April 30, 2020 8:45am

“Single squares must be hopped on one foot, except for the first single square, where either foot may be used” – sounds like the RegMed/cell and gene therapy sector’s moves

Pre-open indications: 4 BUYs and 3 SELLs

News: Pluristem (PSTI) has a positive +$1.05 or +11.233% aftermarket indication on news of the European Investment Bank (EIB) backs PSTI with €50 million of financing, to advance the clinical development of its cell therapies and address a number of severe medical conditions

What I provide is an “intelligence daily” to inform the RegMed/cell and gene therapy sector and its investors utilizing my focus on indication analysis. An indication can be a development of almost any kind. Check the BOTTOM LINE <read more>

 

Dow future are DOWN -0.57% (-141 points), S&P futures are DOWN -0.46% (-14 points) and NASDAQ futures are UP +0.16% (+14 points)

 

U.S. stock indexes pointed to lower open on Thursday … as jobless claims top 30 million over last six (6) weeks

European markets traded slightly lower as investors reacted to news of a potentially effective coronavirus treatment while monitoring corporate earnings and economic data. The pan-European Stoxx 600 slid -0.2%;

Asia Pacific markets rose following positive developments overnight on a potential new treatment for Covid-19; Mainland Chinese stocks, Japan, Australia were all up as markets in Hong Kong and South Korea were closed on Thursday for a holiday. The MSCI Asia ex-Japan index rose 1.4%.

 

Data docket: The U.S. Labor Department is scheduled to release weekly jobless claims figures. EU markets are also awaiting the latest monetary policy decision from the European Central Bank, due at 12:45 p.m. London time.

 

Henry’omics:

 

Jobless claims for the week ended April 25 came in at the lowest level in a month but bring the rolling six-week total to 30.3 million as part of the worst employment crisis in U.S. history. Claims hit a record 6.87 million for the week of March 28 and have declined each week since then.

U.S. traders will trip-over the Labor Department’s latest report on jobless claims. 

 

Wednesday night’s title: “markets moved as a treatment option, remdesivir helped patient recover more quickly while signaling that by May 15 through June 1 the majority of the economy will possibly reopen.”

  • The NASDAQ closed UP +305.98 points (+3.57%);
  • The IBB closed up +0.79% and XBI also closed up +0.56%;
  • The CBOE Volatility Index (VVIX: INDEX) was down -6.79%;
  • Wednesday closed positive at 22/13;
  • The % of the 22-upside were +0.22% (GBT) to +11.45% (AXGN) while the 13-downside ranged from -0.09% (RARE) to -13.67% (PSTI);
  • 7 out of the 22-upside had higher than the 3-month average volume;
  • 3 out of the 13-downside had higher than the 3-month average volume;

Q2:

  • April registered 9 negative, 11 positive closes and 1 holiday.

Q1:

  • March registered 11 negative, 10 positive closes and 1 neutral close.
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

 

Companies in my headlights – It’s your decision; I provide an idea and context:

BUY:

  • bluebird bio (BLUE) closed down -$0.84 after Tuesday’s -$4.19 after Monday’s up +$2.94 and has a positive +$1.20 or +2.12% aftermarket indication;
  • CRISPR Therapeutics (CRSP) closed down -$0.52 after Tuesday’s -$2.48 and Monday’s +$0.39 and had a positive +$0.10 or +0.12% aftermarket indication after earnings;
  • Pluristem (PSTI) closed down -$1.48 and has a positive +$1.05 or +11.233% aftermarket indication on news of the European Investment Bank (EIB) backs Pluristem with €50 million of financing, which will help the company to advance the clinical development of its cell therapies and address a number of severe medical conditions and COVID-19 treatment;
  • ReNeuron (RENE.L) closed down on Wednesday and Tuesday -$5.00 after 4 positive session closes and has a US pre-market pricing of -$4.00;

SELL:

  • Adverum Biotechnologies (ADVM) closed up +$0.91 and had a jagged path from 4/1’s share pricing of $8.74 and a 52-week change of +87.65% - there’s room to sell; as volume has strength;
  • Alnylam Pharmaceuticals (ALNY) closed down -$1.69 after Tuesday’s -$5.20 and has a negative -$2.47 or -1.82% aftermarket indications;
  • Mesoblast (MESO) closed up +$0.91 after Tuesday’s -$1.52 and Monday’s $3.86 with a negative -$0.20 or -1.87% aftermarket indication;

 

The BOTTOM LINE: Take NOTHING for granted as share pricing is DISCONNECTED from fundamentals and based on speculation!

Sector and market stocks experienced upside movement as the Fed initiated economic offsets from this pandemic; however, do we fully comprehend the potential consequences of relaxing lockdowns and resumption of many normal activities.

As we enter the realm of Q1 earnings, LPS <loss-per-share> share pricing has YET to experience the upcoming (I perceive) the further dislocating trend of Q2!  Some say, we are looking at a “Black Hole” which can’t be seen through!

Think the worst and welcome the positive as it unfolds but, grounding is a necessity! This is where we think about the 5 P’s (prior planning <i.e. reading RMi> prevents poor performance).

 

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.