May 15, 2020 8:03am

The risk/reward of the few, the buy possible and the temporary depend on cash positions, revenues, runways beyond 2021/2022, stable management team and last – platforms!

Pre-open indications:  4 BUYs and 3 SELLs

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 DOWN -0.93% (-219 points), S&P futures are DOWN -0.87% (-27 points) and NASDAQ futures are DOWN -1.15% (-105 points)

 

U.S. stock futures were lower as investors awaited a key reading on the retail sector and the newest of Chinese tensions;

European markets advanced as investors pinned their hopes on economic reopening efforts and a host of Q1 data as the pan-European Stoxx 600 climbed by +1.3%;

Asia Pacific stocks were mixed as China’s industrial output rose +3.9% year on year in April, according to data released by the country’s National Bureau of Statistics, its first expansion of the year so far. Japan, South Korea and Australia added value as the MSCI Asia ex-Japan index gained +0.19%

 

Data docket: Monthly retail sales data due out at 8:30 a.m.

  • Expected to show a record drop as American consumers largely sheltered in place amid the coronavirus outbreak. April retail sales are expected to plunge 12.3%, which would be the largest decline since the data series began in 1992;
  • Economists expect the report to show extreme weakness in apparel sales, and gasoline and auto sales;
  • Spending on food and beverage retailers and online purchases likely rose;
  • In the euro zone, GDP (gross domestic product) growth estimates for the first quarter are expected at 10 a.m. London time, along with trade balance and employment numbers.

 

Henry’omics:

Despite yesterday’s gains, markets were headed for its biggest weekly decline since late March. The Dow and S&P 500 both ended Thursday’s session down more than 2% for the week. The Nasdaq had lost nearly 2% week to date.

Indexes had rallied early in the a.m., then dropped in anticipation of lousy economic data from the retail sector but, I’ll bet alcohol sales were outstanding in the past month. I bought extra to match the stuffed olives …

 

Thursday night’s title:” today’s roller coaster ride, index reversal will turn into BUYING opportunities for our universe.”

  • The NASDAQ closed UP +80.55 points (+0.91 %);
  • The IBB closed down -0.45% and XBI also closed down -0.92%;
  • The CBOE Volatility Index (VVIX: INDEX) was down -7.96% as sector volume was low with 3 out of the 8-upside had higher than the 3-month average volume and 4 out of the 24-downside had higher than the 3-month average volume;
  • Thursday closed negative at 8/24 and 3 flats with the 8-upside ranging +0.55% (MDXG) to +27.08% (CLLS) while the 24-downside ranged from -0.16% (STML) to -21.3% (CLBS);       

Q2:

  • May registered 5 negative, 5 positive closes – so far
  • 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 Sell:

Maintaining BUY:

  • BioLife Solutions (BLFS) closed down -$0.33 after Wednesday’s -0.33 after Tuesday’s +$0.34 and has a positive +$0.38 or +2.61% aftermarket indication reporting earnings with solid revenue and a $20 M investment by Casdin Capital;

Sell:

  • Cellectis SA (CLLS) closed up +$3.71 after Wednesday’s -$1.29 and has a negative -$0.03 or -0.10% aftermarket indication – an Icarus candidate;

 

  • Mesoblast (MESO) closed up +$0.15 after Wednesday’s +$0.76 and has a negative -$0.20 or -1.63% aftermarket indication;

New BUY:

  • Fate Therapeutics (FATE) closed down -$0.82 after Wednesday’s -$1.31 and Tuesday’s +$1.38 and “had” a positive +$0.39 or +1.47% aftermarket indication;
  • Intellia Therapeutics (NTLA) closed up +$0.60 and has a positive +$0.15 or +0.92% pre-market indication;
  • Sage Therapeutics (SAGE) closed down -$1.45 and has a positive +$0.54 or +0.32% pre-market indication;

Maintaining Sell into Strength:

  • Athersys (ATHX) closed down -$0.11 after Wednesday’s +$0.045 after Tuesday’s down -$0.21,Monday’s +$0.43 and last 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 negative -$0.02 or +0.67% aftermarket indication;

 

The BOTTOM LINE:  As I had stated last night, “MY goal is to make investors more knowledgeable about the possible trajectory of share pricing; take it or ignore it – I’m right a lot more than I’m wrong!”

Repeating myself, “As I have stated multiple times, get beyond Q1, prepare for a cataclysmic Q2 and create catalysts to move the sector!”

Today could be a good time to play “pick-up-stocks” a few lower risk/possible reward equities rather than sticks – but and a big BUT, consider the “built-in” issues of March, April and May of many companies being sequestered these months.

The newsletters sub-title says it all … repeating, the risk/reward of the few and the buy possible depend on cash positions, revenues, runways beyond 2021/2022 and a stable management team.

 

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.