September 18, 2018 7:04am

These frequent doses of share pricing demise are bottoms to be bought

 

Rebound territory, the oversold are beckoning!

 

Pre-open indications: 4 trades

Out and about: Fate Therapeutics (FATE has entered into a collaboration with ONO Pharmaceutical Co., Ltd. for the joint development and commercialization of two off-the-shelf CAR-T cell product candidates. Using FATE’s proprietary induced pluripotent stem cell (iPSC) product platform, the two CAR T-cell collaboration candidates will each be derived from a clonal master iPSC line engineered to completely eliminate endogenous TCR expression, insert a chimeric antigen receptor (CAR) into the TRAC locus and incorporate other anti-tumor functionality. This transformative approach enables the cost-effective production of cell-based cancer immunotherapies that are uniformly engineered, extensively characterized and homogeneous in composition, and can be consistently and repeatedly mass produced and delivered to patients in an off-the-shelf manner - BUY

 

RMi provides a pre-market synopsis for the U.S. trading day.

I answer one question, in which company should investors put, keep and commit their money

 


U.S. stock index futures are recovering

Dow futures are UP +0.20% (+53 points) and NASDAQ futures are UP +0.25% (+19 points)

 

U.S. stock futures reversed earlier sharp losses to trade slightly higher ahead of Tuesday's open, however market jitters remain as the tit-for-tat trade war between the U.S. and China continues to intensify <CNBC>.

European stocks trade flat as US-China trade conflict escalates

Asia markets largely positive despite US-China trade war escalation

Data docket: At 8:30 a.m. ET, the Business Leaders Survey is expected to be released, followed by the NAHB/Wells Fargo Housing Market Index at 10 a.m. ET, and Treasury International Capital (TIC) data at 4 p.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a +0.64% UPSIDE in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a +0.36% UPSIDE in Tuesday’s pre-open

 

Henry’omics:

After all the tough talk on trade and tariffs, U.S. futures have been buoyed somewhat in recent hours, on the back of relatively positive sessions seen in Asia and Europe on Tuesday.

Although trade concerns are likely to dominate market sentiment

“Our” universe should make some better headway after yesterday’s “drubbing”!

 

Out and about: Fate Therapeutics

Under the terms of the strategic option agreement, FATE and ONO will jointly advance each iPSC-derived CAR-T cell collaboration candidate to a pre-defined preclinical milestone. The first iPSC-derived CAR T-cell candidate targets an antigen expressed on certain lymphoblastic leukemias, and Fate Therapeutics retains global responsibility for development and commercialization with ONO having an option to assume responsibilities in Asia. The second candidate targets a novel antigen identified by ONO expressed on certain solid tumors, with ONO having an option to assume global responsibility for further development and commercialization and FATE retaining the right to co-develop and co-commercialize the candidate in the United States and Europe. For both collaboration candidates, FATE also retains manufacturing responsibilities on a global basis.

FATE will receive an upfront payment and committed research funding during the preclinical option period, and is eligible to receive a preclinical option exercise fee, clinical, regulatory and commercialization milestone payments and tiered royalties on net sales by ONO in connection with the development and commercialization of each collaboration product by ONO in the ONO territory.

 

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

From Monday’s night’s newsletter: “optimism about pricing after a drubbing. The NASDAQ (-1.43%) and IBB (-1.32%) while the VIX jumps +13.34%. Some or many sector worries may never be realized yet; it’s time for cyclical equities to be vulnerable. After every dramatic decline, there happens a rebound.”

I didn’t ignore last week’s choppiness … with all the “skeptics” talking trash about the market – it’s scaring the markets

Remember, the count-down to the end of the month and Q3 is rapidly approaching – we are half-way there!

The iShares NASDAQ Biotechnology (IBB): history lesson

  • Monday closed down -1.32%
  • Friday was down -0.51%
  • Thursday was up +0.74%
  • Wednesday was up +0.05%
  • Last Tuesday was down -0.42%
  • For a five session aggregate of -1.46% - after a deep dive, a rebound is DUE!

Of the 45 companies covered on Monday; 31 downside equities finished in a range of -0.74% (BOLD) to -13.36% (RGNX) while 12 upside equity oscillated from +0.29% (STML) to +6.41% (AGTC) with 2  flat closes (AST and CUR).

In 10 sessions in September (so far) – there were 6 negative closes and 4 positive close;

In 21 August sessions – 6 had negative and 15 positive closes

 

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

CRISPR Therapeutics (CRSP) closed down -$5.04 after Friday’s  +$1.21 to $55.36 after Thursday’s +$0.43 to $54.15 in a day’s range $53.34 to $55.48  following Wednesday’s +$1.93 to $53.75 after Tuesday’s +$2.11 to $51.80 and last Monday’s $49.69;. Key metric – 52 week change = +183.95%TRADE;

Editas Medicine (EDIT) closed down -$0.54 after Friday’s  +$0.19 to $32.41 after Thursday’s -$0.27 to $32.22 in a day’s range of $31.68 to $32.93 after Wednesday’s +$0.25 to $32.49 after Tuesday’s +$1.17 to $32.24 and last Monday’s +$0.82 to $31.07.  Key metric – 52 week change = +50.77% - TRADE;

Intellia Therapeutics (NTLA) closed down -$1.20 after Friday’s +$0.08 to $31.05 after Thursday’s +$0.70 to $30.97 in a day’s range of $30.01 to $31.40 post Wednesday’s +$1.14 to $30.27 after Tuesday’s +$2.15 to $29.13 and last Monday’s $26.98. Key metric – 52 week change = +35.777% - TRADE;

Fate Therapeutics (FATE) closed down -$0.56 to $11.07 and will be up at the open – read news in “Out and about” – 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.