May 3, 2019 7:49am
As far as the sector, show me the upside …
Q1/19 results: bluebird bio (BLUE +$2.36) on Thursday reported a loss of $164.4 M or -$2.99 per share compared to $115.1 M or -$2.31 per share in Q1/18. The results fell short of “street” expectations of $2.80 per share. BLUE posted revenue of $12.5 M which did (barely) beat “street” forecasts of the expected $12.2 M. BLUE ended Q1 with $1.73 B in cash or equivalents; shares have climbed 43% since the beginning of the year. In the final minutes of yesterday’s trading, shares hit $141.75, a drop of 18% in the last 12 months.
Pre-open indications: 2 BUYs, 1 SELL and 3 TRADEs
Why are companies with “going concerns”, measured by continual losses, development failures, unfiled INDs and continuous down financings – still viable?
Inexcusable management incompetence needs to be “extinguished” with investors uniting especially to push-out those who obstruct transparency.
Dow futures are UP +0.23% (+61 points), S&P futures are UP +0.27% (+8 points) and NASDAQ futures are UP +0.50% (+39 points)
U.S. stock index futures are moving higher on Friday, as market participants await key U.S. employment data;
European markets were higher with the Stoxx 600 Index up around 0.3% during mid-morning trade;
Asian Pacific stocks were mixed; considering markets in Japan and China were closed for holidays;
Data docket: nonfarm payrolls, unemployment data, and average hourly wages due out 8:30 a.m. ET. There will also be services PMI data at 9:45 a.m. ET.
- Speeches from Federal Reserve, Chicago Fed President Charles Evans will speak at 10:15 a.m. ET and Fed Vice-Chair Richard Clarida will address an audience at 11:30 a.m. ET.
Friday’s ETF indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is NOT indicating;
The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.3% UPSIDE;
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating;
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.29% UPSIDE;
TGIF, the sector has been pulled down by sentiment racked by volatility, weakening fundamentals, low volume and external market forces.
It’s still a battle of trust versus conviction … in these try sessions of quarterly result’s reporting.
From Thursday’s closing bell post, “after a flip, a flop and another drop; earnings season is heightening risk, yet one of today’s earnings miss was rewarded with upside – go figure?”
- In May, there were 2 negative closes;
- In April, there has been 10 positive and 11 negative closes;
- In March’s 21 sessions, there were 7 negative and 14 positive closes;
This week, keep your eyes on presentations at the American Society of Gene & Cell Therapy Annual Meeting, Washington, DC and last night’s (Thursday) pricing and its receptivity:
- ·Voyager Therapeutics (VYGR +$0.75): Pre-clinical data on tau program in Alzheimer's, VY-SOD102 in ALS, VY-HTT01 in Huntington's;
- ·Intellia Therapeutics (NTLA +$0.36) will present new In Vivo and engineered cell therapy data;
- ·UniQure (QURE +$1.09): Six presentations, including Huntington's disease, hemophilia A and Fabry;
- Intrexon Corporation (XON +$0.04) and its majority owned Intrexon Health subsidiary Xogenex, four abstracts will be presented as posters;
- Homology Medicines (FIXX +$0.27): Presentations on programs in phenylketonuria and metachromatic leukodystrophy;
- Sangamo Therapeutics (SGMO -$0.03): Presentations on pipeline programs in Fabry, blood disorders, ALS and Huntington's;
- Solid Biosciences (SLDB +$0.03): Pre-clinical data on SGT-001 in DMD;
- Adverum Biotechnologies (ADVM -$0.01): Pre-clinical data on ADVM-022;
- Cellectis SA (CLLS +$0.18): UCARTS1A in multiple myeloma;
- Fate Therapeutics (FATE +$0.41): Five presentations on iPSC platform.
Companies in my headlights – It’s your decision; I provide an idea and context:
Athersys (ATHX) closed flat at $1.51 after Wednesday’s -$0.04 to $1.51, Tuesday’s -$0.05 to $1.55, Monday’s-$0.08 to $1.60 and last Friday’s +$0.08 to $1.68. “Earnings” are slated for 5/8, what new might be said and how voluminous is their ATM utilization? – Maintaining SELL;
CRISPR Therapeutics (CRSP) closed up +41.46 to $40.28 after Wednesday’s -$1.37 to $38.82, Tuesday’s -$0.09 to $40.19, Monday’s -$0.74 to $40.28 and last Friday’s +$1.46 to $41.02 – TRADE;
Editas Medicine (EDIT) closed up +$0.78 to $24.00 after Wednesday’s -$1.53 to $23.22, Tuesday’s -$1.52 to $24.75, Monday’s -$1.49 to $26.27 and last Friday’s +$0.60 top $27.76. “Earnings” are due to be released on 5/7 – TRADE;
Intellia Therapeutics (NTLA) closed up +$0.36 to $14.82 after Wednesday’s -$0.92 to $14.46, Tuesday’s -$0.95 to $15.38, Monday’s -$0.71 to $16.33 and last Friday’s +$0.25 to $17.04. An earning’s miss yet, collaboration revenue was up but, I was right that expenses and losses were up and it surprisingly went up – TRADE;
ReNeuron holdings (RENE.L) closed up +$15.00 to $295.00 after Wednesday’s -$30.00 to $294.00 following Tuesday’s $280.00, Monday’s $310.00 and last Friday’s $325.00 – the open was pegged at a positive +$19.00 - Maintaining BUY;
Verastem Oncology (VSTM) closed down again -$0.03 to $2.06 after Wednesday’s -$0.04 to $2, 09, Tuesday’s -$0.10 to $2.13, Monday’s +$0.03 to $2.23 and last Friday’s +$0.04 to $2.20. An alternating share pricing and risk staircase? - 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.