Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: another flutter of negative sentiment

June 25, 2019 8:24pm

As weakness shoves many out of the sector, markets and ETFs

Financing news: Global Blood Therapeutics (GBT -$0.86 to $62.43 with a negative -$1.54 aftermarket indication) proposed a $200 M offering with an overallotment up to approximately $30 M in shares of its common stock. Cantor Fitzgerald & Co. is acting as the sole book-running manager.

Pre-open indications: 1 HIT and 1 MISS

Falling liquidity has hit companies of all sizes within the sector with small-cap stocks impacted hardest.

Insight about share pricing is about understanding perception …

Markets and indexes:

The Dow closed down -179.32 points or -0.67% to 26,548
The S&P closed down -27.97 points or -0.95% at 2,917.38
The NASDAQ was down -120.98 points or -01.51% to 7,884.72

Henry’omics:

The sector took a hit as it barely closed negative with an Advance/Decline (A/D) line of 20/21 after a positive and a mid-day swing after Monday’s decline (an A/D line of 17/35)

Indexes suffered sharp declines after comments from top Fed officials cooled investor optimism around a potential rate cut next month.

Investors are also … nervous awaiting a meeting between President Donald Trump and Chinese President Xi Jinping later this week. The meeting between Trump and Xi will be the first face-to-face meeting for the leaders since trade talks broke down in May, leading to a hike in U.S. tariffs on imports of Chinese goods.

Investors, traders and institutions are nervous about the potential revelations from Washington and the socialist leanings of many democrats – where is the balance?

On the economic front, new home sales and consumer confidence numbers both came in well below economist expectations, according to separate reports from the U.S. Commerce Department and the Conference Board <Reuters>.

Tuesday’s advance/decline line scenario of 45 covered companies:

The open was positive with an A/DL of 28/15 with 0 flat and 2 acquired;
The mid-day was positive with an A/DL of 21/20 with 2 flats and 2 acquired;
The close was negative with an A/DL of 20/21 and 2 flats and 2 acquired;

Pre-open post: “a ticket to ride and brakes needed after the downhill slide … Will news of Abbvie buying Allergan enhance its earnings and cost reductions, keep the multiple sustainable and spur other acquisitions? Pre-open indications: indeterminate – oversold directions are colorless but, 2 SELLs.”

Pre-open indications: 1 HIT and 1 MISS

ReNeuron (RENE.L) closed flat -$205.00 with 53.3 k shares trade – hit;

Vericel (VCEL) closed up +$0.15 – miss;

Worst-performers (bottom 5) were:

Tuesday: BMRN (-$2.08), BLFS (-$1.16), ONCE (-$1.12), GBT (-$0.86) and RARE (-$0.72);
Monday: QURE (-$7.58), SAGE (-$5.82), ONCE (-$3.16), RGNX (-$3.06) and BOLD (-$3.02);

Posting gains (top 5) were:

Tuesday: BLUE (+$1.93), SAGE (+$1.37), EDIT (+$1.04), FATE (+$0.68) and NTLA (+$0.67);
Monday: MESO (+$0.34), GBT (+$0.29), KOOL (+$0.04), CLBS (+$0.03) and ONVO (+$0.01);

Upside volume stats: to compare

Tuesday: 3 out of the 20 upside had higher than the 3 month average volume;
Monday: 2 out of the 7 upside had higher than the 3 month average volume;

Downside volume stats:

Tuesday: 7 out of the 21 downside had higher than the 3 month average volume
Monday: 8 out of the 35 downside had higher than the 3 month average volume

The week’s percentage (%) indicators:

Tuesday’s range of the 20 upside was +0.05% (BOLD) to +11.78% (MESO) while the 21` downside ranged from -0.15% (AXGN) to -9.63% (CUR -$0.03);
Monday’s range of the 7 upside was +0.46% (GBT) to +7.28% (MESO) while the 35 downside ranged from -0.49% (RENE.L) to -11.71% (CUR -$0.04);

2 flat – BSTG and RENE.L with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

The iShares NASDAQ Biotechnology (IBB) indicator:

Tuesday closed down -0.21%
Monday closed down -2.13%

June’s sessions:

Tuesday closed NEGATIVE with 21 decliners, 20 advancers, 2 flats and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 35 decliners, 7 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 19 decliners, 22 advancers, 2 flats and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 29 decliners, 14 advancers, 0 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 26 decliners, 15 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 33 decliners, 9 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 30 decliners, 11 advancers, 2 flat and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 17 decliners, 26 advancers, 0 flats and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 32 decliners, 7 advancers, 4 flats and 2 acquired (AST & OSIR);

Monday closed NEUTRAL with 21 decliners, 21 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 10 decliners, 31 advancers, 2 flats and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 37 decliners, 5 advancers, 1 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 24 decliners, 17 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 17 decliners, 25 advancers, 1 flat and 2 acquired (AST & OSIR);

Q2/19 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;

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

What's Happening Today

10 hours 5 min ago
RegMed Investors’ (RMi) pre-open: head and knee down

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.