March 15, 2019 8:18am
Let’s see how much dust the witch’s broom sweeps and swirls as she flies through the sector!
There are more than many skittish investors after Q4 and FY 18 “earnings’ releases re which way to flop or flip?
Pre-open indications: 7 SELLs and 3 TRADEs
I focus on indication analysis; an indication can be a development of almost any kind. Specifically, it may be a confirmed fact, a possible fact, or an absence of “something”, a fragment of information or even an observation. The sole provision is that it provides insight to provide some vision into a likely course of action.
Skim if you can trim, buy if it will fly and sell if compelled!
U.S. stock index futures traded slightly higher, as investor’s monitored progress in U.S.-China trade talks and reacted to the latest Brexit developments.
Dow futures are UP +0.43% (+110 points), S&P futures are UP +0.43% (+12 points) and NASDAQ futures are UP +0.51% (+38 points)
European markets edged higher as U.K. lawmakers voted (on Thursday) to seek a delay in Britain’s exit from the EU.
Asia markets climb as Bank of Japan keeps monetary policy steady
Data docket: Empire State manufacturing numbers are due at 8:30 a.m. ET, followed by industrial production numbers at 9:15 a.m. ET and consumer sentiment data at 10 a.m. ET.
Friday’s indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.26% UPSIDE;
The SPDR S&P Biotech ETF (XBI) is indicating is NOT indicating;
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating;
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.04% UPSIDE;
U.S. stock index futures traded slightly higher on Friday morning, as investors’ monitored progress in U.S.-China trade talks and reacted to the latest Brexit developments.
It’s Friday and a quadruple witching – let’s see how much dust the witch’s broom sweeps and swirls as she flies through the sector!
From Thursday’s closing bell post, “sector slips as the IBB (-0.27%) and NASDAQ (-0.16%) wobble. 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.”
- 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)
- In March’s 10 sessions, there were 3 negative and 7 positive closes;
- In the last five (5) sessions, the IBB was up three (3) times +4.27% and down two (2) -0.71% – Thursday and last Friday
Companies in my headlights – It’s your decision; I provide an idea and context:
Athersys (ATHX) closed up +$0.02 to $1.56 and then there was the LPS (loss-per-share) earnings release with Helios collaboration expanded still unresolved and put off. Cash position was $51.1 M supplemented by an ATM (how deep is that well and how much has been drawn-down?), Revenue increased by $300 K from Q4/17, R&D decreased, G&A was up with the Q4 net loss was $11.3 million in 2018 compared to a net loss of $13.1 million in Q4/2017. The difference of $1.8 million reflects the above variances, as well as an increase of $300 K in other income items. My issue, the stock has barely moved while the CEO draws quite a salary, bonus and “bennies” – SELL;
BioLife Solutions (BLFS) closed up +$0.80 to $17.69. 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? – SELL;
BioTime (NYSE American: BTX) closed up +$0.02 to $1.55 and has a negative -$0.21 or -13.55% aftermarket indication. 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 – SELL;
Caladrius Biosciences (CLBS) closed up +$0.21 to $4.21. Q4 and FY18 were mixed as R&D; G&A decreased with the net loss was $3.6 million, or $0.36 per share, compared with $4 million, or $0.40 per share, for Q4/2017. Cash position was $43.1 M and a runway to early to mid-2020. Why the cost (181,510 shares) of a NEW $26 M ATM – SELL;
Cellectis SA (CLLS) closed up +$0.15 to $19.02 after Wednesday’s +$0.16 to $18.87, Tuesday’s +$0.35 to $18.71 and Monday’s+$0.32 to $18.36 following Q4 and FY18 results were released but, there is a negative -$0.08 or -0.40% aftermarket indications – Maintaining SELL;
CRISPR Therapeutics (CRSP) closed down -$0.88 to $38.55 after Wednesday’s +$0.02 to $39.43, Tuesday’s +$0.34 to $39.41 and Monday’s +$1.34 to $39.04 and has NO pre or aftermarket indication – TRADE;
Editas Medicine (EDIT) closed down -$0.28 to $23.94 after Wednesday’s -$0.05 to $24.22, Tuesday’s +$0.43 to $24.27 and Monday’s +$1.24 to $23.84 with NO pre or aftermarket indication – TRADE;
Intellia therapeutics (NTLA) closed down -$0.34 to $16.15 after Wednesday’s -$0.34 to $16.49, Tuesday’s +$0.25 to $16.83 and Monday’s +$0.89 to $16.58 without a pre and aftermarket indication – TRADE;
Stemline Therapeutics (STML) closed down -$0.04 to $13.47 after Wednesday’s +$0.60 to $13.51, Tuesday’s +$1.86 to $12.91, Monday’s $0.57 to $11.05 and last Friday’s +$0.60 to $11.62 and had news, Monday, STML expanded its oncology pipeline. – Maintaining SELL;
ReNeuron (RENE.L) is trading down -$0.52 to $70.98 after last night’s -$2.60 at $69.90 following Wednesday’s $72.50 post Tuesday’s at $74.50 and Monday’s $82.50 - Maintaining SELL;
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.