July 6, 2020 8:06am

Last shortened week experienced strong gains pre the July 4th holiday; the Dow was up (+3.3%) and S&P 500 (+4%) and the Nasdaq (+4.6%) last week in that time.

Pre-open indications: 0 BUY, 1 SELL on toxic review and 9 SELLs into Strength   

News: Has Biostage (BSTG) a series of non-profit and industry conflicts and should it re-examine its investigator entity relationship? … Can you afford NOT to read about it if you are a U.S. stock holder or a foreign nation owner of private placement of non-public shares?

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! 

Dow futures are UP +1.35% (+347 points), S&P futures are UP +1.13% (+36 points) and NASDAQ futures are UP +1.19% (+123 points)

 

U.S. stock futures are trading sharply higher in Monday’s pre-market;

European markets inclined the pan-European Stoxx 600 added +1.4% by early afternoon;

Asia Pacific markets were higher during Monday’s trading session, with shares in mainland China leading regional gains with the MSCI Asia ex-Japan index jumped 1.75%.

 

Henry’omics:

A few reasons, Monday’s market’s potentials are clicking are: travel lines are up with a retailer, Warren Buffett made his first major deal amid the market turmoil this year, with Berkshire Hathaway buying the natural gas transmission and storage assets from Dominion Energy for about $10 billion including debt, energy is higher, Chinese stocks soared jumped and last week “roared”.

  • A recipe for a DECLINE?

As the number of coronavirus cases kept surging globally, raising concerns about the world economy and its recovery from the pandemic.

 

Thursday night’s post title: “less bad, fundamentals should not be not forgotten; how fast will being overbought get wrenched back to oversold-it is”  

  • The NASDAQ closed UP +53 points (+0.52%);
  • The IBB closed up +0.85% and XBI also closed up +0.37%
  • Thursday opened positive and closed positive;
  • Sector volume was LOW with 4 of the 18-upside having higher than the 3-month average volume and 3 out of the 14-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 18-upside were +0.000% (BSTG) to +12.09% (BLFS) while the 14-downside ranged from -0.48% (BLCM) to -7.59% (MDXG); 

Q3:

  • Thursday closed positive with 18 advancers, 14 decliners and 3 flats
  • Wednesday (7/1) closed positive with 24 advancers, 7 decliners and 4 flats

 

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

Maintaining SELL:

Biostage (BSTG) closed flat again on Thursday, Wednesday and Tuesday at $2.51 after the previous Friday’s -$0.01 and Thursday’s -$0.29.  

BSTG SHOULD examine its non, for profit and hospital industry contacts questioning stock and compensation of one of its board members i.e. a hospital executive, the hospital’s ownership of stock and execution of more warrants on multiple occasions. The further question is … how MUCH stock does the principal investigator own after each circumstance was brought to their attention?

Should the SEC and FDA step-in to review the potential and existing conflicts of interests of the individuals, hospital and those who should have NOTIFIED the FDA of the holdings which SOME SAY were covered-up by one senior individual in the company.

Was there a QUIET GIFT of $1 million dollars ($570,500.00 paid to date, of which $25,000.00 was paid on 7/10/2019) to the hospital, with a final payment (dated 2/22/2020) of the $429,500 due to Connecticut Children’s on 2/29/2020 due … was it recorded as a liability and paid with notice to the FDA as a condition of the IND (investigatory new drug application) in its financial disclosure section at the end of the IND application.

DOES stock compensation for representation on a hospital’s board of directors present a conflict as a Biostage’s company board of director – the question is also the value of the APPRECIATING PRIVATE stock holdings with continuing and further awards.

In many cases state's research institutions and regulatory agencies are barred from accepting PERSONAL compensation when they represent their institutions on corporate boards?

Memorial Sloan Kettering went through the same “bouts” of conflicts of interest… as reported by the NY times (Katie Thomas and Charles Ornstein in collaboration with ProPublica.

Don’t forget there is another “Sword of Damocles”, a multi-million law suit hanging over the head of Biostage (BSTG) which has YET to be adjudicated.

BSTG has even 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. A new 8-K was filed 7/1/2020, “Warrant Extension”.  How many executives are LEFT – three (3)?

BSTG previously issued warrants to acquire shares of common stock with an exercise price of $3.70 per share (the U.S. public shares barely trading at $2.51 on negligible volume) that were immediately exercisable until June 30, 2020. BSTG has extended the expiration date of such warrants to September 30, 2020 pertaining to warrants exercisable for an aggregate of 497,878 shares of common stock.

MORE DILUTION is coming and BSTG has a desperate need for financing! There is NO hope of a U.S. financing and with the issues of entering, exiting and releasing money beyond borders in China doesn’t see a lot of hope;

FACTS (and copies) are IRREFUTABLE!

 

SELL into Strength:

AxoGen (AXGN) closed down -$0.24 after Wednesday’s +$2.49 or +26.95% to $11.73 after Tuesday’s +$0.09 post news of financing;

CRISPR Therapeutics (CRSP) closed up +$1.20 to $79.70 after Wednesday’s +$5.01 or +6.82% to $78.50 after Tuesday’s -$1.56 and Monday’s +$1.01;

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 -$2.25 or -1.59%;

BioLife Solutions (BLFS) closed up +$1.94 to $17.98 after an offering and after Wednesday’s -$0.31 to $16.04;

Applied Genetic Technologies (AGTC) closed up +$0.60 after Wednesday’s +$0.29 after Tuesday’s -$0.38 but, it’s a usual upside trading target;

CRISPR Therapeutics (CRSP after Thursday’s +$1.20, Wednesday’s +$5.01, Tuesday’s -$1.56 and Monday’s +$1.01);

Mesoblast (MESO) closed up on Thursday’s +$0.46 to $12.04 after June 29th $10.91;

Vericel (VCEL) closed up Thursday +$0.24 after Wednesday’s +$1.05 or +7.60% to $14.87 after Tuesday’s +$0.26 and Monday’s $0.53;

Ultragenyx Pharmaceuticals (RARE) closed up Thursday +$1.39 after Wednesday’s +$6.43, Tuesday’s +$4.56 and Monday’s -$2.92);

 

 

The BOTTOM LINE: Are we about to enter a time of market “malaise” as coronavirus “numbers’ increase (120,000 new cases reported over the weekend) as we begin a new week after returning from a three-day holiday weekend?

“Watch your corners” when either buying an equity, or selling a current holding as one enters a potentially hostile sector and market.

As far as Biostage (BSTG) is concerned there is a LOT more to be reported and acknowledged. My question remains --- WHO was responsible for the IND filing and WHICH members were responsible and part of the final approval of all of these actions??

Some say “Remember the Maine” which blew-up in Havana, Cuba – I say,” Remember Biostage” in referencing the First Amendment and good reporting!

 

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.