February 17, 2020 1:39pm
Friday's title: Bottom fishers are weighting diminished equities while sector slips
The week in review
Pre-open indications: 4 HITs <Brain Cell Therapeutics (BCLI +$0.24), BioLife Solutions (BLFS +$0.35), Regenxbio (RGNX -$0.40), ReNeuron (RENE.L -$2.50)> and 2 MISS <Ultragenyx Pharmaceutical Inc. (RARE -$1.77), Editas Medicine (EDIT -$0.02)>
I make a commitment to provide need-to-know “facts in evidence” as equity’s volatility is one tactical signal for stocks
The Dow closed DOWN -25.23 points (-0.09%), the S&P closed UP +6.22 points (+0.18%) and the NASDAQ closed UP +19.21 points (+0.20%)
Indexes were little changed on Friday, but notched a gain for the week; also, with a couple of sector earnings (RARE with a wider than expected Q4 loss as CRSP followed ALNY) and all were down in Friday’s sector exchange.
For the week, the S&P 500 rose +1.6% and the Dow 1% with the Nasdaq gaining 2.2%.
Flirting with a disaster, it’s the second day in a row that China has revised infection and death data changes fueling doubts many have about their accuracy.
From my a.m.’s Data Docket: core retail sales, which exclude autos, gas, building materials and food services, were unchanged last month; bottom line – consumers are spend less.
Today’s session: Pluristem (PSTI +$0.77) with 1.03 M shares traded as compared to the 3-month average of 128.7 K shares traded and Precigen (PGEN +$0.40) with 1.824 M shares traded as compared to the 3 month average of 1.81 M shares traded are the winningest equities of the session, how long will they last (?)
While, the gene editors get whacked (NTLA -$1.65, CRSP -$2.32 and EDIT -$0.02) as Sangamo Therapeutics (SGMO) closed flat at $7.57.
Adverum Biotechnologies (ADVM closed its offering of 10,925,000 shares priced at $13.75 per share, which included the full exercise of the underwriters’ option to purchase up to an additional 1,425,000 shares of common stock. The gross proceeds to Adverum before deducting underwriting discounts and commissions and offering expenses payable by Adverum were approximately $150.2 M.
Ask yourself, do you know why you own a certain equity?
What’s been communicated re a company’s status at any given time to shareholders - are you reading 8-Ks, waiting for the next quarterly reports or a once-upon-a-time press un-release!
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Friday the IBB closed up +0.43% and XBI closed up +0.18%
- Thursday the IBB closed down -0.99% and XBI closed down -1.09%
- Wednesday the IBB closed up +0.27% and XBI closed up +1.25%
- Tuesday the IBB closed down -0.06% and XBI closed down -0.11%
- Monday the IBB closed up +1.20% and XBI closed up +1.55%
The advance/decline line scenario of 35 covered companies:
- Friday the close was negative with an A/D line of 14/19, 2 flats of 35 covered;
- Thursday the close was negative with an A/D line of 13/20, 2 flats of 35 covered;
- Wednesday the close was positive with an A/D line of 26/8, 1 flat of 35 covered;
- Tuesday the close was positive with an A/D line of 22/12, 1 flat of 35 covered;
- Monday the close was positive with an A/D line of 26/6, 3 flats of 35 covered;
- ReNeuron (RENE.L -$2.50);
- CRISPR Therapeutics (CRSP -$2.32 after Thursday’s +$0.37);
- Ultragenyx (RARE -$2.32);
- Intellia Therapeutics (NTLA -$1.65);
- Alnylam Pharmaceuticals (ALNY -$1.40 after Thursday’s -$3.89, Wednesday’s +$4.45, Tuesday’s -$1.96 and Monday’s +$6.02);
- Global Blood Therapeutics (GBT -$0.98 after Thursday’s-$3.26, Wednesday’s +$1.53, Tuesday’s +$0.91 and Monday’s +$1.98);
- Pluristem (PSTI +$0.77)
- Fate Therapeutics (FATE +$0.76);
- AxoGen (AXGN +$0.56);
- Adverum Biotechnologies (ADVM +$0.52)
- Precigen (PGEN +$0.40) – spin-out of Intrexon (XON);
- Bellicum Pharmaceuticals (BLCM +$0.40) after reverse split;
The percentage (%) indicators:
- Friday’s range of the 14-upside was +0.06% (CLLS) to +19.79% (PSTI) while the 19-downside ranged from -0.05% (QURE) to -10.64% (NTLA);
- Thursday’s range of the 13-upside was +0.03% (RARE) to +14.41% (BCLI) while the 20-downside ranged from -0.07% (EDIT) to -5.84% (PGEN);
- Wednesday’s range of the 26-upside was +0.33% (IONS) to +5.34% (ADRO) while the 8-downside ranged from -0.48% (EDIT) to -5.77% (BSTG);
- Tuesday’s range of the 22-upside was +0.15% (STML) to +19.13% (ADVM) while the 12-downside ranged from -0.66% (BLUE) to -10.48% (BLCM after a reverse split);
- Monday’s range of the 26-upside was +0.25% (BCLI) to +17.68% (ADVM) while the 6-downside ranged from -0.74% (ATHX) to -4.74% (PSTI);
Upside volume stats: to compare
- Friday: 7 out of the 14-upside had higher than the 3-month average volume;
- Thursday: 5 out of the 13-upside had higher than the 3-month average volume;
- Wednesday: 5 out of the 26-upside had higher than the 3-month average volume;
- Tuesday: 6 out of the 22-upside had higher than the 3-month average volume;
- Monday: 6 out of the 26-upside had higher than the 3-month average volume;
Downside volume stats:
- Friday: 3 out of the 19-downside had higher than the 3-month average volume;
- Thursday: 0 out of the 20-downside had higher than the 3-month average volume;
- Wednesday: 0 out of the 8-downside had higher than the 3-month average volume;
- Tuesday: 1 out of the 12-downside had higher than the 3-month average volume;
- Monday: 1 out of the 6-downside had higher than the 3-month average volume;
2 flat – BSTG and SGMO
Friday closed negative with 19 decliners, 14 advancers and 2 flats
Thursday closed negative with 20 decliners, 13 advancers and 2 flats
Wednesday closed positive with 8 decliners, 26 advancers and 1 flat
Tuesday closed positive with 12 decliners, 22 advancers and 1 flat
Monday closed positive with 6 decliners, 26 advancers and 3 flats
Friday closed negative with 26 decliners, 9 advancers and 0 flat
Thursday closed negative with 23 decliners, 12 advancers and 0 flat
Wednesday 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.