October 22, 2020 8:07am
Uncertainty and risks undermine the sector, markets, stimulus and economic recovery
Pre-open indications: 5 BUYs and 2 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 DOWN -14% (-40 points), S&P futures are DOWN -0.17% (-6 points) and NASDAQ futures are DOWN -0.10% (-12 points)
Futures slip under pressure from election rhetoric and potential Iranian and Russian interference, while stimulus endgame remains uncertain as time runs short…
European stocks traded in negative territory with the pan-European Stoxx 600 dropping -0.5% during morning trade;
Asia-Pacific markets declined as the International Monetary Fund downgraded its growth forecast for geographic area with the MSCI’s <broadest index of Asia-Pacific shares outside Japan> slipping -0.25%.
Data docket: The fate of coronavirus relief may in part be tied to reports on the health of the U.S. labor market, with the latest update to jobless claims, continuing jobless claims, existing home sales, index of leading economic indicators
- German consumer confidence has ebbed with GfK’s forward-looking index for November coming in at -3.1 points, down from 1.7 points in October.
Henry’omics:
Traders continued to handicap stimulus talks that have yet to show any tangible evidence of “talks” as markets swing this month on headlines regarding the negotiations.
Futures also are feeling some pressure overnight after U.S. officials said Iran is taking steps to interfere in the U.S. presidential election, and Russia has obtained American voter information.
Wednesday night’s post: RegMed Investors’ (RMi) closing bell: “RegMed Investors’ (RMi) closing bell: sector dances the limbo; how low can it go?” … https://www.regmedinvestors.com/articles/11599
- The Nasdaq closed DOWN -31.80 points (-0.28%);
- The IBB closed down -1.71% and XBI closed down -2.36%;
- Sector volume was the usual LOW with 2 of the 5-upside having higher than the 3-month average volume with the increased volume of 10 of 27-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.70 points or -2.39% at 28.65;
- Wednesday’s percentage (%) of the 5-upside were +0.09% (ADVM) to +1.10% (QURE) while the 27-downside ranges from -0.85% (SLDB) to -13.57% (CRSP);
Q4’s October, so far: 1 neutral, 7 positive and 7 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 $1.36 with 42 shares traded after Tuesday’s -$0.14 to $1.36 with 5,354 shares traded after Monday’s flat at $1.50.
- Question#1: WHO is the IT/Facilities manager and WHY does he matter in the sphere of withholding communications from auditors 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#2: Didn’t he have a pattern of denying access to equipment, software and internal messaging to those brought in by the major shareholder and those reporting to the chairman?
- Question#3: WHAT was being covering-up and for WHOM?
- Question#4: WHO and WHAT is the ROLE that RMSUS’ audit and operational oversight of BSTG “going concern” position with the lack of a financial officer and audit board member?
Maintaining SELL to Strength:
Fate Therapeutics (FATE) closed down -$3.73 to $44.46 after Tuesday’s +$0.67 to $48.19, Monday’s -$1.12 to $47.52 last Friday’s +$0.54 to $48.64 followed by the previous Thursday’s +$1.14 to $48.10 with a POSITIVE +$1.14 or +2.56% aftermarket indication. However, a 52-week change of +225.61%, a short percentage (%) of float of -22.35% and a VERY “peaky” chart;
Short-Term BUY:
Precigen (PGEN) closed down -$0.21 to $4.32 after Tuesday’s $4.53 and Monday’s $4.53 and has a POSITIVE +$0.09 or +2.08% aftermarket indication;
CRISPR Therapeutics (CRSP) closed down -$14.48 to $92.22 after Tuesday’s $106.70 and Monday’s $107.72 following last Friday’s $ 109.83 and the previous Thursday’s $99.89 with a POSITIVE +$2.83 or +3.07% aftermarket indication;
Ionis Pharmaceuticals (IONS) closed down -$1.04 to $46.36 after Tuesday’s $47.40, Monday’s $47.20, last Friday’s $47.13 and the previous Thursday’s $48.29 with a POSITIVE +0.14 or +0.30% aftermarket indication;
Pluristem (PSTI) closed down -$0.96 to $9.75 after Tuesday’s $10.71, Monday’s $11.14, last Friday’s $10.68 followed by the previous Thursday’s $10.26 with a POSITIVE +$0.11 or +1.13% aftermarket indication;
Mesoblast (MESO) closed down -$0.63 to $11.24 after Tuesday’s $, Monday’s $, last Friday’s $ and the previous Thursday’s $ with a POSITIVE +$0.01 or +0.09% aftermarket indication on news of a randomized, controlled study of remestemcel-L delivered by an endoscope directly to the areas of inflammation and tissue injury in up to 48 patients with medically refractory Crohn’s disease and ulcerative colitis has commenced at Cleveland Clinic. According to recent estimates, more than three million people (1.3%) in the US alone have inflammatory bowel disease, with more than 33,000 new cases of Crohn’s disease and 38,000 new cases of ulcerative colitis diagnosed every year;
The BOTTOM LINE: The fate of coronavirus relief may in part be tied to reports on the health of the U.S. labor market. The prospect of another stimulus package before Election Day is uncertain, even as the White House and Democratic leaders kept talking Wednesday.
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.
