February 19, 2019 7:54am
Q4 and FY18 earnings or LPS (loss-per-share) results resume
Announced for this week: Ultragenyx Pharmaceuticals (RARE), Spark Therapeutics (ONCE) and Sage Therapeutics (SAGE) today, Mesoblast (MESO) and BioMarin Pharmaceuticals (BMRN)
News: Mesoblast (MESO) and CRISPR Therapeutics (CRSP)
Pre-open indications: 1 BUY, 1 SELL and 3 TRADEs
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.
Presenting alternative hypotheses clarifies material facts and evidence available to investors. “Devil’s Advocacy” also provides greater confidence that the current sector outlook will hold-up to close scrutiny!
U.S. stock index futures are slipping and adjusting by the hour
Dow futures are DOWN -0.24% (-61 points), S&P futures are DOWN -0.29% (-8 points) and NASDAQ futures are DOWN -0.26% (-19 points)
U.S. stock futures were down on Tuesday as traders followed trade negotiations and NAHB housing data;
European markets are down led by a negative banking index and HSBC’s (reported disappointing profit figures) warning of an economic slowdown in China, as well as Brexit uncertainty;
Asian markets are mixed as trade talks continue and the Chinese government accuses the U.S. of hindering technology development by posting cybersecurity threats against Huawei switching equipment
Data docket: NAHB housing market index
Tuesday’s indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is NOT indicating
The SPDR S&P Biotech ETF (XBI) is indicating
The Health Care Select Sector SPDR ETF (XLV) is indicating a NEGATIVE -0.08% DOWNSIDE
The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.4% DOWNSIDE
Monday was a U.S. market holiday while European stocks soared in tandem to Asian markets closing higher as markets continue to monitor trade talks.
I keep calling-out the issue of the sector’s “short-termism” as we re-enter the “earnings” season road race and the hills are next!
February has exhibited so far, one (1) holiday, six (6) positive and five (5) negative closes with six (6) positive IBB sessions in a row.
Today, ONCE and SAGE report …
From Friday night, “a rebound of the oversold; making-up for lost ground as the sector shakes off clinical miss risks. Fundamentals are mutable as investor confidence has been ravaged by the sudden rotations of share pricing values.”
- Range of Friday’s 38 upside was +0.19% (IONS) to +17.35% (CUR) while the 6 downside ranged from -0.06% (KOOL) to -2.96% (AGTC) with 1 flat close (BSTG) while …
- 13 out of the 38 upside had higher (than the 3 month average) volume
- 0 out of the 6 downside experienced greater volume (than the 3 month average)
Companies in my headlights – It’s your decision; I provide an idea and context:
bluebird bio (BLUE) closed up +$2.74 to $137.03 following Thursday’s -$1.33 to $134.29 after Wednesday’s +$0.36 to $135.62 and has seen $130.75 (2/8) and $130.16 (1/30) twice while starting January at $99.50. RICH and a take-down candidate before quarterly results – Maintaining SELL;
Mesoblast (MESO) closed up +$0.07 to $4.25 (Friday) and announced that the last patient has now been dosed in the P3 events-driven trial of its allogeneic cell therapy product candidate - Revascor for advanced chronic heart failure. The 566-patient trial will complete when sufficient primary endpoint events have accrued, which is likely to be within 12 months – BUY;
CRISPER Therapeutics (CRSP) closed up +$0.59 to $31.52 after Thursday’s -$0.18 to $30.93, Wednesday’s -$0.53 to $31.11 after last Tuesday’s +$0.51. CRSP and StrideBio, Inc., a developer of adeno-associated viral (AAV)-based gene therapies, today announced that a strategic collaboration, previously initiated in April 2017 to generate engineered AAV capsids with improved properties for in vivo gene editing programs, has now been expanded to include additional undisclosed applications. The financial terms of the new expanded development and option agreement have not been disclosed. – TRADE;
Editas Medicine (EDIT) closed up +$0.22 to $20.68 after Thursday’s -$0.09 to $19.86, Wednesday’s -$0.34 to $19.95 after last Tuesday’s +$0.32. EDIT has NO after or pre-market indication – TRADE;
Intellia Therapeutics (NTLA) closed up+$0.10 to $13.99 following Thursday’s +40.14 to $13.89, Wednesday’s -$0.17 to $13.75 and last Tuesday’s +$0.21 without any indication – TRADE;
Solid Biosciences (SLDB) closed up +$0.21 to $7.98 following Thursday’s -$0.56 to $7.77 and Wednesday’s +$0.74 to $8.33. A trading TOY and NO new news to back-up ANY upside post the FALL from the data release but, a solid cash position of $145.37 M or $4.10 per share – Maintaining BUY;
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.