June 27, 2018 7:01pm

Dramatic declines could/should set a course for a rebound; yet a Q re-balance was in the trades

 

Pre-open indications: 8 HITs and 2 MISS

Of the 45 companies covered; 42 downside equities finished in a range of -$0.0038 to -$7.70 while the 2 upside equities oscillated from +$0.10 to $6.05 with 1 flat close.

 

Out and about: Intrexon Corporation (XON) proposes $200 million Convertible Senior Notes due 2023 and expects to grant the underwriters of the Notes a 30-day option to purchase up to an additional $30 million aggregate principal amount of Notes to cover over-allotments.

Bad and good news: Sangamo Therapeutics (SGMO) closed down -10.54% while bluebird bio (BLUE) was down -4.77% after comparable Global Blood Therapeutics (GBT) rose +15.63% reporting positive data for its sickle cell disease drug, voxelotor.

 

It’s a duty and an honor to be a “canary in a coal mine”!  What’s left when one is right so often? RMi is the source investors and traders need – it’s more than opinion, the facts and truth need to be recognized!

 

Henry’omics:

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 11/31 and 3 flats;
  • The mid-day stayed negative with an A/DL of 4/39 and 2 flats;
  • The close was negative with an A/DL of 2/42 and 1 flat;

 

Pre-open indications: 8 HITs and 2 MISS

  • Athersys (ATHX) closed down again -$0.03 – hit;
  • AxoGen (AXGN) closed down -$1.70 – hit;
  • Biostage (BSTG) closed down -$0.60 – hit;
  • BioTime (NYSE American: BTX) closed down -$0.20 – hit;
  • CRSPR Therapeutics (CRSP) closed down -$4.02 – hit;
  • Ultragenyx (RARE) closed down -$5.95 – hit;
  • Intellia Therapeutics (NTLA) closed down -$1.83 – hit;
  • bluebird bio (BLUE) closed down -$7.70 – miss;
  • Regenxbio (RGNX) closed down -$0.60 – miss;
  • Global Blood Therapeutics (GBT) closed up +$6.05 – hit;

 

Out and about: Intrexon Corporation (XON)

  • Concurrently with the offering of the Notes, XON intends to offer shares of its common stock at an aggregate public offering price of $100,000,000 in a separate SEC-registered offering.  Such shares will be loaned by XON to J.P. Morgan Securities LLC (in such capacity, the "Share Borrower"), the underwriter of the offering of Borrowed Shares, pursuant to a share lending agreement. 

 

From the pre-open newsletter … “contrarianism; there are times to present alternative hypotheses as too many dramatic share pricing swings undermine analytic judgements. Contrary signals are not given proper weight or consideration.”

I also stated, “We could be looking at another decline as the month and quarter comes to an end followed by a July 4th mid-week holiday, don’t expect markets to be responsive.  Many traders will make “disruptive” moves early – so they can be gone by Thursday at the latest! I intend to be!”

 

In my universe of 45 companies, I have seen, in the month of June (so far): 11 positive, 7 negative and 1 neutral closes.

 

Bad and good news:

Sangamo Therapeutics (SGMO) closed down 10.5% while bluebird bio (BLUE) slipped 4.8% after competitor Global Blood Therapeutics (GBT) reported positive data for its sickle cell disease drug, voxelotor.

  • In the part A of GBT's P3 study, 58% of patients taking the higher dose of voxelotor reached the pre-defined goal of a 1 g/dL increase in hemoglobin, while 38% of the patients taking the lower dose reached the goal, compared to just 9% of patients taking placebo.

But that's not even the worse news for Sangamo and Bluebird.

  • The data for the higher dose was so good; GBT was shooting for a 35% response rate -- that the company is now in discussions with the FDA to potentially accelerate the approval rather than waiting for part B of the study before applying.
  • The bad news is that an accelerated approval could extend Global Blood's lead over SGMO and BLUE. SGMO's gene editing therapy for sickle cell disease hasn't entered the clinic yet, although treatment for a related disease called beta-thalassemia is in a P1/2 trial. BLUE's gene therapy, LentiGlobin, is in P2 development for sickle cell disease.

The good news for Sangamo and Bluebird is that voxelotor appears to be far from a cure with just 58% of patients responding. Given the higher risks of editing patients' DNA, both SGMO's and BLUE's therapies are most likely going to end up treating the sickest sickle cell patients, so there may not be much of an overlap with the patients that voxelotor is likely to help <MotleyFool>.

 

MY working trend lines:

… The greatest volume to the downside:  SGMO, VSTM, XON, MDXG and BMRN

… Upside volume was weighted to:  GBT and FIXX

… Biggest $ downside:  BLUE (-$7.70), RARE (-$5.95), ONCE (-$5.111), CRSP (-$4.02) and ALNY (-$2.44)

… Best moves to the $ upside: GBT (+$6.05) and FIXX (+$0.10)

… Flats:  RENE.L

 

The weekly count - decliners versus gainers:

……. look at the differences in decliners:

  • Wednesday’s decliners ranged from -0.75% <BCLI -$0.03 > to -12.5% <BSTG -$0.60> in 42 equities;
  • Tuesday’s decliners ranged from -0.21% <BSTG -$0.01 > to -11.40% <SLDB -$4.92) in 20 equities;
  • Monday’s decliners ranged from -0.83% <ADVM -$0.05 > to -8.1% <FATE -$1.04) in 31 equities;
  • Friday’s decliners ranged from -0.64% <SLDB -$0.27> to -10.34% <CUR -$0.12> in 19 equities;
  • Thursday’s decliners ranged from -0.18% <CRSP -$0.12 > to -17.25% < CLBS -$1.49> in 36 equities;
  • Last Wednesday’s decliners ranged from -0.28% < STML -$0.05> to -17.05% <SLDB -$7.33> in 11 equities;

Versus

… Look at the percentage’s (%) and spreads …

  • Wednesday’s gainers ranged from +0.51% <FIXX +$0.10 > to +15.63% <GBT +$6.05> in 2 equities;
  • Tuesday’s gainers ranged from +0.11% <EDIT +$04 > to +0.32% <CLBS +0.53 > in 22 equities;
  • Friday’s gainers ranged from +0.46% <VCEL +$0.05 > to +9.46% <BLFS +$1.09> in 24 equities;
  • Thursday’s gainers ranged from +0.09% <BMRN +$0.09 > to +18.7% <SLDB +$6.67 > in 9 equities;
  • Last Wednesday’s gainers ranged from +0.06% <XON +$0.01> to +30.71% <CLBS +$2.03 > in 31 equities;

 

Daily analytics and metrics:

  • The Dow fell 165.52 points to close at 24,117.59.
  • The S&P 500 pulled back 0.9% to 2,699.63.
  • The NASDAQ dropped 1.5% to 7,445.08

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,

  • Wednesday traded at 17.91, up +12.50%
  • Tuesday traded at 16.16, down -6.75%
  • Monday traded at 17.33, up +3.56%
  • Friday traded at 13.77, down -5.94%
  • Thursday traded at 14.66, up +14.62%
  • Last Wednesday traded at 12.79, down -4.19%

 

The iShares Russell 2000 (IWM) closed:

  • Wednesday was down -1.54%;
  • Tuesday was up +0.61%;
  • Monday was down -1.61%;
  • Friday was down -0.36%;
  • Thursday was down -0.96%;
  • Last Wednesday was up +0.81%;

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Wednesday was down -2.04%
  • Tuesday was down -0.43%
  • Monday was down -1.81%
  • Friday was down -0.34%
  • Thursday was down -1.13 %
  • Last Wednesday was up +1.66%

 

June sessions:

Wednesday closed NEGATIVE with 42 decliners, 2 advancers and 1 flat;

Tuesday closed POSITIVE with 20 decliners, 22 advancers and 3 flat;

Monday (6/25) closed NEGATIVE with 31 decliners, 10 advancers and 4 flat;

Friday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;

Thursday closed NEGATIVE with 36 decliners, 9 advancers and 0 flat;

Wednesday closed POSITIVE with 11 decliners, 31 advancers and 3 flats;

Tuesday closed NEGATIVE with 19 decliners, 24 advancers and 2 flat;

Monday (June 18) closed NEGATIVE with 22 decliners, 21 advancers and 2 flat;

Friday closed POSITIVE with 16 decliners, 23 advancers and 6 flat;

Thursday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;

Wednesday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;

Tuesday closed POSITIVE with 17 decliners, 27 advancers and 1 flat;

Monday (June 11) closed NEGATIVE with 26 decliners, 18 advancers and 1 flat;

Friday closed NEUTRAL with 22 decliners, 22 advancers and 1 flat;

Thursday closed NEGATIVE with 34 decliners, 9 advancers and 2 flat;

Wednesday closed POSITIVE with 17 decliners, 24 advancers and 4 flat;

Tuesday closed POSITIVE with 14 decliners, 30 advancers and 1 flat;

Monday (June 4) closed POSITIVE with 18 decliners, 25 advancers and 2 flat;

Friday (June 1) closed was POSITIVE with 15 decliners, 29 advancers and 1 flat;

 

 

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.