July 23, 2018 7:15am

Overbought, oversold; the condition is the use of the term “over” …

 

Out and about: Sangamo Therapeutics (SGMO) and TxCell S.A. (TXCL.PA) have entered into a definitive agreement on 7/20/18 pursuant to which Sangamo will acquire a majority stake of TxCell, then purchase all then outstanding ordinary shares of TxCell, at a price of €2.58 (US $3.02) per share in cash, or approximately €72 (US$84.31) million, on a debt-free and cash-free basis.

Also, the iShares Nasdaq Biotechnology (IBB) is indicating a -0.19% DECLINE in Monday’s pre-market;

Pre-open indications: 3 BUYs, 3 SELLs and 4 trades

 

RMi reports pre-open indications that shed light on share pricing events and today’s session values!

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U.S. stock index futures are indicating a downward slide

Dow futures are DOWN -0.13% (-32 points) and NASDAQ futures are DOWN -0.45% (-33 points)

 

US futures under pressure as political turmoil bubbles away and Q2/18 earnings or LPS (loss per share) loom beginning 7/23 with Brainstorm Cell Therapeutics (BCLI) followed by Athersys (ATHX) on 8/7/18.

European stocks are lower on trade concerns;

Asian shares closed mixed on Monday, with Japanese stocks pressured by strength in the yen after the dollar dropped on President Trump's criticism of the FED.

 

Data docket: existing home sales are due out at 10 a.m. ET.

 

Henry’omics:

News out of the U.S. administration continues to shake up sentiment across the globe Monday, with international markets falling into the red before the Wall Street open.

Markets have been on edge following recent comments by the U.S. President Donald Trump who said he was “not thrilled” about rising interest rates, and expressed concern that the U.S. central bank could upset the economic recovery.

Late Sunday evening, Trump threatened Iran’s leader Hassan Rouhani to “never, ever threaten” the U.S. again or else “suffer consequences”. The tweet comes shortly after President Rouhani issued his own warning to Trump about pursuing hostile policies against Tehran <CNBC>.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a -0.19% DECLINE in Monday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Monday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is indicating a -0.13% DECLINE in Monday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a -0.16% DECLINE in Monday’s pre-open

 

Out and about (continued): Sangamo Therapeutics (SGMO) and TxCell S.A. (TXCL.PA) …

TxCell is a leader in the emerging field of regulatory T cell (Treg) development for immunological diseases, one of Sangamo's stated therapeutic areas of focus for its proprietary product candidate pipeline. Tregs are a naturally occurring subset of T cells and are critical for maintaining immune homeostasis within the body by induction and maintenance of tolerance to self-antigens.

SGMO intends to evaluate the potential of CAR-Treg (Tregs genetically modified with a chimeric antigen receptor, or CAR) therapies to prevent graft rejection in solid organ transplant and for the treatment of autoimmune diseases such as Crohn's disease and multiple sclerosis. Preclinical research provides proof of concept that antigen specific CAR-Tregs can deliver potent immunosuppression locally to targeted tissues. By contrast, currently available anti-TNF alpha small molecule and monoclonal antibody drugs are associated with global, non-specific immune suppression.

SGMO expects that the proposed acquisition of TxCell would accelerate its entry into the clinic with a CAR-Treg therapy in 2019.

The proposed acquisition would combine SGMO's ex-vivo gene editing capabilities and TxCell's Treg expertise and would position Sangamo as a leader in CAR-Treg development

As listed (Yahoo), SGMO’s cash position is $229.53 M minus -$84.31 M leaves approximately $175.22 M in cash in the coffers. WHY a total cash deal?

 

From Friday’s night’s newsletter: “Follow the bouncing share price as the sector opened up and closed to the downside (of my 45 covered). Gene editing companies are feeling the low digit trades and with only 1 to the upside (EDIT +$0.12). An unanswered question is, “what happens to distant metastases even if CRISP rehoming cells successfully attack the original tumor?”

I also stated, “Would you bet your life and your current portfolio on a mouse model; it’s always a game of “truth or consequences!”

The iShares NASDAQ Biotechnology (IBB) was DOWN -0.08% after Thursday’s +0.10%, Wednesday’s -0.09%, Tuesday’s +0.75% and last Monday’s -0.73% for last week’s aggregate of -0.05%

 

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 Thursday; 24 downside equities finished in a range of -$0.00 or -0.94% (KOOL) to -$2.75 (RGNX) while the 15 upside equities oscillated from +$0.0 (OSIR) to $1.40 (BLUE) with 6 flat closes;
  • Last week, the sector closed with 3 negative and two positive closes;
  • July so far has experienced 10 positive closes, 4 negative closes and 1 holiday;
  • Friday’s decliners ranged from -0.03% <NTLA (-$0.01> to -6.97% < MDXG -$0.28> in 24 equities;
  • Friday’s gainers ranged from +0.10% <OSIR +$0.01 > to +4.12% <BLFS +$0.87 > in 15 equities;

 

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

I am MAINTAINING my positions:

Daily trades of with no short or near- term commitment – SGMO (on news of cash acquisition), CRSP, EDIT and NTLA

SELLs – BLFS, BSTG and ATHX

BUYs – AST, FATE, RGNX and VSTM

 

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.