June 11, 2020 8:19am

The Nasdaq closed above psychological milestone at 10,000; fresh record closing highs scare me silly as psychological is not quite a fundamental factor

Pre-open indications: 3 BUY and 5 SELLs

News:  Pluristem Therapeutics (PSTI) activated clinical sites and initiation of enrollment in its P2 U.S. FDA study of PLX cells for the treatment of severe COVID-19 complicated by Acute Respiratory Distress Syndrome (ARDS).  PSTI is focused on expanding to 25 clinical sites throughout the U.S.

What I provide is an intelligence daily to never leave an investor uninformed!  Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors who make money and for those who read and don’t weep! Can you afford NOT to read it?

Skim if you can trim, buy if news will fly and sell if compelled!

 

Dow future are DOWN -3.11% (-838 points), S&P futures are DOWN -2.48% (-79 points) and NASDAQ futures are DOWN -1.72% (-173 points)

 

Stock futures are falling as coronavirus cases increased in some states that are reopening up from lockdowns;

European stocks fell sharply as investors digested the latest comments from the U.S. Fed and the pan-European Stoxx 600 dropped 2.3% in early trade;

Asia Pacific stocks dropped; shares in Australia were among the biggest losers regionally, with S&P/ASX 200 dropping 3.05% and the MSCI Asia ex-Japan index fell 1.7%.

 

Data docket: Unemployment claims totaled 1.5 million last week compared to the 1.6 million estimates. Continuing claims, or those collecting benefits for at least two weeks, declined to 20.9 million, 339,000 fewer than a week ago. The total claims number has fallen for 10 straight weeks but remains extremely high on a historical basis.

 

Henry’omics:

Stocks are preparing to slide as index futures dive …

The Nasdaq has risen for eight days in the past nine sessions, bringing its 2020 gains to nearly 10%. The S&P 500 is down 1.2% this year after briefly turning green for 2020 earlier this week. The Dow is down 5.4% for 2020.

Shares that have surged recently on hopes for a smooth reopening of the economy dropped in premarket trading.

 

Wednesday post’s title: “moving to depreciation, again; enough to implicate the sector’s sentiment”

  • The NASDAQ closed UP +66.59 points (+0.67%);
  • the IBB closed up +0.32% and XBI also closed up +0.12%;
  • Wednesday opened positive and closed negative;
  • Volume continued LOW with 4 out of the 15-upside having higher than the 3-month average volume and 4 out of the 17-downside having higher than the 3-month average volume;
  • The percentage (%) of the 15-upside were +0.15% (IONS) to +25.86% (PGEN +$0.90 to $4.38) while the 17-downside ranged from -0.06% (STML) to -6.35% (ADRO); 

Q2:

  • June registered 3 positive and 5 negative closes
  • May registered 9 negative, 11 positive closes and 1 holiday.
  • 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 into strength:

Precigen (PGEN) closed up +$0.90 to $4.38 and has a negative -$0.03 or -0.66% aftermarket indication. Stock appreciated after TipRanks article of “Israel “Izzy” Englander, who is widely known for his impressive stock picking abilities among PGEN’s fans are Englander and Millennium. The fund recently pulled the trigger on the stock for the first time, buying up 997,181 shares. As for the value of this new position, it comes in at $3,390,000. a Chart looks VERY “peaky” – sell into the strength;

ReNeuron (RENE.L) closed up percentage wise yet flat at $135.00 and has a negative -$9.00 U.S. pre-market indication;

Maintaining SELL into strength

Brainstorm Cell Therapeutics (BCLI) closed down -$0.03 to $9.17 after Tuesday’s +$0.74 to $9.20 after Monday’s -$0.62 and last Friday’s +$0.58) even with news that the ALS Association and I AM ALS have awarded a combined grant of $500,000 to BCLI. The grant will be used to draw insights from data and samples collected from patients enrolled in BCLI's ongoing P3 clinical trial of its NurOwn® treatment, to further understanding of critical biomarkers associated with treatment response for people with ALS. Check the chart, lighten the load with a positive +$0.33 or +3.60% aftermarket indication;

Fate Therapeutics (FATE) closed up +$0.27 to $32.99 after Tuesday’s +$4.41 to $32.72 after Monday’s +$0.10 to $28.31 and has a negative -$0.22 or -0.67% aftermarket indication. Post an offering with Johnson & Johnson Innovation-JJDC, Inc. in a private placement, a number of shares of common stock in an aggregate purchase price of up to $50 million, at a price per share equal to the price to the public in the underwritten public offering which was priced at $28.31. A lot of new shares and many in safe hands.

BUY:

Alnylam Pharmaceuticals (ALNY) closed down -$0.08 to $129.71 and has a positive +$0.02 or +0.02% aftermarket indication after announcing last night (after the Bell)  pivotal results from the ENVISION P3 study of givosiran, an RNAi therapeutic targeting aminolevulinic acid synthase 1 (ALAS1) for the treatment of acute hepatic porphyria (AHP), were published online in the New England Journal of Medicine (NEJM). GIVLAARI® (givosiran) was approved by the U.S. FDA for the treatment of adults with AHP in November 2019, marking the first ever approval of a GalNAc-conjugate RNAi therapeutic—a landmark in the advancement of precision genetic medicines. It also received marketing authorization from the European Commission in March 2020 for the treatment of AHP in adults and adolescents aged 12 years and older. The full manuscript, titled "P3 Trial of RNAi Therapeutic Givosiran for Acute Intermittent Porphyria," will appear in the June 11, 2020 issue of NEJM.

Pluristem Therapeutics (PSTI) closed up +$0.49 to $7.54 and is up +$0.24 or +3.18% pre-market on news of activating clinical sites and initiation of enrollment in its P2 U.S. FDA study of PLX cells for the treatment of severe COVID-19 complicated by Acute Respiratory Distress Syndrome (ARDS).  PSTI is focused on expanding to 25 clinical sites throughout the U.S.

Sage Therapeutics (SAGE) closed down -$0.42 and has a positive +$0.44 or +1.21% aftermarket indication. SAGE cut operating costs, rejuggled its priorities, also trying to invigorate Sage-324 is about to enter P2 clinical trials for targeting essential tremor (a motor movement disorder), estimated to affect 6 million people in the U.S. In open-label (where patients' treatment bias is not eliminated) phase 3 studies, the drug demonstrated unverified promise of efficacy when given to patients, but has not yet had its efficacy and safety proven in placebo-controlled clinical trials. Another candidate, Sage-718, is also entering phase 2 clinical trials for targeting various cognitive disorders. The drug has demonstrated positive preliminary efficacy and safety profiles in P1 studies.

 

The BOTTOM LINE: A concern about sentiment going forward, a second wave of coronavirus cases have risen as U.S. states push deeper into reopening:

  • Coronavirus cases have risen 10% to 15% in 16 states: “People think because we hit Memorial Day and we have nice weather that it’s over. It ain’t” Quentin Fottrell, MarketWatch>
  • During the great influenza pandemic of 1918, the second wave was worse than the first, partly due to a more virulent strain of the virus.

Yesterday was the day, cold water was thrown on the market … it’s still alive but shocked … unable to get up!

Also, my younger brother died yesterday leaving a pall over my seven 4 brothers and 3 sisters adding to my inability to focus but, I just got up even earlier … o-dark-hundred – you got beat!

 

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.