September 8, 2020 8:07am

Let’s hope our universe of RegMed, cell and gene therapy companies are not along for the ride

Pre-open indications: 1 BUY and many SELLs and watch for the oversold to go green

The Biostage (BSTG) Chronicles … Question: Shunfu Hu, VP of Business Development and Operations are you in the habit of “misplacing” financial “papers”? <read more>

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Dow futures are DOWN -0.74% (-207 points), S&P futures are DOWN -1.29% (-44 points) and NASDAQ futures are DOWN -2.81% (334 points)

 

Futures on Nasdaq were set to fall sharply early Tuesday after RegMed, stem, cell and gene therapy shares suffered their worst sell-off in months last week;

European markets pulled back further as declines weighed on investor sentiment as the pan-European Stoxx 600 slid- 0.9% below the flatline by mid-morning;

Asia-Pacific markets were higher as Japan released revised gross domestic product figures for Q2 as the Nikkei 225 advanced +0.8% while the MSCI Asia ex-Japan index gained 0.32%.

 

Data Docket: Geopolitical developments could also weigh on investor sentiment. China accused the U.S. of “bullying” as it launched a global data security initiative on Tuesday. That came as Washington continues to pressure China’s largest tech firms and convince countries around the world to block them. President Donald Trump also recently entertained the idea of “decoupling” from China, or refusing to do business with the country. <CNBC>

 

Henry’omics:

Ain’t lookin’ good for coming-off a holiday laden weekend and markets being closed on Monday.

 

Friday night’s post: RegMed Investors’ (RMi) closing bell: a spasmodic trading week, what goes down … https://www.regmedinvestors.com/articles/11533

  • The Nasdaq closed DOWN – 144.97 (-1.27%);
  • The IBB closed down -0.48% and XBI also closed down -1.14%
  • Sector volume was LOW with 4 of the 5-upside having higher than the 3-month average volume and the 8 of 28-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -2.85 points or +8.48% at 30.75
  • Friday’s percentage (%) of the 5-upside were +0.33% (IONS) to +7.52% (BLCM) while the 28-downside ranges from -0.89% (SGMO) to -8.01% (PGEN);

 

 Q3 so far:

  • September, 4 negative closes and 1 holiday
  • 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 flat at $1.35 after Thursday’s -$0.13 to $1.35, Wednesday’s +$0.03 to $1.48, Tuesday’s -$ 0.05 to $1.45 and last Monday’s +$0.02 to $1.50,

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

Question #1 – Shunfu Hu, VP of Business Development and Operations have you lost or “misplaced” liability billing or account payables that had been approved by the chairman Jason Chen? 

•             Question#2: Is your accounting firm, RMS aware of your role? A “whole” lot of e-mails (inches of e-mail pages to Jason Chen, chairman of the board) … could say so!

•             Question#3: Should the SEC take or get a “peek”?

 

Post Friday’s close, quite a few had downside aftermarket indications:

Editas Medicine (EDIT);

BioLife Solutions (BLFS);

Mesoblast (MESO);

Applied Genetic Technologies (AGTC);

uniQure NV (QURE);

Sage Therapeutics (SAGE)

 

BUY:

CRISPR Therapeutics (CRSP) closed down -$3.67 to $82.02 and had (Friday) a positive +$0.30 or 0.37% aftermarket indication

 

The BOTTOM LINE: millions of dollar value were wiped from the sector past week as Nasdaq saw its worst decline since the period ending March 20 and its first drop after five (5) consecutive gains.

On Friday, as markets closed, I saw movement (small) with a few equities were headed up in the last hours.

And, US markets were shut today on Monday, the Labor Day holiday.

 I believe extreme oversold conditions EXIST and it could in some cases get WORST in MOST of the RegMed, stem, Cell and gene therapy companies as well as the depreciation of valuations will be flipped in this week’s market.

We need to push on the upside of the seesaw ...

 

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.