April 26, 2019 8:39am
While I watch whether BioMarin Pharmaceuticals (BMRN) who beat expectation take a fall or carry the ball post earning’s release? The week so far, 2 positive and 2 negative closes following a short week with 1 holiday, 1 positive and 3 negative closes
News: Roche (SIX: RO, ROG; OTCQX: RHHBY) and Spark Therapeutics (ONCE) withdrew and refilled its pre-merger notification and report form under the HSR Act and extension of tender offer for shares of ONCE. ReNeuron Group plc (RENE.L) announced positive preliminary results in an ongoing P1/2a clinical trial of its human retinal progenitor cell (hRPC) therapy candidate in the blindness-causing disease, retinitis pigmentosa (RP). All three subjects in the first cohort of the P2a part of the trial have demonstrated a sustained and further improvement in vision compared with their pre-treatment baseline.
Pre-open indications: 2 BUYs, 1 SELLs and 4 TRADEs
It’s an honor to be considered the “canary in the (sectors) coal mine”!
I personally believe that a reputational factor or tool needs introduction to measure the “spin” practiced by more than some companies
Dow futures are DOWN -0.2% (-53 points), S&P futures are DOWN -0.09% (-5 point) and NASDAQ futures are UP +0.12% (+9 points)
Futures on the Dow and S&P were both seen marginally lower while the NASDAQ is seeing daylight (for now);
European markets edges lower with the pan-European Stoxx 600 down around 0.1% during early morning deals, with most sectors and major bourses in negative territory;
Asian pacific markets were mixed as Mainland China shares fell, Japan is set to begin a 10 day holiday while Australia markets have run from their December lows and are vulnerable to a short-term pullback;
Data docket: U.S. GDP data is expected to be published at around 8:30 a.m. ET, with consumer sentiment figures for April set to follow slightly later in the session.
Friday’s ETF 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 -0.01% DOWNSIDE;
Sector focus will be on whether pricing enjoys another ride to the upside and will MY pet peeve – whether if a company such as BioMarin Pharmaceuticals (BMRN) after reporting beating expectation will be relegated to the SELL pile?
Market focus is largely attuned to economic developments, amid speculation that figures later in the session could show the U.S. economy outperforming the rest of the developed world. A string of robust numbers for the world’s largest economy has prompted analysts to revise up their forecasts for expansion and the latest Reuters poll is for annualized growth of 2% <CNBC>.
I could tend to marinate some olives and while onions in a tall, cold glass of a potato “extract” – a “tuner” hopefully very early!
LPS (loss-per-share) earning’s season always “screws-out” the fundamentals as the weekend bumps my psyche!
From Thursday’s closing bell post, “sector equities got-up off their knees! Volume was still low, the IBB rose (+1.01%) with the range of the 23 upside being +0.32% (RGNX) to +3.86% (FATE) while the 18 downside ranged from -0.06% (VCEL) to -9.59% (MDXG).”
- Thursday: 1 out of 23 upside had higher than the 3 month average volume
- Wednesday: 2 out of the 13 upside had higher than the 3 month average volume;
- Tuesday: 13 out of the 36 upside had higher than the 3 month average volume;
- Monday: 1 out of the 20 upside had higher than the 3 month average volume;
- In April, there has been 8 positive and 10 negative closes – so far;
- In March’s 21 sessions, there were 7 negative and 14 positive closes;
Companies in my headlights – It’s your decision; I provide an idea and context:
BioMarin Pharmaceuticals (BMRN) closed down -$18 to $85.31 and has a negative aftermarket indication of -$2.49 or -2.92% after reporting Q1 results. – reporting a loss of $56.5 million or -$0.32 per share. Earnings, adjusted for stock option expense and non-recurring costs, came to $0.14 per share. The revenue results ($400.70) beat expectations of $387.2 M as did the -$0.09 per share top Street forecasts – every theme says SELL, let them, I say after the selling before the close – TRADE with a caveat, SELL with the flow, BUY as it turns towards day’s end;
Athersys (ATHX) closed down -$0.05 to $1.60 after Wednesday’s -$0.01 to $1.65, Tuesday’s +$0.23 to $1.66 after Monday’s $1.43 and announcing its partner, HEALIOS K.K. enrolled the first patient in its ONE-BRIDGE study in Japan, evaluating MultiStem® cell therapy treatment of patients who suffer from acute respiratory distress syndrome (ARDS). A flash in the frying pan, what has ATHX done through-out the year to date pay their chairman and CEO from an enormous compensation “platter” – Maintaining SELL;
CRISPR Therapeutics (CRSP) closed up +$0.99 to $39.56 after Wednesday’s -$0.11 to $38.57, Tuesday’s +$1.43 to $38.68, Monday’s +$0.99 to $37.25, and the previous Thursday’s -$0.17 to $36.26 and Wednesday’s -$2.65 to $36.43, the previous Tuesday’s +$1.93 to $39.08 – TRADE;
Editas Medicine (EDIT) closed up +$0.15 to $27.16 following Wednesday’s -$0.43 to $27.01, Tuesday’s +$1.12 to $27.44 and Monday’s +$0.52 to $26.32, post the previous week’s Thursday’s +$0.08 to 425.80 and last Wednesday’s-$1.50 to $25.72 –TRADE;
Intellia Therapeutics (NTLA) closed up +$0.11 to $16.79 following Wednesday’s -$0.28 to $16.68, Tuesday’s +$0.72 to $16.96, Monday’s+$0.09 to $16.24 and last week’s Thursday’s -$0.06 to $16.15 with NO aftermarket indication – TRADE;
ReNeuron holdings (RENE.L) closed up +$4.50 after Tuesday’s +$12.00 to $248.50 following Monday’s $2.36.50, last Thursday’s $230.00, last Wednesday’s $2.26 – the open was pegged at +57.00 –Maintaining BUY
Verastem Oncology (VSTM) closed up +$0.03 to $2.16 following Wednesday’s -$0.14 to $2.13, Tuesday’s+$0.13, Monday’s -$0.03, the previous week’s Thursday’s -$0.06 to $2.17 – VSTM just re-negotiated its debt vehicle with Hercules - Maintaining 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.