October 21, 2020 8:00am
Volatility is high while volume is low; one problem is the upcoming LPS (loss-per-share) earnings season being moot
Pre-open indications: 4 BUYs and 1 SELLs
News: CRISPR Therapeutics (CRSP) announced positive top-line results from an ongoing P1 CARBON trial evaluating the safety and efficacy of CTX110, its wholly-owned allogeneic CAR-T cell therapy targeting CD19+ B-cell malignancies.
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 -0.07% (-21 points), S&P futures are DOWN -0.13% (-5 points) and NASDAQ futures are DOWN -0.22% (-26 points)
Futures are barely moving toward the downside coming open as stimulus “talks” remain without a conclusion;
European stocks slid lower on Wednesday morning with the pan-European Stoxx 600 fell 1% in early trade;
Asia-Pacific stocks, stocks were mixed <mainland China declined, Japan and Australia gained>as investors continued to watch stimulus talks in U.S...
Data docket: Mortgage demand from homebuyers falls for the fourth straight week. Purchase demand is down nearly 7% compared with four weeks ago. The average contract interest rate for 30-year fixed-rate mortgages increased to 3.02% from 3%. The rate was a full percentage point higher one year ago. The refinance share of mortgage activity increased to 66.1% of total applications from 65.6% the previous week. <CNBC>
Henry’omics:
A BIG biotech reports today – Biogen (BIIB) – an indicator after Brainstorm Cell Therapeutics (BCLI) reporting disaster.
Mnuchin and Pelosi’s conversation Tuesday continued a last-minute attempt to hash out an agreement before the Nov. 3 election.
- Even if the White House and Democrats hatch a deal, Senate Majority Leader McConnell would need to bring the bill to the Senate floor in time. McConnell told his caucus Tuesday in a private lunch that he is encouraging the administration to …
- NOT to agree to a stimulus bill.
Tuesday night’s post: RegMed Investors’ (RMi) closing bell: “the hole in the sector just got deeper as share pricing feels the effect of visibility” … https://www.regmedinvestors.com/articles/11597
- The Nasdaq closed UP +37.51 points (+0.33%)
- The IBB closed down -0.65% and XBI closed down -1.35%
- Sector volume was the usual LOW with 4 of the 14-upside having higher than the 3-month average volume with the increased volume of 4 of 19-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.15 points or +0.45% at 29.31
- Tuesday’s percentage (%) of the 14-upside were +0.42% (IONS) to +5.51% (MESO) while the xx-downside of -0.04% (VYGR) to -17.95% (BCLI);
Q4’s October, so far: 1 neutral, 7 positive and 6 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 -$0.14 to $1.36 with 5,354 shares traded after Monday’s flat at $1.50.
- Question#1: WHY a “cone of silence” about the internal operations of BSTG?
- Question#2: WHAT is being HIDDEN?
- Question#3: WAS the “financial responsibility pages” attached to the IND when it was filed?
- Question#4: WHO is left working at the company and WHEN will the company appoint a financial officer and an audit board member?
- Question#5: WHO has been the recipient of the pre-audit communication when financial officer and controller had exited the company without notice, did this IT/Facilities individual withhold those communications that caused a new team executing financial controls to EXIT the company; once it was discovered the over-payments, under-utilization of software and lack of IT equipment, support systems and facility logistics?
- Question#6: WHY did president Hong Yu lock-out the forensic accounting and software analyst in the review of the company?
Maintaining SELL to Strength:
Fate Therapeutics (FATE) closed up +$0.67 to $48.19 after Monday’s -$1.12 to $47.52 after Friday’s +$0.54 to $48.64, Thursday’s +$1.14 to $48.10 and last Wednesday’s $46.96 with a POSITIVE +$2.91 or +6.04% aftermarket indication <it was +$0.76 or +1.59%>. However, a 52-week change of +223.05%, a short percentage (%) of float of -22.35% and a VERY “peaky” chart;
Short-Term BUY:
CRISPR Therapeutics (CRSP) closed down -$1.02 to $106.70 after Monday’s $107.72 and has a POSITIVE +$1.79 or +1.68% aftermarket indication and news (see top title section. The P1 CARBON trial is an open-label, multicenter study evaluating the safety and efficacy of CTX110 in adult patients with relapsed or refractory non-Hodgkin lymphoma, who have received at least two prior lines of therapy. As of the September 28, 2020, data cutoff, 12 patients were enrolled and infused with CTX110. Data are reported for the 11 patients who had at least completed their one-month assessment as of the data cutoff date.
Maintaining BUY:
Adverum Biotechnologies (ADVM) closed up +$0.11 to $11.67 after Monday’s -$0.77 to $11.56 and has a POSITIVE +$0.08 or +0.69% aftermarket indication;
Maintaining BUY:
bluebird bio (BLUE) closed down -$1.55 to $54.55 after Friday’s +$0.82 to $56.10, Thursday’s -$0.51 to $55.28, Wednesday’s -$0.96 to $55.79 and last Tuesday’s -$1.64 to $56.75 with a POSITIVE +$1.23 or +2.25% aftermarket indication;
Ionis Pharmaceuticals (IONS) closed up +$0.20 to $47.40 after Monday’s +$0.07 to $47.20 and Friday’s -$1.16 to $47.13 with a POSITIVE +$0.10 or +0.21% aftermarket indication;
The BOTTOM LINE: Well said by another, “The back and forth political discussions on the stimulus deal and continued election uncertainty give us extra justification for short-term market uneasiness,” said David Bahnsen, chief investment strategist at The Bahnsen Group, which oversees $2.5 billion in client assets. “Very few market actors actually doubt that some fiscal relief bill is coming. The question is purely when, and of what composition,” he added”.
NO opinion change … I am STILL of the opinion that dark clouds are forming over the market!
I also continue to say: maintain a presence in the sector, SELL the highs and be prepared for a tough Q3 reporting season re LPS (loss-per-share).
I say again, “the COVID-19 pandemic is not over, vaccines are on there way but, the wreck upon the economy is being under-estimated as political parties “war” over their own contributions to polarization!
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.
