May 13, 2019 7:55am

It’s not time to fold the tent, bet on in the sector in those who beat expectation, strong cash positions and guidance!

The bumpy road that should be traveled:  lack of momentum, volume, share pricing, sentiment and conviction with the IBB slipping -2.69% in last five session’s – some weakness should be bought into

Pre-open indications: 3 BUYs, 3 SELLs

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I remind those of the latest vehicles of volatility – LPS (loss-per-share) “earnings”!

Dow futures are DOWN -1.25% (-322 points), S&P futures are DOWN -1.32% (-38 points) and NASDAQ futures are DOWN -1.70% (-130 points)

 

Futures point to large losses at Monday’s open;

European stocks also dropped as the Stoxx 600 index fell 0.5% while the German Dax dipped 0.7%.

Asian markets fell broadly with the Nikkei 225 index declining 0.7% overnight while the Shanghai Composite pulled back 1.2%. 

 

Data docket:  None

  • Boston Fed President Eric Rosengren and Fed Vice Chairman Richard Clarida are due to speak at 9:10 a.m. ET.

 

Henry’omics:

U.S. stock futures pointed to sharp losses on Monday as investors keep fretting over the state of U.S.-China trade relations.

The reality check is that a sour and down market won’t facilitate rapid movement – I’m “picking” among the flotsam.

From Friday’s closing bell post, “trade is also the sector’s issue while the IBB (-0.32%) slips.”

  • Friday’s range of the 21 upside was +0.11% (CLLS) to +6.67% (QURE) while the 22 downside ranged from -0.01% (ONCE) to -28.04% (VSTM);
  • Friday: 4 out of the 21 upside had higher than the 3 month average volume;
  • Friday: 6 out of the 22 downside had higher than the 3 month average volume;

Review last week:

  • Friday closed NEGATIVE with 22 decliners, 21 advancers, 0 flat and 2 acquired;
  • Thursday closed NEGATIVE with 23 decliners, 20 advancers, 0 flat and 2 acquired
  • Wednesday closed POSITIVE with 18 decliners, 24 advancers, 1 flat and 2 acquired;
  • Tuesday closed NEGATIVE with 36 decliners, 6 advancers, 1 flat and 2 acquired;
  • Monday closed POSITIVE with 8 decliners, 32 advancers, 3 flat and 2 acquired;

Q2/19 so far:

  • In May, there were 4 negative and 3 positive closes;
  • In April, there has been 10 positive and 11 negative closes;

 

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

Applied Genetic Technologies (AGTC) closed down -$0.13 after beating expectation and reporting net income with forthcoming data coming in the first half – BUY;

Biostage (BSTG) closed up +$0.18 – reporting this Tuesday its cash position, runway and lack of regulatory standing; it’s NOT about the present but, the last quarter. How many excuses does this CEO have left after too many BAD decisions affected past stake and shareholders? – Maintaining SELL;

Ionis Pharmaceuticals (IONS) closed up +$1.92 after exceeding “street” expectation – Maintaining BUY;

Verastem Oncology (VSTM) closed down -$0.53 following announcing a net loss and in increase in their debt financing.  Alongside Q1 results, VSTM expects full-year Copiktra sales to be $10 M-$12 M, far short of estimates in the $40 M forecast - Maintaining SELL;

Intrexon (XON) closed up +$0.04 after Q1 debilitating decreases – Maintaining SELL;

BioLife Solutions (BLFS) closed down -$0.19 after reporting net income – Maintaining BUY;

BioTime (NYSEMKT: BTX) closed up +$0.03 and also reported net income beating expectation – 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.