February 20, 2019 8:21am
Till “earnings” season do we part and break-up to make-up once the kiss of the trade makes us yearn to be re-bought and oversold
… Which will be the usual scenario of exaggerated declines and upside corrections?
News: Pluristem Therapeutics (PSTI) (PSTI.TA) announced collaboration with the NASA’s Ames Research Center to evaluate the potential of PLX cell therapies in preventing and treating medical conditions caused during space missions. Sangamo Therapeutics (SGMO): the FDA has accepted the Investigational New Drug (IND) application for ST-920, a gene therapy candidate being evaluated for the treatment of adults with Fabry disease.
Quarterly results: Mesoblast (MESO)
News will be the tape to prevent further cracking
Pre-open indications: 3 BUYs, 1 SELL and 1 TRADEs
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 point to a lower open
Dow futures are DOWN -0.09% (-23 points), S&P futures are DOWN -0.06% (-2 points) and NASDAQ futures are barely UP +-0.01% (+1 points)
U.S. stock index futures were slightly lower early Wednesday,
European markets edge higher amid earnings with the pan-European Stoxx 600 up around 0.1% during mid-morning deals, with most sectors and major bourses in positive territory,
Asia markets close higher as U.S. President Trump hinted once again that a closely watched trade deadline in March may be pushed back.
Data docket: no major economic reports scheduled on Wednesday. But, the Federal Reserve is expected to publish minutes from its January policy-setting meeting.
Wednesday’s indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is indicating a NEGATIVE -0.2% DOWNSIDE
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 -0.11% DOWNSIDE
Market focus is largely attuned to global trade developments, after officials from the U.S. and China launched a new round of negotiations on Tuesday. A follow-up session of higher-level talks is expected later in the week, as both sides look to resolve the long-running trade war before an early March deadline. President Trump has suggested he might extend the deadline for a deal <CNBC>.
Sector focus will be on earnings today – Mesoblast (MESO) and will there be further blow-back of SAGE and ONCE?
From Tuesday night’s post, “slipping and sliding as the sector composite closed negative with an Advance/Decline Line (A/DL) of 18/24 and 3 flats. Quarterly and FY18 results (2 misses and 1 surpass in expectation).”
Last night’s indicators:
- Range of the 18 upside was +0.24% (CLBS) to +9.46% (CUR) while the 24 downside ranged from -0.07% (HSGX) to -7.98% (SAGE) with 3 flat close (ONVO, RENE.L and VSTM).
- 6 out of the 18 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:
Sangamo Therapeutics (SGMO) closed down -$0.07 to $8.72 and is UP +$0.38 or +4.36% in the pre-market on news of the FDA acceptance of the IND application for ST-920, a gene therapy candidate being evaluated for the treatment of adults with Fabry disease. Current standard of care for this rare, progressive condition involves regular lifelong infusions of enzyme replacement therapy (ERT) -BUY;
Pluristem Therapeutics (PSTI) (PSTI.TA) closed down -$0.01 to $1.01 and today announced a collaboration with the NASA’s Ames Research Center to evaluate the potential of PLX cell therapies in preventing and treating medical conditions caused during space missions – BUY;
Mesoblast (MESO) closed down -$0-.05 to $4.20 and reports today. The P3 has enrolled but will the debt levels increase as the quarterly results get unveiled – SELL;
Ultragenyx Pharmaceuticals (RARE) closed up +$0.16 to $56.81; RARE reported a Q4 loss of $87.8 million and a per share loss of $1.73. The results surpassed “street” expectations. The average estimate was for a loss of $1.74 per share. RARE posted revenue of $16.3 million in the period, also surpassing the “forecast” of $13.3 million. Ultragenyx shares have climbed 31% since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $56.81, a climb of 21% in the last 12 months - BUY;
CRISPER Therapeutics (CRSP) closed up again +$0.89 to 432.41 after Friday’s +$0.59 to $31.52, Thursday’s -$0.18 to $30.93 and last Wednesday’s -$0.53 to $31.11 following the previous Tuesday’s +$0.51. Yesterday the stock jumped on news of CRSP and StrideBio, Inc., a developer of adeno-associated viral (AAV)-based gene therapies, today announcing 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;
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.