RegMed Investors’ (RMi) closing bell: yesterday's ebb and today flow

March 5, 2019 5:35pm

As I had stated, “Last night’s swings are today’s moves”; be ready for a bounce and it did rebound

it always feels good to right yet again … especially when indicators were inconsistent

Q4 and FY18 earnings results: Fate Therapeutics (FATE)

Pre-open indications: 4 HITs and 2 MISS

The 6 W’s: Who, what, where, when, why and what of it … when the “numbers” explain share pricing!

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors and traders.

Markets and indexes:

• The Dow closed down -13.02 points or -0.05% to 25,806.63
• The S&P closed down -3.15 points or -0.11% to 2,789.65
• The NASDAQ was down -1.21 points or -0.02% to 7,576.36

Henry’omics:

The sector closed positive; it has been written that some biotechs turned lower after news reports on Tuesday afternoon that FDA Commissioner Gottlieb was resigning.

The iShares Nasdaq Biotechnology ETF was down 0.3% after being up 0.5% just before the news. The ProShares Ultra NASDAQ Biotechnology ETF fell 0.6%, while the SPDR S&P Biotech ETF fell 0.2%

Biotech and pharmaceutical executives have praised Gottlieb for accelerating the approval of generic drugs and updating the process for FDA evaluation of novel treatments such as gene therapy <MarketWatch>.

Pre-open post, “flying blind as indicators are inconsistent; risk-on, risk-off or a dust-off. Is sentiment “jerking” value down an endless road of mild downs, increasing ups or just algorithmic “rules”? The “neverendingness” of this havoc chills the portfolio of investors and common sense.”

The advance/decline line scenario of 45 covered companies:  

• The open was negative with the A/DL to 20/21 and 4 flats;
• The mid-day was positive with an A/DL of 32/11 and 2 flats;
• The close was positive with an A/DL of 23/17 and 5 flats;

Pre-open indications: 4 HITs and 2 MISS

• Audentes Therapeutics (BOLD) closed up +$0.14 – miss;
• BioTime (NYSEMKT: BTX) closed up +$0.08 – hit;
• Intrexon (XOIN) closed up +$0.88 – hit;
• ReNeuron (RENE.L) closed up +$7.00 – miss;
• Verastem Oncology (VSTM) closed up +$0.06 – hit;
• uniQure NV (QURE) closed up +$0.12 – hit;

Q4 and FY18 earnings results: Fate Therapeutics (FATE)

A net loss of -$16 m or -$0.25 per share and a FY18 net loss of -$66.5 M or -1.19 per share while ending 2018 with $201 M in cash and a runway until early 2022.

• Revenue was up to $1.7 M from 1 M in 2017
• G&A expense was up - $4.3 M versus $3.4 M in Q4/17
• R&D expense was up -$14.1 M versus $9.9 M in Q4/17
• Share increased from 52.6 M to 64.7 M with preferred shares at 2.8 M each of which is convertible to five share

Bouncing to the upside:

• RENE.L (+$7.00 after yesterday’s +$19.50), ALNY (+$3.31), AXGN (+$1.63 after yesterday’s +$0.88), CRSP (+$0.95) and OSIR (+$0.94)

Leading the pack to the downside:

• BLUE (-$2.01 after yesterday’s -$3.83), SAGE (-$1.17 after yesterday’s -$3.43 and Friday’s -$0.24), SLDB (-$1.05), FIXX (-$0.58) and BMRN (-$0.46 after yesterday’s -$1.62)

Closing FLAT:  

• AST, BCLI, CLBS, MDXG and BSTG

Tonight’s percentage (%) indicators: 

• Range of the 23 upside was +0.04% (RGNX) to +21.26% (XON) while the 17 downside ranged from -0.10% (SGMO) to -8.18% (SLDB).

Volume stat: 

• 11 out of the 23 upside had higher (than the 3 month average) volume
• 7 out of the 17 downside experienced greater volume (than the 3 month average)

The iShares NASDAQ Biotechnology (IBB) indicator:

• Tuesday was down -0.52% after NOT indicating;
• Monday was down -0.96% after indicating a POSITIVE +0.4% in the pre-market;
• Friday was up +2.10% after NOT indicating;
• Thursday was down -1.23% after indicating a NEGATIVE -0.49% downside;
• Wednesday was up +1.64% after NOT indicating in the pre-market;
• Last Tuesday was down -0.41% after NOT indicating in the pre-market;

March sessions:

Tuesday (3/4) closed POSITIVE with 17 decliners, 23 advancers and 5 flats;

Monday (3/1) closed NEGATIVE with 24 decliners, 18 advancers and 3 flats;

Friday (3/1) closed POSITIVE with 11 decliners, 32 advancers and 2 flats;

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.