October 5, 2018 5:44pm

Yet, it was not enough to overcome the session which closed negative

As the NASDAQ dived -1.16% with the IBB finding a new low -1.15%

 

Out and about: Histogenics (HSGX) closed down -$0.40 or -39.6% to $0.60 with 17.01 M shares traded  after yesterday’s suspicious +100% appreciation which settled at +51.52% with 44.82 M shares traded and an offering being announced. HSGX’s 19.6 M share and warrant offering was priced at $0.65 <my opinion, a sucker’s pricing, it’s off by -$0.30>.  INVESTORS WALK-AWAY – there is “something” suspicious surrounding the timing and circumstances of yesterday’s actions following a FAILED P3 trial!

Pre-open indications: 7 HITs and 1 MISS

 

The 6 W’s: Who, what, where, when, why and what of it … RMi puts the facts into evidence for the metrics to “speak”! 

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

 

Daily analytics and metrics:

  • The Dow closed down -0.68% or -180.43 points to 26,447.05
  • The S&P closed down -0.55% or -16.04 points to 2,885.57
  • The NASDAQ closed down -1.16% or -91.06 points to 7,788.45

 

The advance/decline line scenario of 45 covered companies:   

  • The open was positive with an A/DL of 29/15 and 1 flat;
  • The mid-day was negative with an A/DL of 8/36 and 1 flat;
  • The close was negative with an A/DL of 17/26 and 2 flat;

 

Pre-open indications: 7 HITs and 1 MISS

  • Applied Genetic technologies (AGTC) closed down -$0.08 – hit;
  • bluebird bio (BLUE) closed up +$2.63 – hit;
  • Histogenics (HSGX) closed down -$0.40 – hit;
  • Athersys (ATHX) closed down -$0.03 – hit;
  • BioLife Solutions (BLFS) closed up +$0.22 – miss;
  • CRISPR Therapeutics (CRSP) closed up +$1.00 – hit;
  • Verastem Oncology (VSTM) closed up +$0.13 – hit;
  • Vericel (VCEL) closed down -$0.38 – hit;

 

Five (5) key metrics: 

… The greatest volume to the downside:  HSGX, MFXG, SGMO, ADRO and FATE

… Upside volume was weighted to:  VSTM, BMRN, XON, BLUE and ALNY

… Leadership ($) to the downside:  RARE (-$3.13), RGNX (-$1.99), QURE (-$1.40), FIXX (-$1.25) and SLDB (-$0.81)

… Best moves ($) to the upside:  BLUE (+$2.63), BOLD (+$2.40), BMRN (+$2.34), IONS (+$1.25) and CRSP (+$1.00)

… The iShares NASDAQ Biotechnology (IBB) closed:

  • Friday was down -1.15% after NOT indicating in the pre-market
  • Thursday was down -2.79% % after NOT indicating in the pre-market
  • Wednesday was up +0.74% after NOT indicating in the pre-market
  • Tuesday was down -0.66% after NOT indicating in the pre-market
  • Monday (10/1) was down -0.63% with after a pre-market indication of +0.61%
  • Last Friday was up +0.06%

 

Of the 45 companies covered on Friday; 26 downside equities finished in a range of -0.07% (SGMO) to -39.60% (HSGX) while 17 upside equities oscillated from +0.12% (STML) to +7.01% (BOLD) with 2  flat close (ADVM and RENE.L).

 

Henry’omics:

A BAD week for the sector – 4 negative closes with 1 positive event in five sessions.

S&P 500 posts worst week -1% in nearly a month as rates popped since September.

The U.S. economy added 134 K in September, well below the expected gain of 185 K. However, the U.S. unemployment rate fell to its lowest level since 1969. Wages, meanwhile, grew by 2.8% last month on a year-over-year basis to match expectations. The jobs data sent the benchmark 10-year U.S. yield to a fresh seven (7) year high, fueling concerns over rising rates.

  • The Dow notched its second straight weekly decline;
  • The NASDAQ fell -21.1% on Friday; 3.2% in a weekly drop;
  • The Cboe Volatility Index (VIX), widely considered the best fear gauge in the market, hit a high of 17.36, its highest level since July 2.

I reiterate that investors remain – DEFENSIVE!

Four words applicable to today and yesterday: a systematic lack of support and a distinct disconnect in share pricing … bingo – it happened again!

Volume is still low … look at the depth of the upside $0.02 (STML) to $2.63 (BLUE) – 14 out of 26 had higher volume while the downside imploded $0.01 (ONVO) to $3.13 (RARE) while 6 had greater volume out of 17.

 

Out and about:

Aduro Biotechnologies (ADRO) closed down again -$0.11 after Thursday’s -$0.10 after Wednesday’s -$0.09 after Tuesday’s -$0.93 to $6.24 after Monday’s $7.18 having ended September at $7.35 as J&J bowed-out on and abandons any rights to its attenuated Listeria tech for lung and prostate cancer. 

As I had stated on last Friday, Monday, Tuesday, Wednesday and Thursday, “Keep an eye on the CRISPERS:

CRISPR Therapeutics (CRSP -$2.01 on Monday and -$2.62 on Tuesday, Wednesday’s -$0.72, Thursday’s -$1.44 and Friday’s +$1.00) while Editas Medicine (EDIT -$1.35 on Monday, -$1.36 on Tuesday, Wednesday’s +$1.10, Thursday’s -$1.60 and Friday’s -$0.04) and Intellia (NTLA -$1.49 on Monday, -$1.37 on Tuesday, Wednesday’s +$0.22, Thursday’s -$1.58 and Friday’s -$0.06). A real roller-coaster week even BEFORE Q3 LPS (loss-per-share) earnings!

Applied Genetic Technologies (AGTC) was down -$0.08 after Thursday’s  +$0.34, Wednesday’s -$0.12,Tuesday’s -$0.15, Monday’s -$0.45  at $6.85,  and last Friday’s $7.30 having jumped over a Wells Fargo (WFC) report on comparables initial data of P1/2 positive results - Nightstar Therapeutics PLC (NITE). WFC was able to consolidate their banking “position” when AGTC prepares an offering – if they finally get clinical results, be prepared!

BioLife Solutions (BLFS) closed up +$0.22 after Thursday’s -$0.48, Wednesday’s -$2.62, Tuesday’s -$0.66, Monday’s -$0.33 and last Friday’s $17.50 as BLFS preliminary revenue from sales of media products reached $5.3 million after Q2’s $5.2M while the 52 week change slips to +133.22. I still think it is OVERBOUGHT with another negative aftermarket (Friday’s) indication of -$0.06 or -0.62%. Be prepared for another downfall.

Caladrius Biosciences (CLBS) closed down -$0.34 to $5.35 after Thursday’s +$5.69, Wednesday’s $5.77, Tuesday’s $5.23, Monday’s $5.77 and last Friday’s $5.90. I’ve maintained a SELL due to spending issues, lack of a partner and managements myopic vision.

SAGE Therapeutics (SAGE) closed up +$0.36 after Thursday’s -$5.84, Wednesday’s +$0.43, Tuesday’s +$0.38 and Monday’s -$2.35. I have kept saying SAGE was OVERSOLD and I am maintaining a BUY, having taken MY “lump” – so I’m right again.

Verastem Oncology (VSTM) closed up +$0.13 after Thursday’s -$0.21, Wednesday’s +$0.34, Tuesday’s +$0.155 and Monday’s -$0.73 and a Friday’s aftermarket indication of +$0.03 or +0.43%. My OVERSOLD rants remain on target!

 

From the pre-open newsletter: “suffers the “tourist” trade; so, let’s fly into the oversold and enjoy a tour of “some” upside! The question, does the sector have the fuel to go the distance against the algorithmic headwinds?”

 

October sessions:

Friday closed NEGATIVE with 26 decliners, 17 advancers and 2 flat;

Thursday closed NEGATIVE with 35 decliners, 8 advancers and 2 flat;

Wednesday closed POSITIVE with 16 decliners, 27 advancers and 2 flat;

Tuesday closed NEGATIVE with 32 decliners, 12 advancers and 1 flat

Monday (10/1) closed NEGATIVE with 33 decliners, 13 advancers and 1 flat;

  • In 19 sessions in September – there were 10 negative closes and 9 positive close;
  • In 21 August sessions – 6 had negative and 15 had positive closes

 

 

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.