November 1, 2018 8:05am
The CRISPERS: CRSP, EDIT could be bouncing after their ‘comp” - NTLA took a beating by delaying a trial and weak quarterly reporting
I wouldn’t be looking for much of an upside “ride” as I’m back preaching … CAUTION in November … Q3 results will befuddle investor’s belief in a sustainable rally until they’re completed!
Quarterly results: bluebird bio (BLUE) and Fate Therapeutics (FATE)
Pre-open indication: 1 BUY and 2 SELLs
Once we get through quarterly LPS (loss-per-share) financial results <notice I didn’t say – <earnings season>, it will be easier for investors to possibly recognize a short or a near-term view; but my fear is that Q4 numbers aren't going to look much better than the Q3/18 numbers – look at the few who are putting-up nine (9) month numbers.
U.S. stock index futures are pointing to a triple digit opening
Dow futures are UP +0.48% (+120 points) and NASDAQ futures are UP +0.35% (+26 points)
Stock index futures pointed to a higher start Thursday
European stocks climbed to a two-week high on Thursday morning
Asia stocks kick off November with mostly positive results
Data docket: weekly jobless claims and productivity are expected at 8:30 a.m. ET, followed by a PMI manufacturing index at 9:45 a.m. ET and an ISM manufacturing index and construction spending at 10 a.m. ET.
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.9% in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.96% UPSIDE in Thursday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +0.72% UPSIDE in Thursday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.85% UPSIDE in Thursday’s pre-open
Thursday's swing moves come after investors “capped’ a volatile October with a strong two-day rally.
Fate Therapeutics (FATE) and bluebird bio (BLUE) report today …
Next week initiates ATHX reporting on 11/6 followed by Vericel (VCEL), Ions Pharmaceuticals (IONS), Spark Therapeutics (ONCE), Verastem (VSTM) and Histogenics (HSGX) with Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX), Editas Medicine (EDIT) and Voyager Therapeutics (VYGR) on 11/7.
From Wednesday’s night’s newsletter: the manic October ends with a positive session.”
“The iShares NASDAQ Biotechnology (IBB) in a week’s history lesson; a five session aggregate of a negative -0.2% after 4 downside sessions out of 5!
- In 23 sessions in October – there were 17 negative closes and 6 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:
- Wednesday’s range of the 34 upside was from +0.07% (BMRN) to +7.60% (RGNX) while the 8 downside ranges from -0.13% (STML) to -8.32% (NTLA) with 3 flat closes (BSTG, ONVO and RENE.L);
- Interesting stat: Volume DECREASED … look at the depth – 7 out of 34 of the upside had higher (than the 3 month average) volume while 4 out of the 8 downside experienced greater volume (than the 3 month average).
Companies in my headlights – It’s your decision; I provide an idea and context:
CRISPER Therapeutics (CRSP) closed up +$0.77 or +2.41% to $32.77 with 610.4 K share traded <3 month average = 960.1 K shares> after Tuesday’s +$0.72 to $32.00 with 567 K shares traded after being down on Monday’s -$1.14 or -3.52% to $31.28 with a negative aftermarket of -$0.07 or -0.20%. A short position stands-out of 3.84 M or -2.72% (float = 28.19 M shares); as a ‘comp” falls, will it also – SELL;
Editas Medicine (EDIT) closed up +$0.63 or +2.55% to $25.33 with 638.3 K shares traded <3 month average =707.5 K shares>. EDIT reports on 11/7 and has a positive +$0.17 or +0.67% aftermarket indication. Zacks has model clearly indicates that EDIT is likely to beat estimates this to-be-reported quarter. A short position stands-out of 6.64 M or -8.68% (float = 42.56 M shares); There is a positive +$0.02 or +0.08% pre-market indication - BUY;
Intellia therapeutics (NTLA) closed down -$1.54 or -8.32% to $16.98, after Tuesday’s $18.52 and Monday’s $18.52 after Friday’s +$19.85 and the previous Thursday’s $20.00. A short position stands-out of 5.61 M or -7.84% (float = 30.91 M shares) – Maintaining SELL;
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.