August 14, 2020 5:57pm

Pre-open indication results: 3 HIT and 1 MISS <Biostage (BSTG) dives on ugly Q2 “numbers” with a specific statement regarding “forced to curtail or cease its operations” in earnings’ release>

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.

Subscription is coming, my gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times!

The Dow closed UP +34.30 points (+0.12%), the S&P closed DOWN -0.58 points (-0.02%) while the NASDAQ closed DOWN -23.20 points (-0.21%)

 

Pre-open indication results: 3 HITs < Biostage (BSTG -$0.45), Mesoblast (MESO +$6.07), Editas Medicine (EDIT -$0.40)> and 1 MISS < Fate Therapeutics (FATE -$0.60)>

 

Henry’omics:

The Dow closed up in final hour of the session while S&P and Nasdaq were down on Friday as the S&P 500 missed its February record high, with so-so economic data and Washington failing to close a coronavirus stimulus “deal” resulting in a stalemate.

  • In other data, Q2 productivity rose by 7.3%, while unit labor costs jumped 12.2%. Economists were looking for a 1.4% productivity rise and an 8.7% rise in costs.
  • July industrial production saw a 3% rise, topping forecasts for an increase of 2.7%, though the index remains far below pre-pandemic levels.
  • Capacity utilization last month rose to 70.6% from 68.5% in June, versus expectations for a reading of 70.5%.
  • An initial reading on the University of Michigan's August consumer sentiment index came in at 72.8 compared with expectations for 72.

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: struggling with the gains and losses of the week’s sessions … https://www.regmedinvestors.com/articles/11502.

The major stock indexes all clinched weekly gains despite Friday’s muted trading action. The S&P 500 added 0.64% for the week, its 3rd straight weekly gain. The Dow advanced 1.8% this week; while, the Nasdaq climbed less than 0.1% since last Friday’s close.

 

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

  • Friday opened negative at 11/22 and 2 flats, stayed negative at the mid-day at 10/23 and 2 flats, closing negative at 10/23 and 2 flats;
  • Thursday opened positive at 25/7 and 3 flats, stayed positive at the mid-day at 18/13 and 4 flats, closing positive at 19/11 and 4 flats;
  • Wednesday opened positive at 21/11 and 3 flats, flipped negative at the mid-day at 12/20 and 3 flats, closing negative at 13/19 and 3 flats;
  • Tuesday opened negative at 8/25 and 2 flats, stayed negative at the mid-day at 5/28 and 2 flats, closing negative at 3/32 and 1 flat;
  • Monday opened positive at 24/10 and 1 flat, stayed positive at the mid-day at 25/9 and 1 flat, closing positive at 25/8 and 2 flats;

 

Key metrics:

  • Sector volume was LOW with 2 of the 10-upside having higher than the 3-month average volume and the 1 of 23-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 10-upside were +0.83% (ATHX) to +51.40% (MESO) while the 23-downside ranges from -0.18% (VYGR) to -16.98% (BSTG); 

 

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), Regenxbio (RGNX), Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE), uniQure NV (QURE) to name 5 of the 23 declining of the 35 covered

Jumping with share pricing momentum:

  • Mesoblast (MESO), Adverum Biotechnologies (ADVM), Precigen (PGEN), MiMedx (OTC pink sheets: MDXG), Solid Biosciences (SLDB) to name 5 of the 10 trading up of 35 covered

 

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

  • Friday, the IBB closed down -0.48% and XBI also closed down -0.93%
  • Thursday, the IBB closed up +0.14% and XBI also closed up +1.38%
  • Wednesday, the IBB closed up +1.46% and XBI also closed up +0.32%
  • Tuesday, the IBB closed down -2.22% and XBI also closed down -3.98%
  • Monday, the IBB closed down -1% and XBI also closed down -0.01%

 

Friday’s (10 of 10) incliners:

  • Mesoblast (MESO +$6.07 after a positive FDA review);
  • Adverum Biotechnologies (ADVM +$0.78 after Thursday’s -$2.39, Wednesday’s -$0.69, Tuesday’s -$3.11 and a 14.5 million shares offering);
  • Precigen (PGEN +$0.27 after Thursday’s -$0.16);
  • Solid Biosciences (SLDB +$0.23 after Thursday’s -$0.01);
  • MiMedx (OTC Pink sheets: MDXG +$0.20);
  • Applied Genetic Technologies (AGTC +$0.17) after Thursday’s -$0.04);
  • Cellectis SA (CLLS +$0.13);
  • Caladrius Bioscience (CLBS +$0.09);
  • Pluristem (PSTI +$0.02 after Thursday’s -$0.04 and Wednesday’s +$0.22);
  • Athersys (ATHX +$0.02);

Friday’s (10 of 23) decliners:

  • CRISPR Therapeutics (CRSP -$2.24 after Thursday’s +$0.43, Wednesday’s +$1.86, Tuesday’s -$1.32 and Monday’s +$0.96);
  • Regenxbio (RGNX -$1.43 after Thursday’s +$0.54 and Wednesday’s -$0.78);
  • Alnylam Pharmaceuticals (ALNY -$1.29 after Thursday’s +$0.74);
  • bluebird bio (BLUE -$1.23 after Thursday’s -$0.88, Wednesday’s -$0.71, Tuesday’s -$3.28 and Monday’s +$2.29);
  • uniQure NV (QURE -$0.82);
  • Ultragenyx (RARE -$0.78 after Thursday’s +$2.08, Wednesday’s +$0.95 and Tuesday’s -$2.29);
  • Intellia therapeutics (NTLA -$0.62);
  • Fate Therapeutics (FATE -$0.60 after Thursday’s +$0.90 and Wednesday’s -$0.59);
  • Biostage (BSTG -$0.45 after Thursday’s -$0.22);
  • Editas Medicine (EDIT -$0.40 after Thursday’s +$0.57, Wednesday’s +$0.56, Tuesday’s -$1.32 and Monday’s +$0.80);

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

 

Percentage (%) movement/range statistics: comparisons

  • Friday’s percentage (%) of the 10-upside were +0.83% (ATHX) to +51.40% (MESO) while the 23-downside ranges from -0.18% (VYGR) to -16.98% (BSTG); 
  • Thursday’s percentage (%) of the 19-upside were +0.21% (IONS) to +4.33% (ATHX) while the 11-downside ranges from -0.38% (VCEL) to -16.04% (ADVM); 
  • Wednesday’s percentage (%) of the 13-upside were +0.06% (ALNY) to +6.21% (VSTM) while the 19-downside ranges from -0.09% (VYGR) to -7.52% (BLFS); 
  • Tuesday’s percentage (%) of the 3-upside were +0.18% (VYGR) to +0.88% (RENE.L) while the 32-downside ranges from -$0.69 (BSTG) to -34.96% (MESO); 
  • Monday’s percentage (%) of the 25-upside were +0.06% (CLLS) to +8.60% (MESO) while the 8-downside ranges from -$0.09 (VYGR) to -4.50% (GBT); 

 

Sentiment and a few daily indicators:

Negotiations around the next round of coronavirus aid drag on, as Democrats and Republicans described themselves as hopelessly far apart on a deal.

  • Friday 5.25 cases
  • Thursday 5.2 cases
  • Wednesday 5.1 cases,
  • Tuesday 5.09 cases,
  • Monday 5.05 cases,

Friday’s death rate totaled 167,200 after Thursday’s 166,623, Wednesday’s 164,900, Tuesday’s 163,400 and Monday’s 162,950 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Friday: x out of the 10-upside had higher than the 3-month average volume;
  • Thursday: 0 out of the 19-upside had higher than the 3-month average volume;
  • Wednesday: 3 out of the 13-upside had higher than the 3-month average volume;
  • Tuesday: 1 out of the 3-upside had higher than the 3-month average volume;
  • Monday: 3 out of the 25-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.08 points or -0.36% at 22.05
  • Thursday was down -0.15 points or -0.67% at 22.13
  • Wednesday was down -1.75 points or -7.28% at 22.28
  • Tuesday was up +1.90 points or 8.59% at 24.03
  • Monday was down -0.08 points or -0.35% at 22.13

Downside volume:

  • Friday: 1 out of the 23-downside had higher than the 3-month average volume;
  • Thursday: 1 out of the 11-downside had higher than the 3-month average volume;
  • Wednesday: 3 out of the 19-downside had higher than the 3-month average volume;
  • Tuesday: 9 out of the 32-downside had higher than the 3-month average volume;
  • Monday: 2 out of the 8-downside had higher than the 3-month average volume;

 

August, the second month of Q3 …

Friday closed negative with 10 advancers, 23 decline and 2 flats

Thursday closed positive with 19 advancers, 11 decline and 4 flats

Wednesday closed negative with 13 advancers, 19 declines and 3 flats

Tuesday closed negative with 3 advancers, 32 declines and 1 flat

Monday (8/10) closed positive with 25 advancers, 8 declines and 2 flats

Friday closed positive with 21 advancers, 11 declines and 3 flats

Thursday closed negative with 11 advancers, 23 decline and 1 flat

Wednesday closed positive with 19 advancers, 15 declines and 1 flat

Tuesday closed negative with 13 advancers, 20 declines and 2 flats

Monday (8/3) closed positive with 31 advancers, 1 decline and 3 flats

 

The Bottom line:  On vacation … yet, I end up doing more than usual … there will be a re-do!

We have had good news on the jobs front and retail sales in July are up from a year ago; however, the risk category is consumer confidence, which has been deteriorating in recent weeks with fear that a stimulus may not happen.

While many talk about the shift in alternating sentiment, I monitor the pulse and focus of possible outcomes

 

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.