Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) pre-open: volatility, seasonality and political uncertainty undermine markets

September 24, 2020 8:23am

As the sector’s volume remains low, liquidity becomes more pronounced

Pre-open indications: 5 BUYs and 1 SELLs

What I provide is an “intelligence daily” to ensure that shareholders are kept apprised based on a 24-hour surveillance of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets

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Dow futures are DOWN -0.01% (-2 points), S&P futures are DOWN -0.05% (-1 points) and NASDAQ futures are DOWN -0.18% (-20 points)

Stock futures were flat or weak in Thursday pre-open after a volatile overnight session with wild swings in and out of negative territory;

European markets fell as hopes for pandemic economic recovery falters amid a second wave of cases as the pan-European Stoxx 600 fell -0.9% by mid-morning;

Asia-Pacific markets also saw losses, following a drop on Wall Street Wednesday due to uncertainty over the pandemic while the MSCI Asia ex-Japan index fell 1.93%.

Data Docket: investors will get a read on the state of the economic recovery when U.S. jobless claims are released at 8:30 a.m. ET. Fed Chair Powell and Secretary of the Treasury Mnuchin will also appear before the Senate banking committee.

Henry’omics:

There wasn’t been one specific reason to explain the selling …

September numbers show that the S&P 500 has declined -7.5%, the Dow has shed -5.8% and the Nasdaq has fallen -9.7%

Wednesday night’s post: RegMed Investors’ (RMi) closing bell: many are called out but, few feel the upside. Many equities tumble as the Nasdaq “poops” the bed as sentiment curdles”

The Nasdaq closed DOWN -330.65 points (+3.02%);
The IBB closed down -1.27% and XBI closed down -3.17%;
Sector volume was LOW with 3 of the 7-upside having higher than the 3-month average volume and more PRONOUNCED with the 9 of 27-downside having higher than the 3-month average volume;
The CBOE Volatility Index (VVIX: INDEX) was up +1.72 points or +6.40% at 28.58;
Wednesday’s percentage (%) of the 7-upside were +0.28% (GBT) to +14.57% (BSTG) while the 27-downside ranges from -0.08% (RARE) to -9.64% (PGEN);

Q3 so far:

September, 6 positive closes, 10 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 +$0.22 to $1.73 after Tuesday’s -$0.23 to $1.51 and Monday’s +$0.19 to $1.74, Question#1: Why and WHAT excuses cause a total Chinese wall of communication to public shareholders? Rhetorical or redundant?

Maintaining BUY:

Applied Genetic Technologies (AGTC) closed down -$0.26 to $4.88, after Tuesday’s $5.14, Monday’s $5.35 and last Friday’s $5.49 and last Thursday’s $5.08. Massively OVERSOLD with NO aftermarket indication;

Athersys (ATHX) closed down -$0.06 to $1.91 after Tuesday’s -$0.10 to $1.97 and has a positive +$0.29 or +14.72% pre-market indication on news of MultiStem® cell therapy was granted Regenerative Medicine Advanced Therapy (RMAT) designation from the U.S. FDA for the acute respiratory distress syndrome (ARDS) program. The aftermarket indication is positive +$0.09 or +4.71%;

Caladrius Biosciences (CLBS) closed down -$0.11 to $1.71 after Tuesday’s $1.82, Monday’s $1.83 following last Friday’s $1.92 and the previous Thursday’s $2.02 a and has a positive +$0.11 or +4.67% aftermarket indication;

Editas Medicine (EDIT) closed down -$1.31 to $31.45 after Tuesday’s $32.76, Monday’s $32.34, last Friday’s $33.90 and the previous Thursday’s $32.70 with a positive +$0.55 or +1.74% aftermarket indication;

Homology Medicine (FIXX) closed down -$0.51 to $10.74 after Tuesday’s $11.25, Monday’s $10.66, Friday’s $11.52 and last Thursday’s $10.50 with a positive +$0.02 or +0.19% aftermarket indication;

The BOTTOM LINE: RegMed, cell and gene therapy sector continued their September droop on Wednesday.

What’s bothering me the most is September’s 6 positive closes, 10 negative closes and 1 holiday track so far, versus August’s 10 positive closes and 11 negative closes. I hate to say it, but I’m telling sector investors that we may have already seen the highs for this month.

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.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.