March 14, 2019 6:28pm
Perception of risk has an expletive response but, the real issue is stuck in a cyclical series yet we are almost to the end of Q4 and FY18 results
Friday will be enhanced by a quadruple witching volatility module
Q4 and FY18 results: Athersys (ATHX), BioLife Solutions (BLFS), BioTime (NYSE American: BTX) and Caladrius Biosciences (CLBS) – read ‘em and weep or smile ...
Pre-open indications: 6 HITs and 1 MISS
Review the snapshot of the daily ‘workings” of the sector composite of cell and gene therapy companies.
That’s why my “quantamental” blend of style must become the “tool” for investors and traders for portfolio enrichment.
Markets and indexes:
- The Dow closed up +7.05 points or +0.03% to 25,709.94
- The S&P closed down -2.44 points or -0.09% to 2,808.48
- The NASDAQ was down -12.49 points or -0.16% to 7,630.91
The sector took a “drubbing” after five (5) sessions of being up and away; it was time … especially with quadruple witching tomorrow!
The S&P 500 and NASDAQ closed lower for the first time in four (4) sessions on Thursday after the release of weak U.S. home sales data while Wall Street digested the latest news on the U.S.-China trade front <CNBC>.
Q4 and FY LPS (loss-per-share) earnings results are slowly coming to an end ...
Which ... hopefully result in reduced volatility as MY opinion of some "earnings" are objective, cutting and believeable!
Pre-open post, “be ready for a game of musical chairs of share movement. Keep moving yet eyeball the positions you want to play or nay; but, judging when that moment comes is another matter.”
The advance/decline line scenario of 45 covered companies:
- The open was positive with the A/DL to 23/18 and 4 flats;
- The mid-day was negative with an A/DL of 16/27 and 2 flats;
- The close was negaive with an A/DL of 30/13 and 2 flats;
Pre-open indications: 6 HITs and 1 MISS
- Cellectis SA (CLLS) closed up +$0.15 – miss;
- CRISPR Therapeutics (CRSP) closed down -$0.88 – hit;
- Editas Medicine (EDIT) closed down -$0.28 – hit;
- Intellia therapeutics (NTLA) closed down -$0.34 – hit;
- Stemline Therapeutics (STML) closed up +$0.04 – hit;
- ReNeuron (RENE.L) closed down -$1.00 – hit;
- Verastem Oncology (VSTM) closed down -$0.08 – hit;
Q4 and FY18 results:
Net loss for Q4 was $11.3 M or -$0.08 per share in 2018 compared to a net loss of $13.1 M or -$0.11 per share in Q4/17. The difference of $1.8 M reflects the above variances, as well as an increase of $300 K in other income items.
FY18 net loss was $24.3 M or -$0.18 per share compared to a net loss of $32.2 M or -$0.29 per share in FY17. The difference of $7.9 M reflects the above variances, as well as a decrease of $100 K in other net expenses.
… Had entered into a new equity facility (ATM) during Q2/18 as follow-on to the existing facility, with a right to sell up to $100 million of common stock over a three-year period … the reason the stock price has gone nowhere and without it would be trading in the teens!
Ended 2018 with cash position $51.1 M and a runway to early 2020 – ATM usage is a problem, how deep in the “hole” are they?
BioLife Solutions (BLFS)
Net income for Q4/18 was $833 K or +$0.04 per share, compared with a net loss of $664 K or -$0.05 for Q4/17.
Net income for FY18 was $2.9 M or +$0.14 per share, compared with a net loss of $2.7 M or -$0.21 per share for FY17.
Cash position was $30.7 M compared with $6.7 M at the end of FY17.
With acquisition of Astero automated thawing technologies – BLFS could need a financing – thus a reduced runway and an early 2020 financing potential?
BioTime (NYSE American: BTX)
Completed Asterias Biotherapeutics (NYSE American: AST) and distribution of AgeX Therapeutics shares to BTX shareholders
BTX reported a Q4 loss of $45 M or -$0.35 per share adjusted for non-recurring costs came to $0.07 per share. The results met “street” expectations was for a loss of $0.07 cents per share.
BTX posted revenue of $758 K in the period, also topping “street” forecasts of $743 K.
For the year, BTX reported that its loss widened to $46 million, or $0.36 cents per share. FY18 revenue was reported as $5 M.
Cash position was reported at $30.7 M and a runway until 2020 but, will still need some sort of a financing.
BioTime’s investment in OncoCyte was valued at $20.3 M as of December 31, 2018 and at $55.9 M as of March 13, 2019, under the equity method of accounting. BTX’s promissory note from Juvenescence was valued at $22.1 million as of December 31, 2018.
Caladrius Biosciences (CLBS)
The net loss from Q4/18 was $3.6 M, or $0.36 per share, compared with $4 M, or $0.40 per share, for Q4/17.
Net loss for FY18 was $16.2 M, or $1.67 per share, compared with $16.2 M, or $1.78 per share, for the same period of 2017.
Caladrius had cash of $43.1 M and a 2020 runway – so WHY did they execute a $26 M ATM from Lincoln Park Capital (LPC). At a cost of 181,510 shares of common stock; pursuant LPC will purchase 250,000 shares at a price of $4.00 per share, for a total gross purchase price of $1 M.
Tonight’s percentage (%) indicators:
- Range of the 13 upside was +0.65% (MDXG) to +7.18% (AGTC) while the 30 downside ranged from -0.20% (ONCE) to -5.71% (RGNX).
- 10 out of the 13 upside had higher (than the 3 month average) volume
- 6 out of the 30 downside experienced greater volume (than the 3 month average)
The iShares NASDAQ Biotechnology (IBB) indicator:
- Thursday was down -0.22% after indicating a positive +1.31% in the pre-market;
- Wednesday was up +1.31% after indicating;
- Tuesday was up +0.82% after NOT indicating;
- Monday was up +2.14% after indicating a NEGATIVE -0.49% in the pre-market;
- Friday was down -0.49% after NOT indicating;
- Last Thursday was down -0.66% after NOT indicating;
Thursday closed NEGATIVE with x30decliners, 13 advancers and 2 flats;
Wednesday closed POSITIVE with 12 decliners, 30 advancers and 3 flats;
Tuesday closed POSITIVE with 13 decliners, 30 advancers and 2 flats;
Monday closed POSITIVE with 7 decliners, 37 advancers and 1 flat;
Friday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;
Thursday closed POSITIVE with 14 decliners, 29 advancers and 2 flats;
Wednesday closed NEGATIVE with 39 decliners, 5 advancers and 1 flat;
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.