August 20, 2020 8:06am
Pre-open indications: 4 BUYs and 6 SELLs
The Biostage (BSTG) Chronicles – more questions of possible legalities as Nasdaq OTC listing is at risk <Read more>
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Dow futures are DOWN -0.31% (-87 points), S&P futures are DOWN -0.30% (-10 points) and NASDAQ futures are DOWN -0.12% (-14 points)
U.S. stock futures are signaling a negative open on Thursday;
European markets fall after Fed flags uncertainty of U.S. recovery with the pan-European Stoxx 600 falling -1.2% by mid-morning;
Asia Pacific markets fell on as China kept its benchmark lending rate on hold; markets in Indonesia and Malaysia were closed on Thursday for a holiday as the MSCI Asia ex-Japan index dropped 1.77%.
Data Docket: The number of individuals filing new unemployment insurance claims unexpectedly rose back above 1 million last week, reflecting a still-elevated level of joblessness in the US.
- Initial jobless claims, week ended Aug. 15: 1.106 million vs. 920,000 expected vs. 971,000 during the prior week
- Continuing claims, week ended Aug. 8: 14.844 million vs. 15 million expected vs. 15.48 million during the prior week
- Euro area construction output figures for June are expected at 10 a.m. London time
trade talks between the U.S. and China are upcoming and geopolitical tensions remain on the agenda after U.S. Secretary of State Mike Pompeo warned Russia and China not to interfere in UN sanctions on Iran.
The Fed’s comment knocked the S&P 500 from a new intraday record set on Wednesday. The benchmark closed at a new record high on Tuesday, confirming the start of a new bull market. The Dow and Nasdaq also turned negative after the minutes were released. <CNBC>
Wednesday night’s post title – “analysts don’t always have the luxury of time or deferring judgement to come to a definitive, it’s about the reliability of current evidence”
- The NASDAQ closed DOWN -64.38 points (-0.57%);
- The IBB closed down -1.06% and XBI also closed down -0.17%;
- Sector volume was LOW with 5 of the 16-upside having higher than the 3-month average volume and the 5 of 17-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +1.03 points or +4.79% at 22.54;
- Wednesday’s percentage (%) of the 16-upside were +0.05% (RARE) to +10.89% (PSTI) while the 17-downside ranges from -0.51% (EDIT) to -13.33% (BSTG);
Last five (5) sessions:
- Wednesday closed negative with 16 advancers, 17 declines and 2 flats
- 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
- Last Thursday closed positive with 19 advancers, 11 decline and 4 flats
Q3 so far:
- August, 6 positive closes and 7 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 -$0.18 to $1.17 (was down to $1.00, Wednesday noon) after Tuesday’s -$0.81, Monday’s -$0.04 (was as low as -$0.20) to $2.16, Friday’s -$0.45 and last Thursday’s -$0.22. Keep writing those checks to “PUMP” the share price – didn’t quite work on Monday, Tuesday and Wednesday.
Question 1: 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>.
Question 2: How many Chinese nationals board of directors does it take to run a Massachusetts based public company – THREE (3). Come September 15th as, if and when U.S. executive orders are enacted re PPP loans and forgiveness conditions by President Trump are enacted, the answer to #2 will be a BIG issue >
Question 3: Who will explain that BSTG has to complete at the minimum 2 to 4 adult patients’ clinical trial – that has NOT started with the possibility of NO resulting DATA for 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.
CRISPR Therapeutics (CRSP) closed up +$5.72 to $100.64 and has a negative -$0.12 or -0.12% pre-market indication;
Vericel (VCEL) closed up +$0.28 to $16.52 and has a negative -$0.07 or -0.42% aftermarket indication;
uniQure NV (QURE) closed down -$2.04 to $38.80 and has a negative -$0.50 or -1.29% aftermarket indication;
Mesoblast (MESO) closed down -$1.14 to $17.78 after Tuesday’s -0.89, Monday’s +$1.93, Friday’s +$6.07 and Thursday’s $1.18 and has a negative -$0.03 or -0.17% pre-market indication;
Pluristem (PSTI) closed up +$1.05 to $10.69 after Tuesday’s -$0.04 and has a negative -$0.32 or -2.99% pre-market indication;
Alnylam Pharmaceuticals (ALNY) closed down -$2.70 to $137.22 and has a positive +$2.75 or +2% aftermarket indication;
bluebird bio (BLUE) closed down -$0.90 to $60.95 and has a positive +$0.88 or +1.44% aftermarket indication;
Ionis Pharmaceuticals (IONS) closed down -$1.37 to $52.28 and has a positive +$1.39 or +$2.66% aftermarket indication;
Sangamo Therapeutics (SGMO) closed up +$0.32 to $12.22 and has a positive +$0.16 or +1.31% 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.
Reiterating, 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 upside is thinning …
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.