August 18, 2020 7:56am

Jettison the share price wave risk before dangerous markets swamp the sector

Pre-open indications: 1 BUY and 6 SELLs

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Dow futures are UP +0.28% (+77 points), S&P futures are UP +0.17% (+5.75 points) and NASDAQ futures are UP +0.33% (+37 points)

 

Index futures are on the rise on Tuesday, with the S&P 500 on the cusp of achieving the record high set in February before the coronavirus hit;

European stocks had turned positive despite a weak start as the pan-European Stoxx 600 gained +0.5%;

Asia Pacific markets were mixed as global tensions and new coronavirus outbreaks while the MSCI Asia ex-Japan index advanced 0.26%.

 

Henry’omics:

A tugboat of investors is steaming without catalysts to a push and guide share pricing and overcome technical resistance as …

However, this market has been stuck in a storm of tight ranges as hopes for a new coronavirus stimulus deal dimmed with lawmakers unwilling to break a stalemate. Democrats and Republicans are holding their respective presidential nominating conventions this week and next.

Meanwhile, tensions between the U.S. and China still kept investors on edge.

And, I am NOT feelin’ “fair winds and following seas”!

Monday night’s post title – “waiting for Godown or was it Godot”

  • The NASDAQ closed UP +110.42 points (+1%);
  • The IBB closed up +1.97% and XBI also closed up +3.50%;
  • Sector volume was LOW with 5 of the 29-upside having higher than the 3-month average volume and the 2 of 4-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.70 points or -3.17% at 21.35;
  • Monday’s percentage (%) of the 29-upside were +0.58% (CLLS) to +13.26% (PGEN) while the 4-downside ranges from -1.82 (BSTG) to -3.05% (BLCM); 

Last five (5) sessions:

  • Monday (8/17) closed positive with 29 advancers, 4 declines and 2 flats
  • 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
  • Last Tuesday closed negative with 3 advancers, 32 declines and 1 flat

Q3 so far:

  • August, 6 positive closes and 5 negative closes
  • 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 down -$0.04 (was as low as -$0.20) to $2.16 after Friday’s -$0.45, Thursday’s -$0.22, Wednesday’s flat ($0.00) and last Tuesday’s -$0.02.  Keep writing those checks to “PUMP” the share price.

Remember, there are millions of private placement unregistered shares (priced at $3.20, $3.60 and $3.70) existing FAR beyond the registered shares.

Question: who will explain that BSTG has to complete at the minimum 2 to 4 adult patients before they can file for the pediatric initiative – that’s possibly 2 years of trials before BSTG can even file for a pediatric protocol. It's all conditional, triala have begun, patients haven't been recruite as a CRO has not even been chosen - NO bucks - NO initiation!

The term – “going concern”, it’s even more UGLY when all this could have been AVOIDED! Also, remember the strategic plan for “forward motion” that was TOTALLY disregarded.

BUY:

uniQure NV (QURE) closed up +$0.28 to $41.15 and has a positive +$0.16 or +0.38% aftermarket indication;

SELL:

Athersys (ATHX) closed up +$0.18 to $2.61 and has a negative -$0.04 or -2.68% aftermarket indication;

Brainstorm cell Therapeutics (BCLI) closed up +$1.12 to $14.39 and has a negative -$0.39 or -$2.71% aftermarket indication;

Mesoblast (MESO) closed up +$1.93 to $19.81 after Friday’s +$6.07, Thursday’s $11.81, Wednesday’s +$0.48 and last Tuesday’s $11.33 and last Monday’s $17.42 and has a negative -0.24 or -1.24% aftermarket indication. I believe an Icarus “fly and plunge” is in play;

Editas Medicine (EDIT) closed up +$1.73 to $36.65 after Friday’s -$0.40 to $34.92, Thursday’s +$0.57, Wednesday’s +$0.56 and last Tuesday’s -1.32 and has a negative -$0.98 or -2.67% aftermarket indication;

Ionis Pharmaceuticals (IONS) closed up +$1.21 to $53.99 and has a negative -$0.39 or -0.72% aftermarket indication;

 

The BOTTOM LINE: I was supposed to be on vacation; unfortunately, circumstances got hold of me.

Time to try again … and still watching the sector and market.

What do analysts do, they separate actionable numbers or intelligence and news into an investment thesis to tackle the “unknown unknowns”

The stock market has to look forward and most economic data looks backwards. I continually ask, “Where are the canaries in the sector coal mine, am I the only one?”

As always, I maintain a perspective and know “how to get out of Dodge” – (a metaphor)! 

 

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.