June 28, 2018 8:06am
There are cracks in the sector yet, there is an opportunity for some oversold to improve
Tuning my GPS, its’s time to take-off from the market; travel to an early holiday and meet-up with distilled spirits
Pre-open indications: 4 BUYs and 4 SELLs,
RMi is first in reporting the pricing component of pre-open indications that shed light on share value!
U.S. stock index futures are fluctuating and shaky
Dow futures are DOWN -0.02% (-4 points) and NASDAQ futures are UP +0.07% (+5 points)
US will open marginally higher at the open
European markets lower amid ongoing trade fears
Asia markets close lower as trade concerns simmer; China notches fourth-straight day of losses
Data docket: real gross domestic product (GDP) data at 8:30 a.m. ET, jobless claims also due at 8:30 a.m. ET, and the Kansas City Fed’s manufacturing survey at 11 a.m. ET.
Henry’omics:
Will the sector continue its roller-coaster ride on Thursday; I predict low volume and some of the oversold to feel levitation!
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is indicating an UPSIDE of +0.22% 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 a +0.1% incline in Thursday’s pre-open
From Wednesday’s night’s newsletter: “end of quarter mechanized <the sector’s> downfall. Dramatic declines could/should set a course for a rebound; yet a Q rebalance was in the trades.”
The iShares NASDAQ Biotechnology (IBB) was down -2.04% after Tuesday’s -0.43%, Monday’s -1.81%, Friday’s -0.34% and last Thursday’s -1.13% … with a negative aggregate of -5.75% - look for some upside even with the sector’s conflagration.
- In my universe of 45 companies, I have seen, in the month of June (so far): 11 positive, 7 negative and 1 neutral closes.
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.
- Wednesday’s gainers ranged from +0.51% <FIXX +$0.10 > to +15.63% <GBT +$6.05> in 2 equities;
- Wednesday’s decliners ranged from -0.75% <BCLI -$0.03 > to -12.5% <BSTG -$0.60> in 42 equities;
Companies in my headlights – It’s your decision; I provide the idea and context:
Intrexon (XON) closed down -$0.89 to $13.26 and has a negative aftermarket indication of -$0.30 or -$2.26 (so far) after announcing an offering of $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. 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 (the share borrower) as the underwriter of the offering of those shares, pursuant to a share lending agreement – SELL;
Global Blood Therapeutics (GBT) closed up +$6.05 to $44.75 and has a positive aftermarket indication of +$0.95 or +2.12. GBT’s experimental drug met the main goal of a late-stage trial testing it in patients with sickle cell disease. A statistically significant number of patients on the treatment, voxelotor, showed a rise in levels of hemoglobin - a protein in red blood cells that carries oxygen throughout the body - compared to a placebo. The results were from the first phase of the late-stage trial. 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 – Maintaining BUY;
bluebird bio (BLUE) closed down -$7.70 to $153.85 after news of Global Blood Therapeutics (GBT) reported positive data for its sickle cell disease drug, voxelotor – BUY;
Sangamo therapeutics (SGMO) closed down -$11.65 to $14.00 with a positive +$0.05 or +0.36% - BUY;
- The good news for SGMO and BLUE 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>. The aftermarket indication is a positive +$0.75 or +0.49%.
Intellia Therapeutics (NTLA) closed down -$1.83 to $26.76 with a negative aftermarket of -$0.26 or -0.97%. Editas Medicine (EDIT) closed down -$1.83 to $35.68 also with a negative aftermarket indication of -$0.08 or -0.22%. CRISPR Therapeutics (CRSP) closed down -$4.02 to $60.08 with low volume of 891.7 K shares traded <3 month average = 1.624 M shares> even with a slightly positive aftermarket indication of +$0.04 or +0.07%. Gene editing has traveled a bumpy road in the past week and it “ain’t” over – SELL;
uniQure N.V. (QURE) closed down -$1.60 to $33.94 from a high of $39.94 on 6/20/18. Why an upside today, QURE has enrolled its first patient in the P3 HOPE-B pivotal study of AMT-061, an investigational AAV5-based gene therapy incorporating the FIX-Padua variant for the treatment of patients with severe and moderately severe hemophilia B. In addition to advancing its pivotal trial, QURE has also initiated patient recruitment for a P2b dose-confirmation study and expect to commence enrollment in July with top-line FIX data from the dose-confirmation study before the end of the year. – BUY;
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.
