June 21, 2019 8:09am
… A few to consider, advancing clinical milestones with multiple catalysts, a minimally crowded disease state, value paralleled to comparables; unfortunately low volume as slow and drifting fundamentals are inhibitors
The slippery slope, under the surface what should stand out – management team, board of directors, advisory boards and the real caveat – past spending patterns that match platform momentum?
Biggest issue: NO NEWS
Pre-open indications: 2 BUYs and 2 SELL
I focus on indication analysis; an indication can be a development of almost any kind. Specifically, it may be a confirmed fact, a possible fact, or an absence of “something”, a fragment of information or even an observation
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.
Dow futures are DOWN -0.16% (-44 points), S&P futures are DOWN -0.21% (-7 points) and NASDAQ futures are DOWN -0.36% (-29 point)
U.S. stock index futures traded slightly lower on Friday amid growing tensions with Iran;
European markets edge higher with the pan-European Stoxx 600 up around 0.1%;
Asia Pacific markets were mixed as tensions in the Middle East continue to feed the headlines
Data docket: June manufacturing and services PMI at 0945 ET, as well as existing home sales for May due at 10 ET.
The sector needs to climb out of the hole that trading has dug for it!
Market focus is feeling the pinged of simmering geopolitical tensions between the U.S. and Iran.
We don’t need a skirmish or a war or the plot from “wag the dog”; freeze Iran’s economy – even more to mitigate their issues of aggressiveness.
From Thursday night’s post, “the problem today was the sector folded with machines stuffing the tickets; even the oversold became further downtrodden as volume continued to be weak.”
- The NASDAQ was up +64.02 points or +0.80% to 8,051.34
- The close was negative with an A/DL of 14/29 and 0 flat and 2 acquired;
- Thursday’s range of the 14 upside was +0.23% (RARE) to +4.42% (QURE) while the 29 downside ranged from -0.20% (ONCE) to -16.32% (VSTM);
- 2 out of the 14 upside had higher than the 3 month average volume;
- 9 out of the 29 downside had higher than the 3 month average volume;
- The iShares NASDAQ Biotechnology (IBB) indicator: Thursday closed up +0.42% after Wednesday closed up +0.57%,Tuesday closed up +1.38%, Monday’s +2.96% and last Friday’s -0.93% - I’m feeling some gravity as a force.
Q2/19 so far:
- In June, there were 7 positive, 1 neutral and 7 negative close, so far;
- In May, there were 14 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:
ReNeuron (RENE.L) closed down again -$12.50 to $207.50 after Wednesday’s -$17.50 to $220.00, Tuesday’s -$5.00 to $237.50, Monday’s -$7.50 to $242.50 and last Friday’s +$20.00 to $250.00. RENE.L has been floating on the market’s lows with a U.S. downside -$3.28 time differential indication – Maintaining SELL;
Vericel (VCEL) closed up again +$0.43 to $17.87 after Wednesday’s +$0.63 to $17.44, Tuesday’s $16.81, Monday’s $16.51 and last Friday’s $16.04 following the previous Thursday’s $16.53. The chart looks likes its time skim the froth, statistically there is a 52 week change of +52.68% and the closer we get to the end of the month (June) as the summer solstice begins and end of the quarter (Q2)- Maintaining SELL;
Three CRISPR equities: Intellia Therapeutics (NTLA closed down -$0.08 after Wednesday’s -$0.23), Editas Medicine (EDIT closed down -$0.29 after Wednesday’s -$0.29) and CRISPR Therapeutics (CRSP closed down -$2.60 after Wednesday’s -$1.25); all have experienced the declines and could be ready for the bounce back. It’s not always about being oversold but, a reflex of the downtrodden to rise like the phoenix. Remember, in the market, sector or casino – we are all betters, draw a new card and bluff for the pot. Even after bouncing downward – Maintaining BUY;
Verastem (VSTM) closed down -$0.31 to $1.59 after Wednesday’s +$0.08 to $1.90 and has a positive +$0.10 or +6.29% aftermarket indication after cancer/gene therapy companies following the announcement of the Pfizer (PFE) – Array BioPharma (ARRY) deal; announced earlier this week, the deal has an enterprise value of approximately $11.4 billion. A new CEO will help but, should it come from the old “regime” – new blood is needed to re-focus as VSTM has been overwhelmed by selling and the pressure upon the share price – 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.