March 28, 2019 7:55am

The oversold are pushing and shoving for the remaining seats

Pre-open indication: 2 BUYs, 1 SELL and 3 TRADEs

Q4 and FY18 “earnings” and results: Biostage (BSTG)

 

My pre-open focus is 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! 

My blend of two styles “quantamental” has become common parlance among investors and traders.

 

Dow futures are DOWN -0.11% (-29 points), S&P futures are DOWN -0.13% (-4 points) and NASDAQ futures are DOWN -0.14% (-11 points)

 

U.S. stock index futures are slipping Thursday morning;

Europe stocks slightly higher amid report of US-China trade breakthrough;

Asian markets decline after 10-year Treasury yield slips

 

Data docket: U.S. jobless claims and real growth rates data are due at 8.30 a.m. ET.

  • Market participants are also likely to closely monitor a flurry of speeches from policymakers at the U.S. central bank. Philadelphia Fed President Patrick Harker, Atlanta Fed President Raphael Bostic, New York Fed President John Williams, and Fed Vice Chair for Supervision Randal Quarles are all set to comment on the world’s largest economy at separate events today.

 

Thursday’s indications in the pre-market:

The iShares Nasdaq Biotechnology (IBB) is NOT indicating;

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 -0.08% DOWNSIDE;

 

Henry’omics:

Investment needs a Viagra or a shot of testostersone to move, faster and further without ANY news for initial stimulation!

 

Investors in the U.S. awoke to optimistic reports of progress in all areas under discussion in U.S.-China trade talks, with what Reuters called unprecedented movement on the touchy issue of forced technology transfers <CNBC>.

Duty, honor and shareholders should be a mantra – it’s mine and a reminder to management teams – especially those reporting!

From Tuesday’s closing bell post, “the downside thundered with the IBB (-1.39%), NASDAQ (-0.63%) and the A/D line (8/35) tumbling … With most of the “sector’s participants” escaping through the sector’s barn door which was left open as the sentiment keypad was turned off.”

  • Range of the 8 upside was +0.09% (HSGX) to +4.90% (RENE.L) while the 35 downside ranged from -0.16% (OSIR) to -6.76% (VSTM).
  • 0 out of the 8 upside had higher (than the 3 month average) volume
  • 6 out of the 35 downside experienced greater volume (than the 3 month average)
  • In March’s 19 sessions, there were 7 negative and 12 positive closes;
  • In the last five (5) sessions, the IBB has been down -3.85% even after five (5) sessions (Monday’s +1.86% and Tuesday’s +0.14% and Wednesday’s -1.39%)

 

Q4 and FY18 “earnings” results: Biostage (BSTG)

BSTG reported a Q4 net loss of approximately $1.8 million, or a net loss per diluted share of $0.32, compared to a net loss of approximately $1.2 million, or a net loss per diluted share of $0.61 for Q4/17.

  • The $600 K year-over-year decrease in net loss was attributable primarily to a $700 K decrease in R&D costs.

For FY18, BSTG reported a net loss of approximately $7.5 million, or a net loss per diluted share of $1.69, compared to a net loss of approximately $11.9 million, or a net loss per diluted share of $6.63 for FY18.

  • The $4.4 million year-over-year decrease in net loss was attributable primarily to a $3.7 million decrease in R&D costs and a $300 K net decrease in expense from change in the fair value of warrants.

BSTG had $1.4 million and no debt and used net cash in operations of approximately of $7.6 million during the year ended 2018, approximately $700 K of which represented payments of aged vendor payables incurred in 2017 while generating approximately $5 million, net, from financing activities during 2018, which represented proceeds from the sale of common stock.

Runway: Q3/2019

 

Companies in my headlights – It’s your decision; I provide an idea and context:

BioLife Solutions (BLFS) closed down -$0.44 to $17.47 after Tuesday’s -$0.87 and Monday’s -$0.75. One of the few net incomes for Q4 and FY18 but, it does get expensive.  March started out at $19.42, February at $16.37 and January at $12.00 – so; there has been room for “retreating” from the newest high.  I also think that BLFS is a buyout candidate – Maintaining BUY;

Biostage (BSTG) closed flat at $ and put forth its LPS (loss-per-share) “earnings” for Q4 and FY18 (as listed above) – issue is cash position and a VERY short “runway” – SELL;

uniQure NV (QURE) closed down again -$2.07 to $59.58 after Monday’s -$1.48 to $61.95 and has a positive +$0.19 or +0.31% aftermarket indication. QURE saw Friday ending at $63.43, Thursday at $68.41, Wednesday at $65.82 and last Tuesday’s $66.46 – Maintaining BUY;

CRISPER Therapeutics (CRSP) closed down -$0.62 to $34.21 after Tuesday’s  +$0.64 and Monday’s -$1.40 to $34.19 and has NO aftermarket indication – TRADE;

Editas medicine (EDIT) closed down -$0.24 to $22.95 after Tuesday’s +$0.39 and Monday’s +$0.19 to $22.80 with NO aftermarket indication. Last Thursday at $24.74, Wednesday at $24.12 and last Tuesday at $23.11 – TRADE;

Intellia Therapeutics (NTLA) closed down -$0.51 to $16.26 after Tuesday’s +$0.50 following Monday’s +$0.11 to $16.27 with NO aftermarket indication. Friday closed at $16.16, Thursday at $17.62, Wednesday at $16.96 and last Tuesday at $16.86. DRIBBLING – 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.