December 10, 2019 8:25am
Yet out-of-the-thin air acquisitions are marking-up speculation
News: Editas Medicine (EDIT) announced in vivo proof-of-concept data supporting the development of EDIT-301 as a potentially best-in-class, durable medicine to treat sickle cell disease and beta-thalassemia. Roche HOLDINGS AG (RHHBY) again extended its offer for shares of Spark Therapeutics (ONCE) to Dec. 16 as a regulatory review of the $4.3 billion transaction drags on.
Pre-open indications: BUY – BLUE and EDIT; SELL: FATE on strength
Skim if you can trim, buy if it will fly and sell if compelled!
The 6 W’s: Who, what, where, when, why and what of it … so who has done what?
Dow futures are +-0.39% (-108 points), S&P futures are DOWN -0.34% (-11 point) and NASDAQ futures are DOWN -0.44% (-37 points)
U.S. stock index futures are falling after a report (from the South China Morning Post) said China and the U.S. are unlikely to reach a trade deal this week;
European stocks traded lower with the pan-European Stoxx 600 dropping -1.2% by mid-morning; with Britain’s political parties drawing closer to Thursday’s election, which will be pivotal for Brexit and economic policy;
Asia Pacific markets were mixed as Chinese inflation data showed a surge in consumer prices in November while the MSCI Asia ex-Japan traded -0.17% lower.
Data Docket: the Fed kicks off its last two-day monetary policy meeting of the year and is expected to hold rates steady.
There could be a “wave: to be ridden” as acquisitions are the new momentum elixir as Pharma seeks to broaden their pipelines with ArQule (ARQL) added to the recent “buy-out” list by Merck (MRK) following Synthorx (THOR) being snatched by Sanofi (SNY) after XBiotech (XBIT) was sold to J&J (JNJ) following Audentes Therapeutics (BOLD) was bided to be acquired by Astellas Pharma (4503)
This week, there has been clinical date emanating from the 61st American Society of Hematology (ASH) Annual Meeting and Exposition in Orlando, Florida.
I am ambivalent today ... the sector should but, probably can't shake off global macro constraints ... however- fear of missing-out is a sector pricing component!
Monday night’s post’s title: “selling pressures”.
- The NASDAQ closed DOWN -34.70 points (-0.40%);
- The IBB closed down -0.62% while the XBI closed up +0.10%;
- The close was negative with an A/D line of 9/31, 1 flat, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
- 3 out of the 9 upside had higher than the 3 month average volume;
- 13 out of the 31 downside had higher than the 3 month average volume;
Review the content of Q4’s market:
- December register 3 negative and 3 positive closes … so far
- November registered 1 holiday, 12 positive and 8 negative close;
- October registered 10 positive, 1 neutral and 14 negative closes;
Companies in my headlights – It’s your decision; I provide an idea and context:
Pre-open indications:BUY – BLUE and EDIT; SELL: FATE on strength
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.