August 19, 2020 8:00am
No factor is more important than objectivity in the analysis of data and realistic appreciation of the sector and market as they actually are and going to be
News: Pluristem (PSTI) (TASE: PSTI) has completed patient enrollment in its Phase I study evaluating PLX-R18 as a treatment for incomplete hematopoietic recovery following hematopoietic cell transplantation (HCT) in the U.S. and in Israel.
Pre-open indications: 3 BUY and 3 SELLs <the Biostage (BSTG) Chronicles - are they legally BANKRUPT?> Read more …
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Dow futures are UP +0.14% (+38 points), S&P futures are UP +0.11% (+4 points) and NASDAQ futures are DOWN -0.08% (-9 points)
U.S. stock futures were higher early Wednesday;
European stocks advanced slightly as the pan-European Stoxx 600 edged 0.2% higher;
Asia Pacific stocks were mixed as the MSCI Asia ex-Japan index shed about 0.2%.
Data Docket: Mortgage application volume down 3.3% from the previous week, according to the Mortgage Bankers Association. Refinance demand to drop 5% for the week. Mortgage applications to purchase a home increased just 1% for the week but were a remarkable 27% higher compared with one year ago.
- Investors are still eyeing a second coronavirus stimulus bill from Washington;
- The Federal Open Market Committee will publish its meeting minutes from its June meeting on Wednesday at 2 p.m. ET.
Tuesday’s session was a landmark for what it achieved — a record high for the S&P 500, meaning all of the losses from the pandemic are gone …
The real story in markets right now is <in my view> is government spending and the future of paying for it?
For our sector … Gilead Sciences’ (GILD, -0.13%) investigational treatment for moderately to severely active rheumatoid arthritis won’t be approved by the U.S. FDA in its current form, said its partner Galapagos GLPG, -2.36% GLPG, -29.04%, which plunged in Amsterdam trade.
Regeneron (REGN, -0.34%) is teaming with Roche (ROG, 1.19%) to increase distribution of its COVID-19 drug.
Tuesday night’s post title – “sector sells-off”
- The NASDAQ closed UP +81.21 points (+0.73%);
- The IBB closed down -0.57% and XBI also closed down -0.88%;
- Sector volume was LOW with 2 of the 13-upside having higher than the 3-month average volume and the 3 of 20-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.16 points or +0.75% at 21.51;
- Tuesday’s percentage (%) of the 13-upside were +0.03% (RGNX) to +13.81% (SLDB) while the 20-downside ranges from -0.41% (PSTI) to -37.50% (BSTG);
Last five (5) sessions:
- Tuesday closed negative with 13 advancers, 20 declines and 2 flats
- 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
- Last Wednesday closed negative with 13 advancers, 19 declines and 3 flats
Q3 so far:
- August, 6 positive closes and 6 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:
Biostage (BSTG) closed down -$0.81 to $1.35 after Monday’s -$0.04 (was as low as -$0.20) to $2.16, Friday’s -$0.45, Thursday’s -$0.22 and last Wednesday’s flat ($0.00) following the previous Tuesday’s -$0.02. Keep writing those checks to “PUMP” the share price – didn’t quite work on Tuesday.
Question: Is BSTG legally … BANKRUPT … Q2/2020 reported a cash position of $600, $404,221 in PPP debt, liabilities of $1,152 million and a burn rate per quarter of $1.3 million <read the recent balance sheet>.
So why explain that BSTG has to complete at the minimum 2 to 4 adult patients clinical trial – that’s possibly 2 years of timing before BSTG can even file for a pediatric protocol.
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.
There still exist the millions of private placement unregistered shares (priced at $3.20, $3.60 and $3.70) existing FAR beyond the registered outstanding and float shares.
Mesoblast (MESO) closed down -0.89 to $18.92 after Monday’s +$1.93, Friday’s +$6.07, Thursday’s $11.8 and last, Wednesday’s +$0.48 and has a negative -1.07 or -5.56% aftermarket indication. I believe Icarus has flown and plunging into the sea;
Editas Medicine (EDIT) closed up again +$0.51 to $37.16 after Monday’s +$1.73, Friday’s -$0.40 to $34.92, Thursday’s +$0.57 and last Wednesday’s +$0.56 and has a negative -$0.51 or -1.51% aftermarket indication;
Cellectis SA (CLLS) closed up +$0.74 to $17.96 and has a positive +$1.03 or +5.73% pre-market indication;
Pluristem (PSTI) closed down -$0.04 and has a positive +$0.04 or +0.06 or +0.62% pre-market indication and NEWS;
Solid Biosciences (SLDB) closed up +$0.37 to $3.05 and has a positive +$0.15 or +4.92% pre-market 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?”
The U.S. stock market’s five-month rally is coming to an end. Although, I don’t know … exactly when? However, it is slowing, as the upside is thinning …
As always, I'm still hung-up “how to get out of Dodge” – (a metaphor) to the sector and markets and then get back in!
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.