September 11, 2020 7:45am

Volatility seems to plays better than fundamentals

Pre-open indications: 3 BUYs and 1 SELL

The Biostage (BSTG) Chronicles … Question#1; WHO is left - the number of lab scientists is dwindling by the week, there is an empty building that NO one goes to. WHAT is the company waiting for – the lack of clinical trial initiation?

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*********** Remember 9/11 and NEVER forget - that infamous day 19 years ago****************

Dow futures are UP +0.73% (+199 points), S&P futures are UP +0.89% (+30 points) and NASDAQ futures are UP +0.88% (+100 points)

 

U.S. stock futures were to open higher on Friday after a volatile short week;

European markets were mixed as investors monitored tense negotiations between the U.K. and the European Union while the pan-European Stoxx 600 hovered around the flat line;

Asia Pacific markets were regionally mixed with Mainland Chinese stocks higher by their close as the MSCI Asia ex-Japan index added 0.34%.

 

Data Docket: the latest reading on the monthly U.S. consumer price index is set for release Friday at 8:30 a.m.

 

Henry’omics:

After a weak start of the month of September, we’re chasing the possible ghost of past value.

The tire searing road work i.e. leaving rubber on a path of appreciation only works to ruin tires and wallets by smoke of burning petroleum oils.

 

Thursday night’s post: RegMed Investors’ (RMi) closing bell: “right again as sector weakens; as I had stated, “I am NOT buying into these peaks – I don’t believe they will last while lack of stimulus deal defines granularity of market moves”

  • The Nasdaq closed DOWN -221.97(-1.99%);
  • The IBB closed down -1.69% and XBI also closed down -1.56%;
  • 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;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.90 points or +3.12% at 29.71;
  • 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); 

 

 Q3 so far:

  • September, 1 positive close, 6 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 up +$0.37 on small volume (1098 shares) after Wednesday’s -$0.12 (25,000 shares traded), Tuesday’s +$0.12 to $1.47 (with 1100 shares traded) following Friday’s close at $1.35 (with 800 shares traded).

Analysts ask questions … and usually don’t get a response from this company. Wonder WHY?

Question#2: WHO is answering the phone from investors; nobody there, the rent is still due?

Question#3: Should investors be worried about accounting standards with the LACK of ANY accounting staff at BSTG – RMS US LLP accounting firm partners ARE responsible for putting together financial statements, and are expected to abide by accounting standards, as well as pay careful QUESTION any suspicion of MISPLACED labilities and payables. Let’s HOPE, they help to WEED out and eliminate the risk that … could lead to … mistakenly being without ‘things” being FOUND and, in sinister cases, making sure to weed-out misplaced or creative ways to cook the books?”

Question#4: Has BSTG hired a CRO (clinical regulatory organization) to organize the clinical initiatives since there is an approved IND? WHAT about “medical monitors” have they been agreed to and contracted?

Question#5: Has the Scientific Advisory Board (SAB) – Stephen F. Badylak DVM, PhD, MD, Joseph Philip Vacanti, MD; Charles S Cox, MD and Christine Finck, MD been advised of the management CHANGES, the  EXODUS of BOD audit committee member and VP of Finance, loss of senior and junior scientists and especially the cash position and debt ($404,211.00 – questionably received PPP loan through BofA) of the company?

 

Sell to BUY:

CRISPR Therapeutics (CRSP) closed down -$3.45 to $81.80 after Wednesday’s +$3.79, Tuesday’s -$0.56 to $81.46 and last Friday’s $82.02 and has a positive +$1.20 or +1.47% aftermarket indication having seen a high 9/1 at $93.42, a 52-week change of +77.46% and a short percentage (%) of float of 7.35;

Editas Medicine (EDIT) closed down -$0.55 to $30.40 and has a positive +$1.10 or +3.62% pre-market indication following news of the U.S. Patent and Trademark Office (USPTO) issuing a decision in an interference between the University of California, the University of Vienna, Emmanuelle Charpentier (CVC) and the Broad Institute, Inc. (Broad) regarding certain Broad CRISPR/Cas9 patents Editas Medicine exclusively licenses. The USPTO granted Broad’s motion for priority benefit while denying CVC priority benefit to its two earliest provisional patent applications. As a result, Broad will enter the priority phase of the interference as “Senior Party” while CVC remains the “Junior Party” for purposes of determining which entity was the first to invent the inventions at issue.

Maintaining BUY:

Global Blood Therapeutics (GBT) closed down -$4.47 to $53.29 after Wednesday’s $57.76 , Tuesday’s $58.74 and last Friday’s $59.00  and has a positive +$1.21 or +2.27%  aftermarket indication on under-appreciated 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).

 

The BOTTOM LINE: Maintaining my position, “I am NOT buying into these peaks – I don’t believe they will last.”

Decent early gains quickly faded, and many of Wednesday highs were just a sample of speculation or a response to being oversold. The next couple of sessions will be crucial in judging the possible extent of the pullback …

Same theme, different session: “Skim if you can trim, buy if it will fly and sell if compelled!”

 

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.