February 7, 2019 7:56am
… Disrupting the sector, adding to speculation
Quarterly results: Applied Genetic Technologies (AGTC) net loss of $4.18 M or -$0.23 per share and has a negative -$0.46 or -15.54% pre-market to its share pricing.
News: Solid Biosciences (SLDB) announced preliminary findings from IGNITE DMD, the P1/2 dose-ascending clinical trial evaluating the safety and efficacy of SGT-001 microdystrophin gene transfer for the treatment of Duchenne muscular dystrophy (DMD). Initial three-month biopsy data showed low levels of microdystrophin protein expression and a negative pre-market of -$13.34 or -59.71% to $9.00.
Financing: Pluristem Therapeutics (PSTI) enters into an agreement with Jefferies LLC to sell up to $50 M of its common stock at-the-market. Shares are down -$0.0716 or -6.82% pre-market.
Pre-open indications: 5 SELLs and 3 trades
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.
You can lead a horse to water but you can't make him drink' is a proverb which means that you can give investors an opportunity but can’t force them to take it.
U.S. stock index futures are down and dropping
Dow futures are DOWN -0.56% (-141 points) and NASDAQ futures are DOWN -0.54 % (-38 points)
Dow futures are down triple digits ahead of earnings and Fed speeches;
European stocks were slightly lower as investors await the Bank of England's latest interest rate decision at midday;
Asian markets were mixed, with US-China trade hopes are up as negotiations continue while Japan's Nikkei 225 slipped and Australia's ASX 200 rose
Data docket: initial job claims at 8.30 a.m. ET and consumer credit numbers at 3 p.m. ET.
The iShares Nasdaq Biotechnology (IBB) is NOT indicating
The SPDR S&P Biotech ETF (XBI) is NOT indicating
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating
The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.6% DOWNSIDE
The first of LPS (loss-per-share) quarterly results – Applied Genetic Technologies (AGTC) gets slammed on enrollment only data.
Words for today: stay steady - ther is not much one can do about today's Q results - ONVO and ALNY, hold the line but ... prepare for the downside coming from the next weeks "earning" or as I call them LPS (loss-per-share) reporting!
Wednesday’s evening post, “the downside landing has more to being overbought or even oversold – sentiment is unstable! Tomorrow, Thursday begins the sector’s review of quarterly LPS (loss-per-share) “earnings” <most time a misnomer>. The material communication will be about guidance to FY19!”
Last night’s percentage (%) indicators:
- Ranged of the 20 upside was +0.28% (FIXX) to +5.83% (BCLI) while the 24 downside ranged from -0.19% (EDIT) to -6.25% (PSTI) with 1 flat close (VSTM).
- 4 out of the 20 upside had higher (than the 3 month average) volume
- 6 out of the 24 downside experienced greater volume (than the 3 month average)
Companies in my headlights – It’s your decision; I provide an idea and context:
Applied Genetic Technologies (AGTC) closed down -$0.02 to $3.13 with a quarterly net loss of $4.18 M or -$0.23 per share and a negative -$0.46 or -15.54% pre-market indication – SELL;
bluebird bio (BLUE) closed up +$1,01 to $135.97 after Tuesday’s -$1.19 to $134.96 and Monday’s +$136.15. In seven (7) sessions, BLUE has jumped from $123.47 as 1/24 was priced at $122.79 following 1/23 was $119.73 – like a haircut a trim is due – Maintaining SELL;
BioLife Solutions (BLFS) closed down -$0.21 to $16.70 after Tuesday’s +$0.80 to $16.91, Monday’s -$0.26 to $16.11, Friday’s +$1.70 or +11.59% to $16.37. January opened at $12.00, promptly dropping the next session to $10.90 and January ended at $14.67 while 1/18 closed at $13.20. BLFS has a 52 week change of +245.12%; another candidate for profit-taking - lightens the load and come back – Maintaining SELL;
Pluristem (PSTI) closed down -$0.07 to $1.05 and is down -$0.0716 or -6.82% to $0.978 as news of a $50 M financing by Jeffries hits the news – SELL;
Solid (SLDB) closed down -$0.70 to $22.34 and has a negative pre-market of -$13.34 or -59.71% to $9.00 after news of preliminary findings from IGNITE DMD, the P1/2 dose-ascending clinical trial evaluating the safety and efficacy of SGT-001 microdystrophin gene transfer for the treatment of Duchenne muscular dystrophy (DMD). Initial three-month biopsy data showed low levels of microdystrophin protein expression – SELL;
Where, when and what are the accelerants for these equities:
CRISPRS Therapeutics (CRSP) closed up +$0.19 to $32.63 after Tuesday’s -$0.14 to $32.44, Monday’s -$0.51 to $31.92, Friday’s $31.92, last Thursday’s +$0.19 to $32.43 and the previous Wednesday’s+$1.27 to $32.24. From a hot stock to an equity ripe with uncertainty as to share pricing; one of the reason hares short of float (29.8 M) = 14.25%. Shares short (1/14/19) 4.22M or of outstanding (51.8 M) = 8.09% – TRADE;
Editas Medicine (EDIT) closed down -$0.04 to $21.10 after Tuesday’s-$0.77 to $21.14, Monday’s $21.91, Friday’s $21.61, last Thursday’s $21.73 and the previous Wednesday’s $21.28, The 52 week change is +2.08% - small which says meager “pickings” for this equity unless “dramatic” news – appears which seems unlikely – TRADE;
Intellia Therapeutics (NTLA) closed up +$0.07 to $13.86 after Tuesday’s -$0.72 to $13.79, Monday’s $14.51, Friday’s $14.04, last Thursday’s $14.14 and the previous Wednesday’s -$0.47 to $13.76. No indication yet, it is getting “richer” with a 52 week change of -38.39%. Shares short of float (32.57 M) were 18.50% and outstanding (43.42 M) was 10.2% – TRADE;
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.