February 5, 2020 7:44pm
Pre-open indications: I’m skimming for profit, never assume anything on pricing and markets < (GBT +$0.90), ALNY (+$1.63), RARE (+$1.01), RGNX (+$0.62)and BLUE (+$2.22) – made $
News: Applied Genetic Technologies Corporation (AGTC) has commenced a public offering of 6 M shares with a 30-day option to purchase up to an additional 900 K shares overallotment. Aftermarket effect -$0.68 or -9.7% from closing bell of $7.01. Bellicum Pharmaceuticals (BLCM) effected a reverse stock split of its issued and outstanding common stock, at a ratio of 1-for-10.
It's a daunting task to understand risk, seeing the unforeseen; on the basis of my own “rules”, I set-up my own “warning analysis” which isn’t machine oriented!
The Dow closed UP +483.22 points (+1.68%), the S&P closed UP +37.10 points (+1.13%) and the NASDAQ closed UP +40.71 points (+0.43%)
Indexes rose for a third (3rd) straight day on Wednesday, pushing the S&P 500 back to levels hit prior to the coronavirus scare.
It also erased its losses stemming from fears over the coronavirus and came within a whisker of hitting an all-time intraday high.
News: Applied Genetic Technologies Corporation (AGTC), a biotechnology company conducting human clinical trials of adeno-associated virus (AAV)-based gene therapies for the treatment of rare diseases, today announced that it has commenced an underwritten public offering of 6,000,000 shares of its common stock. All the shares in the offering will be sold by AGTC. In addition, AGTC expects to grant the underwriters a 30-day option to purchase up to an additional 900,000 shares of its common stock sold in the public offering. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.
Wells Fargo Securities, LLC and Wedbush Securities Inc. are acting as joint book-running managers for the offering. H.C. Wainwright & Co., LLC is acting as lead manager for the offering. Janney Montgomery Scott LLC and Roth Capital Partners are acting as co-managers for the offering.
Another level of news, Bellicum Pharmaceuticals (BLCM) effected a reverse stock split of its issued and outstanding common stock, at a ratio of 1-for-10. The effective time of the reverse stock split will be 5 p.m. ET on February 5, 2020. The Company’s common stock will begin trading on a split-adjusted basis commencing upon market open on February 6, 2020.
In today’s market environment, a short-term orientation is often appropriate!
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday the IBB closed up +3.01% and XBI closed up +2.33%
- Tuesday the IBB closed up +2.36% and XBI closed up +2.85%
- Monday the IBB closed up+1.77% and XBI closed up +2.24%
The advance/decline line scenario of 35 covered companies:
- Wednesday the close was positive with an A/D line of 27/5, 3 flats of 35 covered,
- Tuesday the close was positive with an A/D line of 30/5, 0 flat of 35 covered,
- Monday the close was positive with an A/D line of 24/8, 3 flats of 35 covered,
- Fate Therapeutics (FATE -$0.47 after Tuesday’s -$0.07 and Monday’s +$1.76);
- Bellicum Pharmaceuticals (BLCM -$0.47);
- Intrexon (XON -$0.20 after Tuesday’s -$0.20 and Monday’s -0.20);
- Pluristem (PSTI -$0.09);
- Ionis Pharmaceuticals (IONS -$0.01);
- uniQure NV (QURE +$2.30);
- bluebird bio (BLUE +$2.22);
- Alnylam Pharmaceuticals (ALNY +$1.63 after Tuesday’s +$5.30 and Monday’s -$0.13);
- Sage Therapeutics (SAGE +$1.62 after Tuesday’s -$0.12);
- ReNeuron (RENE.L +$1.50 after Tuesday’s +$5.00, Monday’s -$7.50 and Friday’s -$8.50);
The percentage (%) indicators:
- Wednesday’s range of the 27 upside was +0.56% (BLFS) to +22.77% (ADRO) while the 5 downside ranged from -0.02% (IONS) to -17.81% (BLCM);
- Tuesday’s range of the 30 upside was +0.51% (PSTI) to +20.43% (ADRO) while the 5 downside ranged from -0.18% (SAGE) to -6.78% (CLBS);
- Monday’s range of the 24 upside was +0.21% (IONS) to +11.48% (BLCM) while the 8 downside ranged from -0.13% (ALNY) to -5.17% (RENE.L);
Upside volume stats: to compare
- Wednesday: 4 out of the 27 upside had higher than the 3-month average volume;
- Tuesday: 7 out of the 30 upside had higher than the 3-month average volume;
- Monday: 4 out of the 24 upside had higher than the 3-month average volume;
Downside volume stats:
- Wednesday: 1 out of the 5 downside had higher than the 3-month average volume;
- Tuesday: 1 out of the 5 downside had higher than the 3-month average volume;
- Monday: 1 out of the 8 downside had higher than the 3-month average volume;
3 flats – ATHX, BCLI and VSTM
Tuesday closed positive with 5 decliners, 27 advancers and 3 flats
Tuesday closed positive with 5 decliners, 30 advancers and 0 flats
Monday (2/3) closed positive with 8 decliners, 24 advancers and 3 flats
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.