July 1, 2020 8:02am

Markets are closed Friday, July 3, in observance of Independence Day

Pre-open indications: 2 BUYs and 3 SELLs

News: AxoGen (AXGN) new 3 tranche $75 million financing plan and declining Q2 revenue estimates

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? Check the Bottom line …

 

Dow futures are DOWN -1.10% (-282 points), S&P futures are DOWN -0.78% (-24 points) and NASDAQ futures are DOWN -0.61% (-63 points)

 

Stock futures fell Wednesday kicking-off Q3 after a noteworthy comeback;

European stocks declined as investors monitor economic data and uncertainties of a coronavirus resurgence as the pan-European Stoxx 600 fell -0.7% by early afternoon;

Asia Pacific stocks were mixed as a private survey showed China’s factory activity for June was better than expected and the MSCI Asia ex-Japan index rose +0.35%.

  • A private survey showed Chinese manufacturing activity in June growing more than expected, with the Caixin/Markit manufacturing Purchasing Manager’s Index (PMI) coming in at 51.2 last month. That was above expectations of a reading of 50.5 by analysts in a Reuters poll.

 

Data docket: Private payrolls rose by 2.369 million in June, a bit below the 2.5 million estimates according to ADP. May’s number saw a stunning revision, going from an initially reported loss of 2.76 million to a gain of 3.065 million. Hospitality industry workers saw the biggest gain, with 961,000 hires, while small businesses overall added 937,000.

  • Construction — another hard-hit industry — added 394,000 and manufacturing rose by 88,000. The goods sector in total saw a net gain of 457,000 positions.
  • The services side grew by 1.912 million, other big gainers were trade, transportation and utilities (288,000), education and health services (283,000), and the “other services” category (215,000).
  • Professional and businesses services added 151,000 and financial activities, which includes Wall Street jobs, was up 65,000.

 

Henry’omics:

Time to walk away to the holiday laden long weekend …

Markets notched its best quarter in decades as it snapped back from the historic sell-off triggered by the coronavirus.

The Dow gained 17.8% in Q2, posting its best quarter since 1987, while the S&P 500 finished the period with a near 20% gain, its best since 1998. The tech-heavy Nasdaq soared 30.6% for the quarter, the most since 1999.

Summer doldrums and Q2 reporting begins …

 

News: AxoGen (AXGN) (continued

  • Financing agreement provides up to $75 million in three tranches with interest only payments over seven years,
  • $35 million drawn down upon closing the agreement on June 30, 2020,
  • Preliminary Q2 revenue is estimated to be at least $21 million, down 21% versus prior year.

 

Tuesday’s night post’s title: “last trading day of month rallies solidifying the quarter”

  • The NASDAQ closed UP +184.61 points (+1.87%);
  • The IBB closed up +1.49% and XBI also closed up +1.40%;
  • Tuesday opened neutral, flipped negative at the mid-day and closed positive;
  • Sector volume was LOW with 6 out of the 21-upside having higher than the 3-month average volume and 4 out of the 11-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 21-upside were +0.14% (ALNY) to +6.86% (BLFS) while the 11-downside ranged from -0.35% (RGNX) to -6.42% (AGTC);

Q3:

First day

Q2:

  • June registered 12 positive and 10 negative closes
  • May registered 9 negative, 11 positive closes and 1 holiday.
  • April registered 10 negative, 11 positive closes and 1 holiday.

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Maintaining SELL:

Biostage (BSTG) closed flat again on Tuesday at $2.51 after Friday’s -$0.01 and Thursday’s -$0.29 and has more issues that will affect the stock which only moves with day trading as approximately 92% of the millions of private shares just added 3 million to managements personal pockets i.e. “employee benefit plan security offering” – RUN. By the BYE, how many executives and employees; are left – 6 and 1 consultant? Let’s not forget a desperate need for financing?

BUY:

Applied Genetic Technologies (AGTC) closed down -$0.38 to $5.54 and has a positive +$0.36 or +6.50% aftermarket indication;

AxoGen (AXGN) closed up +$0.09 to $9.24 and has a positive +$0.26 or +2.81% pre-market indication on news (above);

SELL:

bluebird bio (BLUE) closed up +$0.95 to $61.04 and has a negative -$0.54 or -0.88% aftermarket indication;

ReNeuron (RENE.L) closed flat at $144.00 after Monday’s +$7.50 and being flat on last Friday RENE.L reflects a negative pre-market indication -$4.00 or -2.78%;

 

The BOTTOM LINE: Since hitting a March 23 low at 2,237.40, the S&P 500 has surged 38%, while the Dow has climbed 38.5% and the Nasdaq has rallied about 46%.

The problem is that there’s no clear consensus on where the market goes from this point …

 

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.