August 25, 2020 8:16am
“What light through yonder window breaks?" I ask having thought about the downside trend, “don't swear by the moon” the sector replied …
Pre-open indications: 7 BUYs and 2 SELLs
The Biostage (BSTG) Chronicles - transparency needed <Read more>
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Dow futures are UP +0.71% (+201 points), S&P futures are UP +0.44% (+15 points) and NASDAQ futures are DOWN -0.11% (-13 points)
U.S. stock futures are up Tuesday morning projecting a positive open;
European stocks moved higher following upbeat trade in markets in the U.S. and Asia Pacific as the pan-European Stoxx 600 index opened 0.7% higher;
Asia Pacific stocks were mostly higher while top trade representatives from Washington and Beijing had a call to discuss the implementation of their phase one agreement and the MSCI Asia ex-Japan index gained 0.23%.
Data Docket: the latest consumer confidence and new home sales numbers
Henry’omics:
Optimism is returning as the number of newly confirmed coronavirus infections in the U.S. has dropped; although Aneta Markowska, chief economist at Jefferies, said “high-frequency data on the coronavirus shows economic activity in the U.S. is picking up towards the end of August.”
- Another boost to stock markets comes after news that U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin had a call with Chinese Vice Premier Liu He to “discuss implementation of the historic Phase One Agreement between the United States and China,” according to a USTR statement released Monday evening stateside;
- According to the USTR: “Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement.” <CNBC>
Monday night’s post title – “new highs as sector crashes” … https://www.regmedinvestors.com/articles/11515
- The NASDAQ closed UP +67.92 points (+0.60%);
- The IBB closed down -1.17% and XBI also closed down -2.39%
- Sector volume was LOW with 0 of the 7-upside having higher than the 3-month average volume and the 7 of 26-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.23 points or -1.02% at 22.32
- Monday’s percentage (%) of the 7-upside were +0.20% (PSTI) to +4.52% (VYGR) while the 26-downside ranges from -0.09% (FIXX) to -13.58% (BSTG);
Q3 so far:
- August, 6 positive closes and 10 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 -$0.22 to $1.40 after Friday’s +$0.29 to $1.62, Thursday’s +$0.16, Wednesday’s -$0.18 (was down to $1.00, Wednesday noon) after last Tuesday’s -$0.81. Keep writing those checks to “PUMP” the share price – it’s costing you more and the less goes to the operations of the company.
There still exist the millions of private placement unregistered shares (priced at $3.20, $3.60, $3.70 and now $4.00) existing FAR beyond the registered outstanding and float shares.SO again, why are companies with ‘going concerns”, measured by continual losses, development failures, unfiled INDs and continuous inflated financings – still listed?
Investors want to KNOW …Transparency is very important because investors NEED to understand what's going on: WHAT is the plan “going forward” and HOW many restricted and unregistered shares exist beyond the outstanding?
BUY:
Applied Genetic Technologies (AGTC) closed down -$0.38 to $5.15 after Friday’s $5.53, Thursday’s $5.51, Wednesday’s $5.53 and last Tuesday’s $5.76 and has a positive +$0.02 or +0.39% aftermarket indication. It’s time for a comeback in pricing with news of pre-clinical data validating the transgene (hRPGRco) that is being evaluated in the Company’s ongoing Phase 1/2 clinical trial in patients with X-lined retinitis pigmentosa (XLRP) have been published in the July 15, 2020 print issue of Human Gene Therapy. The studies, which evaluated the safety and efficacy of hRPGRco and another XLRP transgene in a canine model of XLRP, demonstrated stronger expression of hRPGRco than the other transgene at all dose levels evaluated. Following subretinal administration in AGTC’s proprietary rAAV2tYF vector, each of the XLRP transgenes corrected rod-cone opsin mis-localization, which are early markers of the disease, but the hRPGRco transgene demonstrated a broader therapeutic index. Study results also helped to guide the initial dosing in ongoing Phase 1/2 trial. As previously announced, AGTC expects to begin a P 2/3 clinical trial of its XLRP gene therapy candidate in Q1/2021.
Brainstorm Cell Therapeutics (BCLI) closed down -$1.13 to $11.74 after Friday’s $12.87, Thursday’s $12.75, Wednesday’s $13.43 and Tuesday’s $13.86 and has a positive +$0.01 or +0.09% aftermarket indication, also with news of a poster presentation linking MRI measures to functional improvement in Progressive Multiple Sclerosis (MS);
Fate Therapeutics (FATE) closed down -$2.10 to $34.10 after Friday’s $36.12, Thursday’s $36.33, Wednesday’s $36.20 and Tuesday’s $35.86 with a +$0.03 or +0.09% aftermarket indication;
Global Blood Therapeutics (GBT) closed down -$3.15 to $62.61 after Friday’s $65.76, Thursday’s $65.60, Wednesday’s $65.11 and last Tuesday’s $64.48 with a positive +$0.39 or +0.62% aftermarket indication;
Vericel (VCEL) closed down -$0.21 to $16.25 and has news of Biomedical Advanced Research and Development Authority (BARDA), part of the Office of the Assistant Secretary for Preparedness and Response (ASPR) at the U.S. Department of Health and Human Services, has accepted the first shipment of NexoBrid® (concentrate of proteolytic enzymes enriched in Bromelain) as part of its mission to build national preparedness for public health emergencies. The initial BARDA procurement of NexoBrid is valued at $16.5 million, which includes additional quarterly deliveries planned through the end of 2021. In addition, BARDA holds an option to procure additional quantities of NexoBrid through funding of up to $50 million.
SELL to BUY:
CRISPR Therapeutics (CRSP) closed down -$3.87 to $86.59 after Friday’s -$1.30 to $90.46, Thursday’s -$8.88 to $91.76, Wednesday’s +$5.72 to $100.64 and has a positive +$0.31 or +0.36% aftermarket (Friday) indication and a 52-week change of +93.66%;
UniQure NV (QURE) closed down -$0.31 to $38.21 after Friday’s +$0.44 to $38.56, Thursday’s $38.08, Wednesday’s $38.80 and last Tuesday’s $40.84 with a positive +$0.40 or +1.05% aftermarket indication;
SELL into STRENGTH:
Mesoblast (MESO) closed up +$0.19 to $18.70 after Friday’s+$0.80 to $18.51, Thursday’s -$0.07 to $17.71, Wednesday’s -$1.14 to $17.78 and last Tuesday’s -0.89 to $18.92 with NO aftermarket indication with a 52-week change of +286.43% - time to lighten the “load”;
The BOTTOM LINE: In the last five (5) sessions, the IBB has been down -3.66% and the XBI has also been down -4.69% articulating an oversold condition, in MY view. The sector Advance/Decline (A/D) line speaks also …
- Monday opened negative at 14/19 and 2 flats, stayed negative at the mid-day at 8/24 and 3 flats, closing negative at 7/26 and 2 flats;
- 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;
- Last 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;
It’s time to tune into … anticipation, optimism and big expectation backed-up by numbers as tools to utilize in measuring the future.
There is the voting machine for this sector; in the short run, when values get clipped, dip and slip … it’s time to be aggressive in buying some of the depreciated equities.
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.
