May 20, 2019 7:59am
Another session in “dreary” land; portfolios need a “fix” of upside while suffering a lack of “umpf”
Three biotechs (Peloton Therapeutics, Ideaya Biosciences and U.K. based Bicycle Therapeutics) are going IPO this week (read more)
Pre-open indications: 2 BUYs and 3 SELLs
Unique insights from what's likely to remain a volatile climate; RMi outlines preludes and aftermaths defining the daily dose of factors, investment thesis and objectivity!
One can analyze a company as a good or bad investment however, some CEOs try to frame a new reality versus a random version of the truth and their actions will catch-up and bite their share price deterring forward motion. Me, I speak out and sharpen a stick to “poke” the truth into conviction!
Dow futures are DOWN -0.47% (-121 points), S&P futures are DOWN -0.55% (-17 points) and NASDAQ futures are DOWN -1.26% (-95 points)
U.S. stock index futures were slightly lower intensifying fallout from a U.S. crackdown on Huawei weighed on market sentiment.
- Last week, President Donald Trump’s administration added Chinese telecom company Huawei to a trade blacklist.
European stocks trade lower as geopolitical risks mount with the pan-European STOXX 600 slipping 0.6% in morning trade;
Asian Pacific stocks were mixed amid a slew of geopolitical developments across the region;
Data docket: None
Be cautious …the wind is NOT at our backs!
From the title, “Three biotechs (Peloton Therapeutics, Ideaya Biosciences and U.K. based Bicycle Therapeutics) are going IPO this week” … https://www.marketwatch.com/story/three-biotechs-are-going-public-next-week-heres-what-you-should-know-about-them-2019-05-17?mod=mw_theo_homepage
From Friday’s closing bell post, “volatile is the sector’s first adjective; it is not unusual for stocks to weaken at the end of a week; the sector needs a fix of market moving news or we will be stuck with potential “black swans”.
- Friday’s range of the 8 upside was +0.22% (FIXX) to +11.32% (ADVM) while the 33 downside ranged from -0.39% (MESO) to -9.52% (VYGR);
- Friday: 1 out of the 8 upside had higher than the 3 month average volume;
- Friday: 6 out of the 33 downside had higher than the 3 month average volume;
Q2/19 so far:
- In May, there were 7 negative and 6 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:
Athersys (ATHX) closed down -$0.06 to $1.97 after Thursday’s $0.15 to $2.03. A typical “Icarus” flight which will melt and fall back into its usual position – depressed. Who can believe any consistent upside that stays? – Overbought – SELL;
Biostage (BSTG) closed flat again on Friday after Thursday’s $2.58 after Wednesday’s +$0.18 and Tuesday’s down -$0.10. Who is buying this cash bankrupt company – fraud is deception and this CEO and CFO have the practice down pat. Just wait the evolving “story” is yet to be totally outed! Many questions surround unpaid quarterly liabilities to manipulate their reporting of their cash position, runway and lack of regulatory standing. How many excuses does this CEO have left after too many BAD decisions affected past stake and shareholder’s equity? – Maintaining SELL;
Ionis Pharmaceuticals (IONS) closed down -$0.38 to $67.40 after Thursday’s +$1.23 to $67.78, Wednesday’s +$0.19 to $66.74 and last Monday’s -$2.73 to $66.56 following the previous Friday’s -$1.92 and exceeding “street” expectation and April 10th $85.62 – Maintaining BUY;
ReNeuron (RENE.L) closed down -$14.50 to $302.50 after Thursday’s +$17.00 to $305.00, Wednesday’s +$18.00 to 290.00, Tuesday’s +$7.00 to $272.00 and last Monday’s -$5.00 to $265.00. RENE.L has a time differential trading to the downside -$22.50 – Maintaining SELL;
Verastem Oncology (VSTM) closed down -$0.01 to $1.53 after Thursday’s flat at $1.54 following Wednesday’s $1.54, Tuesday’s m$1.50 and last Monday’s $1.29, the previous Friday’s $1.36 and Thursday’s $1.89. Oversold– 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.