September 10, 2020 7:29pm

As I had stated, “I am NOT buying into these peaks – that I don’t believe they will last while lack of stimulus deal defines granularity of market moves

The Biostage (BSTG +$0.30) Chronicles …  Question#1: define TRANSPARENCY for a publicly listed and traded company. Transparency is when investors have ready access to required financial information about a company, such as management recognition and communication, price levels, market depth, and finally audited financial reports. Questions2: will RMS US LLP STAND behind their audit of “numbers with NO financial staffers or audit committee review at BSTG? Will the SEC will be watching – you betcha’?

Pre-open indication results: 5 Hits and 3 MISS

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.

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The Dow closed DOWN -405.83 points (-1.45%), the S&P closed DOWN -59.77 points (-1.76%) while the Nasdaq closed DOWN -221.97(-1.99%)



Indexes fell sharply in volatile trading on Thursday as the rout in tech — the best-performing sector in the market — resumed after a one-day respite.

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: ain’t lookin’ good but, better than it has been …


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

  • Thursday opened positive at 26/5 and 4 flats, stayed positive at the mid-day at 21/12 and 1 flat, closing negative at 12/20 and 3 flats;
  • Wednesday opened positive at 29/5 and 1 flat, stayed positive at the mid-day at 30/3 and 2 flats, closing positive at 27/5 and 3 flats;
  • Tuesday opened negative at 19/15 and 1 flat, popped positive at the mid-day at 19/14 and 2 flats, at 3 p.m. was negative at 19/25 and 1 flat closing negative at 14/19 and 2 flats;
  • Monday was a market holiday


Pre-open indication results:  4 Hits <sell into strength – BioLife Solutions (BLFS +$0.44), CRISPR Therapeutics (CRSP -$3.45), Editas Medicine (EDIT +$1.70),  Cellectis SA (CLLS +$0.41)> and 3 MISS <Global Blood Therapeutics (GBT -$4.47), Biostage (BSTG +$0.37 – BEING PUMPED), Applied Genetic Technologies (AGTC -$0.23)>


The Biostage (BSTG) Chronicles (continued):

Question#3: WHY is Biostage (BSTG) a WHAT (happened) and WHO (did what and when) company where NOTHING but, SEC Form 8-K BEING the ONLY insight for investors?

Question#4: Required Transparency … the U.S. Securities and Exchange Commission (SEC) primary goal is to protect investors by ensuring a fair and orderly functioning of the financial markets. Companies must also file an annual report as well as interim reports such as 8Ks, which contain pertinent financial information (such as the of PRIVATE PLACEMENT SHARES and valuation models that substantiate value? Time for a referral – RMS US LLP?

Question#5: Doesn’t the SEC REQUIRE a statement of stockholders' equity which records all the changes to shareholders' equity, which also covers occurrences during periods of time. These changes might include any share buybacks (since DST capital and BSTG are inextricably linked)?  ANY stock issuance NEEDS to be UNDERSTAND as to the total number of outstanding shares, float and any OTHER vehicles utilized as private placement s and their amounts – so they are WHAT?

Question#6: WILL we as U.S publicly TRADED INVESTORS be shocked by the disparity of private placement shares and warrants outstanding?

Question#7: How can management, public investors and Chinese private placement investors JUSTIFY the -735.56% ROE (return of equity)?


Key metrics:

  • Sector volume was LOW with 5 of the 12-upside having higher than the 3-month average volume and the 4 of 20-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 12-upside were +0.64% (NTLA) to +27.41% (BSTG) while the 20-downside ranges from -0.93% (RGNX) to -7.74% (GBT); 


Hammered in today’s market:

  • Global Blood Therapeutics (GBT), CRISPR Therapeutics (CRSP), bluebird bio (BLUE), Ultragenyx (RARE), Alnylam Pharmaceuticals (ALNY) to name 5 of the 20 declining of the 35 covered

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), Sage Therapeutics (SAGE), Vericel (VCEL), Fate Therapeutics (FATE), BioLife Solutions (BLFS) to name 5 of the 12 inclining of the 35 covered


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

  • Thursday, the IBB closed down -1.69% and XBI also closed down -1.56%
  • Wednesday, the IBB closed up +1.95% and XBI also closed up +2.21%
  • Tuesday, the IBB closed down -1.86% and XBI also closed down -1.35%
  • Monday was a market holiday


Thursday’s (12 of 12) incliners:

  • ReNeuron (RENE.L +$6.00);
  • Sage Therapeutics (SAGE +$2.65 after Wednesday’s +$0.57 and Tuesday’s -$0.63);
  • Vericel (VCEL +$0.58);
  • Fate Therapeutics (FATE +$0.45 after Wednesday’s +$0.88 and Tuesday’s -$0.70);
  • BioLife Solutions (BLFS +$0.37 after Wednesday’s +$1.08);
  • Cellectis SA (CLLS +$0.41 after Wednesday’s +$0.79);
  • Biostage (BSTG +$0.37 after Wednesday’s -$0.12);
  • Brainstorm Cell Therapeutics (BCLI +$0.37);
  • Bellicum Pharmaceuticals (BLCM +$0.24);
  • Intellia Therapeutics (NTLA +$0.12 after Wednesday’s +$1.35 and Tuesday’s -$0.65);
  • Verastem (VSTM +$0.03);
  • Solid Biosciences (SLDB +$0.02);

Thursday’s (10 of 20) decliners:

  • Global Blood Therapeutics (GBT -$4.47 after Wednesday’s -$0.98);
  • CRISPR Therapeutics (CRSP -$3.45 after Wednesday’s +$3.79, Tuesday’s-$0.56 following Friday’s -$3.67);
  • bluebird bio (BLUE -$2.50 after Wednesday’s +$0.96);
  • Ultragenyx (RARE -$2.06 after Wednesday’s +$3.35, Tuesday’s -$2.83 following Friday’s +$2.28);
  • Alnylam Pharmaceuticals (ALNY -$1.87);
  • Ionis Pharmaceuticals (IONS -$1.63);
  • uniQure NV (QURE -$0.97);
  • Mesoblast (MESO -$0.71);
  • Editas Medicine (EDIT -$0.55 after Wednesday’s +$1.70 and Tuesday’s -$1.22);
  • MiMedx (OTC Pink sheets: MDXG -$0.39 after Wednesday’s -$0.05);

Closing flat: 3 – Athersys (ATHX), Pluristem (PSTI) and Stemline Therapeutics (STML – acquired)


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

  • Thursday’s percentage (%) of the 12-upside were +0.64% (NTLA) to +27.41% (BSTG) while the 20-downside ranges from -0.93% (RGNX) to -7.74% (GBT); 
  • Wednesday’s percentage (%) of the 5-upside were +0.06% (ALNY) to +7.73% (NTLA) while the 27-downside ranges from -0.40% (ADRO) to -14.19% (AGTX); 
  • 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); 
  • Monday was a market holiday


Sentiment and a few daily indicators:

Senate Republicans have failed to advance their narrowly tailored coronavirus stimulus package, dimming prospects that the U.S. economy will receive another fiscal boost before the November presidential.

The measure faced unanimous opposition from Senate Democrats …

  • Thursday 6.38 cases
  • Wednesday 6.32 cases
  • Tuesday 6.31 cases
  • Monday was a holiday

Thursday’s day’s death rate totaled 191,536 after Wednesday’s 189,600, Tuesday’s 189,366 following Monday’s miss (my bad) after Friday’s 186,800 and last Thursday’s 185,700 <Johns Hopkins University>



Upside volume: 

  • Thursday: 5 out of the 12-upside had higher than the 3-month average volume;
  • Wednesday: 1 out of the 27-upside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 14-upside had higher than the 3-month average volume;
  • Monday was a holiday

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was up +0.90 points or +3.12% at 29.71
  • Wednesday was down -2.65 points or -8.42% at 28.81
  • Tuesday was up +0.71 points or +2.31% at 31.46
  • Monday was a holiday

Downside volume:

  • Thursday: 4 out of the 20-downside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 5-downside had higher than the 3-month average volume;
  • Tuesday: 3 out of the 19-downside had higher than the 3-month average volume;
  • Monday was a holiday


September, the third month of Q3 …

Thursday closed negative with 12 advancers, 20 decliners and 3 flats

Wednesday closed positive with 27 advancers, 5 decliners and 3 flats

Tuesday (9/10) closed negative with 14 advancers, 19 decliners and 2 flats

Monday was a holiday 

Friday closed negative with 5 advancers, 28 decliners and 2 flats

Thursday closed negative with 2 advancers, 32 decliners and 1 flat

Wednesday closed negative with 18 advancers, 25 decliners and 2 flats

Tuesday (9/1) closed negative with 4 advancers, 29 decliners and 2 flats


The Bottom line:  Some say it just as well as I would if not better, so it’s a validation: “Wednesday witnessed a partial recovery ... but we do believe that the switchback ride of the last 5 weeks will have placed at least a temporary cap on the powerful advance that has taken place since March,” Michael Shaoul, chairman and CEO of Marketfield Asset Management. <CNBC>

“This is not to say that the damage is irreversible, particularly if key support at the 50‐day moving average manages to hold in the coming sessions, but it will probably take a few weeks before the September 2nd high can be fully tested or surpassed.”

Amen … however, jobless claims disappoint - labor market stats still point to a long way to go in terms of hiring or re-hiring.

Thursday, the profit takers skimmed the table …


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.