August 28, 2020 7:21am
A worried person sees a problem, and a concerned person solves a problem … concern is an assessment of actual danger; worrying anticipates problems. Thus, my concern in writing is separating actionable numbers, intelligence and news into a short-term investment thesis to tackle the “unknown unknowns”
Pre-open indications: 2 BUYs and 4 SELLs
News: and the Biostage (BSTG) Chronicles – the art of deception, who is left in management? <Read more>
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Dow futures are UP +0.56% (+168 points), S&P futures are UP +0.45% (+13 points) and NASDAQ futures are UP +0.09% (+11 points)
Futures are up preparing for an up yet, mixed open as Nasdaq futures are down on Friday morning,
European stocks fell as investors digested a major policy shift by the U.S. Fed and news that Japanese Prime Minister Shinzo Abe is resigning because of health concerns as the pan-European Stoxx 600 dropped -0.17% in mid-morning trade,
Asia Pacific’s major markets were mixed as investors reacted to recent developments from the U.S. Fed, Japanese Prime Minister Shinzo Abe is resigning while the MSCI Asia ex-Japan index rose +0.18%.
Data Docket: consumer spending, personal consumption expenditures as well as consumer sentiment
The S&P 500 reached a new all-time high for a fifth day in a row on Thursday, and briefly topped 3,500 for the first time ever. The Dow gained 160 points for its fifth positive day in six. The Nasdaq underperformed with a 0.3% loss.
So far this week, the S&P 500 is up 2.5%, on pace for its best week since July 2 and its fifth straight week of gains for the first time this year. The Dow and the Nasdaq also have gained more than 2% each week to date.
New highs always bring out the difference between concern and worry – that’s why I speak out and write!
Thursday night’s post title – “frothy and flip-flopping sector provokes a bubble syndrome … https://www.regmedinvestors.com/articles/11521
- The NASDAQ closed DOWN -39.72 points (-0.34%);
- The IBB closed down -0.11% and XBI also closed down -0.81%;
- Sector volume was LOW with 3 of the 17-upside having higher than the 3-month average volume and the 1 of 16-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +1.09 points or +4.68% at 24.35;
- Thursday’s percentage (%) of the 17-upside were +0.07% (RGNX) to +14.12% (BSTG) while the 17-downside ranges from -0.05% (BLUE) to -6% (ADRO);
Q3 so far:
- August, 8 positive closes and 11 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 up +$0.30 to $1.70 (with 8998 shares traded) after Tuesday’s flat at $1.40 (1465 shares traded), Monday’s -$0.22 to $1.40, Friday’s +$0.29 to $1.62 and last Thursday’s +$0.16,
- Keep “PUMPING” the share purchases – it’s costing you more and the less goes to the operations of the company.
More deceptions, check the website – Sumati Sundaram, PhD is NOW the associate director preclinical & translational development at bluebird bio, Jeff Bouchard, Director of Engineering, Manufacturing and Quality has been gone for months (since March).
- 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, a filed IND with NO clinical trial follow-up and continuous inflated financings – still listed?
Investors want to KNOW …Transparency is very important because investors NEED to understand what's going on?
SELL into STRENGTH:
Mesoblast (MESO) closed up +$0.25 to $18.58 after Wednesday’s +$0.67 to $18.33, Tuesday’s $17.66, Monday’s $18.70, Friday’s $18.51, Thursday’s $17.71, Wednesday’s $17.78 and last Tuesday’s $18.92 with a positive +$0.28 or +1.55% aftermarket indication with a 52-week change of +265.14% - time to lighten the “load”;
Pluristem (PSTI) closed up +$0.49 to $10.76 after Wednesday’s +$0.05 and has a pre-market +$0.10 or +0.93% aftermarket indication. Yesterday. There was news of the U.S. FDA has clearing an Expanded Access Program (EAP) for the use of its PLX-PAD cells to treat Acute Respiratory Distress Syndrome (ARDS) caused by COVID-19 outside of the ongoing P2 COVID-19 study in the U.S.
CRISPR Therapeutics (CRSP) closed up +$0.51 to $89.42 after Wednesday’s $88.91, Tuesday’s $88.92, Monday’s $86.59 and last Friday’s $90.46 and has a negative -$0.42 or -0.47% aftermarket indication;
Applied Genetic Technologies (AGTC) closed down -$0.17 to $5.03 after Wednesday’s -$0.14 to $5.20, Tuesday’s $5.34, Monday’s $ 5.15 and last Friday’s $5.53. AGTC and has NO aftermarket indication yet, I believe is oversold;
bluebird bio (BLUE) closed down -$0.03 to $56.38 after Wednesday’s -$2.80 to $56.41, Tuesday’s $59.21, Monday’s $59.16 and last Friday’s $58.92 and has a positive +$0.22 or +0.39% aftermarket indication;
The BOTTOM LINE: Momentum is fragmented, volatility exceeds volume and we shouldn’t base our buying positions in waiting for the new stimulus policies when Congress is “NOT budging”.
To finish Q3 market, project Q4 and understand the potential sector swings in the remainder of 2020, investors need rebalance their risk as necessary, set appropriate return expectations, and ensure their portfolios are aligned with their comfort with risk.
As well as thinking about their buying or selling pace, momentum should always anticipate resistance.
Reiterating, de-risk your portfolio … who are you holding, why did you buy into it, what is it trading at and where does it rank with its comparables - NOW.
The month’s end is coming …
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.