May 30, 2019 8:26am
“Our” universes (45 covered companies) are certainly not dead but, certainly have bled and the wounded share pricings are pilled-up at the sentiment refill station gives out Band-Aids?
Pre-open indications: 1 BUY, 1 SELL and 3 TRADES
Quarterly results: Mesoblast Ltd (MESO; ASX: MSB)
“Wherefore art thou” … is occasionally used in retellings of Romeo and Juliet; but, in our sector; traders are considered the buyers for downtrodden equities – not always investors!
The days of being long are not the strongest investing rationale …
Dow futures are UP +0.10 %( +24 points), S&P futures are UP +0.20% (+5 points) and NASDAQ futures are also UP +0.20% (+15 points)
U.S. stock index futures were slightly higher Thursday morning as the rapid decline in bond yields stabilized, easing concerns about a recession.
European markets opened higher as the pan-European Stoxx 600 reached its lowest point since March 11, as investors navigate the latest escalations in the U.S.-China trade war.
Asian markets decline as US-China trade concerns weighed on sentiment as the multiple indexes’ slipped or shed and declined yet South Korea bucked the trend to close up!
Data docket: The latest weekly jobless claims and a second reading of gross domestic product data are both due at around 8:30 a.m. ET. Advance economic indicators and pending home sales for April are set for release slightly later in the session.
News is lacking ...
... changes in management talent (RARE), investment conference presentations (BLFS, ONCE, VSTM and BLCM) at conferences and another quarterly results MESO) bundled with “rolling submission of a BLA while SAGE’s CEO sells $16 M of owned shares. One more, BCLI announced that the Stanford University School of Medicine will serve as the second contracted clinical study site for the Company’s Phase 2 open-label, multicenter study of repeated intrathecal administration of autologous MSC-NTF cells in participants with progressive Multiple Sclerosis (MS).
It’s NOT clinical results from on-going trials – its fillers!
Of interest to many was the 10-year yield adding 3 basis points to 2.26% after hitting a 19-month low on Wednesday. Plunging yields this month, along with a yield curve inversion, has raised concerns about slowing economic growth. On Wednesday, the Dow dropped more than 200 points as bond yields declined <CNBC>.
I did say yesterday (Wednesday), “Many, actually MOST of the oversold are crying out … oversold and ripe for some picking!” Yet I am … still …looking (and hoping) that many of the oversold are recognized and the overbought are moved to make room for the undervalued.”
From Wednesday’s closing bell post, “sector uncertainty and markets pressured investors to dump equities. The sustainability damage is done again as traders fled the sector blaming sentiment and trade war with no sign of resolution.”
- Wednesday’s range of the 12 upside was +0.21% (SGMO) to +5.50% (ADRO) while the 28 downside ranged from -0.12% (SAGE) to -14.74% (ONVO);
- The close was negative with an Advance/Decline Line (A/Dl) of 12/28 and 3 flats and 2 acquired;
- 5 out of the 12 upside had higher than the 3 month average volume;
- 9 out of the 28 downside had higher than the 3 month average volume;
- Wednesday, the IBB was down -1.12% after Tuesday’s -1.25% post Monday’s holiday.
Q2/19 so far:
- In May, there were 12 negative, 1 holiday and 8 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:
BioMarin Pharmaceuticals (BMRN) closed down -$4.57 or -5.1% to $84.50 after Monday’s market close and Friday’s +$2.10 to $89.07. BMRN's gene therapy for hemophilia A dropped potentially life-threatening bleeding events from more than a dozen to zero. But in a competitive market to find the next big and expensive treatment to help — or even cure — hemophilia A patients, questions linger around how long the treatment sticks with patients. On the surface, BMRN's disclosures around valrox Tuesday were positive. BMRN said a late-stage clinical trial found that eight patients met pre-specified criteria for Factor VIII activity levels (Ron Leuty, SFBT). That study and a P1/2 study dropped the median number of annual bleeding events to zero after three years, as valrox could hit the market by the end of 2020. The drop in the number of bleeding events is significant, both from a statistical point of view and for patients. – Maintaining BUY;
CRISPR Therapeutics (CRSP) closed up +$0.14 to $36.86 after Tuesday’s -$0.28 to $36.72, Friday’s $37.00 and last Thursday’s $36.81 post the previous Wednesday’s $38.82 as May 1st opened at $38.82 – TRADE;
Editas Medicine (EDIT) closed down again -$0.28 to $21.15 after Tuesday’s -$0.29 to $21.43, Friday’s $21.71 and last Thursday’s $21.18 – Oversold – TRADE;
Intellia Therapeutics (NTLA) closed down again -$0.29 to $14.47 after Tuesday’s -$0.09 to $14.76, Monday was a market holiday, Friday’s $14.85, Thursday’s $14.42, and last Wednesday’s $14.81 – Oversold, TRADE;
ReNeuron (RENE.L) closed down -$15.00 to $300.00 after Tuesday’s +$10.00 to $315.00, Monday’s market holiday and Friday’s +$20.00 to $305.00. RENE.L has a time differential trading with a market downside of -$8.90 - 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.