May 21, 2020 7:07pm
Investors should have retained RMi as a guide and directional compass; steep inclines are usually followed by swift pullbacks as investors struggle with economic headwinds
Pre-open indications: 7 HITs and 3 MISS <who>
News: Ultragenyx Pharmaceutical (RARE) and Arcturus Therapeutics Holdings (ARCT) <what>
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The Dow closed DOWN -101.78 points (-0.41%), the S&P closed DOWN -23.10 points (-0.78%) while the NASDAQ closed DOWN -80.89 points (-0.97%)
Pre-open indications follow-up: 6 HITs < Applied Genetic Technologies (AGTC +$0.13), Athersys (ATHX -$0.06), bluebird bio (BLUE +1.03), CRISPR Therapeutics (CRSP +$0.99), Intellia Therapeutics (NTLA +$0.77), Cellectis SA (CLLS +$1.33)> and 4 MISS < BioLife Solutions (BLFS -$0.10), Adverum Biotechnologies (ADVM +$0.46), Regenxbio (RGNX +$0.29), Pluristem (PSTI -$0.26)>
Indexes dropped on Thursday as markets digested a strong rally this week along with the latest weekly jobless claims data and rising tensions between China and the U.S.
However, “our’ universe of RegMed /cell and gene therapy equities rallied from the depths to close positive in my 35 covered companies.
President Trump tweeted that the “incompetence of China” caused “this mass Worldwide killing,” referring to the coronavirus also referred to as the China or Wuhan virus.
The Labor Department reported Thursday another 2.4 million people filed for unemployment benefits last week. Thursday’s report brings the total number of filings during the pandemic to more than 38 million. The number of continuing claims was at 25.07 million, its highest level on record.
- The latest figures show the pace of new filings has DECLINED from previous weeks.
Cellectis SA reached a 52-week high of $20.47, just another trader’s target!
RegMed/Cell and gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Thursday opened negative at 9/24 and 2 flats, turned positive at the mid-day at 20/12 and 3 flats and closed positive at 29/13 and 3 flats;
- Wednesday opened positive at 30/4 and 1 flat, stayed positive at the mid-day at 27/6 and 2 flats and closed positive at 30/1 and 1 flat;
- Tuesday opened negative at 13/21 and 1 flat, stayed negative at the mid-day at 11/12 and 3 flats and closed negative at 9/23 and 3 flats;
- Monday opened positive at 28/15 and 2 flats, stayed positive at the mid-day at 29/6 and 2 flats and closed positive at 29/6;
- Volume was still LOW with 5 out of the 29-upside having higher than the 3-month average volume and 0 out of the 13-downside having higher than the 3-month average volume
- The percentage (%) of the 29-upside were +0.05% (SAGE) to +8.32% (FATE) while the 13-downside ranged from -0.02% (RARE) to -5.11% (VCEL);
News that drove share pricing value down:
Ultragenyx Pharmaceutical (RARE -$0.14) and Arcturus Therapeutics Holdings (ARCT), a leading messenger RNA medicines company announced that RARE has exercised its option to purchase 600 K shares of ARCT common stock at $16.00 per share.
- After completion of the new equity purchase, RARE will own 3 million shares, or 14.6%, of ARCT’s outstanding common stock and will continue to be its largest shareholder.
- The purchase was made pursuant to the equity purchase agreement between the parties entered into in June 2019 in connection with the amendment to the research collaboration and license agreement between the two companies focused on nucleic acid therapies for rare diseases that was initiated in 2015.
- The first disclosed indication under the collaboration is Glycogen Storage Disease Type III, and an Investigational New Drug (IND) application for this mRNA therapeutic program, UX053, is expected to be filed in 2021.
Hammered in today’s market:
- Alnylam Pharmaceuticals (ALNY), Vericel (VCEL), Global Blood Therapeutics (GBT), Pluristem (PSTI), Mesoblast (MESO), Voyager therapeutics (VYGR) to name the 13 slipping of the 35 covered
Jumping with momentum:
- UniQure NV (QURE), Cellectis SA (CLLS), bluebird bio (BLUE), Intellia Therapeutics (NTLA), FATE Therapeutics (FATE), CRISPR Therapeutics (CRSP) to name a few of the 29 trading up of 35 covered
Q1/2020 results will be disseminated through RegMed Earnings Scorecard - Q1/20 - to date https://www.regmedinvestors.com/articles/11332 - 31 of 35 so far …
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Thursday, the IBB closed down -1.08% and XBI also closed down -0.83%
- Wednesday, the IBB closed up +2.06% and XBI also closed up +2.89%;
- Tuesday, the IBB closed down -1.92% and XBI also closed down -2.85%
- Monday, the IBB closed up +1.16% and XBI also closed up +2.91%
Thursday’s (top 10) incliners:
- uniQure NV (QURE +$2.62);
- Fate Therapeutics (FATE +$2.55 after Wednesday’s +$2.13, Tuesday’s -$0.74 after Monday’s +$1.15);
- Cellectis SA (CLLS +$1.33);
- bluebird bio (BLUE +$1.03 after Wednesday’s +$7.27 and Tuesday’s +$0.76);
- CRISPR Therapeutics (CRSP +$0.99 after Wednesday’s +$3.23 and Tuesday’s+$0.01);
- Intellia Therapeutics (NTLA +$0.77);
- Editas Medicine (EDIT +$0.72 after Wednesday’s +$1.49);
- Adverum Biotechnologies (ADVM +$0.46);
- Brainstorm Cell Therapeutics (BCLI +$0.30);
- Regenxbio (RGNX +$0.29 after Wednesday’s +$3.65, Tuesday’s-$1.35 and Monday’s +$1.34);
Thursday’s (bottom 10) decliners:
- Global Blood Therapeutics (GBT -$1.60);
- Alnylam Pharmaceuticals (ALNY -$1.59 after Wednesday’s +$1.04, Tuesday’s -$2.46, Monday’s +$5.59, Friday’s +$3.08 and last Thursday’s -$3.26);
- Vericel (VCEL -$0.76);
- Pluristem (PSTI -$0.26 after Wednesday’s -$0.32);
- Mesoblast (MESO -$0.18);
- AxoGen (AXGN -$0.14);
- Ultragenyx (RARE -$0.14 after Wednesday’s -$0.98, Tuesday’s -$0.98, Monday’s +$1.30, Friday’s +$6.56 and last Thursday’s +$0.65);
- BioLife Solutions (BLFS -$0.10 after Wednesday’s -$0.38);
- Biostage (BSTG -$0.10);
- Athersys (-$0.06);
Percentage (%) movement/range statistics: look closely …
- Thursday’s percentage (%) of the 29-upside were +0.05% (SAGE) to +8.32% (FATE) while the 13-downside ranged from -0.02% (RARE) to -5.11% (VCEL);
- Wednesday’s percentage (%) of the 30-upside were +0.11% (PSTI) to +14.94% (FIXX) while the 4-downside ranged from -0.08% (VYGR) to -4.95% (CLBS);
- Tuesday’s percentage (%) of the 9-upside were +0.04% (EDIT) to +5.17% (ADVM) while the 23-downside ranged from -0.22% (FIXX) to -6.54% (SAGE);
- Monday’s % of the 29-upside were +0.52% (CLLS) to +12.02% (CLBS) while the 6-downside ranged from -0.06% (FIXX) to -6.56% (BSTG);
Sentiment and a few daily indicators:
- Stocks dropped on Thursday as markets digested a strong rally this week along with the latest weekly jobless claims data;
- Rising tensions between China and the U.S. also … tempered market sentiment.
The number of confirmed U.S. coronavirus cases: every day I get sadder as I post these numbers …
- Thursday 1.5 million
- Wednesday 1.53 million
- Tuesday 1.5 million,
- Monday 1.4 million,
Thursday’s death rate escalated to a total of 93,439 after Wednesday’s 92,128, Tuesday’s 90,396 and Monday’s 89,666 <John Hopkins University>
Upside volume stats:
- Thursday: 5 out of the 29-upside had higher than the 3-month average volume;
- Wednesday: 9 out of the 30-upside had higher than the 3-month average volume;
- Tuesday: 4 out of the 9-upside had higher than the 3-month average volume;
- Monday: 12 out of the 29-upside had higher than the 3-month average volume;
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was up + 1.54 points or +5.50% at 29.53,
- Wednesday was down -2.60 points or -8.52% at 27.93,
- Tuesday was down -0.67 points or -2.25% at 28.70,
- Monday was down -2.58 points or -8.09% at 29.31,
Downside volume stats:
- Thursday: 0 out of the 13-downside had higher than the 3-month average volume;
- Wednesday: 2 out of the 4-downside had higher than the 3-month average volume;
- Tuesday: 2 out of the 23-downside had higher than the 3-month average volume;
- Monday: 1 out of the 6-downside had higher than the 3-month average volume;
Closing flat: ReNeuron (RENE.L), MiMedx (MDXG), and Verastem (VSTM)
Thursday closed positive with 13 decliners, 29 advancer and 3 flats
Wednesday closed positive with 4 decliners, 30 advancer and 1 flat
Tuesday closed negative with 23 decliners, 9 advancer and 3 flats
Monday (5/18) closed positive with 6 decliners, 29 advancer and - flat
Friday closed positive with 10 decliners, 24 advancer and 1 flat
Thursday closed negative with 24 decliners, 8 advancer and 3 flats
Wednesday closed negative with 31 decliners, 3 advancer and 1 flat
Tuesday closed negative with 21 decliners, 11 advancer and 3 flats
Monday (5/11) closed positive with 9 decliners, 24 advancer and 2 flats
Friday closed positive with 12 decliners, 20 advancer and 3 flats
Thursday closed negative with 22 decliners, 11 advancer and 2 flats
Wednesday closed positive with 13 decliners, 20 advancer and 2 flats
Tuesday closed positive with 10 decliners, 25 advancer and 0 flats
Monday (5/4) closed positive with 7 decliners, 28 advancer and 0 flats
Friday (5/1) closed negative with 25 decliners, 8 advancer and 2 flats
The BOTTOM LINE: Peaks and valleys of share pricings are currently based on speculation by machines and algorithms – not investor input.
The coronavirus pandemic pummeled neighborhoods of America while leaving markets … relatively speculative as share pricings reflect the scattering of sentiment.
A word to the unwise, “Sen. John Kennedy, a Louisiana Republican, submitted the Holding Foreign Companies Accountable Act for unanimous consent, a bill co-sponsored by Democratic Sen. Chris Van Hollen of Maryland and Republican Sen. Kevin Cramer of North Dakota. The bill was approved without objection.
- The bill would require Chinese companies to establish they are not owned or controlled by a foreign government. Furthermore, they would be required to submit to an audit that can be reviewed by the Public Company Accounting Oversight Board (PCAOB), the nonprofit body that oversees audits of all U.S. companies that seek to raise money in public markets;
- There are a few companies in the U.S. that are totally funded by Beijing that should be included in the (PCAOB) … U.S. laws are to be followed … especially when it comes to filing 10-Q’s and 10-K’s!
- The U.S.-China Economic and Security Review Commission compiled a list in 2019 of 165 Chinese companies that are listed on U.S. stock exchanges, including Alibaba Group Holding Ltd. BABA, -0.18% , Baidu Inc. BIDU, -1.12% and JD.com Inc. JD, +0.09% , all of which could be at risk of being delisted if this legislation were to pass.
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.