July 31, 2020 7:20pm

Pre-open indication results: 1 MISS <Biostage (BSTG)

Week in review …

An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector.  I say today what others won't, so you can do what others can't; I put into context what is relevant for investors

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The Dow closed UP +114.67 points (+0.44%), the S&P closed UP +24.90 points (+0.77%) while the NASDAQ closed UP +157.46 points (+1.49%)

 

Pre-open indication results: 1 MISS <Biostage (BSTG +$0.40 with very thin 1000 shares traded)

 

Henry’omics:

Indexes wiped out losses after falling most of the session on Friday after big tech companies reporting stellar quarterly results.

For the month of July, the S&P 500 gained 5.5%, the Dow +2.3% and the Nasdaq 6.8%.

This a.m. I stated in this a.m.’s newsletter - RegMed Investors’ (RMi) pre-open: living in a glass full or half-empty reality ... https://www.regmedinvestors.com/articles/11481   ...

  • “As far as others of my covered universe, I am NOT commenting TODAY as this sector and reliant market are becoming TOO speculative and I say vulnerable.

Big tech earnings do NOT at all resemble RegMed/cell and gene therapy results – we live in an LPS (loss-per-share) continuum.”

  • Also, this a.m.’s Biostage (BSTG) Chronicles also offered a warning especially their “art of deceptions” being active as ever while BSTG deprived shareholders of access to the Zoom annual meeting – one of many indicators.

 

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

  • Friday opened negative at 9/23 and 3 flats, stayed negative at the mid-day at 6/28 and 1 flat, closing negative at 7/27 and 1 flat;
  • Thursday opened positive at 19/15 and 1 flat, stayed positive at the mid-day at 22/11 and 3 flats, closing positive at 24/8 and 3 flats;
  • Wednesday opened positive at 19/15 and 1 flat, stayed positive at the mid-day at 22/11 and 2 flats, closing positive at 24/8 and 3 flats;
  • Tuesday opened negative at 5/28 and 2 flats, stayed negative at the mid-day at 8/25 and 2 flats, closing negative at 6/27 and 2 flats;
  • Monday opened positive at 25/7 and 3 flats, stayed positive at the mid-day at 21/12 and 2 flats, closing positive at 22/11 and 2 flats;

 

Key metrics:

  • Sector volume was MIXED with 5 of the 7-upside having higher than the 3-month average volume and 4 out of the 27-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 7-upside were +0.72% (RARE) to +19.05% (BSTG) while the 27-downside ranged from -0.21% (BLFS) to -5.67% (FIXX); 

 

Hammered in today’s market:

  • Alnylam Pharmaceuticals (ALNY), Global Blood Therapeutics (GBT), Regenxbio (RGNX), Ionis Pharmaceuticals (IONS), Editas medicine (EDIT) to name 5 of the 27 declining of the 35 covered

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), uniQure NV (QURE), Pluristem (PSTI), Ultragenyx (RARE), Biostage (BSTG), MiMedx (OTC Pink sheets: MDXG), Solid bioscience (SLDB) to name 7 of the 7 trading up of 35 covered

 

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

  • Friday, the IBB closed down -1.93% and XBI also closed down -2.35%
  • Thursday, the IBB closed up +0.29% and XBI also closed up +1.43%
  • Wednesday, the IBB closed down -1.11% and XBI also closed down -1.62%
  • Tuesday, the IBB closed down -1.35% and XBI also closed down -2.55%
  • Monday, the IBB closed up +2.67% and XBI also closed up +2.59%

 

Friday’s (7 of 7) incliners:

  • ReNeuron (RENE.L +$10.00 after Thursday’s -$2.50, Wednesday’s -$2.50, Tuesday’s +$5.00 and Monday’s -$9.00);
  • uniQure NV (QURE +$2.34 after Thursday’s +$1.68, Wednesday’s -$1.81, Tuesday’s -$1.48 and Monday’s +$1.54);
  • Pluristem (PSTI +$0.65);
  • Ultragenyx (+$0.56 after Thursday’s +$1.35);
  • Biostage (BSTG +$0.40 after Thursday’s -$0.49 and Wednesday’s -$0.01);
  • MiMedx (OTC Pink sheets: MDXG +$0.04);
  • Solid Biosciences (SLDB +$0.03);

Friday’s (10 of 27) decliners:

  • Alnylam Pharmaceuticals (ALNY -$5.35 after Thursday’s +$0.55, Wednesday’s -$3.77, Tuesday’s -$3.18 and Monday’s +$4.41);
  • Global Blood Therapeutics (GBT -$2.02 after Thursday’s +$1.03, Wednesday’s -$2.49, Tuesday’s +$9.22 and Monday’s -$1.00);
  • Ionis Pharmaceuticals (IONS -$1.46);
  • Editas Medicine (EDIT -$1.27 after Thursday’s +$0.59);
  • CRISPR Therapeutics (CRSP -$0.90 after Thursday’s +$0.83), Wednesday’s -$0.87, Tuesday’s -$5.72 and Monday’s +$1.77)
  • Intellia therapeutics (NTLA -$0.90);
  • Adverum Biotechnologies (ADVM -$0.89 after Thursday’s +$0.81, Wednesday’s +$0.20, Tuesday’s -$0.99);
  • Homology Medicine (FIXX -$0.790;
  • Brainstorm Cell Therapeutics (BCLI -$0.68);
  • bluebird bio (BLUE -$0.59 after Thursday’s -$1.05 and Wednesday’s -$3.42);

Closing flat: 1 –Stemline Therapeutics (STML – acquired)

 

Percentage (%) movement/range statistics: comparisons

  • Friday’s percentage (%) of the 7-upside were +0.72% (RARE) to +19.05% (BSTG) while the 27-downside ranged from -0.21% (BLFS) to -5.67% (FIXX); 
  • Thursday’s percentage (%) of the 24-upside were +0.37% (ALNY) to +14.55% (SGMO) while the 8-downside ranged from -0.18% (VCEL) to -18.92% (BSTG); 
  • Wednesday’s percentage (%) of the 9-upside were +0.57% (MESO) to +5.88% (PSTI) while the 25-downside ranged from -0.13% (SAGE) to -8.80% (FIXX); 
  • Tuesday’s percentage (%) of the 6-upside were +0.31% (GBT) to +4.44% (RENE.L) while the 27-downside ranged from -0.32% (BLUE) to -9.64% (SGMO); 
  • Monday’s percentage (%) of the 22-upside were +1.64% (RGNX) to +10.01% (MESO) while the 11-downside ranged from -0.58% (BCLI) to -10.53% (SLDB); 

 

Sentiment and a few daily indicators:

A coronavirus relief agreement in Congress remained in doubt, just as extended unemployment benefits are set to end and new economic data showed a U.S. economy buckling under the pandemic’s weight.

The Commerce Department said gross domestic product from April to June plunged 32.9% on an annualized basis, the biggest quarterly plunge in activity ever.

The Centers for Disease Control and Prevention Director Dr. Robert Redfield warned Congress of “significant public health consequences” if schools don’t reopen in the fall. <CNBC>

  • Friday 4.4 cases
  • Thursday 4.42 cases
  • Wednesday 4.36 cases
  • Tuesday 4.3 million cases
  • Monday 4.26 million cases

Friday’s death rate totaled 152,074following Thursday’s 150,733, Wednesday’s 149,375, Tuesday’s 148,298 and Monday’s 147,143 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Friday: 5 out of the 7-upside had higher than the 3-month average volume;
  • Thursday: 2 out of the 24-upside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 9-upside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 6-upside had higher than the 3-month average volume;
  • Monday: 3 out of the 22-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.30 points or -1.21% at 24.46
  • Thursday was up +0.66 points or +2.74% at 24.76
  • Wednesday was down -1.34 points or -5.27% at 24.10
  • Tuesday was up +0.86 points or +3.48% at 25.59
  • Monday was down -1.10 points or -4.26% at 24.74

Downside volume:

  • Friday: 4 out of the 27-downside had higher than the 3-month average volume;
  • Thursday: 1 out of the 8-downside had higher than the 3-month average volume;
  • Wednesday: 6 out of the 25-downside had higher than the 3-month average volume;
  • Tuesday: 5 out of the 27-downside had higher than the 3-month average volume;
  • Monday: 3 out of the 11-downside had higher than the 3-month average volume;

 

July, the first month of Q2 reflects the roller-coaster as it ends on a red note

Friday (7/31) closed negative with 7 advancers, 27 decliners and 1 flat

Thursday closed positive with 24 advancers, 8 decliners and 3 flats

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

Tuesday closed negative with 6 advancers, 27 decliners and 2 flats

Monday (7/27) closed positive with 22 advancers, 11 decliners and 2 flats

Friday closed negative with 7 advancers, 27 decliners and 1 flat

Thursday closed negative with 4 advancers, 29 decliners and 2 flats

Wednesday closed negative with 12 advancers, 22 decliners and 1 flat

Tuesday closed negative with 10 advancers, 24 decliners and 1 flat

Monday (7/20) closed positive with 24 advancers, 10 decliners and 1 flat

Friday closed positive with 24 advancers, 9 decliners and 2 flats

Thursday closed negative with 7 advancers, 25 decliners and 3 flats

Wednesday closed positive with 30 advancers, 4 decliners and 1 flat

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

Monday (7/13) closed negative with 4 advancers, 29 decliners and 2 flats

Friday closed negative with 9 advancers, 22 decliners and 4 flats

Thursday closed negative with 10 advancers, 24 decliners and 1 flat

Wednesday closed positive with 28 advancers, 5 decliners and 2 flats

Tuesday closed positive with 18 advancers, 12 decliners and 5 flats

Monday (7/6) closed positive with 19 advancers, 15 decliners and 1 flat

Friday was a market holiday;

Thursday closed positive with 18 advancers, 14 decliners and 3 flats

Wednesday (7/1) closed positive with 24 advancers, 7 decliners and 4 flats

 

The Bottom line:  Volatility and speculation are driving “our’ universe and this market as the factors of the coronavirus or COVID-19 drives the sell-the-news effect!

Downside momentum is disjointed, volatility exceeds volume and we shouldn’t base our buying positions in this climate on hope!”

An earning’s beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earning’s beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earning’s miss.

Are we stuck in a “hall of mirrors” continuum?

 

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.