March 1, 2019 7:35am
In times of share pricing stress; pre and post quarterly results can be a real “downer”
However, the real question is whether quarterly results matter?
They are a confirmation and “proof of life” tools to measure expectation (being on track) and liquidity
Pre-open indications: 1 BUY, 2 SELLs and 2 TRADEs
RMi outlines the potential prelude to the daily dosage of facts and objectivity!
I answer one question, in which company should investors put, keep and commit their money!
U.S. stock index futures are rising from yesterday’s ashes
Dow futures are UP +0.67% (+174 points), S&P futures are UP +0.60% (+17 points) and NASDAQ futures are UP +0.70% (+50 points)
Futures on the Dow, S&P 500 and NASDAQ were higher after strong US economic growth data;
Europe markets move higher after seemingly positive US-China trade comments;
Asian stock markets close higher as Chinese stocks advanced
Data docket: Personal income, consumer spending and core PCE figures for December and January will be released at around 8:30 a.m. ET. Manufacturing PMI, ISM manufacturing, and consumer sentiment data are all expected to follow later in the session.
Friday’s indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is NOT indicating
The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.92% UPSIDE
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.63% UPSIDE
The moves in the pre-market followed better-than-expected U.S. economic growth in Q4/18; gross domestic product (GDP) rose 2.9% for the year, official data showed on Thursday, just shy of the Trump administration's 3% target.
Start the month off to the upside …
Shares of a peer group member, Immunogen (IMGN) <NOT covered> plummeted 45.97% toward a two-year low in pre-market trade Friday, after the company said a P3 trial of its ovarian cancer treatment, mirvetuximab soravtansine, compared to chemotherapy, failed to meet its primary endpoint of progression free survival.
From Thursday’s closing bell post, “the sector bleeds value as the Advance/Decline Line (A/DL) slips 15/25 with 5 flats and volume uplifts. It’s still about choosing the right time “frame” while bracing for anomalies. Yesterday it was lucky to close flat than being a splat!”
- 9 out of the 15 upside had higher (than the 3 month average) volume
- 15 out of the 25 downside experienced greater volume (than the 3 month average)
- In 20 sessions in February, there were 10 negative and 8 positive closes, 1 holiday and 1 vacation day.
Last night, I also stated yesterday was “a busy day of 3 Q4 results, 2 offerings announced – 1 priced and a clinical initiative that got … SOLD into! What is my favorite analogy … the sector and Icarus flying so high and getting burned by the heights and the proximity to the sun?
Companies in my headlights – It’s your decision; I provide an idea and context:
Intrexon (XON) closed down -$0.31 to $7.97 and has a negative -$0.77 or -11.79% aftermarket indication after announcing quarterly results – SELL;
Sangamo Therapeutics (SGMO) closed down -40.31 to $9.01 and has a positive +$0.19 or +2.11% aftermarket indication – BUY;
uniQure NV (QURE) closed up +$0.76 to $53.99 after announcing Q4 and FY18 results. No aftermarket indication yet, decreases in collaboration revenue, followed by increases in R&D spending, SG&A – SELL;
Intellia Therapeutics (NTLA) closed down -$0.20 to $15.23 after Wednesday’s +$0.92 to $15.43 after Tuesday’s +$0.15 to $14.51. The Q4 net loss was $19.1 million or -$0.43 per share for Q4/18, compared to $24 million or -$0.61 per share during Q4/17.Cash position ($314 M which included marketable securities) was supported by use of its ATM, collaboration revenue while R&D and G&A decreased – TRADE;
Editas Medicine (EDIT) closed down -$0.32 to $20.63 and a negative -$0.13 or -0.63% aftermarket indication. Last Wednesday was priced at+$0.23 to $20.95 after Tuesday’s $20.72 and Monday’s $20.93 following last Friday’s $19.87. – 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.