September 9, 2020 8:10am
If and as it sustains
Pre-open indications: 1 BUY and 7 SELLs
The Biostage (BSTG) Chronicles … the deck hands are leaving a sinking ship, another director resigned; this time, the chair of the Audit Committee, effective immediately. The other audit committee member and director left five (5) months ago. Funny as the VP of Finance EXITED 8/24 <read more>
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Dow futures are UP +0.47% (+128 points), S&P futures are UP +0.70% (+23 points) and NASDAQ futures are UP +1.44% (+160 points)
U.S. stock futures rebounded on Wednesday as investors snapped up technology shares that were pummeled in the previous three sessions;
European stocks advanced hopefully ignoring the technology-led rout with the pan-European Stoxx 600 climbed +0.8% by mid-morning;
Asia-Pacific stocks declined with technology shares regionally seeing losses as the MSCI Asia ex-Japan index declined -1%.
The recent sell-off reflects an accumulation of investor worries centered on the performance of technology and growth stocks.
Interesting rumor and potential thesis of the decline, “Shares of Japanese conglomerate Softbank Group fell 2.87%. The stock has plunged more than 10% since its Friday close (Financial Times report identified the firm) as the “Nasdaq whale” that bought billions of dollars in technology company stock options over the past month.” <CNBC>
Tuesday night’s post: RegMed Investors’ (RMi) closing bell: “why, the beating? There is no pulse … It’s oversold, speculative and sentiment is in the toilet without news of any accomplishment i.e. complacent with profit taking being the extreme”
- The Nasdaq closed DOWN -465.44 (-4.11%)
- The IBB closed down -1.86% and XBI also closed down -1.35%
- Sector volume was LOW with 4 of the 14-upside having higher than the 3-month average volume and the 3 of 19-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.71 points or +2.31% at 31.46
- Tuesday’s percentage (%) of the 14-upside were +0.13% (ALNY) to +8.89% (BSTG) while the 19-downside ranges from -0.06% (VCEL) to -5.26% (ADRO);
Q3 so far:
- September, 5 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:
Biostage (BSTG) closed up +$0.12 to $1.47 following Friday’s close at $1.35, Thursday’s -$0.13 to $1.30 and last Wednesday’s +$0.03 to $1.48,
Analysts ask questions … and usually don’t get a response from this company. Wonder WHY the “EXODUS”?
Question #1 – WHY the IMMEDIATE resignation as a member of the board directors (BOD) and the LAST and ONLY member of the audit committee left (the other left in April) – four (4) directors remain – three (3) Chinese who are non-residents. Maybe they should update their website? SEC Form 8-K filed 9/9 – resignation was rendered on 9/3 – a little late in notification to SHARE HOLDERS (9/11) of a SERIOUS material FACT).
Question#2; WHO will sign the Q3 quarterly now that the VP of Finance is gone who recently took a “temporary leave of absence for personal reasons” effective 8/24?
Question#3; Are these issues related and WHAT and WHERE does RMS - the accounting firm STAND with NO substantiation from an audit board member or a principal accounting person?
SELL into any Strength:
AxoGen (AXGN) closed down -$0.16 to $11.44 following Friday’s $11.80 and has a negative -$0.16 or -1.41% aftermarket indication and a short ration of 4.81;
CRISPR Therapeutics (CRSP) closed down -$0.56 to $81.46 after Friday’s $82.02 and has a negative -$0.47 or -0.58% aftermarket indication having seen a high 9/1 at $93.42, a 52-week change of +77.53 and a short percentage (%) of float of 7.35;
Editas Medicine (EDIT) closed down -$1.22 to $29.25 after Friday’s $30.47 and a 52-week change of +19.35% with a short percentage (%) of float of 14.83%;
Intellia Therapeutics (NTLA) closed down -$0.65 to $17.47 after Friday’s $18.12 and has a negative -$0.17 or -0.97% after market indication, a 52-week change of +26.01% and a short percentage (%) of float of 26.11% (10.96 million shares);
Sage Therapeutics (SAGE) closed down -$0.63 to $51.03 after Friday’s $ and has a negative -$0.14 or -0.27% aftermarket indication with a short percentage (%) of float of 19.32%;
Global Blood Therapeutics (GBT) closed down -$0.26 to $58.74 after Friday’s $ and has a positive +$0.90 or +1.15% aftermarket indication on news of entering into an exclusive agreement with Biopharma-Middle East and Africa (Biopharma-MEA) to distribute Oxbryta® (voxelotor) tablets in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, collectively known as the Gulf Cooperation Council (GCC) region. There are estimated to be more than 100,000 people age 12 years and older in this region living with sickle cell disease (SCD).
SELL into Strength
Fate Therapeutics (FATE) closed down -$0.70 to $30.41 and has a positive +$0.04 or +0.14% aftermarket indication, a 52-week change of +62.88% and a short percentage (%) of float of 19.86;
The BOTTOM LINE: sticking to last night’s (Tuesday’s) review; “Profit-taking and speculation surrounds individual stocks in “our’ universe of RegMed, cell and gene therapy equities.”
- It’s oversold, speculative and sentiment is in the toilet without news of any accomplishment i.e. complacent with profit taking being the extreme
As the sessions of extremes widen, more stocks are infected.
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.