May 31, 2019 9:04am
The newest tariff “talk” represents a train wreck for the equity markets; let May end and run away so, June can roar!
Pre-open indications: 2 BUYs and 3 TRADES
Quarterly results: Mesoblast (MESO and AUX) cash of $70.4 M plus another $35 M in available debt; lower 9 month revenue, R&D rose approximately 3X in last 9 months and a loss of -$24.97 M or -$5.00 per basic and diluted share
The known unknowns; yesterday’s and today’s tin could be next week’s gold!
Ask yourself, do you know why you own it? What are the catalysts? What's the pipeline look like? Do you understand the CEO's vision and how many different “fallbacks” it has; so if one goes wrong it's not the end of the world?
Dow futures are -0.99% (-250 points), S&P futures are DOWN -1.04% (-29 points) and NASDAQ futures are also DOWN -1.25% (- 91 points)
Futures on the Dow, S&P and NASDAQ indicated a lower open;
- On Thursday evening, Trump announced the U.S. would impose a 5% tariff on all Mexican imports from June 10 until illegal immigration across the southern border was stopped.
European markets fall sharply after Trump stokes recession fears; Stoxx 600 hits 3-month low of -1.3% since February 19th;
Asia Pacific markets were mixed as China’s manufacturing data fell below analysts’ expectations;
Data docket: None
U.S. stock index futures were sharply lower Friday morning, as investors feared President Donald Trump’s threat of tariffs on all Mexico imports exacerbated the risk of recession.
I watching, waiting and keeping my fingers away from aany buy or sell buttons!
From Thursday’s closing bell post, “: the sector crashed and burned. What is “fair value” in these times? The question begets an answer; it’s not about buying into risks; the peril of share pricing is just about trepidation.”
- Thursday closed NEGATIVE with 23 decliners, 16 advancers, 4 flats and 2 acquired (AST & OSIR);
- The range of the 16 upside was +0.21% (NTLA) to +103.36% (ONVO +$0.40) while the 23 downside ranged from -0.09% (PSTI) to -10.14% (ADRO);
- 6 out of the 16 upside had higher than the 3 month average volume;
- 3 out of the 23 downside had higher than the 3 month average volume;
- 4 flats – AGTC, BSTG, HSGX and XON with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed
Q2/19 so far:
- In May, there were 13 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 up +$0.43 to $83.38, Wednesday’s $82.95, Tuesday’s $84.50, Monday’s market close and last Friday’s +$2.10 to $89.03. 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 down -$0.27 to $36.59 after Wednesday’s +$0.14 to $36.86, Tuesday’s -$0.28 to $36.72, Monday’s holiday and last Friday’s $37.00 as May 1st opened at $38.82 – TRADE;
Editas Medicine (EDIT) closed up +$0.08 top $21.23 after Wednesday’s -$0.28 to $21.15, Tuesday’s -$0.29 to $21.43, Monday’s holiday and last Friday’s $21.71– TRADE;
Intellia Therapeutics (NTLA) closed up +$0.03 to $14.50 after Wednesday’s -$0.29 to $14.47, Tuesday’s -$0.09 to $14.76, Monday’s market holiday and last Friday’s $14.85, - TRADE;
ReNeuron (RENE.L) closed down -$5.00 after Wednesday’s -$15.00 to $300.00, 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 up side of +$1.30 – SELL to 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.