May 23, 2019 8:03am

An uncertain period of waiting (purgatory to some) or a dance under a low bar – backwards; which way, place or how low could the sector go?  Long weekend in view, escape early – mid to late today’s sessions for sanity!

Pre-open indications: 3 BUYs and 2 SELLs

Quarterly results: Organovo Holdings (ONVO)

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!

 

The 6 W’s: Who, what, where, when, why and what of it …

 

Dow futures are DOWN -0.87% (-225 points), S&P futures are DOWN -0.88% (-26 points) and NASDAQ futures are DOWN 1.23% (-92 points)

 

Futures on the Dow, S&P and NASDAQ were fluctuating lower:

European markets traded in the red with the pan-European Stoxx 600 down by more than 1% in mid-morning deals with almost every sector in the red;

Asian-pacific markets declined as investors worried about the ongoing trade tensions;

 

Data docket: jobless claims data are set to be published at around 8:30 a.m. ET, followed by a flash reading of manufacturing and services PMI figures for May. New home sales for April and Kansas City Fed survey data for May are both scheduled for release later in the session.

 

Henry’omics:

A word on these markets and the sector … UNSETTLING.

The Labor Day weekend begins … and I believe many will begin it even earlier with today’s session being the bell ringer!

U.S. stock index futures were sharply lower Thursday morning, as market participants continue to monitor an intensifying trade war between the world’s two largest economies.

Which is worse – being stuck in a stock, depreciating markets, a maligned sector  or vacation traffic – neither are going anywhere fast.

From Wednesday’s closing bell post, “sector digs itself deeper into being oversold; 31 out of 45 covered companies fell into decline; volume was low as sentiment reflected computer generated sell orders and pricing risks.”

This week:

  • Wednesday closed NEGATIVE with 31 decliners, 12 advancers, 0 flat and 2 acquired (AST & OSIR);
  • Tuesday closed POSITIVE with 8 decliners, 31 advancers, 4 flat and 2 acquired (AST & OSIR);
  • Monday closed NEGATIVE with 31 decliners, 11 advancers, 1 flat and 2 acquired (AST & OSIR);

Wednesday night’s “numbers”:

  • The range of the 9 upside was +0.20% (STML) to +8.53% (BSTG) while the 31 downside ranged from -0.09% (ALNY) to -8.79% (BLCM);
  • 0 out of the 9 upside had higher than the 3 month average volume;
  • 7 out of the 32 downside had higher than the 3 month average volume;

Q2/19 so far:

  • In May, there were 9 negative and 7 positive closes;
  • In April, there has been 10 positive and 11 negative closes;

 

Quarterly results: Organovo Holdings (ONVO)

  • Net loss was $7 M, a $500 K improvement over the year-ago period, as total costs and expenses declined 10% to $7.8 M, primarily due to lower employee costs;
  • Net cash utilization was $5.1 M, an improvement from $5.7 M in the prior-year quarter;
  • Total revenue was $700 K, a 38% decrease from the year-ago period, primarily driven by lower products and services revenue;
  • DuringQ4, ONVO generated net proceeds of approximately $6.3 M from the issuance of 6.1 M shares of common stock in ATM offerings at a weighted average price of $1.04 per share;
  • Cash and cash equivalents balance of $36.5 M
  • Runway: early 2021

 

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

Applied Genetic Technologies (AGTC) closed down -$0.11 to $3.72 after Tuesday’s +$0.07 to $3.83 after Monday’s -$0.06 to $3.67. OVERSOLD with clinical date in second half. Even as the bottom has appeared more and lately– Maintaining BUY;

Biostage (BSTG) closed up +$0.22 to $2.80 with 106 shares traded <3 month average =3416 shares> after Tuesday’s flat, Monday, Friday after Thursday’s $2.58 after the previous Wednesday’s +$0.18 and Tuesday’s down -$0.10. Low volume erupts stock’s pricing; which is a key indicator to SELL and run away! What is there to invest in, too many questions surround their ability and capacity to raise cash after “blowing: $57.7 M in the last five years without even one (1) IND helped downward by the current management team . Another session of warning, expect a major fall in the share pricing – Maintaining SELL;

bluebird bio (BLUE) closed down -$0.25 to $125.01 after Tuesday’s +$3.78 to $125.26, Monday’s -$6.86 to $121.48, Friday’s $128.34, Thursday’s $130.80, Wednesday’s $124.83  and the previous Thursday’s $126.88. Maintaining BUY

Ionis Pharmaceuticals (IONS) closed up +$1.78 to $69.24 after Monday’s +$0.06 to $67.46 after Friday’s -$0.38 to $67.40, Thursday’s $67.78, Wednesday’s $66.55, Tuesday’s $67.74– Maintaining BUY;

Organovo Holdings (ONVO) closed down -$0.046 to $0.899 after quarterly results missed and has a downside -$0.10 or -11.7% aftermarket indication – SELL;

ReNeuron (RENE.L) closed down -$2.50 to $287.50 after Tuesday’s +$10.00 to $287.49, Monday’s -$14.50 to $302.50 after Tuesday’s +$17.00 to $305.00 and last Wednesday’s +$18.00 to 290.00. RENE.L has a time differential trading with a downside -$3.90 – Maintaining SELL;

 

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.