February 18, 2020 8:53am

Even though, Monday’s Presidents Day market markets were closed; today questions Chinese efforts to limit the fallout from coronavirus on the global economy

Q4 and FY18 earnings: Brain Cell Therapeutics (BCLI) and bluebird bio (BLUE)

News: Alnylam Pharmaceuticals (ALNY) has achieved full enrollment in its HELIOS-A P3 study of vutrisiran, an investigational RNAi therapeutic in development for the treatment of ATTR amyloidosis.

Pre-open indications: 6 BUYs and 4 SELLs

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

 

Dow future are DOWN -0.48% (-114) points), S&P futures are DOWN -0.35% (-12 points) and NASDAQ futures are DOWN -0.48% (-46 points)

 

U.S. stock index futures were lower Tuesday morning as the S&P and Nasdaq were down after closing at record highs late last week;

European stocks declined as Apple’s revenue guidance warning rocks electronics supplier shares and coronavirus fears with the pan-European Stoxx 600 fell -0.4% by mid-morning;

Asia Pacific markets mostly fell as the coronavirus outbreak causes big slowdowns as the MSCI’s index of shares outside Japan fell more than -1% in the afternoon.

 

Data Docket: Empire State manufacturing figures for February and the National Association of Home Builders (NAHB) survey for February will both be released during morning trade. Minneapolis Fed President Neel Kashkari is scheduled to deliver remarks on the world’s largest economy at an event in St. Paul, Minnesota.

 

Henry’omics:

We are entering the “hot zone’ of Q4 and FY19 LPS (loss-per-share) earnings calls.

The sector is near a point where there will be a reversal in growth stocks relative to being oversold.

Some of the oversold have a “BUY” tint to them -especially those with revenue.

The S&P 500 SPX, +0.18% has registered 12 record-high closes this year, climbed in 15 out of the last 19 weeks, and is up 23% from its 52-week low.

Don’t fall into the “trap” of over-weighting RegMed/cell and gene therapy equities until Q4 and FY19 results are matched to forecasts and estimates …! The LPS (loss-per-share) sirens are wailing.

 

Another reiteration, “The sector is what it is, until it isn’t and even then, it doesn’t seem to be … that is after taking a deep breath and holding it.”

The real question is whether investors should be fearful, especially in a market and sector that has so many readily visible hot spots seemingly about to burst into flames.

My next to last statement reflects the status of one company, “who is on first, what’s on second and when will investors hear the real and ... disolving ... story?”

As James Baldwin once put it, “the most dangerous creation of any society is the man who has nothing to lose.”

 

Monday, the markets were closed for a holiday while Friday night’s post’s title was: “bottom fishers are weighting diminished equities while sector slips.”

  • the NASDAQ closed UP +19.21 points (+0.20%);
  • the IBB closed up +0.43% and XBI closed up +0.18%;
  • the close was negative with an A/D line of 14/19, 2 flats of 35 covered;
  • the 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); 
  • 7 out of the 14-upside had higher than the 3-month average volume;
  • 3 out of the 19-downside had higher than the 3-month average volume;

 

Q1:

February registered 4 negative, 6 positive closes and 1 holiday – so far.

January registered 9 negative, 10 positive closes and 2 holidays.

Q4:

  • December register 11 negative and 10 positive closes
  • 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:  SELL – PSTI, MDXG, FATE and ADVM,

BUY – ALNY, BLUE, CRSP, GBT, NTLA and RGNX

 

 

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.