> to +16.77% <SLDB +$2.89 > in 34 equities;
Quarterly releases: ATHX, BLFS, BSTG, CLBS, FATE, HSGX, BTX, SLDB, PSTI and VYGR
Company in my headlights:
Adverum Biotechnologies (ADVM) closed up +$0.30 to $5.85 after Tuesday’s $5.55 and Monday’s $5.65. ADVM reported a loss of $17.2 million or -$0.30 per share missing “street” expectations of $0.29 per share. The gene therapy company posted revenue of $216,000. ADVM shares have climbed 67% since 1/2/18. In the final minutes of trading on Wednesday, shares hit $5.85, more than doubling in the last 12 months. The aftermarket indication is for a downside -$0.34 or -5.90% - SELL;
Audentes Therapeutics (BOLD) closed up +$0.99 to $37.00. BOLD reported a loss of $25.6 million or -$0.74 per share; the results topped “street” expectations of $0.81 per share. BOLD shares have climbed 18% since 1/2/18; the share price has doubled in the last 12 months. The aftermarket is showing a decline of -$2.00 or -5.41%. Another, SELL into strength and come back at a cheaper pricing;
AxoGen (AXGN) closed down -$1.25 to $42.10 after Tuesday’s +$0.20 to $43.35 and Monday’s +$0.65 to $43.15 and is down -$1.25 or -2.90% after proposing an offering of 3 M share offering and an overallotment of450,000 shares priced at $41.00. AXGN had 34.68 M shares outstanding and a float of 27.82 M - Maintaining SELL;
Biostage (BSTG) closed up +$0.17 to $2.77 with 2263 shares traded <3 month average = 5,026 shares>. Today is their quarterly conference call; will there be any mea culpa - a Latin phrase that means "through my fault" and an acknowledgement of having done wrong? What do they have as a platform after spending almost $50 M and coming up with NOTHING. So, what does the “gang-that-can’t- shoot-straight” do, they execute a reverse split to maintain their positions, salaries and perks after “screwing” their shareholders after their unpardonable misdeeds (treatment of employees – male and female ), non-communication of their missed milestones and BAD decisions in their platform, financing and executive appointments – the list could go on for pages. And, they think investors will TRUST any of their next moves especially as management appoints an advisor to their scientific advisory board to review her own work (funding her lab) and then appoint an executive from the hospital/research center to their BOD to oversee <with “what” transparency> research being done at their facility. NOT the only analysts that has an OPINION, see through the “babble” - Maintaining SELL;
Ionis Pharmaceuticals (IONS) closed up +$2.27 to $42.80 after Tuesday’s $40.53 and Monday’s $44.33 following last Friday’s $44.01 and the previous Thursday’s $41.27. The aftermarket projects a downside of -$0.05 or -0.12%. IONS reported Q1 earnings with revenue up substantially, but expenses are rising even faster, as it prepares to launch two drugs this year – SELL into strength and come back;
Regenxbio (RGNX) closed up +$5.35 to $45.00 after Tuesday’s $39.65 and Monday’s $39.75, last Friday’s $39.85 and the previous Thursday’s $39.10. The aftermarket projects a downside of -$1.95 or -4.33% - SELL;
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.
