April 3, 2019 6:21pm
Build cash positions and “powder” for the coming counter-cycle; it’s not a dig at the sector but, by being tactical don’t disturb liquidity to enhance portfolio protection
Volume remains low and percentage (%) averages remain flighty
Financings: Pluristem Therapeutics (PSTI -$0.074) is -$0.11 or -12.85% lower in aftermarket following an offering of shares and warrants in a registered direct offering by Ladenburg Thalmann & Co.(NYSE American: LTS). Typical PSTI, no share numbers or pricing; what is PSTI afraid of? – Transparency is a virtue! Sangamo Therapeutics (SGMO) has commenced a public offering – no share numbers and no pricing. Cowen and Company, LLC, Wells Fargo Securities, LLC and Barclays Capital Inc. are acting as joint book-running managers for the offering
Pre-open indications: 6 HITs and 2 MISS
Skim if you can trim, buy if it will fly and sell if compelled!
Duty, honor and shareholders should be a mantra – it’s mine!
Markets and indexes:
- The Dow closed down +39.03 points or +0.15% to 26,218.16
- The S&P closed up +6.16 points or +0.21% at 2,873.40
- The NASDAQ was up +46.86 points or +0.60% to 7,895.55
Sector equities rose slightly as part of the pattern on Wednesday as investors continued to believe … and cheering a nearing and potential … trade deal between the U.S. and China, though softer measures on payrolls and the service economy kept a lid on optimism!
- Private payrolls increased by 129 K in March, according to ADP and Moody’s Analytics. That is well below a Refinitiv estimate of 173 K. The report from ADP and Moody’s is typically seen as a preview for the U.S. government’s monthly jobs report, which is scheduled for release Friday morning <CNBC>.
I am STILL focused on BUILDING a cash position to weather ANY downside for a potential BUYING of to be depreciated equities!
There is a severe VULNERABILITY to share pricing; where is the news other than a run-out of offerings while the market “window” is OPEN!
It is always a sign of the sector -- OVERHEATING!
Cell and gene therapy company’s worst-performers were:
- RENE.L (-$2.00), ONCE (-$1.11), RGNX (-$0.54), ALNY (-$0.51) and FIXX (-$0.36)
- RENE.L (-$1.50), QURE (-$0.40), STML (-0.12), VCEL (-$0.12) and MDXG (-$0.10)
- ALNY (-$1.62), SAGE (-$1.20), BOLD (-$1.19), BLFS (-$0.28) and CRSP (-$0.27)
Sector equities posting gains were:
- GBT (+$3.71), SGMO (+$0.74), CLLS (+$0.87), ADVM (+$0.25) and MDXG (+$0.16)
- SGMO (+$2.76), RARE (+$2.63), SAGE (+$2.48), CRSP (+$2.45) and BLUE (+$1.82)
- RENE.L (+$22.00), MDXG (+$0.20), MESO (+$0.28), FIXX (+$1.41) and STML (+$0.55)
Pre-open post, “be ready for a transmutation of share pricing; I believe in replacing and repairing portfolios in with a therapeutic device or biologic – liquidity and money.”
My pre-open indications: 6 HITs and 2 MISS
- bluebird bio (BLUE) closed up +$2.62 – miss;
- Biostage (BSTG) closed up +$0.03 – miss;
- CRISPR Therapeutics (CRSP) closed up +$0.32 - hit;
- Editas Medicine (EDIT) closed up +$0.73 – hit;
- Intellia Therapeutics (NTLA) closed up +$0.32 – hit;
- ReNeuron Group (RENE.L) closed down -$2.00 – hit;
- Sangamo Therapeutics (SGMO) closed up +$0.74 – hit;
- Verastem Oncology (VSTM) closed up +$0.03 – hit;
The advance/decline line scenario of 45 covered companies:
- The open was negative with the A/DL to 17/22, 5 flats and 1 acquired (AST);
- The 10 a.m. hour turned positive with an A/DL of 27/16 and 1 flat and 1 acquired;
- The close was positive with an A/DL of 27/16 and 1 flat and 1 acquired;
Tonight’s percentage (%) indicators:
- Range of the 27 upside was +0.05% (OSIR) to +6.27% (SGMO) while the 16 downside ranged from -0.22% (FATE) to -12.29% (CUR -$0.06).
- 5 out of the 27 upside had higher (than the 3 month average) volume
- 0 out of the 16 downside experienced greater volume (than the 3 month average)
1 flat – BSTG with 1 acquired: 1 (AST)
The iShares NASDAQ Biotechnology (IBB) indicator:
- Wednesday was up +0.59%;
- Tuesday was up +0.81 %;
- Monday was up +0.10 %;
- Friday was up +2.14 %;
- Thursday was up +0.61%;
- Last Wednesday was down -1.39%;
Wednesday closed POSITIVE with 16 decliners, 27 advancers, 1 flat and 1 acquired (AST);
Tuesday closed POSITIVE with 11 decliners, 32 advancers, 1 flat and 1 acquired (AST);
Monday (4/1) closed POSITIVE with 19 decliners, 23 advancers, 2 flats and 1 acquired (AST);
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.