RegMed Investors’ (RMi) pre-open: bracing for Q4 in October

October 1, 2020 8:04am

Short-term government budget is filed along with limited hopes for a COVID-19 stimulus/recovery/rescue plan with a $2.2 trillion price tag, the White House is willing to sign

Pre-open indications: 6 SELLs into Strength and 3 BUYs

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

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  My gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times

Dow futures are 0.85% (+236 points), S&P futures are UP +0.93% (+31 points) and NASDAQ futures are also UP +1.27% (+145 points)

U.S. stock futures rose early Thursday to kick off a new month and quarter;

European stocks advanced cautiously with economic data and corporate earnings in focus as the pan-European Stoxx 600 climbed+ 0.4% in early trade;

Asia Pacific markets are screwed-up as, Japan’s Exchange halted trading due to a technical issue, while many major markets in the region (those in China, Hong Kong, South Korea and Taiwan) are closed for holidays.

Henry’omics:

Lookin’ good for a positive open, a sign for a better October than September …

Despite Wednesday’s rally, stocks rounded out September with losses, the first month of decline since March.

The House of Representatives delayed the vote on a $2.2 trillion rescue package on Wednesday evening after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to strike a coronavirus aid deal; however, the pair said the conversation would continue. <CNBC>

Wednesday night’s post: RegMed Investors’ (RMi) closing bell: “end of September and Q3, a barometer of markets - increases in COVID cases and hospitalizations”

• The Nasdaq closed UP +82.26 points (+0.74%);
• The IBB closed up +0.59% and XBI closed down -0.23%;
• Sector volume was extremely LOW with 3 of the 13-upside having higher than the 3-month average volume with the 3 of 20-downside having higher than the 3-month average volume;
• The CBOE Volatility Index (VVIX: INDEX) was up +0.10 points or -0.38% at 26.37;
• Wednesday’s percentage (%) of the 13-upside were +0.41% (ALNY) to +5.19% (ADRO) while the 20-downside ranges from -0.26% (AXGN) to -8.01% (NTLA); 

Q4 begins today …

Q3:July through September: 1 neutral, 28 positive and 34 negative closes with 2 holidays

Companies in my headlights – It’s your decision; I provide an idea and context:

Maintaining Sell:

Biostage (BSTG) closed up +$0.05 to $1.60 after Tuesday’s -$0.19 to $1.55, Monday’s +$0.04 to $1.74, Friday’s +$0.19 to $1.70 and last Thursday’s -$0.22 to $1.51. Question#1: $47.19 million has been expended in last six (6) years – where did it go (?); certainly NOT to R&D, admin costs and lawyers ate a whole “lot” of dollars per year and the period. Question#2: WHY did BSTG NOT take the initiative to lessen their building/rent costs when they had an opportunity; wouldn’t the lessening costs have been worth it after these COVID-19 months since employees have been working remotely?

SELL into Strength:

Alnylam Pharmaceuticals (ALNY) closed up +$0.59 to $145.60 after Tuesday’s +$5.20 to $145.01 and Monday’s +$1.50 to $139.81), Friday’s $138.31 and last Thursday’s $133.34 and has a negative -$0.56 or -0.38% aftermarket indication with a 52-week change of +91.41% and a short percentage (%) of 4.27%.

Brainstorm Cell Therapeutics (BCLI) closed up +$0.73 to $16.92 after Tuesday’s +$0.24 to $16.19, Monday’s $15.95, Friday’s $14.95 and last Thursday’s $14.19 with a positive +$0.10 or +0.65% aftermarket indication. Chart is “peaky” and has a 52-week +311.08% - time to let “some” go;

BioLife Solutions (BLFS) closed up again +$0.28 to $28.94 after Tuesday’s +$1.63 to $28.66 after Monday’s +$0.78 to $27.03, Friday’s $26.25 and last Thursday’ $26. with NO aftermarket indication. Chart is “peaky” and has a 52-week +57.85% - time to let some go;

Fate Therapeutics (FATE) closed up +$0.57 to $39.97 after Tuesday’s -$1.10 to $39.40 and Monday’s +$2.70 to $40.50 with a +$0.17 or +0.43% aftermarket indication;

Pluristem (PSTI) closed up +$0.41 to $10.53 after Tuesday’s +$0.63 to $10.12 and has a -$0.16 or -1.52% pre-market indication on news of a development platform of novel biological products, and the Abu Dhabi Stem Cells Center (ADSCC) unveiled their first joint projects in a presentation at the Malta Conferences Foundation, a global conference supported by the kENUP Foundation, a global promoter of research-based innovation with public and societal benefit. PSTI and ADSCC presented the new projects, part of the recently signed Memorandum of Understanding (MOU) aimed at harnessing the power of regenerative medicine.

BUY:

Applied Genetic Technologies (AGTC) closed down -$0.11 to $4.86, after Tuesday’s $4.97, Monday’s $4.91, Friday’s $4.87 and last Thursday’s $4.73 and has a positive +$0.14 or +2.88% aftermarket indication;

Editas Medicine (EDIT) closed down -$0.98 to $28.06 after Tuesday’s $29.04, Monday’s $29.14, Friday’s $29.41and last Thursday’s $29.08 with a positive +$0.19 or +0.68% aftermarket indication;

Solid Biosciences (SLDB) closed down -$0.03 to $2.03 but, started the morning with news of the U.S. FDA lifting the clinical hold placed on the IGNITE DMD P1/2 clinical trial. As announced in July 2020, the FDA had requested further manufacturing information, updated safety and efficacy data for all patients dosed, and provided direction on total viral load to be administered per patient. Based on the Company’s response to these requests, the FDA acknowledged that SLDB satisfactorily addressed all clinical hold questions. with a positive +$1.216 or +60.10% pre-market indication

The BOTTOM LINE:  Reiterating, “I hate to say it, but I’m still telling sector investors that these new highs are fleeting.” Stick by indications …

Positive coronavirus vaccine news also bolstered equities on Wednesday. Regeneron’s treatment improves symptoms in non-hospitalized patients and Moderna’s vaccine shows signs of working in older adults, according to a study – but, won’t be ready before the November election.

However, uncertainty clouds due to election uncertainty and enmities; according to Barrons, “this October (usually a capitulation month) may NOT be a normal month but, better than September which lived-up to its reputation for inflicting pain to portfolios.

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.