July 25, 2018 7:38am

The oversold are drooping on the vine and I still believe it’s a picking period

I will always take the “hit” for being early in my forecasts

 

Financings: bluebird bio (BLUE) prices 3.348 M share offering at $162.50; Verastem Oncology (VSTM) files for $200 M mixed shelf offering and Caladrius Bioscience (CLBS) files for $150 M mixed shelf offering. Big bucks and dilution to current shareholders in these mixed shelf offerings!

 

Pre-open indications: 2 BUYs and 6 SELLs

 

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 looking grim

Dow futures are DOWN -0.08% (-19 points) and NASDAQ futures are (fluctuating) UP and DOWN  

 

U.S. stock index futures were muted prior to Wednesday’s open

European markets hovered around the flat line, as investors awaited a key meeting between the EU Commission and President Trump

Asian markets closed mixed, with benchmarks in Japan and Hong Kong tracking higher

 

Data docket: mortgage applications will be published at 7 a.m. ET, while new home sales are set to come out at 10 a.m. ET.

 

Henry’omics:

Are we headed for trouble in the bond markets, following news that Beijing had pledged to look into and undertake a more vigorous fiscal policy, as the economy cools.

Be'in a drinkin' man, it might be time to pick the oversold grapes otherwise there isn't any wine for frivolity!

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating 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 -0.11% DOWNSIDE in Wednesday’s pre-open

 

From Tuesday’s night’s newsletter: “whoa, what happened to the upside open and the IBB’s pre-open of 0.81% which closed -0.14%? Even I was surprised by the direction of “the bouncing share pricing” as the advance/decline line (A/DL) closed negative with 4/40 and 1 flat. Did the “algorithmic rules” barn door get left open?”

I also stated, “The sector just executed a HUGE reversal ... as the NASDAQ saw its biggest reversal from a gain since 2/21/18 with its intraday erosion of momentum. At its peak, the index was up Tuesday by as many as 86.92 points, a gain of about 1.1%, only to limp out of the session with a loss.”

The iShares NASDAQ Biotechnology (IBB) was DOWN -0.14% after Monday’s -0.06%, Friday’s-0.08%, Thursday’s +0.10% and last Wednesday’s -0.09% … for a five session aggregate of -0.09% 

I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence!

  • Last week had 3 negative closes, 2 positive sessions and started this week, Monday and Tuesday experiencing negative sessions;
  • For the month so far, July has experienced 10 positive closes, 6 negative closes and 1 holiday;
  • Of the 45 companies covered on Tuesday; 40 downside equities finished in a range of -$0.0009 (KOOL) to -$13.60 (BLUE) while the 4 upside equities oscillated from +$0.18 (BCLI) to $0.76 (IONS) with 1 flat closes;
  • Tuesday’s decliners ranged from -0.22% <KOOL -$0.009 > to -10.44% <FATE -$1.14 > in 40 equities;
  • Tuesday’s gainers ranged from +1.71% <IONS +$0.76 > to +4.40% < BCLI +$0.18> in 4 equities;

 

 

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

bluebird bio (BLUE) closed down again -$13.60 after Monday’s -$3.10 to $177.25 and is down on news of a $400 M offering -$0.66 or -0.40% so far. BLUE priced offering of 3.384 M shares at $162.50 – SELL;

Verastem Oncology (VSTM) closed down -$0.05 to $7.89 on news of a $200 M mixed shelf offering and is down -$0.19 or -2.41% in the aftermarket – SELL;

Caladrius Biosciences (CLBS) closed down -$0.43 to $5.21 on news of a $150 M mixed shelf offering and is down -$0.71 or -13.63% in the aftermarket – SELL;

CRISPR Therapeutics (CSP) closed down -$5.46 or -9.53 to $51.81 and is down in Tuesday’s aftermarket another -$0.81 or -1.56% to $51.00 , Editas Medicine (EDIT) closed down -$2.91 or -8.23% to $32.46 and has a negative aftermarket -$0.45 or -1.39% to $32.01 and Intellia Therapeutics (NTLA) closed down -$1.96 or -6.44% to $28.49 and has a negative aftermarket indication of -$0.09 or -0.32% to $28.40. Gene editing companies are feeling even more pain while share pricing declines  based on the rehashing of old news, yet NOT one of the editing companies have addressed the “issue” thus there are good reasons investors shouldn't be too quick to dismiss these cancer related concerns!” - Maintaining SELL’

  • WHY am I a skeptic, these companies are “pure” research platforms with NOTHING in the clinic as the CRSP and Vertex trial was put on indefinite HOLD and the promise is more than many years away.

Fate Therapeutics (FATE) closed down -$1.135 or -10.44% to $9.735 and has a positive aftermarket indication of +$0.22 or +2.21%. FATE has been in MY oversold list having started July at $11.77, having seen a high of $12.44 and a low of $9.735 – Oversold - Maintaining BUY;

Regenxbio (RGNX) closed down -$4.24 or -5.76% to $69.55. July started at $74.15, saw a high of $82.15 and a low of $69.55. Their cash position must be recognized – Oversold – Maintaining 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.