October 13, 2020 8:03am
While investors are waiting for the first of Q3/2020 earnings and any update on a stimulus package.
Pre-open indications: 1 BUY and 8 SELLs
News: Mesoblast (MESO; ASX: MSB) the randomized controlled P3 trial of remestemcel-L on top of maximal care in ventilator-dependent patients with acute respiratory distress syndrome (ARDS) due to COVID-19 infection has surpassed 50% enrollment. The trial’s primary endpoint is reduction in 30-day mortality relative to maximal care. ARDS continues to be the primary cause of death in COVID-19 patients. Has a POSITIVE +$0.19 or +1.58% pre-market indication.
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 DOWN -0.38% (-1090 points), S&P futures are DOWN -0.08% (-3 points) and NASDAQ futures are UP +0.85% (+103 points)
U.S. stock futures were mixed yet the Nasdaq is jumping;
European stocks retreated as the pan-European Stoxx 600 fell 0.4% in early trade;
Asia Pacific stocks were mixed after data from China showed that the country’s exports and imports of goods hit a record in yuan-denominated terms in September;
Data docket: 6:30 a.m. NFIB small-business index; 8:30 a.m.- Consumer price index (period Sept. <Economists polled by FactSet are expecting prices to increase 0.2%. Price rose 0.4% in August, helped by gains in the cost of gasoline>, 8:30 a.m. Core CPI.
- Germany’s ZEW survey of economic sentiment fell by more than expected in October as the coronavirus pandemic, fractious Brexit negotiations and the U.S. election spiked uncertainty for Europe’s largest economy. <CNBC>
Henry’omics:
Earnings’ results are expected to decline significantly; however, traders are hoping for a surprise to the upside.
Monday night’s post: RegMed Investors’ (RMi) closing bell: “speculation primes the market pump, dime it. We still don’t have a stimulus program; the economic recovery is faltering and businesses are failing with increased dangling risks.” … https://www.regmedinvestors.com/articles/11585
- The Nasdaq closed UP +296.32 points (+2.56%);
- The IBB closed up +0.79% and XBI closed up +0.25%;
- Sector volume was the usual LOW with 3 of the 16-upside having higher than the 3-month average volume with the increased volume of 3 of 16-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.07 points or +0.28% at 25.07;
- Monday’s percentage (%) of the 16-upside were +0.44% (QURE) to +5.92% (AXGN) while the 16-downside of -0.52% (ATHX) to -11.78% (PGEN);
Q4’s October, so far: 1 neutral, 4 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 down -$0.01 to $1.50 after Friday’s flat, Thursday’s $1.51 after Wednesday’s -$0.09 to $1.51 and last Tuesday’s -$0.01 to $1.60 <after being up +$0.28> after Monday’s +$0.01 to $1.61. Question#1: WHY did BSTG’s financial staff pay local bills with EFTs to pay bills which generated thousands and upon thousands of dollars < high five (5) figures> being spent when a stamp would have sufficed?
Brainstorm Cell Therapeutics (BCLI) closed down -$0.75 to $16.80 after Friday’s $17.55, Thursday’s $17.73, Wednesday’s $17.01 and last Tuesday’s $16.37 with a NEGATIVE -0.29 or -1.73% aftermarket indication. NEW ATM has big drawdown capabilities – debt;
Maintaining SELL into Strength:
CRISPR Therapeutics (CRSP) closed up +$1.14 to $99.40 after Friday’s +$2.87 to $98.26, Thursday’s -$2.29 to $95.39, Wednesday’s +$9.96 to $97.68 and has a POSITIVE +$0.90 or +0.91% aftermarket (Friday) indication. New highs over gene editing Nobel prize are time to sell “some” and a 52-week change of +167.88%;
Intellia Therapeutics (NTLA) closed down -$2.40 to $23.91after Friday’s +$3.37 to $26.31, Thursday’s -$0.84 to $22.94, Wednesday’s +$2.77 to $23.78 and has a POSITIVE +$0.19 or +0.79% aftermarket indication. New highs over gene editing Nobel prize are time to sell “some” and a 52-week change of +141.27%;
Voyager therapeutics (VYGR) closed up +$0.44 to $12.02 after Friday’s $11.58, Thursday’s $11.90, Wednesday’s $11.42 and last Tuesday’s $10.96 and has a NEGATIVE -$1.67 or -13.89% aftermarket indication;
Sell into Strength:
AxoGen (AXGN) closed up +$0.77 to $13.77 after Friday’s +$0.83 to $13.00 and has NO aftermarket indication but, has a 52-week change of +11.59%. After two (2) strong sessions of a $1.60% upside – it’s a trading suspect;
Fate therapeutics (FATE) closed up +$0.74 to $48.75 after Friday’s $48.01, Thursday’s $44.98, Wednesday’s $44.04 and Tuesday’s $41.56 and has NO aftermarket indication with a 52-week change of +239.77% - there is room to sell “some” as the chart is very “peaky”;
Precigen (PGEN) closed down -$1.67 to $5.02 after Friday’s +$1.28 to $5.69, Thursday’s +$0.03 to $4.41 and had news of Merck KGgA, through its subsidiary Ares Trading S.A increased its stake in PGEN with a NEGATIVE -$0.11 or -2.19% aftermarket indication;
BUY:
Mesoblast (MESO; ASX: MSB) closed down -$0.10 to $12.01 and has a POSITIVE +$0.19 or +1.58% pre-market indication following news that the randomized controlled P3 trial of remestemcel-L on top of maximal care in ventilator-dependent patients with acute respiratory distress syndrome (ARDS) due to COVID-19 infection has surpassed 50% enrollment. The trial’s primary endpoint is reduction in 30-day mortality relative to maximal care. ARDS continues to be the primary cause of death in COVID-19 patients.
- Mesoblast’s lead product candidate, remestemcel-L, is an investigational therapy comprising culture-expanded mesenchymal stem cells derived from the bone marrow of an unrelated donor. It is thought to have immunomodulatory properties to counteract the cytokine storms that are implicated in various inflammatory conditions by down-regulating the production of pro-inflammatory cytokines, increasing production of anti-inflammatory cytokines, and enabling recruitment of naturally occurring anti-inflammatory cells to involved tissues.
The BOTTOM LINE: Reiterating, I’m NOT banking on a stimulus and I don’t think investors fully understand how many small, medium and large business closures are happening.
The key is NOT to wait for any trade, lately it’s pure speculation.
I just want to be … INTO … very low risk equities re pricing (closer to lows to later ride the upside) - right now.
Markets do NOT reflect the uncertainty, pauses and pain in the economy and some issues re J&J’s single-dose COVID-19 vaccine being developed.
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.
