August 31, 2020 9:05pm

Lately, always a bounce away from a meltdown

Pre-open indication results: 5 MISS and 2 MISS

News: Ionis Pharmaceuticals (IONS) to acquire remaining 24% of common stock of Akcea Therapeutics (AKCA) it does not already own for $18.15 per share in cash

The Biostage (BSTG +$0.02 or +1.35% <it was down -$0.10 until after 3 p.m.> after Friday’s -$0.46, -23.71%) Chronicles. New 8-K as of 8.24.2020, the VP of Finance has taken a temporary leave of absence for personal reasons. Questionable, he was a consultant and NOT listed as an officer of the company and WHO is signing the Q3 filing? Another new meaning to “going concern” and the art of deception.

An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector.  I say today what others won't, so you can do what others can't.

Subscription is coming, my gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times!

 

The Dow closed DOWN -223.82 points (-0.78%), the S&P closed DOWN -7.70 points (-0.22%) while the Nasdaq closed UP +79.82 (+0.68%)

 

Pre-open indication results: 5 HITS < bluebird bio (BLUE +$2.55), Sell into strength – CRISPR Therapeutics (CRSP +$2.75), Pluristem (PSTI +$0.47), Mesoblast (MESO +$0.02), uniQure NV (QURE +$1.68) – profitable, always good to lighten the “load” and 2 MISS < Biostage (BSTG +$0.02), Applied Genetic Technologies (AGTC -$0.03)>

 

Henry’omics:

Indexes were mixed on Monday as the S&P 500 and Dow wrapped up their best August performances since the 1980s with the Nasdaq outperformed with a gain.

  • The S&P 500 is up 7% month to date, putting the broader-market index on track for its biggest August gain since 1984. The Dow has rallied more than 7.6% this month and is also headed for its best August in 36 years.

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: The month’s end is upon us and the beginning of the last sessions of Q3...  https://www.regmedinvestors.com/articles/11524

 

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

  • Monday opened positive at 17/16 and 2 flats, stayed positive at the mid-day at 24/10 and 1 flat, closing positive at 24/8 and 3 flats;
  • Friday opened positive at 17/15 and 3 flats, flipped negative at the mid-day at 12/21 and 2 flats, closing positive at 27/8 and 2 flats;

 

Key metrics:

  • Sector volume was LOW with 4 of the 24-upside having higher than the 3-month average volume and the 1 of 8-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 24-upside were +0.10% (MESO) to +10.32% (ADRO) while the 8-downside ranges from -0.19% (FIXX) to -4.55% (VSTM); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Vericel (VCEL), Ultragenyx (RARE), Vericel (VCEL), Bellicum Pharmaceuticals (BLCM), Precigen (PGEN), Verastem (VSTM), Applied Genetic Technologies (AGTC), Homology Medicine (FIXX) to name 8 of the 8 declining of the 35 covered

Jumping with share pricing momentum:

  • CRISPR Therapeutics (CRSP), Sage Therapeutics (SAGE), bluebird bio (BLUE), Ionis Pharmaceuticals (IONS), uniQure (QURE) to name 5 of the 24 trading up of 35 covered

 

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

  • Monday, the IBB closed up +1.92% and XBI also closed up +2.78%
  • Friday, the IBB closed up +0.29% and XBI also closed up +0.85%

 

Monday’s (10 of 24) incliners:

  • CRISPR Therapeutics (CRSP +$2.75 after Friday’s +$1.29);
  • Sage Therapeutics (SAGE +$2.73 after Friday’s +$3.14);
  • bluebird bio (BLUE +$2.55 after Friday’s +$0.37);
  • Ionis Pharmaceuticals (IONS +$1.71);
  • uniQure NV (QURE +$1.68 after Friday’s +$0.65);
  • Alnylam Pharmaceuticals (ALNY +$1.23 after Friday’s -$1.64);
  • Global Blood Therapeutics (GBT +$0.75 after Friday’s -$0.53);
  • Regenxbio (RGNX +$0.65);
  • Pluristem (PSTI +$0.47);
  • Fate Therapeutics (FATE +$0.42 after Friday’s +$1.33);

Monday’s (8 of 8) decliners:

  • ReNeuron (RENE.L -$2.60 after Friday’s -$2.60);
  • Ultragenyx (RARE -$0.63 after Friday’s +$1.70);
  • Vericel (VCEL -$0.52 after Friday’s +$0.24);
  • Bellicum Pharmaceuticals (BLCM -0.24);
  • Precigen (PGEN -$0.14);
  • Verastem (VSTM -$0.06);
  • Applied Genetic Technologies (AGTC -$0.03);
  • Homology Medicine (FIXX -$0.02);

Closing flat: 3 – BioLife Solutions (BLFS), MiMedx (OTC Pink sheets: MDXG) and Stemline Therapeutics (STML – acquired)

 

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

  • Monday’s percentage (%) of the 24-upside were +0.10% (MESO) to +10.32% (ADRO) while the 8-downside ranges from -0.19% (FIXX) to -4.55% (VSTM); 
  • Friday’s percentage (%) of the 25-upside were +0.09% (FIXX) to +6.74% (SAGE) while the 8-downside ranges from -0.35% (ADRO) to -23.71% (BSTG); 

 

Sentiment and a few daily indicators:

New cases of the coronavirus are rising in more states across the U.S. compared with a week ago, according to a Johns Hopkins University. New cases nationwide are still falling, though the pace of improvement has slowed. The U.S. reported an average of about 42,100 new cases over the past seven days, down just 1.2% compared with a week ago. <CNBC>

  • Monday 6 cases
  • Friday 5.8 cases

Monday’s death rate totaled 183,200 after Friday’s 180.800, Thursday’s 179,700 after Wednesday’s 178,500 after Tuesday’s 177,773 following last Monday’s 176,800 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 4 out of the 24-upside had higher than the 3-month average volume;
  • Friday: 0 out of the 25-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +3.45 points or +15.03% at 25.41
  • Friday was down -1.51 points or -6.17% at 22.96

Downside volume:

  • Monday: 1 out of the 8-downside had higher than the 3-month average volume;
  • Friday: 2 out of the 8-downside had higher than the 3-month average volume;

 

August, the second month of Q3 …

Monday (8/31) closed positive with 24 advancers, 8 decliners and 3 flats

Friday closed positive with 25 advancers, 8 decliners and 2 flats

Thursday closed positive with 17 advancers, 16 decliners and 2 flats

Wednesday closed negative with 8 advancers, 25 decliners and 2 flats

Tuesday closed positive with 30 advancers, 3 decliners and 2 flats

Monday (8/24) closed negative with 7 advancers, 26 decliners and 2 flats

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

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

Wednesday closed negative with 16 advancers, 17 decliners and 2 flats

Tuesday closed negative with 13 advancers, 20 decliners 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:  August comes to a close today, Monday.

Confidence and sentiment is just too arbitrary while resistance appears from nowhere on the oddest of sessions.

I continue to welcome the upside as the sector was oversold; although certain equities have failings that are being recognized.

But I do feel a correction is coming although it could be mild – September is the end of Q3.

 

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.