November 13, 2018 6:47pm
SVB Financial Group (SVB and NASDAQ: SIVB) has entered into a merger agreement to acquire Leerink Holdings LLC the Boston-based investment bank focused on the healthcare and life science industries for $280 m upfront and in cash with a five year $60 M pool for employees. SVB Financial Group is the parent company of Silicon Valley Bank.
Quarterly financial results: Solid Biosciences (SLDB), Homology Medicines (FIXX -$0.04) and Cellectis SA (CLLS -$0.06)
Who is defining the metrics for investors?
Some have stated, “I am the “weatherman” of the sector; forecasting and presenting conditions of the sector in a given period.”
There are a variety of end uses to sector forecasts because they are used to protect your portfolio’s life and value.
Daily analytics and metrics:
- The Dow closed down -100.69 points or -0.4% to 25,286.49
- The S&P closed -4.04 points or -0.15% to 2,722.18
- The NASDAQ closed up +0.01 points or +0.00% to 7,200.88
From the pre-open newsletter, “I’ve been down too much; I’ve forgotten how to stay up. A rapper I’ll never be yet the lyrics are telling; in 8 sessions in November – there were 3 positive closes and 5 negative closes following 23 sessions in October – 17 negative closes and 6 positive sessions. There might be quick relief but, it won’t be sustainable.”
The advance/decline line scenario of 45 covered companies:
- The open was positive with an A/DL of 34/9 and 2 flats;
- 1st hour was positive with an A/DL of 25/17 and 3 flats;
- The mid-day was positive with an A/DL of 27/15 and 3 flats;
- The close was neutral with an A/DL of 21/21 and 3 flats;
Q3 financial results:
Solid Biosciences (SLDB) reported a net loss of $19 M or -$0.55 per share for the third quarter of 2018 as compared to $13.5 or -$0.79 per share in Q3/17 ended the Q with $145.4 M in cash.
Homology Medicines (FIXX -$0.04) net loss was -$14.8 M or -$0.40 per share compared to a net loss of -$6.5 M or -$2.78 per share and $237.5 M in cash.
Cellectis SA (CLLS -$0.06) net loss was -$22.8 M or -$0.54 per share compared to a net loss of -$26.2 M or -$0.73 per share and $476 M in cash
Five (5) key metrics:
… Greatest volume to the downside: MDXG, HSGX, ADVM, VSTM and SAGE
… Upside volume was weighted to: NTLA, SGMO, XON, SLDB and KOOL
… Weakness ($) to the downside: SAGE (-$12.41), GBT (-$0.87), ALNY (-$0.61), STML (-$0.60) and BLFS (-$0.44)
… Best moves ($) to the upside: SLDB (+$3.03), IONS (-$1.48), ONCE (+$1.03), NTLA (+$0.96) and SGMO (+$0.80)
… The iShares NASDAQ Biotechnology (IBB) closed:
- Tuesday was down -0.4% after indicating a POSITIVE +0.06% in the pre-market;
- Monday was down -3% after indicating a POSITIVE +0.06% in the pre-market;
- Friday was down -2.21% after indicating a POSITIVE +0.08% in the pre-market;
- Thursday was down -0.77% after NOT indicating in the pre-market;
- Wednesday was up +2.3% after NOT indicating in the pre-market;
- Last Tuesday was up +0.44% after NOT indicating in the pre-market;
Sector equities rose from Monday’s peak to close neutral in volatile trading on Tuesday, failing to regain their footing after suffering steep losses in the previous session.
As I had stated, “I’ve (the sector of my 45 covered companies) been down too much; they’ve forgotten how to stay up.”
We are STLL NOT done with Q3 reporting and are more VOLATILITY in store which will DRAG the sector DOWN.
The REAL issue is share pricing sustainability!
Out and about:
Crispers bounced: CRSP +$0.31, EDIT +$0.79 and NTLA +$0.96; I kept telling many, they had become trading vehicles and they have been.
My beginning month “sucker’s bet financing call of HSGX has come to fruition - dived again on Tuesday -$0.04 after Monday -$0.03 to $0.48 after Friday’s -$0.03 to $0.51, Thursday’s -$0.54, Wednesday’s -$0.54 and last Tuesday’s $0.56 - still going nowhere but, down;
Applied Genetic Technologies (AGTC) closed up again +$0.10 after Monday’s +$0.35 or +5.22% to $7.05, Friday’s $6.70 and Thursday’s $7.01;
I had been FRETTING about VCEL’s upside journey (Tuesday jumped +$0.41 to $16.44 after Monday was down again -$0.08 after Friday was down -$0.49, Thursday’s -$0.49 after Wednesday’s +$0.44 ($17.09) and last Tuesday’s +$5.11 ($16.65) – I’m still reminded me of the Icarus’ myth!
Tonight’s percentage (%) indicators:
- Review the range of the 21 upside from +0.48% (BMRN) to +10.48% (SLDB) while the 21 downside ranged from -0.03% (RGNX) to -10.61% (ADRO) with 3 flat closes (CUR, PSTI and RENE.L).
Decreasing volume stat:
- 7 out of 21 of the upside had higher (than the 3 month average) volume
- 7 out of the 21 downside experienced greater volume (than the 3 month average).
Tuesday closed NEUTRAL with 21 decliners, 21 advancers and 3 flats;
Monday closed NEGATIVE with 40 decliners, 4 advancers and 1 flat;
Friday closed NEGATIVE with 39 decliners, 6 advancers and 0 flat;
Thursday closed NEGATIVE with 26 decliners, 19 advancers and 1 flat;
Wednesday closed POSITIVE with 12 decliners, 32 advancers and 1 flat;
Tuesday closed NEGATIVE with 22 decliners, 21 advancers and 2 flats;
Monday closed NEGATIVE with 35 decliners, 7 advancers and 3 flats;
Friday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;
Thursday (11/1) closed POSITIVE with 3 decliners, 42 advancers and 0 flat;
- 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
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.