October 31, 2018 8:11am
Keep an eye on who is reporting as well as after and pre-market indications following volatile market sessions
Skim if you can trim, buy if it will fly and sell if pricing and volume are compelling!
Quarterly results: Intellia Therapeutics (NTLA) reported a net loss was $22.7 million or -$0.53 per share compared to $15.4 million during Q3/17 or -$0.44 per share. The 9 month loss per share increased from -$1.25 to $1.55 per share. G&A expenses increased by $2.6 million to $8.3 million; collaboration revenue was $7.4 million for Q3/18, compared to $7.3 million during Q3/17 while reporting $293 million in cash and cash equivalents as of 9/18 compared to $340.7 million as of 12/31/17 with a potential “runway” until mid-2020. A whole lot of spending going on!
Pre-open indication: 2 POTENTIAL REVERSALS, 1 EARNINGS RELEASE and 1 HEADED HIGHER
I post about “indication intelligence” devoting my time to collection and analysis of information in the perception of sector vulnerabilities and strengths – it’s more than opinion, some facts in evidence need to be recognized!
U.S. stock index futures are seeing triple digit growth
Dow futures are UP +0.70% (+175 points) and NASDAQ futures are UP +1.23% (+84 points)
U.S. stock index futures pointed to a higher open on Wednesday, with the Dow set for triple-digit gains
European markets higher after a rebound in U.S. indexes from yesterday
Asian and Pacific stocks mostly rise in final day of rough October however, China data missed expectations
Data docket: ADP employment figures for October are scheduled to be released at around 8:15 a.m. ET. Investors are likely to keep an eye out for third-quarter employment cost index data at 8:30 a.m., before Chicago PMI data for October is released later in the session.
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.4% in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +1.14% UPSIDE in Wednesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +1.07% UPSIDE in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.85% UPSIDE in Tuesday’s pre-open
The moves in pre-market upside come as traders, NOT investors monitor a confluence of factors, ranging from intensifying global trade tensions, worries about economic growth, rising U.S. interest rates and company earnings.
Intellia therapeutics (NTLA) reports today and Fate Therapeutics (FATE) reports tomorrow …
Next week initiates ATHX reporting on 11/6 followed by Vericel (VCEL), Ions Pharmaceuticals (IONS), Spark Therapeutics (ONCE), Verastem (VSTM), Histogenics (HSGX) and Applied Genetic Technologies (AGTC) with Alnylam Pharmaceuticals (ALNY) and Voyager Therapeutics (VYGR) on 11/7.
From Tuesday’s night’s newsletter: “the perils of being an investor; the attacks on share pricing by algorithms as machines maimed but, didn’t kill yet, tortured shareholders are still imprisoned by low volume volatility. Question sustainability as LPS (loss-per-share) earnings start to take their toll”
I also stated, “It’s all about technicals and fundamentals and they have been CRUSHED. I believe the sector will NOT right itself until Q1/18 … IF news is the STIMULANT!”
- The iShares NASDAQ Biotechnology (IBB): a week’s history lesson; for a five session aggregate of a negative -6.05% after 4 downside sessions out of 5!
- In 22 sessions in October – there were 17 negative closes and 5 positive closes;
- 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
Last night’s UPSIDE indicators – still LOW volume:
- Review the range of the 28 upside from +0.89% (PSTI) to +11.27% (AXGN) while the 15 downside ranges from -0.20% (QURE) to -11.32% (KOOL -$0.036) with 2 flat closes (NTLA and BSTG).
- Interesting stat: Volume DECREASED … look at the depth – 6 out of 28 of the upside had higher (than the 3 month average) volume while 6 out of the 15 downside experienced greater volume (than the 3 month average).
Companies in my headlights – It’s your decision; I provide an idea and context:
Possible reversals in store:
- bluebird bio (BLUE) closed up +$6.22 or +5.94% to $110.87 with 691.1 K shares traded <3 month average =680.8 K shares> and a negative aftermarket indication of -$1.45 or -1.31%;
- Sage Therapeutics (SAGE) closed up +$4.03 or +3.44% to 121.23 with 347.6 K shares traded <3 month average = 354 K shares> after Monday’s $117.20 and a negative -$1.23 or -1.01% aftermarket indication
Could (or should) be hammered – earnings release –:
- Intellia Therapeutics (NTLA) closed flat at $18.52 with 620 K shares traded <3 month average = 577.7 K shares> after Monday’s -$1.33 or -6.7% to $18.52 and NO aftermarket indication –see above numbers in title. a whole lot of spending, a drop in cash position and a new CFO – maybe he will re-focus investor relations out-reach to CARE and COMMUNICATE about share pricing.
- CRISPER Therapeutics (CRSP) closed up +$0.72 to $32.00 with 567 K shares traded <3 month average = 960.1 K shares after being down on Monday’s -$1.14 or -3.52% to $31.28 with a negative aftermarket of -$0.27 or -0.86%
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.