November 14, 2018 8:24am
Uncertainty, risk and sustainability
Pre-open indications: 3 BUYs, 1 TRADEs and 1 SELL
I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors in the perception of sector vulnerabilities and strengths – it’s more than opinion, the facts and truth need to be recognized!
A trusted source of factual reporting!
U.S. stock index futures are floating in indecision
Dow futures are UP +0.09% (+23 points) and NASDAQ futures are DOWN -0.12% (-6 points)
U.S. stock futures pointed to a slightly lower open amid volatility and as investors looked ahead to upcoming inflation data;
European stocks fall as oil slumps; UK, EU agree on Brexit divorce draft;
Asian and Pacific stocks were mostly lower as oil prices slipped further into negative territory.
Data docket: inflation data on Wednesday. Consumer Price Index and core CPI inflation figures are due to be released at 8:30 a.m. ET.
- The iShares Nasdaq Biotechnology (IBB) is NOT indicating;
- The SPDR S&P Biotech ETF (XBI) is indicating a NEGATIVE -0.19% DOWNSIDE;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.19% UPSIDE
Even as sector equities seemed neutral on Tuesday after Monday's big sell-off, some share pricings still look very sluggish; i warn of more possible losses to come!
For instance, the S&P 500 index closed below its 200-day moving average, a key measure, on Tuesday for a second day, in a sign of a possible trend change. That moving average is no longer pointed upward and is descending, in another negative sign for analysts who follow the charts <CNBC>.
From Tuesday’s night’s newsletter: “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.”
Last night’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).
“The iShares NASDAQ Biotechnology (IBB) in a week’s history lesson; a five session aggregate of a negative -1.38% after 4 downside sessions out of 5!
- In 9 session in November – there were 3 positive closes, 1 neutral and 5 negative closes
- In 23 sessions in October – there were 17 negative closes and 6 positive sessions;
- In 19 sessions in September – there were 10 negative closes and 9 positive sessions;
- In 21 August sessions – 6 had negative and 15 had positive closes
Companies in my headlights – It’s your decision; I provide an idea and context:
Cellectis SA (CLLS) closed down -$0.06 to $25.74 before reporting a 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. There was a positive +$0.06 or +0.25% aftermarket response – BUY;
Editas Medicine (EDIT) closed up +$0.79 to $28.98 with low volume -394.9 K versus 3 month average of 672.6 K shares and has a positive +$0.24 or +0.83% aftermarket indication – TRADE;
Regenxbio RGNX) closed down -$0.02 to $62.70 after Tuesday’s $62.72 and Monday’s $66.37. A dribble of news; the FDA has granted Orphan Drug Designation to RGX-181, a one-time treatment candidate for late-infantile neuronal ceroid lipofuscinosis type 2 (CLN2) disease, one of the most common forms of Batten disease caused by mutations in the tripeptidyl peptidase 1 (TPP1) gene. RGNX believes RGX-181 has the potential to correct the underlying genetic condition, halt progression and address many of the serious and life-threatening symptoms of CLN2 disease – BUY;
Solid Biosciences (SLDB) closed up +$3.03 to $31.94 and also has a positive aftermarket indication of +$2.52 or +7.90% after reporting a net loss of $19 M or -$0.55 per share as compared to $13.5 or -$0.79 per share in Q3/17 ended Q3 with $145.4 M in cash – BUY;
Homology Medicines Inc. (FIXX) closed down -$0.04 to $19.96 before reporting a loss of $14.8 M or -$0.40 per share and cash position of $237.5 M compared to a net loss of $6.5 M or -$2.78 per share for the same period in 2017. R&D expense was $8.5 M from Q3/17 while G&A expense also increased to $3.8 M from $1.7 m in Q3/17 enabling total operating expenses of $17.2 M compared to $6.7 M for the same period in 2017 – SELL;
The gene editing company posted revenue of $954,100 in the period. Its adjusted revenue was $954,000.
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.