January 3, 2019 7:44am
Risk, uncertainty, fundamental anxieties and aftermarket issues could “spin” technicals to its knees
However, Bristol-Meyers-Squibb (BMY) is buying Celgene (CELG) – in a $74 Billion sector motivating “event”, we been waiting on … CELG closed up +$2.65 (+3.98% to $69.64 and is up (pre-market) +$21.41 (+32.43%) to $88.25
Pre-market indication: 8 SELLs
“Why is it that “no one” – a slight but not great exaggeration – believes in the indications method, despite its demonstrably good record in these and other crises which have threatened our sector interests? Can the reluctance to believe be in part from the lack of understanding of the nature of indications analysis or the lack of experience with “real” warning problems?”
I answer one question, in which company should investors put, keep and commit their money!
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.
U.S. stock index futures are declining once again
Dow futures are DOWN -1.35% (-315 points) and NASDAQ futures are DOWN -2.05% (-131 points)
Dow and S&P 500 futures pointed to big declines at the indexes' Thursday open;
European markets fell after a revenue guidance cut from Apple added to fears of a slowdown in global economic growth;
Asia shares mostly lower as US futures point to further turmoil stateside
The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +1.1% UPSIDE
The SPDR S&P Biotech ETF (XBI) is NOT indicating a NEGATIVE -0.47% DOWNSIDE
The Health Care Select Sector SPDR ETF (XLV) is indicating a NEGATIVE -0.7% DOWNSIDE
The iShares Russell 2000 (IWM) is indicating a NEGATIVE -1.22% DOWNSIDE
The sub-title says it all, “Celgene shares surged 32%+ in premarket trading after Bristol-Myers Squibb announced plans to buy the biotechnology company in a cash and stock deal the company valued at $74 billion. Under the agreement, CELG shareholders will receive 1 BMY share and $50 in cash for each share of Celgene. The boards of directors of both companies have approved the deal.”
It’s an “EVENT” that many have waited and waited upon – half cash and stock!
Also, think about ALL of CELGs partnerships, percentage holdings and collaborations!!
Sector equities were up and off-the-charts as compared to many of December’s session during their first day of 2019 on Wednesday.
But, as usual is followed by a sell-off of upside!
Last night’s closing post, “Trading recognized the oversold condition while investors are still traumatized by past month, quarter and end-of-year.”
Last night’s percentage (%) indicators:
- Review the range of the 34 upside from +0.19% (GBT) to +38.69% (HSGX +$0.03) while the 11 downside ranged from -0.07% (OSIR) to -5.62% (SAGE) with 0 flat closes.
Last night's volume stat:
- 14 out of the 34 upside had higher (than the 3 month average) volume
- 4 out of the 11 downside experienced greater volume (than the 3 month average)
Tracking the closes:
In 1 session in January – there was 1 positive close
Q4 and end-of-year:
- In 21 sessions in December – there were 8 positive close; 1 neutral, 2 market closes and 10 negative close;
- In 22 sessions in November – there were 1 holiday, 10 positive closes, 1 neutral and 10 negative closes;
- In 23 sessions in October – there were 17 negative closes and 6 positive sessions;
Companies in my headlights – It’s your decision; I provide an idea and context: I’d be SELLING …
Biostage (BSTG) closed up +$0.09 to $2.15 after Monday’s $2.06 and last Friday’s $2.36 and the previous Thursday’s $2.06. BSTG is running out of cash and needs an infusion; maybe in the form of a convertible debt financing? Still a failed developmental company with management that has NEV ER DELIVERED on its promises wasting up to $55 M over the past four years – SELL;
Caladrius Biosciences (CLBS) closed up +$1.18 (+33.15%) to $4.74, after Monday’s $3.56 and last Friday’s $3.54 and the previous Monday’s $3.49 - TRADE with a negative -$0.08 or -1.96% aftermarket indication. Be prepared for a share pricing SLIDE;
CRISPER Therapeutics (CRSP) +$1.30 to $29.87 after Monday’s $1.82 to $28.57 and last Friday’s $26.75 – TRADE with a negative -$0.87 or -2.91% aftermarket indication. Be prepared for a share pricing SLIDE;
Editas Medicine (EDIT) +$0.59 to $23.34 after Monday’s $2.03 to $22.75 and last Friday’s $20.72 - TRADE with a negative -$0.83 or -3.54% aftermarket indication. Be prepared for a share pricing SLIDE;
Intellia Therapeutics (NTLA) closed up +$0.05 to $13.70 after Monday’s $0.68 to $13.65 and last Friday’s $12.97 – TRADE;
Sangamo Therapeutics (SGMO) closed up +$0.30 (+2.61%) to $11.78 after Monday’s $11.48 and Friday’s $10.86 and the previous Thursday’s $10.59. TRADE with a negative -$0.17 or -1.44% aftermarket indication. The status of the company still bothers me, be prepared for a share pricing SLIDE;
Sage Therapeutics (SAGE) closed down -$6.34 (-6.62%) to $89.45 after Monday’s $95.79, last Friday’s $88.99 and the previous Thursday’s $87.89 – too choppy and volume was high (776.2 k shares traded) versus 442.6 K shares. TRADE with a negative -$1.10 or -1.23% aftermarket indication. The status of the company still bothers me, be prepared for a share pricing SLIDE;
Solid Biosciences (SLDB) closed up +$2.12 (+7.91%) to $28.92, after Monday’s $26.80 and last Friday’s $26.01 and the previous Monday’s $3.49 - TRADE with a negative -$1.27 or -4.40% aftermarket indication. The status of the company still bothers me, be prepared for a share pricing SLIDE;
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.