August 21, 2020 8:08pm

Pre-open indication results: 2 HITs and 2 MISS

The Biostage (BSTG) Chronicles: keep “pumping” the stock (+$0.29) to $1.62, it’s dollars (purchase of 14,909 of “float’ shares) less that goes to the operations of the company and supports the new $4.00 Private Placement. WHO is trying to fool WHOM? DST has the right to buy BSTG’s own shares but, not to mislead investors about the status of the “going” concern of the company and the status of the non-clinical trial?

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The Dow closed UP +190.60 points (+0.69%), the S&P closed UP +11.65 points (+0.34%) while the NASDAQ closed UP +46.85 points (+0.42%)

 

Pre-open indication results: 2 HITs <Mesoblast (MESO +$0.80), Pluristem (PSTI -$0.43) and 2 MISS <Biostage (BSTG +$0.29), CRISPR Therapeutics (CRSP -$1.30),

 

Henry’omics:

Indexes rose on Friday, lifted by strong U.S. economic data, to end a week that saw markets reach a record level.

From the Data Docket: Existing-home sales for July saw a record month-over-month spike of 24.7%. The average selling price for homes also hit an all-time high, jumping to $304,100. IHS Markit showed U.S. manufacturing activity hit its highest level in 19 months in August, while services were at their highest level in 17 months.

  • “After seeing some disappointing PMIs in Japan, Australia and for the Eurozone, the US print was a pleasant surprise but again reflecting more re-openings and the byproduct from that is an economic recovery,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. However, “the expansion above and beyond the February GDP level remains to be seen.” <CNBC>

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: pricing sustainability is at a low ebb … https://www.regmedinvestors.com/articles/11512

I kept telling to get a “grip” of your portfolio risk, the worst isn’t over …

 

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

  • Friday opened negative at 12/22 and 1 flat, stayed negative at the mid-day at 10/24 and 1 flat, closing negative at 12/22 and 1 flat;
  • Thursday opened negative at 16/18 and 1 flat, stayed negative at the mid-day at 11/22 and 2 flats, closing negative at 12/22 and 1 flat;
  • Wednesday opened negative at 12/20, strayed positive at the mid-day at 17/14 and 4 flats, closing negative at 16/17 and 2 flats;
  • Tuesday opened negative at 8/26 and 1 flat, stayed negative at the mid-day at 9/24 and 2 flats, closing negative at 13/20 and 2 flats;
  • Monday opened positive at 27/7 and 1 flat, stayed positive at the mid-day at 29/4 and 2 flats, closing positive at 29/4 and 2 flats;

 

Key metrics:

  • Sector volume was LOW with 3 of the 12-upside having higher than the 3-month average volume and the 2 of 22-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 12-upside were +0.18% (ALNY) to +21.80% (BSTG) while the 22-downside ranges from -0.36% (BLUE) to -4.12% (PSTI); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), CRISPR Therapeutics (CRSP), Sage Therapeutics (SAGE), Editas Medicine (EDIT), Regenxbio (RGNX) to name 5 of the 22 declining of the 35 covered

Jumping with share pricing momentum:

  • Mesoblast (MESO), BioLife Solutions (BLFS), Precigen (PGEN), uniQure NV (QURE), Voyager Therapeutics (VYGR) to name 5 of the 12 trading up of 35 covered

 

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

  • Friday, the IBB closed down -0.58% and XBI also closed down -1.23%
  • Thursday, the IBB closed down -0.30% and XBI also closed down -0.02%
  • Wednesday, the IBB closed down -1.06% and XBI also closed down -0.17%
  • Tuesday, the IBB closed down -0.57% and XBI also closed down -0.88%
  • Monday, the IBB closed up +1.97% and XBI also closed up +3.50%

 

Friday’s (10 of 12) incliners:

  • Mesoblast (MESO +$0.80);
  • BioLife Solutions (BLFS +$0.60 after Thursday’s +$0.20);
  • Precigen (PGEN +$0.52 after Thursday’s +$0.29 and Wednesday’s +$0.39);
  • uniQure NV (QURE +$0.44 after Thursday’s -$0.72 and Wednesday’s -$2.04);
  • Voyager therapeutics (VYGR +$0.35);
  • Biostage (BSTG +$0.29 after Thursday’s +$0.16);
  • Alnylam Pharmaceuticals (ALNY +$0.24 after Thursday’s -$0.86, Wednesday’s -$2.70, Tuesday’s -$0.78 and Monday’s +$4.56);
  • Bellicum Pharmaceuticals (BLCM +$0.17);
  • Global Blood Therapeutics (GBT +$0.16 after Thursday’s +$0.49, Wednesday’s +$0.63, Tuesday’s -$0.48 and Monday’s +$3.43);
  • Brainstorm Cell Therapeutics (BCLI+$0.12 after Thursday’s -$0.68, Wednesday’s -$0.43, Tuesday’s -$0.53 and Monday’s +$1.12);

Friday’s (10 of 22) decliners:

  • ReNeuron (RENE.L -$3.50);
  • CRISPR Therapeutics (CRSP -$1.30 after Thursday’s -$8.88, Wednesday’s +$5.72, Tuesday’s +$3.27 and Monday’s +$2.15);
  • Sage Therapeutics (SAGE -$0.87 after Thursday’s +$0.04);
  • Editas Medicine (EDIT -$0.68);
  • Regenxbio (RGNX -$0.51 after Thursday’s -$0.56 and Wednesday’s -$2.43);
  • Pluristem (PSTI -$0.43);
  • Ultragenyx (RARE -$0.40 after Thursday’s +$0.02);
  • Ionis Pharmaceuticals (IONS -$0.38 after Thursday’s +$0.77, Wednesday’s -$1.37, Tuesday’s -$0.34 and Monday’s +$1.21);
  • Intellia Therapeutics (NTLA -$0.33 after Thursday’s -$0.60);
  • Vericel (VCEL -$0.32 after Thursday’s +$0.26, Wednesday’s +$0.28 and Tuesday’s +$0.15);

Closing flat: 1 –Stemline Therapeutics (STML – acquired)

 

Percentage (%) movement/range statistics: 360 degrees comparisons

  • Friday’s percentage (%) of the 12-upside were +0.18% (ALNY) to +21.80% (BSTG) while the 22-downside ranges from -0.36% (BLUE) to -4.12% (PSTI); 
  • Thursday’s percentage (%) of the 12-upside were +0.02% (RARE) to +13.68% (BSTG) while the 22-downside ranges from -0.36% (AGTC) to -8.82% (CRSP); 
  • 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); 
  • 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); 
  • 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); 

 

Sentiment and a few daily indicators:

Concerns over a new coronavirus stimulus bill kept the market’s gains in check Friday.

  • Friday 5.57 cases
  • Thursday 5.54 cases
  • Wednesday 5.48 cases
  • Tuesday 5.45 cases
  • Monday 5.4 cases

Friday’s day’s death rate totaled 175,000 after Thursday’s 173,600, Wednesday’s 172,418, Tuesday’s 171,013 and Monday’s 170,000, <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Friday: 3 out of the 12-upside had higher than the 3-month average volume;
  • Thursday: 4 out of the 12-upside had higher than the 3-month average volume;
  • Wednesday: 5 out of the 16-upside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 13-upside had higher than the 3-month average volume;
  • Monday: 5 out of the 29-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.18 points or -0.79% at 22.54
  • Thursday was up +0.18 points or +0.80% at 22.72
  • Wednesday was up +1.03 points or +4.79% at 22.54
  • Tuesday was up +0.16 points or +0.75% at 21.51
  • Monday was down -0.70 points or -3.17% at 21.35

Downside volume:

  • Friday: 2 out of the 22-downside had higher than the 3-month average volume;
  • Thursday: 15 out of the 22-downside had higher than the 3-month average volume;
  • Wednesday: 5 out of the 17-downside had higher than the 3-month average volume;
  • Tuesday: 3 out of the 20-downside had higher than the 3-month average volume;
  • Monday: 2 out of the 4-downside had higher than the 3-month average volume;

 

August, the second month of Q3 …

Friday closed negative with 12 advancers, 22 decline and 1 flat

Thursday closed negative with 12 advancers, 22 decline and 1 flat

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

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

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:  It was a tough week as “our” universe saw the slippage of buying sentiment as trading stripped value. As I had stated, sector investors should have been prepared for profit-taking.  A, it’s August, B it’s during earnings’ announcements and C, it’s being ignored by value investors.

Remember, the oversold shall rise again …

 

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.