September 1, 2020 7:56am

Pre-open indications: 0 BUYs and 7 SELLs

The Biostage (BSTG) Chronicles – more executive musical chairs (?) <Read more>

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Dow futures are DOWN -0.13% (-37 points), S&P futures are UP +0.16% (+5 points) and NASDAQ futures are UP +0.76% (+92 points)

 

Futures are pulling back to a mixed opening on Tuesday’s beginning of the new month of September;

European markets opened higher while the pan-European Stoxx 600 index rose over +0.6% higher in early morning deals;

Asia Pacific markets were mixed as a private survey showed Chinese manufacturing activity in August expanding at its fastest pace in nearly 10 years as the MSCI Asia ex-Japan index gained +0.39%.

 

Data Docket: On Monday, China’s official manufacturing PMI for August came in slightly below expectations at 51.0, according to the country’s National Bureau of Statistics.

  • In Europe, Markit manufacturing PMI data for the euro zone will be released at 9 a.m. ET. The euro zone’s unemployment rate for July and consumer price index for August will both follow slightly later in the session.

 

Henry’omics:

The S&P 500(+7%) and the Dow (+7.6%) wrapped their best August in more than 30 years while the Nasdaq (+9.6%) posted its best monthly performance since 2000

Yet again, HIGHS scare me ...

Monday night’s post title – “rebound; lately, always a bounce away from a meltdown”

  • The Nasdaq closed UP +79.82 (+0.68%);
  • The IBB closed up +1.92% and XBI also closed up +2.78%;
  • 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;
  • The CBOE Volatility Index (VVIX: INDEX) was up +3.45 points or +15.03% at 25.41;
  • 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); 

Q3 so far:

  • August, 10 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:

Maintaining Sell:

Biostage (BSTG) closed UP +$0.02 to $1.50 after Friday’s -$0.46 or -23.71% to $1.48 with 71,846 shares traded (the highest in YEARS),

  • Keep “PUMPING” the share purchases – it’s costing you more and the less goes to the operations of the company.

Analysts ask questions … and usually doesn’t get a response from this company. Wonder WHY … what is the “HIDE”?

Question #1 – What happened - that an 8-K stated that 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 on the website? And he had already left the company once before this year (with the controller and NO notice in March and then reappeared as a consultant because NO ONE (i.e. remaining executives were willing to sign the K and Q for last year, 2019); which followed the CEO leaving and an audit board of director abruptly resigning. WHY now, he had already left, came back and again a temporary leave of absence?

Question #2: Investors want to KNOW what is behind the musical chairs of senior executives leaving … transparency is very important because investors NEED to understand what's going on?

Question #3: WHO is signing the Q3 filing? Another new meaning to “going concern”.

SELL into STRENGTH:

CRISPR Therapeutics (CRSP) closed up +$2.75 to $93.46 after Friday’s +1.29 to $90.71, Thursday’s +$0.51 to $89.42, Wednesday’s $88.91 and last Tuesday’s $88.92 with a negative -$0.06 or -0.06% aftermarket indication;

Editas Medicine (EDIT) closed up +$0.27 to $35.23 after Friday’s $34.96, Thursday’s $34.42, Wednesday’s $34.63 and last Tuesday’s $35.02 and has a negative -$0.18 or -0.51% aftermarket indication

Mesoblast (MESO) closed up +$0.02 to $19.36 after Friday’s +$0.70 to $19.34, Thursday’s +$0.25 to $18.58, Wednesday’s +$0.67 to $18.33 and last Tuesday’s $17.66 with a negative -$0.03  or -0.15% aftermarket indication with a 52-week change of +300.41% - time to lighten the “load”;

uniQure NV (QURE) closed up +$1.68 to $40.77 after Friday’s +$0.65 to $39.09, Thursday’s $e8.44, Wednesday’s $38.04 and last Tuesday’s $39.85 with a positive +$2.17 or +5.32% aftermarket indication and a 52-week low of 36.20 and a high of $78.69;

Ionis Pharmaceuticals (IONS) closed up +$1.71 to $54.50 and has a positive +$0.42 or +0.77% after market indication on news of soaring 60% on Monday after announcing that it had agreed to buy the remaining shares it did not own of Akcea Therapeutics (AKCA). The deal follows the release of positive phase for $18.15 per share, a premium of about 63% compared to its closing price on Friday. The all-cash deal values Akcea at roughly $500 million;

Intellia Therapeutics (NTLA) closed up +$0.24 to $21.58 after Friday’s $21.34, Thursday’s $20.47, Wednesday’s $20.75 and last Tuesday’s $20.82and has a negative -$0.14 or -0.65%;

 

The BOTTOM LINE: A new month and a clean slate

 

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.