July 18, 2018 7:33am

I am maintaining my SELL on gene editing equities

It’s not the first time, they have taken a hit on published articles – Investors SHOULDN’T ignore these concerns

 

Pre-open indications: 5 SELLs

 

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U.S. stock index futures point to a mixed open

Dow futures are UP +0.04% (+9 points) and NASDAQ futures are DOWN -0.09% (-7 point)

 

U.S. stock index futures pointed to a mixed open Wednesday morning, as investors monitor a flurry of corporate earnings and a fresh batch of economic data.

European markets soar on earnings;

Asian stocks closed mixed as dollar extends gains after upbeat comments from Fed's Powell

 

Data docket: housing starts and building permits for June are set to be published at around 8:30 a.m. ET.

 

Henry’omics:

The moves in pre-market trade come shortly after an upbeat assessment on the U.S. economy from Fed Chairman Jerome Powell. The head of America’s central bank also downplayed the impact of global trade risks on the outlook for future rate hikes.

I am also very empty of words to say about the sector and it's a hard one to explain ...these recent daily moves  seeem OVERBOUGHT and ready for a come-down yet, momentum keeps moving some equities higher!

Since when has there been a rhyme of reason to the market - that's why it is considered ,,, "A random walk" to which side <now>?

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a +0.15% upside in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a -0.03% decline in Wednesday’s pre-open

 

From Tuesday’s night’s newsletter: “gene editing stocks bounce back even after their crash, there’s a “rush” to speculation … we haven’t heard the end of this issue.”

I also stated, “The damage is done and platform questions will linger and fester since they have “complex rearrangements that could be pathogenic”; the jury will also stay sequestered on the science! Remember, gene-editing has NOT been used in U.S. clinical studies – yet!”

The iShares NASDAQ Biotechnology (IBB) was UP +0.75% after Monday’s -0.73%, Friday’s +0.17%,  Thursday’s +1.17% and last Wednesday’s -0.29% … for a weekly upside of +1.07% … the pre-open indication is UP but, I still think "skimpy" ...

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 Tuesday; 13 downside equities finished in a range of -$0.01 (CUR) to -$0.49 (ALNY) while the 29 upside equities oscillated from +$0.015 (BTX) to $4.25 (ONCE) with 3 flat closes;
  • Tuesday’s gainers ranged from +0.36% < SAGE +$0.61> to +12.69% < MESO +$0.76> in 29 equities;
  • Tuesday’s decliners ranged from -11% < KOOL -$0.0529> to -0.36% <IONS -$0.16 > in 13 equities;

 

Companies in my headlights – It’s your decision; I provide the idea and context:

BioLife Solutions (BLFS) closed down -$0.55 to $20.41 after Monday’s +$0.79 to $19.79 after Thursday’s +$1.80 to $19.00. BLFS has spurted in July from $14.99, a $4.80 premium or +24.25% upside in 10 sessions. “Icarus” flew too high and the wax on the wings (of the share price” - Maintaining SELL;

bluebird bio (BLUE) closed up again  +$4.30 to $181.40 after Monday’s +$0.30 to $180.60 with 491.5 K shares traded <3 month average = 818.8 K shares> after Thursday’s +$1.95 to $180.30, Wednesday’s $178.35, Tuesday’s $177.50, last Monday’s $173.00. July started off at $154.05, there is a $30.65 or +16.89% premium – as BLUE hits another new high; I tend to suspect the target is on its back – Maintaining SELL;

CRISPR Therapeutics (CRSP) closed UP +$1.95 to $62.01 after Monday’s -$5.65 or -8.60% decline to $60.06 with 2.81 M shares traded <3 month average = 1.55 M shares) after disastrous news regarding gene editing mutations. The cancer “snip” has infected the share price with a negative aftermarket of -$0.16 or -0.27% so far–- Maintaining SELL;

Intellia Therapeutics (NTLA) closed up +$2.00 to $31.36 after Monday’s -$3.24 or -9.94% decline to $29.36 with 1.33 M shares traded <3 month average = 928.4 K shares>. Be ready for another “whammy” to the share price – Maintaining SELL

Editas Medicine (EDIT) closed up +$1.26 to $36.46 after Monday’s -$2.70 or -7.12% decline to $35.20 with 1.525 M shares traded <3 month average = 992.3 K shares>. The erratic and precipitous movement of the CRISPR stocks is alarming – 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.