April 10, 2019 7:53am
Of being oversold, yet the Phoenix has risen from its ashes
Financing: Homology Medicine (FIXX) closed at $23.57, down -$5.99 or -20.26% and priced its 5.556 M share offering at $22.50 with an overallotment of 833.3 M shares
Pre-open indications: 2 BUYs, 1 SELL and 3 TRADEs
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!
The 6 W’s: Who, what, where, when, why and what of it … so who is going to do what?
Dow futures are UP +0.24% (+63 points), S&P futures are UP +0.26% (+8 points) and NASDAQ futures are UP +0.22% (+17 points)
U.S. stock index futures were slightly higher Wednesday morning, as market participants await inflation data and minutes from the Federal Reserve’s latest meeting.
European stocks were slightly higher with EU leaders likely to grant British Prime Minister May a second delay to Brexit.
Asian markets mixed after IMF slashes 2019 growth outlook again
Data docket: the Labor Department is expected to publish month-on-month and year-on-year Consumer Price Index figures for March at around 8:30 a.m. ET.
- The Fed will release the minutes of its March monetary policy meeting later in the session. Last month, the U.S. central bank decided to maintain interest rates and hold off an any further increases this year.
- The International Monetary Fund (IMF) slashed its global economic growth forecast once again on Tuesday.
Wednesday’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 indicating a POSITIVE +0.10% UPSIDE;
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.22% UPSIDE;
What goes down (for two sessions) returns to blossom!
It’s time for the oversold to be RECOGNIZED!
From Tuesday’s closing bell post, “share pricing sustainability was gutted yet again; which is the sector’s biggest problem/issue; there are just too many factors including sentiment, momentum, volume and increasing risks whether perceived or not especially as news becomes strength to be sold into; it’s still about confidence and trust – there isn’t any …”
- The Advance/Decline (A/D) line at the close was negative with an A/D of 9/33 and 1 flat and 2 acquired;
- Range of the 9 upside was +0.50% (MDXG) to +29.82% (RENE.L) while the 33 downside ranged from -0.03% (ONCE) to -20.26% (FIXX).
- 5 out of the 9 upside had higher than the 3 month average volume
- 7 out of the 33 downside experienced greater volume than the 3 month average
- In April, there has been 4 positive and 3 negative closes;
- In March’s 21 sessions, there were 7 negative and 14 positive closes;
- Last night, the IBB was down -1.61% after Monday’s -0.43% - time for an upswing!
Companies in my headlights – It’s your decision; I provide an idea and context:
Alnylam Pharmaceuticals (ALNY) closed down -$1.26 to $88.91, Monday’s -$2.62 to $90.17 after Friday’s +$1.34 to $92.79 and has a positive +$0.98 or +1.10% upside based on news of Regeneron Pharmaceuticals partnered to develop treatments for eye and central nervous system diseases using RNA interference. Regeneron will make a $400 million upfront payment to Alnylam and to purchase $400 million of Alnylam equity at a price per share of $90. ALNY is eligible to receive up to an additional $200 million in milestone payments upon achievement of certain criteria during early clinical development for the programs – Maintaining BUY:
CRISPR Therapeutics (CRSP) closed down -$0.99 to $37.68 with NO aftermarket indication. Monday closed at $38.67 following Friday’s $38.42, Thursday’s $38.15 and last Wednesday’s $38.24 – TRADE;
Editas Medicine (EDIT) closed down -$0.58 to $26.67 and has a negative -$0.34 or -1.27% aftermarket indication. Monday closed at $27.25 following last Friday’s $27.48 – TRADE;
Intellia Therapeutics (NTLA) closed down -$0.92 to $17.25 with NO aftermarket indication. Monday closed at $18.17 following last Friday’s $18.41, Thursday’s $18.15 and the previous Wednesday’s $18.29 – TRADE;
ReNeuron Group (AIM: RENE) closed up +$51.00 to $222.00 and is “pegged” (-$10.90) to decline in the U.S’s pre-market open after Monday’s+$54.90 to $225.90 on news of a partnership with Forsun Pharmaceuticals for the development, manufacture and commercialization of CTX and hRPC cell therapy programs in the People's Republic of China. ReNeuron will receive US$7.9 million on entering into the Agreement, up to US$7.9 million in near-term operational milestones and up to US$10.5 million in future regulatory milestone payments. In addition, post-launch profit threshold milestone payments are due at a rate of 5% of annual net profits derived from the licensed products in the year the relevant net profit milestones are exceeded, leading to total estimated milestone payments of US$104.8 million provided all milestones and profit thresholds are successfully met – BUY to SELL;
Solid Biosciences (SLDB) closed down -$0.44 to $9.16 and has a positive +$0.14 or +1.56% aftermarket indication; March ended at $9.20, April ran the gamut of $9.16 to $9.61 – seems oversold – BUY;
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.