October 6, 2020 8:07am

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

Pre-open indications: 8 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

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 UP +0.32% (+90 points), S&P futures are UP +0.05% (+2 points) and NASDAQ futures are DOWN -0.17% (-19 points)

 

U.S. stock futures were flapping in the breeze early Tuesday after the market had its strongest session in several weeks yesterday;

European stocks recoiled after Monday’s global market rally with the pan-European Stoxx 600 reversed opening gains to hover -0.2% below the flatline;

Asia-Pacific stocks were higher as the Reserve Bank of Australia (RBA) kept its current policy settings on hold, markets in China were closed still on a holiday while MSCI’s broadest index of Asia-Pacific shares outside Japan rose +0.68%.

 

Data Docket: The Labor Department releases its Job Openings and Labor Turnover Survey; the reading comes after Friday’s jobs report for September showed weaker-than-expected. Also, we await a speech from Fed Chair Powell, who is expected to tell the National Association of Business Economists on Tuesday that a new stimulus is needed to keep the economic recovery from stalling.

 

Henry’omics:

Asian stocks advanced albeit slowly, European stocks slipped, U.S. futures are fluctuating – the path to the upside is still BUMPY.

Earnings season is on its way and are expected to drop compared with last quarters as “our” sector contend with a sluggish re-opening.

 

Monday night’s post: RegMed Investors’ (RMi) closing bell: what a difference a session makes; although, there is also “hope” for a new stimulus “deal”… https://www.regmedinvestors.com/articles/11575

  • The Nasdaq closed UP +257.47 points (+2.32%);
  • The IBB closed up +4.26% and XBI closed up +4.94%;
  • Sector volume was the usual LOW with 12 of the 33-upside having higher than the 3-month average volume with the increased volume of 1 of 1-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.33 points or +1.19% at 27.96;
  • Monday’s percentage (%) of the 33-upside were +0.52% (RENE.L) to +13.64% (SLDB) while the 1-downside of -0.30% (MDXG);

Q4’s October, so far: 1 positive and 2 negative closes

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 +$0.01 to $1.61after Friday’s +$0.03 to $1.60, Thursday’s -$0.03 to $1.57, Wednesday’s +$0.05 to $1.60 and last Tuesday’s -$0.19 to $1.55. Question#1: WHAT constitutes a “ZOMBIE” company? Question#2: Since there are NO revenues, exists in an empty building, NO clinical trials with an approved IND and four employees; WHY do they keep raising “very pricy” private placement funds and executing past warrants? Question#3: WHERE is the money going?

Mesoblast (MESO) closed up +$0.77 to $12.80 after Friday’s -$6.53 to $12.03, Thursday’s flat at $18.59, Wednesday’s $18.59 and last Tuesday’s $19.19 and has a NEGATIVE -$0.10 or -0.78% aftermarket indication on last week’s news that the US FDA has issued a Complete Response Letter to its Biologics License Application (BLA) for remestemcel-L for the treatment of pediatric steroid-refractory acute graft versus host disease (SR-aGVHD). While the FDA recommended that MESO conduct at least one additional randomized, controlled study in adults and/or children to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD.

 

SELL into Strength:

Aduro Biotech (ADRO) closed up +$0.59 to $14.60 after Friday’s $14.01 after a 1 to 5 stock split following, Thursday’s $2.86, Wednesday’s $2.43 and last Tuesday’s $2.31 with a POSITIVE +$0.01 or +0.03% aftermarket indication. Chinook Therapeutics (KDNY), a clinical-stage biotechnology company focused on kidney diseases, merged with ADRO and $115 million private placement financing will commence trading today on the Nasdaq under the trading symbol “KDNY.” A game of chance … of risk.

Applied Genetic Technologies (AGTC) closed up +$0.55 to $5.47 after Friday’s $4.92, Thursday’s $5.00, Wednesday’s $4.86 and last Tuesday’s $4.97 with a POSITIVE +$0.13 or +2.68% aftermarket indication.

BioLife Solutions (BLFS) closed up +$0.44 to $29.04 after Friday’s $28.60, Thursday’s $29.42, Wednesday’s $28.94 and last Tuesday’s $28.66 with NO aftermarket indication yet a vey “peaky” chart and a 52-week change of +78.19% - The new acquisition’s revenue won’t show up until Q4 in 2021 release.

Fate Therapeutics (FATE) closed up +$3.80 to $41.89 after Friday’s -$2.52 to $38.09, Thursday’s +$0.64 to $40.61, Wednesday’s +$0.57 to $39.97 and last Tuesday’s -$1.10 to $39.40 with a NEGATIVE -$1.35 or -3.22% aftermarket (Friday) indication;

Solid BioSciences (SLDB) closed up again +$0.57 to $4.75 after Friday’s +$0.72 to $4.18, Thursday’s+$1.43 to $3.46, Wednesday’s $2.03 and last Tuesday’s $2.06 and has a NEGATIVE -$0.10 or -2.11% aftermarket (Friday) indication. 11 months ago, the U.S. FDA shut down Solid Biosciences' (SLDB) "IGNITE DMD" P1/2 clinical trial after one of the young patients involved in the trial suffered a "serious adverse event. Last week, the FDA has "lifted the clinical hold" on its trials, acknowledging that the company has "satisfactorily addressed all clinical hold questions. There is STILL work and patients to be treated.

Vericel (VCEL) closed UP +$1.25 to $20.71 after Friday’s $19.46, Thursday’s $19.58, Wednesday’s $18.53 and last Tuesday’s $18.19 with a NEGATIVE -$0.01 <was -$0.14 or -0.68% at close> or -0.05% aftermarket indication

 

The BOTTOM LINE:  I might be early but, I’m feeling that gut churn after a huge rally from an overreaction which could cause yet another.

It only lasts so long and then; “Puff the Magic Dragon” … aged the downside; today, it might be hard to stay up after a romping positive Monday session.

Profit now, a market storm is brewing.

 

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.