August 6, 2020 8:15am

In building probable explanations of yesterday’s versus today’s actions.

Q2 Earnings: Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX), Editas Medicine (EDIT) Bellicum Pharmaceuticals (BLCM) and Intellia Therapeutics (NTLA)

Pre-open indications: 5 BUYs and 5 SELLs <Biostage (BSTG) Chronicles offer a yet another warning>

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Dow futures are DOWN -0.30% (-81 points), S&P futures are DOWN -0.29% (-10 points) and NASDAQ futures are DOWN -0.13% (-15 points)

 

Futures contracts declined early Thursday, hours after the Nasdaq locked its 31st record close for 2020;

European stocks were lower, as investors reacted to the Bank of England’s decision to leave interest rates unchanged with the pan-European Stoxx 600 down -0.3% in early trade;

Asia Pacific were mixed on Thursday as investors continued to monitor tensions between the U.S. and China; the MSCI Asia ex-Japan index was 0.41% higher.

 

Henry’omics:

investors have been regaled by the ongoing brinkmanship between lawmakers over a new prospective stimulus package.

President Trump’s administration threatened on Wednesday to act on its own to provide coronavirus relief after another day of talks on Capitol Hill failed to result in an agreement.

  • Also, the President voiced a plan to provide additional federal aid to the U.S. airlines sector.

 

Data Docket: U.S. weekly jobless claims total 1.186 million, vs 1.423 million expected and 16 million on extended claims

  • Job cuts announced by U.S.-based employers jumped in July to 262,649, the third-largest monthly total ever, according to global outplacement firm Challenger, Gray & Christmas. July's total is 54% higher than the 170,219 job cuts announced in June. Last month's cuts bring the yearly total so far to 1.85 million, up 212% from the 592,556 cuts at this time last year, Challenger said.

 

Wednesday night’s post title – “sector is every which way and closes up, the firing range is still open as the all-clear has not sounded”

  • The NASDAQ closed UP +57.23 points (+0.52%);
  • The IBB closed down -0.29% and XBI also closed up +0.72%
  • Sector volume was LOW with 2 of the 19-upside having higher than the 3-month average volume and the 5 of 15-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.77 points or -3.24% at 22.99;
  • Wednesday’s percentage (%) of the 19-upside were +0.31% (NTLA) to +6.12% (CLBS) while the 15-downside ranged -0.06% (CRSP) to -5.35% (VCEL); 

Last five (5) sessions:

  • Wednesday closed positive with 19 advancers, 15 decline and 1 flat
  • Tuesday closed negative with 13 advancers, 20 decline and 2 flats
  • Monday (8/3) closed positive with 31 advancers, 1 decline and 3 flats
  • Friday (7/31) closed negative with 7 advancers, 27 decliners and 1 flat
  • Last Thursday closed positive with 24 advancers, 8 decliners and 3 flats

Q3 so far:

  • August, 2 positive close and 1 negative close
  • July -11 positive and 11 negative closes with 1 holiday

 

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

Maintaining Sell:

Biostage (BSTG) closed up +$0.06 after Tuesday’s -$0.01 and Monday’s -$0.37. What does the price hold for the future? … Under $1.00 after ALL the private placement millions of shares are calculated into the outstanding share numbers versus the float.

I am sill concerned by the $1 million GIFT to Connecticut Childrens’, an all but broke, BSTG hasn’t been able to start a clinical trial after an IND approval and there still exists a $429,500.00 outstanding liability that has YET to appear in the financials. James Schmerling, the CEO of Connecticut Childrens’ is on the board of directors of BSTG and a shareholder as is the hospital. WHAT is a tightly capitalized company of this size doing giving $1 million gifts?

And WHAT about the death legal suit STILL hanging over the company like a “Sword of Damocles”?

Biostage (BSTG) public shareholders deserve accountability.

Mrs. bin Zhou, the major stock holder and head of DST Capital, BSTG’s funder: WHY are you not overseeing the disorder wreaked by the current so-called management team?

Facts are irrefutable and the First amendment of the U.S. Constitution protects American’s free speech.

 

Sell into strength:

Editas Medicine (EDIT) closed up +$0.61 after Tuesday’s +$0.31 and Monday’s +$2.21 with a 52-week change of +30.12% and has a positive +$0.21 or +0.65% aftermarket indication as earnings are due this week;

 

SELL:

Mesoblast (MESO) closed up +$0.28 to $15.73. August 3 opened at $14.37 and July at $11.58 and has a negative -$0.73 or -4.64% aftermarket indication;

Caladrius Biosciences (CLBS) closed up +$0.15 to $2.60 and has a negative -$0.13 or -45 after the CFO resigned;

Global Blood Therapeutics (GBT) closed down -$0.86 to $67.90 and has a negative -$0.40 or -0.59% aftermarket indication;

 

BUY:

AxoGen (AXGN) closed up +$0.31 to $12.31 and has a positive +$0.19 or +1.54% after reporting q2 results;

bluebird bio (BLUE) closed down -$0.38 to $62.06 and has a positive +$1.94 or +3.13% aftermarket indication. It’s been too oversold;

Ionis Pharmaceuticals (IONS) closed down -$1.76 to $57.48 and has a positive +$0.57 or +0.99% aftermarket indication;

Intellia therapeutics (NTLA) closed up +$0.06 to $19.65 and has a positive +$0.62 or =3.16% pre-market indication after an earnings’ “read” and an expanded Regeneron collaboration, receiving $100 million through upfront cash and equity investment and agreeing to co-develop treatments for hemophilia A and B using CRISPR-mediated targeted transgene insertion technology;

Precigen (PGEN) closed up +$0.27 to$4.89 and has a +$0.21 or +4.29% pre-market indication from news of six-month follow-up data from the Phase I trial of INXN-4001 (clinical trial identifier: NCT03409627), a multigenic investigational therapeutic candidate under evaluation for the treatment of heart failure. The INXN-4001 investigational therapy uses a non-viral plasmid designed to constitutively express human SDF-1α, VEGF165, and S100A1 gene products, which affect progenitor cell recruitment, angiogenesis, and calcium handling, respectively. INXN-4001 is designed to target the underlying molecular mechanisms of pathological myocardial re-modelling and is delivered to the ventricle via retrograde coronary sinus infusion (RCSI).

 

The BOTTOM LINE: Today’s earnings’ parade brings … Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX), Editas Medicine (EDIT) Bellicum Pharmaceuticals (BLCM) and Intellia Therapeutics (NTLA).

Framing the main takeaway … pricing, volume and volatility!

Investors seem to be happy living in a constructed reality, swallowing the blue pill is their extended metaphor, in which directionless momentum is carrying the sector.

I usually don’t invest in an earnings’ laden week waiting for the pre and post reporting effects!

 

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.