October 9, 2020 8:09am

It has been said, “stimulus talks are and will be dictating market action”

Pre-open indications: 5 SELLs and 1 BUY

News: Precigen (PGEN) closed up +$0.03 to $4.41 and has news of Merck KGgA, through its subsidiary Ares Trading S.A. adapting a convertible note with an outstanding principal balance of $25 million to increase its stake in Precigen from approximately 11.6% to 14.8% of outstanding shares, remaining as PGEN's second largest shareholder.

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 +0.42% (+120 points), S&P futures are UP +0.44% (+15 points) and NASDAQ futures are UP +0.32% (+37 points)

 

U.S. stock futures rose early Friday as investors wait a new stimulus bill to enable economic recovery;

European markets edged higher as investors monitor talks on fresh coronavirus relief package stateside as the pan-European Stoxx 600 added 0.3% by late morning,

Asian markets were mixed overnight with mainland Chinese shares surging as they returned to trading following a national holiday, while markets in South Korea and Taiwan were closed on Friday for holidays and MSCI’s broadest index of Asia-Pacific shares outside Japan gained +0.24%.

 

Data Docket:  wholesale trade figures at 10 a.m. ET.

 

Henry’omics:

It’s Friday anything will go … there is a lot of skepticism in thee market and investing universe

The Dow and S&P 500 had their second straight weekly climb; while the Nasdaq was headed for a three-week winning streak. Week to date, the Dow (+2.7%) and S&P 500 (+2.9%) are up while the Nasdaq is up more than 3%.

 

Thursday night’s post: RegMed Investors’ (RMi) closing bell: “slipping and squeaking to a positive close” … https://www.regmedinvestors.com/articles/11581

  • The Nasdaq closed UP +56.38 points (+0.50%);
  • The IBB closed up +0.28% and XBI closed up +0.45%;
  • Sector volume was the usual LOW with 5 of the 18-upside having higher than the 3-month average volume with the increased volume of 5 of 14-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -1.66 points or -5.92% at 26.40;
  • Thursday’s percentage (%) of the 18-upside were +0.17% (MESO) to +7.09% (BLCM) while the 14-downside ranges from -0.16% (AXGN) to -3.53% (NTLA);

Q4’s October, so far: 3 positive and 3 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 flat at $1.51 after Wednesday’s -$0.09 to $1.51, Tuesday’s -$0.01 to $1.60 <after being up +$0.28> after Monday’s +$0.01 to $1.61 after Friday’s +$0.03 to $1.60.  Question#1: WHAT is the role of Mrs. bin Zhao of Weston, Mass. the head of DST Capital in the running of the company – she is the financing arm?

 

Maintaining SELL into Strength:

CRISPR Therapeutics (CRSP) closed down -$2.29 to $95.39 after Wednesday’s +$9.96 to $97.68 and has a POSITIVE +$0.41 or +0.43% aftermarket indication. New highs over gene editing Nobel prize are time to sell “some” and a 52-week change of +165.36%;

Intellia Therapeutics (NTLA) closed down -$0.84 to $22.94 after Wednesday’s +$2.77 to $23.78 and has a POSITIVE +$0.06 or +0.26% aftermarket indication. New highs over gene editing Nobel prize are time to sell “some” and a 52-week change of +118.87%;

Fate Therapeutics (FATE) closed up +$0.94 to $44.98 after Wednesday’s +$2.48 to $44.04 and has NO an aftermarket indication with a 52-week change of +214.57%;

Sage Therapeutics (SAGE) closed up +$1.99 to $67.53 after Wednesday’s $65.54, Tuesday’s $64.12 and Monday’s $60.15 and last Friday’s $58.41 with a -$0.03 or -0.04% aftermarket indication

 

BUY

Precigen (PGEN) closed up +$0.03 to $4.41 and has news of Merck KGgA, through its subsidiary Ares Trading S.A., has elected to voluntarily convert a convertible note with an outstanding principal balance of $25 million to increase its stake in Precigen from approximately 11.6% to 14.8% of outstanding shares, remaining as PGEN's second largest shareholder. As previously announced in December 2018, Merck KGaA, Darmstadt, Germany, reassigned to Precigen exclusive chimeric antigen receptor T-cell (CAR-T) development rights that were part of an earlier transaction between the companies. This reassignment allowed Precigen to regain full autonomous development of its proprietary CAR-T technology platform in exchange for $150 million in stock and a $25 million convertible note, allowing Merck KGaA, Darmstadt, Germany, to maintain an investment in the future potential of PGEN's next-generation CAR-T development.

 

The BOTTOM LINE:  Reiterating, “As I stated Tuesday, Wednesday and Thursday, “profit now, a market storm is brewing.”

A quote from another to review, ““If you look at stock prices, I think some of them are ridiculously high but going short on them proves to be a very, very expensive operation,” Carl Icahn, billionaire investor and chairman of Icahn Enterprises said at the 13D Monitor Active-Passive Investor Summit.

There is 26 days left to election voting – uncertainty will be an undercurrent!

 

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.