July 8, 2019 6:43pm
Downside risk is playing early to the upcoming quarterly results and a set-up for the oversold to be “played” until Q2 reporting begins
News: BioLife Solutions (BLFS) will acquire the remaining 56% of the privately owned outstanding SAVSU Technologies’ shares
I know what a company is supposed to look like, be like and act like to succeed!
As the leading voice of cell and gene therapy investors; I am not always a doom and gloom analyst/journalist but a man who has been “there” (BUY, SELL, VC and operating roles) with the gray hair and a readership following with real numbers to prove it!
Markets and indexes:
- The Dow closed down -115.98 points or -0.43% to 26,805.14
- The S&P closed down -14.45 points or -0.48% at 2,975.95
- The NASDAQ was down -63.41 points or -0.78% to 8,098.38
The sector dived again after Friday’s decline on Monday as losses in Ultragenyx (RARE -$3.25) shares led “our” universe to the downside; with investors bracing for key testimony from the Fed later this week.
Strong U.S. jobs data on Friday has forced traders to temper hopes of a sharp rate cut at the central bank's July 30-31 policy meeting, even as a reduction is still expected.
Surprisingly, traders have priced in a 100% probability of a Fed rate cut in July; however, expectations for a more aggressive cut have been tempered by Friday’s jobs data.
It’s all about expectation and timing …
Sector “watchers” are focused on the start of the Q2 earnings season that will start August 7 with Athersys’ (ATHX) reporting.
I do BELIEVE there is room for ... UPSIDE for the oversold until we get closer to the LPS (loss-per-share) "sweepstakes" i.e earnings season.
Monday’s advance/decline line scenario of 45 covered companies:
- The open was negative with an A/DL of 15/26 with 2 flats and 2 acquired;
- The close was negative with an A/DL of 18/24 and 1 flat and 2 acquired
News of the day:
SAVSU Technologies, a 10-year-old firm is to be acquired by BioLife Solutions (BLFS) will acquire the remaining 56% of the privately owned outstanding SAVSU shares in exchange for 1.1 million shares of its common stock which is expected to close within 45 days. The move comes after BLFS upped its stake in SAVSU in September from 31 to 44% with a $5 million investment, to be used for scaling up operations and inventory.
The agreement included an 18-month purchase option giving BioLife the right to acquire the remaining SAVSU shares not already owned in exchange for 1 million shares of BLFS common stock or $23 million of the stock.
Leading incliners were
- ReNeuron (RENE.L +$10.00)
- Adverum (ADVM +$2.74) after Friday’s +$0.54;
- BioLife Solutions (BLFS +$2.50);
- Sage Therapeutics (SAGE (+$1.69) after Friday’s -$3.39;
- Homology Medicine (FIXX +$0.27)
While the downside stragglers –
- Ultragenyx (RARE -$3.15) after Friday’s -$3.09;
- Regenxbio (RGNX (-$2.34);
- Spark therapeutics (ONCE -$1.89) after Friday’s +$0.59;
- uniQure (QURE -$1.73) after Friday’s QURE +$0.27;
- BioMarin Pharmaceuticals (BMRN -$1.61) after Friday’s -$2.15;
Upside volume stats: to compare
- Monday: 8 out of the 18 upside had higher than the 3 month average volume;
- Friday: 8 out of the 19 upside had higher than the 3 month average volume;
Downside volume stats:
- Monday: 7 out of the 24 downside had higher than the 3 month average volume;
- Friday: 2 out of the 22 downside had higher than the 3 month average volume;
The percentage (%) indicators:
- Monday’s range of the 18 upside was +0.06% (BLUE) to +22.53% (ADVM) while the 24 downside ranged from -0.10% (AXGN) to -5.29% (RARE);
- Friday’s range of the 19 upside was +0.06% (BLFS +$0.01) to +13.17% (KJOOL +$0.39) while the 23 downside ranged from -0.62% (ALNY) to -6.65% (BOLD);
1 flat – ATHX with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed
The iShares NASDAQ Biotechnology (IBB) indicator:
- Monday: closed down -1.36%;
- Friday: closed down -1.54%;
July’s sessions and the beginning of Q3:
Monday closed NEGATIVE with 24 decliners, 18 advancers, 1 flat and 2 acquired (AST & OSIR);
Friday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);
Thursday was a holiday;
Wednesday closed POSITIVE with 10 decliners, 31 advancers, 2 flat and 2 acquired (AST & OSIR);
Tuesday closed NEGATIVE with 30 decliners, 11 advancers, 2 flat and 2 acquired (AST & OSIR);
Monday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);
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.