Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: the ceiling hasn’t fallen yet, the leaks are increasing

October 23, 2019 5:44pm

The open was negative with an Advance/Decline (A/D) line of 14/28, followed by a positive mid-day of 28/13 which then closed negative with an A/D line of 16/26

Quarterly earnings release: BioMarin Pharmaceuticals (BMRN closed up +$1.28), a GAAP net loss of -$55 M with a -$0.31 per share loss

It's a daunting task to define risk parameters, seeing the unforeseen; on the basis of my own “rules”, I set-up my own “warning analysis” which isn’t machine oriented!

The sector is what it is, until it isn’t and even then it doesn’t seem to be…

The Dow closed UP +45.85 points (+0.17%), the S&P closed UP +8.53 points (+0.19%) and the NASDAQ closed UP +15.50 points +0.19%)

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

Wednesday the IBB closed up +0.34% while the XBI closed down -0.31%
Tuesday the IBB closed up +1.72% while the XBI closed up +0.65%
Monday the IBB closed up +1.31% while the XBI closed up +1.44%

The advance/decline line scenario of 45 covered companies:

Wednesday the close was negative with an A/D line of 16/26, 0 flats, 1 reversed merged (HSGX) and 2 acquired;
Tuesday the close was negative with an A/D line of 16/23, 3 flats, 1 reversed merged (HSGX) and 2 acquired;
Monday the close was positive with an A/D line of 28/13, 1 flats, 1 reversed merged (HSGX) and 2 acquired;

Henry’omics:

Short and unsweetened ...

Weakness becomes evident as the cell and gene therapy’s sentiment is just emotionally oriented to individual equities.

Wednesday’s nudged the S&P 500 closer to a record set in July. The index is less than 1% from that level.

Notice the IBB jumped (weighted with larger biotech) while the XBI’s small caps are still collapsing.

Decliners:

bluebird bio (BLUE -$1.57 after Tuesday’s -$3.76 and Monday’s +$1.95);
Global Blood Therapeutics (GBT -$1.21);
uniQure (QURE -$0.85);
Solid Biosciences (SLDB -$0.59 after Tuesday’s +$0.75);
Homology Medicine (FIXX -$0.55);

Incliners:

ReNeuron (RENE.L +$10.50);
Sage Therapeutics (SAGE +$2.58 after Tuesday’s -$1.22);
BioMarin Pharmaceuticals (+$1.28 after Tuesday’s -$0.99);
Spark Therapeutics (ONCE +$0.84);
Alnylam Pharmaceuticals (ALNY +$0.60 after Tuesday’s +$2.40, Monday’s +$1.98 and last Friday’s +$2.90);

The percentage (%) indicators:

Wednesday’s range of the 16 upside was +0.33% (AGTC) to +19.47% (VSTM) while the 26 downside ranged from -0.13% (RGNX) to -5.79% (KOOL);

Tuesday’s range of the 16 upside was +0.29% (CLLS) to +6.17% (SLDB) while the 23 downside ranged from -0.08% (MDXG) to -5.97% (AXGN);

Monday’s range of the 28 upside was +0.70% (SAGE) to +7.22% (PSTI +$0.22) while the 13 downside ranged from -0.14% (ONVO) to -7.80% (RENE.L);

Friday’s range of the 7 upside was +0.11% (STML) to +8.46% (RENE.L) while the 33 downside ranged from -0.19% (MDXG) to -1.05% (XON);

Upside volume stats: to compare

Wednesday: 3 out of the 16 upside had higher than the 3 month average volume;
Tuesday: 2 out of the 16 upside had higher than the 3 month average volume;
Monday: 5 out of the 28 upside had higher than the 3 month average volume;

Downside volume stats:

Wednesday: 2 out of the 26 downside had higher than the 3 month average volume;
Tuesday: 8 out of the 23 downside had higher than the 3 month average volume;
Monday: 3 out of the 13 downside had higher than the 3 month average volume;

0 flat – with 1 reverse merged (HSGX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche is still being delayed (December?)

October’s sessions:

Wednesday closed NEGATIVE with 26 decliners, 16 advancers, 0 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 23 decliners, 16 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 13 decliners, 28 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 33 decliners, 7 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 17 decliners, 25 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 19 decliners, 23 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 9 decliners, 32 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 29 decliners, 12 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 13 decliners, 29 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 17 decliners, 23 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 27 decliners, 12 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 38 decliners, 4 advancers, 1 flat and 1 reverse merged (HSGX), 2 acquired (AST & OSIR);

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

Friday closed POSITIVE with 17 decliners, 24 advancers, 2 flats and 2 acquired (AST & OSIR);

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

Wednesday closed NEGATIVE with 22 decliners, 18 advancers, 3 flats and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 36 decliners, 5 advancers, 2 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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

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

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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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.