June 24, 2020 7:52am

Turn down the volatility, I want to understand the direction of today’s sector moves

Pre-open indications: 6 BUYs and 1 SELL

News: Biostage’s (BSTG), new 8-K from annual meeting, management awards themselves 3 million shares (who is left?) while also depriving a shareholder (so far) of access to the zoom annual meeting.

The beginning of many articles that will shed light of their “art of deceptions” by multiple whistleblowers. See the Bottom Line …

What I provide is an intelligence daily. Where are the canaries in the sector coal mine, am I the only one?  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?

 

Dow futures are DOWN -0.92% (-240 points), S&P futures are DOWN -0.76% (-24 points) and NASDAQ futures are DOWN -0.44% (-45 points)

 

Stock indexes pointed to a slightly lower open on Wednesday, following a largely positive session;

European stocks opened lower as regional outbreaks in Germany and other countries spooked investors as the pan-European Stoxx 600 cratered -1.6%;

Asia Pacific stocks were mostly higher, although the MSCI Asia-ex Japan index gained +0.1%.

 

Data docket:

  • Mortgage applications - Total mortgage application volume fell 8.7% last week from the previous week, according to the Mortgage Bankers Association. Homebuyer demand for mortgages fell 3% for the week but was 18% higher than a year ago. Applications to refinance a home loan fell 12% for the week but were 76% higher than the same week in in 2019.
  • 12:45 pm: Fed’s Charles Evan speaks on the Corridor Business Journal webinar
  • 3:00 pm:  Fed’s James Bullard speaks at Greater Louisville virtual event

 

Henry’omics:

The cards have been hot but, its time to fold after winning a number of pots!

The NASDAQ had advanced 0.74%, its 21st closing record for 2020. The Nasdaq’s gain on Tuesday also represented its eighth (8th) straight day of gains, its longest winning streak since December, when it advanced for 11 straight sessions.

Investors also kept a close eye on comments from White House health advisor Dr. Anthony Fauci, who on Tuesday said the U.S. is seeing a “disturbing” surge in new Covid-19 cases. Fauci, the director of the National Institute of Allergy and Infectious Diseases, also struck a more upbeat tone on a vaccine potential and said he expects one by early 2021.” <CNBC>

 

Tuesday’s night post’s title: “sell the green. Investors only have a profit once its realized, as percentage (%) movement continues to blow the bubble.”

  • The NASDAQ closed UP +74.89 points (+0.74%);
  • The IBB closed up +0.38% and XBI also closed up +1.54%;
  • Sector volume JUMPED with 8 out of the 20-upside having higher than the 3-month average volume and 7 out of the 11-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 20-upside were +0.04% (ADVM) to +6.38% (AXGN) while the 11-downside ranged from -0.76% (ALNY) to -10.84% (MESO);
  • Tuesday opened positive and closed positive;

Q2:

  • June registered 10 positive and 7 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;

Editas Medicine (EDIT) closed up +$1.15 after Monday’s +$1.03 to $33.19 as a 4 million share offering is proposed and has a negative -$2.39 or -6.96% pre-market indication;

BUY:

Applied Genetic Technologies (AGTC) closed up +$0.39 after Monday’s+$0.20 to $6.36 and has a positive +$0.13 or +1.93% aftermarket indication and will be added to the Russell 3000® and 2000® Indexes, effective after the U.S. market opens on June 29, 2020, according to a preliminary list of additions posted on June 5;

bluebird bio (BLUE) closed down -$0.10 after Monday’s +$1.19 to $65.48 and has a positive +$0.10 or +0.15% aftermarket indication;

Brainstorm Cell Therapeutics (BCLI) closed up +$0.38 to $9.98 and has +$0.17 or +1.70% aftermarket indication on news of a new clinical program focused on the development of NurOwn® as a treatment for Alzheimer's disease. As part of the newly announced program, BCLI is planning a multi-national P2 clinical trial to evaluate the safety and efficacy of NurOwn treatment in patients with prodromal to mild Alzheimer's disease.

Intellia Therapeutics (NTLA) closed down -$0.49 after Monday’s+$1.70 to $22.87 and has a positive +$2.15 or +9.61% aftermarket indication;

CRISPR Therapeutics (CRSP) closed up +$3.35 after Monday’s +$2.94 to $72.02 and has a positive +$0.43 or +0.57% aftermarket indication;

Mesoblast (MESO) closed down -$1.40 or -10.84% to $11.52 and has a positive +$0.67 or +5.82% aftermarket indication;

 

The BOTTOM LINE: So, explain to me, what’s normal again… the IBB is up +8.26% and the XBI is up +17.32% in seven (7) sessions, a lot of gas has been expended.

Reiterating, “The sector, markets and the economy will remain on a roller-coaster roll with big ups and low downs.”

Investors also need to portfolio distance from those companies with capital structure irregularities and diminished cash positions.

From the news in the title, a message … 1+2+3+4 does NOT = 11; so who and what tacks-on the additional digit – a president who killed the canary of responsibility, the lawyers who didn’t review accounts of a “hostile work environment” and more or was it - Board of Director members (BOD) whose company “received gifts” and then set-up their own “club” to control information. Did “others" make allowances for accrued and current liabilities? Some forget the term, fiduciary responsibility of who owned shares and were they reported in regulatory filings … and the list goes on - do you really think that “birds” won’t sing to multiple federal and state regulatory authorities!

Whistleblowers deserve gratitude, not retaliation of NOT being compensated for months of work completed as to critical regulatory relationships delivered.

It’s also about the first Amendment of the U.S. Constitution, “Congress shall make no law respecting … prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press … and to petition the Government for a redress of grievances.”

 

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.