May 13, 2020 7:49am

Highs are like batteries, the charge only last so long!

Pre-open indications:  2 BUYs and 9 SELLs

Quarterly results: Applied Genetic Technologies (AGTC)

News: Mesoblast Limited (MESO) has successfully completed a capital raising of US$90 million¹ (A$138 million) via a private placement of 43 million shares to existing and new institutional investors at a price of A$3.20 per share to scale-up manufacturing of Remestemcel-L for COVID-19

What I provide is an “intelligence daily” to inform the RegMed/cell and gene therapy sector and its investors utilizing indication and warning analysis. Check the BOTTOM LINE <read more>

Dow future are UP +0.53% (+126 points), S&P futures are UP +0.48% (+14 points) and NASDAQ futures are UP +0.65% (+59 points)

 

U.S. stock futures were higher on Wednesday, pointing to a rebound from a sharp sell-off in Tuesday’s session;

European stocks fell as concerns over a second wave of coronavirus infections, and the timing of a vaccine, weighed on sentiment as the pan-European Stoxx 600 dropped 1.6% in early trade;

Asia Pacific stocks were little changed as caution remained over a recent resurgence in coronavirus cases in certain countries regionally as they start to reopen their economies as the MSCI Asia ex-Japan index rose 0.34%.

 

Daily Docket: Traders will be looking for clarity on future Fed actions when Fed Chairman Powell speaks on current economic issues at 9:00 a.m. ET. The Labor Department will also release its producer price index for the month of April.

  • U.S. mortgage applications from buyers jump 11%, signaling the spring housing market may not be a total loss;
  • U.K. GDP (gross domestic product) contracted by 5.8% month-on-month in March, according to preliminary figures released Wednesday, the sharpest monthly decline on record.

 

Henry’omics:

Tech earnings i.e. revenues seem to driving markets while there is a question of rebounds in the re-opening. One of the main catalysts will be if the economy can open up without an increase in COVID-19 cases.

Dr. Anthony Fauci said Tuesday that a vaccine will be essential in stopping the coronavirus spread, but warned it will be a while before a usable one is available. Fauci added the U.S. could face more “suffering and death” if states start to reopen too quickly. <CNBC>

The Nasdaq (-2.06% having held its positive year-to-date gain of 0.3%) snapped its six (6th) session winning streak on Tuesday, as investors cooled off.

 

Tuesday night’s title: “Staring at the abyss after viewing the sector’s rise; sometimes it’s up, and sometimes it’s down as indexes erase gains like gravity causes “things” to fall.”

  • The NASDAQ closed DOWN -189.79 points (-2.06%);
  • The IBB closed down -2.13% and XBI also closed down -2.16%;
  • Tuesday closed negative at 11/21 and 3 flats with the % of the 11-upside were +0.41% (STML) to +8.78% (CLBS) while the 21-downside ranged from -0.42% (MDXG) to -13.46% (BLCM); 
  • The CBOE Volatility Index (VVIX: INDEX) was up +19.84% while 8 out of the 11-upside had higher than the 3-month average volume and 9 out of the 21-downside had higher than the 3-month average volume;

Q2:

  • May registered 3 negative, 5 positive closes
  • 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:

Sell:

  • bluebird bio (BLUE) closed down -$3.37 and has a negative -$0.11 or -0.19 aftermarket indication;
  • CRISPR Therapeutics (CRSP) closed down -$1.74 and has a negative -$1.05 or -1.76% aftermarket indication;
  • Global Blood Therapeutics (GBT) closed down -$3.14 and has a negative -$1.91 or -2.58% aftermarket indication;
  • uniQure NV (QURE) closed up +$0.86 and has a negative -$0.55 or -0.90% aftermarket indication;
  • Fate Therapeutics (FATE) closed up +$1.38 and has a negative -$0.72 or -2.38% aftermarket indication;
  • Vericel (VCEL) closed down -$0.47 and has a negative -$0.35 or -2.28% aftermarket indication;
  • Sangamo Therapeutics (SGMO) closed up +$0.73 after Monday’s +$0.36 and an earnings results and has a negative -$0.07 or -0.72% aftermarket indication;
  • ReNeuron (RENE.L) closed down -$7.00 after Friday’s +$20.00 after Thursday’s +$25.00 with a negative -$10.10 US pre-indication;

BUY:

  • BioLife Solutions (BLFS) closed up +$0.34 and has a positive +$0.12 or +0.79% aftermarket indication as revenue has been declared in a pre-emptive release of May 14’s Q1 earnings release;
  • Editas medicine (EDIT) closed down -$1.95 and has a positive 0.27 or +1.08% aftermarket indication;

Maintaining Sell into Strength:

  • Athersys (ATHX) closed down -$0.21 after Monday’s +$0.43 after Friday’s +$0.21 with a lot of volume to sell into as trials will take time plus a negative as far as taking PPP funds from government will simultaneously raising $57.6 M. ATHX has a positive +$0.02 or +0.65% pre-market indication;

 

The BOTTOM LINE: Smart investors have become non-trusting of the market’s upside distance runs which encourages my contrarian point of view.

Notwithstanding the strength of any rally, MY reads of sentiment gauges suggest that trading is more merciless, not believing in the sustainability of the newest highs.  

Regarding our universe of RegMed/cell and gene therapy company, I believe sentiment is submissive to market (momentum) forces; I also believe that electronic trading is a dangerous influence in most downturns.

… Sector’s insecurities are about to be expressed again.

 

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.