May 1, 2020 8:04am

Pre-open indications: 6 BUYs and 2 SELLs

News: Athersys (ATHX) and University Hospitals Cleveland Medical Center (UH C) announced today that UH C is now open as the first clinical site for the MACOVIA (MultiStem® Administration for COVID-19 Induced Acute Respiratory Distress Syndrome) trial. ATHX has a positive +$0.15 or +6.53% pre-market indication.

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. Check the BOTTOM LINE <read more>

Dow future are DOWN -1.87% (-457 points), S&P futures are DOWN -2.02% (-59 points) and NASDAQ futures are DOWN -2.42% (-218 points)

 

Stock futures fell sharply as investors pored through tech earnings after wrapping up its best month in decades; however, the RegMed/cell and gene therapy sector hopscotched through the month to enter the ring of more quarterly earnings releases next week.

U.K. stocks fell as market sentiment was rattled by a new threat from U.S. President Trump to impose retaliatory tariffs on China over the coronavirus pandemic.

  • Markets in Germany, France, Italy and other major European economies are closed for Labor Day after European stocks finished out their strongest month since October 2015 on Thursday.

Asia Pacific markets ere mostly closed as stocks in Japan and Australia slipped with most major markets in Asia closed for holidays; including China, Hong Kong, South Korea, India and Singapore, were closed on Friday for holidays while Stocks in Japan and Australia slipped.

 

Data docket: the final U.K. Markit manufacturing PMI (purchasing managers’ index) reading is due at 9:30 a.m. London time.

 

Henry’omics:

Stocks sank on Friday after US president Trump threatened to impose new tariffs on China over its handling of the coronavirus crisis.

Indexes are coming off their biggest monthly surge in over 30 years, with the S&P 500 gaining 12.7% while the Dow advanced 11.1%. It was the third-biggest monthly gain for the S&P 500 since World War II. The Nasdaq closed 15.5% higher for April, logging in its biggest one-month gain since June 2000.

RegMed/cell and gene therapy sector equity pricing have been screened and burned based by electronic trading causing weakness.

 

Thursday night’s title: “RegMed Investors’ (RMi) closing bell: dismal data diminishes dampened domestic debates. We already knew that jobless claim numbers and consumer spending would downgrade share pricing? Last day of April emboldens the newest iteration - “Sold by May and gone away” as April ends on a sour note.”

  • The NASDAQ closed DOWN -25.16 points (-0.28%);
  • The IBB closed down -1.43% and XBI also closed down -2.53%;
  • The CBOE Volatility Index (VVIX: INDEX) was up +7.65% versus …
  • 3 out of the 7-upside had higher than the 3-month average volume;
  • 1 out of the 27-downside had higher than the 3-month average volume;
  • Thursday closed negative at 7/27 and 1 flat;
  • The % of the 7-upside were +0.18% (BLFS) to +8.06% (BSTG) while the 27-downside ranged from -0.41% (VCEL) to -9.26% (ADVM); 

Q2:

  • Friday starts May 1
  • April registered 10 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:

Maintaining BUY:

  • bluebird bio (BLUE) closed down -$2.65 after Wednesday’s -$0.84, Tuesday’s -$4.19 and Monday’s up +$2.94 and has a positive +$0.72 or +1.34% aftermarket indication;
  • CRISPR Therapeutics (CRSP) closed down -$2.80 after Wednesday’s -$0.52, Tuesday’s -$2.48 and Monday’s +$0.39 and had a positive +$0.03 or +0.06% aftermarket indication after earnings;

BUY:

  • Intellia Therapeutics (NTLA) closed down -$0.86 but, has a positive +$0.53 or +3.93% aftermarket indication;
  • AxoGen (AXGN) closed down -$0.37 and has a positive 0.15 or +1.49% aftermarket indication;
  • Mesoblast (MESO) closed up +$0.16 and has a positive +$0.21 or +1.89% aftermarket indication;
  • Athersys, Inc. (NASDAQ: ATHX) and University Hospitals Cleveland Medical Center (UH Cleveland) announced today that UH Cleveland is now open as the first clinical site for the MACOVIA (MultiStem® Administration for COVID-19 Induced Acute Respiratory Distress Syndrome) trial. On April 13, 2020, Athersys announced authorization from the FDA to begin the MACOVIA study and began the process of clinical site initiation. UH Cleveland has completed trial start-up activities enabling commencement of patient screening and enrollment in this important randomized, double-blind, placebo-controlled study. ATHX has a positive +$0.1 or +6.53% pre-market indication.

 

Maintaining SELL:

  • Adverum Biotechnologies (ADVM) closed down -$1.21 after Wednesday’s up +$0.91 and had a and had a negative -$0.10 or -0.84% aftermarket indication with 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;

SELL:

  • ReNeuron (RENE.L) closed down on Thursday, Wednesday and Tuesday -$5.00 after 4 positive session closes and has a US pre-market pricing of -$9.00;

 

The BOTTOM LINE: New month however, earning results ramp-up during the week.

Many sector equities has been alternating in closes and  sprculative; most missing underlying fundamentals, leaving room for more short-term disappointments.

A return to normal is being bandied about; tell me again what is normal, the newest new, the new newest or the current newfangled?

Waiting for the next mania … frenzy or madness!

 

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.