June 24, 2020 7:46pm

Biostage (BSTG +$0.29) inclines as the “art of deceptions” continue, do investors understand the overweight of privately (warrant derivatives) shares sold in financing their future, warrants (the only way of financing) contribute to gigantic dilution. Facts are irrefutable!

Pre-open indications 3 HITs < Brainstorm Cell Therapeutics (BCLI +$0.38), Editas Medicine (EDIT -$3.61), Applied Genetic Technologies (AGTC +$0.06)> and 4 MISS < bluebird bio (BLUE  -$1.28), Intellia Therapeutics (NTLA -$0.79), CRISPR Therapeutics (CRSP -$2.28), Mesoblast (MESO -$0.01)>

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The Dow closed DOWN – 719.16 points (-2.72%), the S&P closed DOWN -80.96 points (-2.59%) while the NASDAQ closed DOWN -222.20 points (-2.19%)

 

Henry’omics:

Indexes fell sharply on Wednesday as the increasing number of newly confirmed coronavirus cases dampened expectations of an economic recovery.

 

RegMed/Cell and Gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Wednesday opened negative at 8/24 and 3 flats, stayed negative at the mid-day at 8/724 and 3 flats, closing negative at 9/24 and 2 flats;
  • Tuesday opened positive at 25/8 and 2 flats, stayed positive at the mid-day at 25/7 and 3 flats, closing positive at 20/11 and 4 flats;
  • Monday opened negative at 22/10 and 3 flats, strayed positive at the mid-day at 20/12 and 3 flats, closing positive at 24/8 and 3 flats;
  • Friday opened neutral at 16/16 and 3 flats, swayed positive at the mid-day at 18/15 and 2 flats closing positive at 20/13 and 2 flats;

 

Key metrics:

  • Sector volume DIMISHED with 3 out of the 9-upside having higher than the 3-month average volume and 8 out of the 24-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 9-upside were +0.55% (CLBS) to +11.60% (BSTG +$0.29) while the 24-downside ranged from -0.05% (ALNY) to -10.51% (EDIT) on news of an offering; 

 

Hammered in today’s market:

  • Biostage (BSTG), MiMedx (Pink sheets: MDXG), Precigen (PGEN), Brainstorm Cell Therapeutics (BCLI), Pluristem (PSTI) to name a few the 24 tripping down of the 35 covered

Jumping with share pricing momentum:

  • Editas Medicine (EDIT) – now with offering, Vericel (VCEL), AxoGen (AXGN), uniQure NV (QURE) and Adverum Biotechnologies (ADVM) to name a few of the 8 trading up of 35 covered

 

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB closed down -1.62% and XBI also closed down -2.05%
  • Tuesday, the IBB closed up +0.38% and XBI also closed up +1.54%
  • Monday, the IBB closed up +0.20% and XBI also closed up +2.94%
  • Friday, the IBB closed up +3.27% and XBI also closed up +2.83%

 

Wednesday’s (only 9 of 9) incliners:

  • Ionis Pharmaceuticals (IONS +$1.28 after Tuesday’s -$1.52);
  • Brainstorm Cell Therapeutics (BCLI +$0.38);
  • MiMedx (Pink sheets: MDXG +$0.34 after Tuesday’s -$0.24);
  • Biostage (BSTG +$0.29);
  • Pluristem (PSTI +$0.25);
  • Precigen (PGEN +$0.19 after Tuesday’s -$0.54);
  • Applied Genetic Technologies (AGTC +$0.06);
  • Solid BioSciences (SLDB +$0.02);
  • Caladrius BioSciences +$0.01);

Wednesday’s (bottom 10 of 24) decliners:

  • uniQure NV (QURE -$4.83 after Tuesday’s +$1.09 and Monday’s -$0.13);
  • Ultragenyx (RARE -$4.28 after Tuesday’s +$1.01, Monday’s -$1.43 after Friday’s +$5.74);
  • Editas Medicine (EDIT -$3.61 after Tuesday’s +$1.15 and Monday’s +$1.03 and Friday’s -$0.29);
  • Global Blood Therapeutics (GBT -$2.75);
  • CRISPR Therapeutics (CRSP -$2.28 after Tuesday’s +$3.35, Monday’s +$2.94 and Friday’s +$1.74);
  • Regenxbio (RGNX -$1.79 after Tuesday’s -$0.55 and Monday’s +$0.72);
  • Adverum Biotechnologies (ADVM -$1.73);
  • Sage Therapeutics (SAGE -$0.53 after Tuesday’s +$1.07 and Monday’s +$1.65);
  • Vericel VCEL -$1.33);
  • bluebird bio (BLUE -$1.28 after Tuesday’s -$0.58);

Closing flat: 2 –ReNeuron (RENE.L) and Stemline Therapeutics (STML – being acquired)

 

Percentage (%) movement/range statistics: look closely … notice percentage (%) movements are declining

  • Wednesday’s percentage (%) of the 9-upside were +0.55% (CLBS) to +11.60% (BSTG +$0.29) while the 24-downside ranged from -0.05% (ALNY) to -10.51% (EDIT) on news of an offering; 
  • 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); 
  • Monday’s percentage (%) of the 24-upside were +0.65% (FIXX) to +25.38% (ATHX) while the 8-downside ranged from -0.19% (QURE) to -5.69% (MESO); 
  • Friday’s percentage (%) of the 18-upside were +0.15% (QURE) to +20.53% (PGEN) while the 13-downside ranged from -0.07% (VCEL) to -31.36% (ATHX); 

 

Sentiment and a few daily indicators:

Some people say it better, “The latest coronavirus news is not positive for the stock market which was betting the worst of the pandemic recession was behind us,” said Chris Rupkey, chief financial economist at MUFG. “All the hopes of investors looking for a better economy to improve the bottom lines of companies shut down in the recession have been dashed. Forget about the fears of the virus coming back in the fall, the number of new cases and hospitalizations in states like Arizona, Texas, and Florida says the threat is happening right now.”

The number of confirmed U.S. coronavirus cases: every day I get sadder as I post these numbers …

  • Wednesday 2.36 million
  • Tuesday 2.31 million
  • Monday 2.28 million
  • Friday 2.20 million

Wednesday’s death rate totaled 121,662 after Tuesday’s 120,402, Monday’s 120.440 and last Friday’s 118,758 <Johns Hopkins University>

 

Upside volume stats: 

  • Wednesday: 3 out of the 9-upside had higher than the 3-month average volume;
  • Tuesday: 8 out of the 20-upside had higher than the 3-month average volume;
  • Monday: 13 out of the 24-upside had higher than the 3-month average volume;
  • Friday: 14 out of the 18-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +2.47 points or +7.87% at 33.84;
  • Tuesday was down -0.40 points or -1.26% at 31.37;
  • Monday was down -3.35 points or -9.54% at 31.77;
  • Friday was up +2.18 points or +6.62% at 35.12;

Downside volume stats:

  • Wednesday: 8 out of the 24-downside had higher than the 3-month average volume;
  • Tuesday: 7 out of the 11-downside had higher than the 3-month average volume;
  • Monday: 2 out of the 8-downside had higher than the 3-month average volume;
  • Friday: 9 out of the 13-downside had higher than the 3-month average volume;

 

June

Wednesday closed negative with 9 advancers, 24 decliners and 2 flats

Tuesday closed positive with 20 advancers, 11 decliners and 4 flats

Monday (6/22) closed positive with 24 advancers, 8 decliners and 3 flats

Friday closed positive with 18 advancers, 13 decliners and 4 flats

Thursday closed positive with 20 advancers, 13 decliners and 2 flats

Wednesday closed negative with 13 advancers, 21 decliners and 1 flat

Tuesday closed positive with 23 advancers, 8 decliners and 4 flats

Monday (6/15) closed positive with 28 advancers, 5 decliners and 2 flats

Friday closed positive with 25 advancers, 8 decliners and 2 flats

Thursday closed negative with 2 advancers, 31 decliners and 2 flats

Wednesday closed negative with 15 advancers, 17 decliners and 3 flats

Tuesday closed negative with 14 advancers, 19 decliners and 2 flats

Monday (6/8) closed positive with 22 advancers, 9 decliners and 4 flats

Friday closed negative with 16 advancers, 19 decliners and 0 flat

Thursday closed negative with 5 advancers, 30 decliners and 0 flat

Wednesday closed negative with 9 advancers, 25 decliners and 1 flat

Tuesday closed positive with 21 advancers, 13 decliners and 1 flat

Monday (6/1) positive with 23 advancers,10 decliners and 2 flats

 

The Bottom line:  As I stated yesterday, “the market is hung on a high hook and the screws are loosening … I think so and I don’t have a screw loose!”

As the sector lost today’s “round” or as I might say “pooped” the upside”!

By the bye referencing this morning and evening post, Biostage (BSTG) where is the next financing coming from – opinion: NOT from U.S. capital markets? They are BROKE to the end Q2 unless they convert more warrants as they anticipate a clinical trial initiation – with what to pay for it – more dilution from the remaining outstanding warrants?

The conversion of the outstanding warrant execution could dilute the public share pricing to pennies – again an opinion.

 

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.