July 9, 2018 7:31am
As many seek alternative positions for weathering trade and tariff policies
Is “our universe overbought, getting “lofty” and might soon fear the SELL button?
Pre-open indications: 4 SELL and 1 BUY
Out and about: Pluristem Therapeutics (PSTI) has entered into a strategic collaboration with Thermo Fisher Scientific (TMO) to advance fundamental knowledge of cell therapy industrialization and to improve quality control of the end-to-end supply chain. The collaboration combines Thermo Fisher’s experience in cell therapy development and bio-production scale-up with PSTI’s expertise in cell therapy manufacturing, clinical development and quality control. PSTI exhibits a pre-open upside of +$0.02 or +1.59%
RMi reports the pricing component of pre-open indications that shed light on share pricing events and its follow-on value!
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U.S. stock index futures set to jump 100+ points
Dow futures are UP +0.44% (+107 points) and NASDAQ futures are UP +0.39% (+28 points)
US futures climb ahead of the open, as trade turmoil takes a breather
European stocks higher; Brexit secretary resigns
Asian stocks closed higher on Monday, with China markets leading the move higher
Data docket: June reports on manufacturing from Markit and ISM are slated to hit at 9:45 a.m. and 10 a.m. ET, respectively. Economists <MarketWatch> forecast a reading of 58.3% for ISM’s manufacturing index. Also at 10 a.m. Eastern, investors are set to get a May release on construction spending, with economists expecting no growth. Consumer credit is due out at 3 p.m. ET
Henry’omics:
On Friday, the Dow DJIA, +0.41% , S&P SPX, +0.85% and Nasdaq Composite COMP, +1.34% all closed higher and notched weekly gains.
- The sector had also been given a boost following Biogen’s (BIIB) publication of Alzheimer trial data.
The latest jobs report, which revealed that the U.S. economy added 213,000 jobs in June, beating expectations with positive sentiment seen across markets is in spite of concerns surrounding trade, a potential tariff war and Brexit.
The Russell 2000 index – which tracks the performance of smaller equities – has rebounded to record highs well ahead of both the Dow and the S&P 500. In fact, the index closed at an all-time high within the past three (3) week and remains less than 1% the record <CNBC>.
“The safety trade has been to go to small-caps, which are much more U.S.-centric," Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management.”
"I think the small-cap rally has been much a flight to safety, away from geopolitical concerns.”
I worry that “our universe” may be growing too overbought to make “them” a sustainable investment.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is indicating a +0.24% upside in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a +0.23% upside in Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is indicating a +0.38% upside in Monday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a +0.46% upside in Monday’s pre-open
From Friday’s night’s newsletter: “closing bell: biotech was UP across the indexes as an appropriate “hide-out” from tariff or trade wars? The iShares Nasdaq Biotechnology ETF (IBB) surged +3.78% boosted by Biogen (BIIB) shares rising 19.63% (with a positive aftermarket indication of +$0.92 or +0.26%) after announcing positive results from a study on a drug aimed at treating early Alzheimer’s disease.”
I also stated, “The challenge of Friday’s session will be anticipating the forthcoming Monday; IF momentum is constricted – it wasn’t … will it weigh heavily on sentiment and … and continue to be so … zip-a-dee.”
Reiterating, “The issue is the DRAMA of the incline and is another “Icarus” storyline POSSIBLE?”
The iShares NASDAQ Biotechnology (IBB) was UP +3.78% after Thursday’s +1.26%, Wednesday’s holiday, Tuesday’s -0.09% and last Monday’s +0.79% … with a positive aggregate of +5.92% - I “smell” weaknesses … a contrarian affliction.
I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence!
Of the 45 companies covered on Friday; 8 downside equities finished in a range of -$0.0072 (KOOL) to -$0.42 (CLBS) while the 35 upside equities oscillated from +$0.01 (PSTI) to $7.75 (BLUE) with 2 flat close.
- Friday’s gainers ranged from +0.31% <CLLS +$0.09 > to +8.5% < SLDB +$3.31> in 35 equities;
- Friday’s decliners ranged from -0.05% <BOLD -$0.02 > to -10.9% < MDXG -$0.41> in 8 equities;
Out and about:
Pluristem (PSTI) and Thermo (TMO) … (continued)
Currently, over 850 companies worldwide are developing regenerative medicine and advanced therapies. There are more than 900 clinical trials underway, with several approved and marketed products worldwide. This sector holds the promise of addressing many unmet medical needs, but requires a change in the supply chain of equipment, consumables, reagents and storage systems to enable the treatment of millions of patients.
Companies in my headlights – It’s your decision; I provide the idea and context:
Pluristem therapeutics (PSTI) closed up +$0.01 to $1.26 and is recording an upswing of +$0.02 or +1.59% in the pre-market on fore mentioned news – BUY;
bluebird bio (BLUE) closed up +$7.75 to $169.95 with 1.146 M shares traded <3 month average = 818.9 K shares> after Thursday’s +$4.75 to $162.20 with 492.2 K shares traded. There is approximately a +$215.95 or a +9.38% premium in BLUE’s equity. Is it time or do we let it roll in these current market conditions? Specifically, a number of companies are working on therapies that could chip away at the commercial opportunity for its drugs, including LentiGlobin, a gene therapy for beta thalassemia. Patients with this disorder can't produce beta globin, and as a result, they require regular red blood cell transfusions that expose them to risks, including organ-damaging iron overload. After hitting record all-time highs in March, shares of BLUE might be ready – again - Maintaining SELL;
Reiterating, “Gene editing stocks are again getting lofty after feeling little pain and are trading magnets with yet to be proven platform “integrity” – there is still a “stain” of “a disturbing link between the gene-editing technology and cancer”. What has gene editing shown us to date – I haven’t seen or have heard ground breaking RESULTS, just a could’ a or might be platform.”
CRISPR Therapeutics (CRSP) closed up +$1.14 to $62.88 with 651.65 K shares traded <3 month average = 1.59 M shares) after Thursday’s +0.48 to $61.74 with 837.7 K shares traded after Wednesday’s holiday and Tuesday’s +$1.21 to $61.26 with 1.6 M shares traded after Monday’s $60.05 (+$1.29) having ended June at $58.76 and started at $67.13 with a low of $57.00. There is a six (6) session premium of $5.88 or +%9.35, enough for me to say – Maintaining SELL;
Intellia Therapeutics (NTLA) closed up +$1.78 (+6%) to $31.44 with 853.8 K shares traded <3 month average = 945.2K shares> after Thursday’s +$0.84 to $29.57 with 508.9 K shares traded after Monday’s $28.73 (+$1.37) and Monday’s +$28.73 while ending June at $$27.36 and started at $25.45 with a low of $24.94 and a high of $30.79 - Maintaining SELL:
Editas Medicine (EDIT) closed up +$1.01 to $37.94 with 6.01.8 k shares traded <3 month average = 1.025 M shares>after Thursday’s +0.01 to $36.83 with 734.5 K shares traded after Wednesday’s holiday and Tuesday’s -$0.17 to $36.82 with 441.9 K shares traded after Monday’s $36.99 (+$1.16). EDIT ended June at $35.83 and opened (June) at $37.01; saw a high of $41.01 and a low of $35.68. - Maintaining 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.
