October 28, 2020 7:57am

Bringing uncertainty and risk to all facets of our lives

Pre-open indications: 1 BUY and 5 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 -1.79% (-489 points), S&P futures are DOWN -1.48% (-50 points) and NASDAQ futures are DOWN -1.16% (-135 points)

 

U.S. stock futures are down deeply Wednesday as investors feared an increase in coronavirus infections with risks and uncertainty of the coming election;

European markets also fell as the rapid spread of the coronavirus continues across the continent with the pan-European Stoxx 600 dropped 1.4% at the start of trading;

Asia-Pacific markets were mixed as coronavirus infections continue to rise stateside as the MSCI’s index outside Japan was -0.07% lower.

 

Data Docket: Mortgage applications to purchase a home, which had fallen for four straight weeks, were essentially flat last week, rising just 0.2%. Refinances helped to push total mortgage application volume up 1.7% last week compared with the previous week, according to the Mortgage Bankers Association.

 

Henry’omics:

Expect volatility to remain elevated …

Daily U.S. coronavirus cases have risen by a record average of 69,967 over the past week, data compiled by Johns Hopkins University showed. Meanwhile, coronavirus-related hospitalizations are up 5% or more in 36 states, according to data from the COVID Tracking Project. <CNBC

 

Tuesday night’s post: RegMed Investors’ (RMi) closing bell: “the fear gauge elevated coming off Monday’s decline. Only the Nasdaq exhibited resilience as markets brace for election result”

  • The Nasdaq closed UP +72.41 points (+0.64%);
  • The IBB closed up +0.56% and XBI closed up +1.19%
  • Sector volume was the usual LOW with 3 of the 19-upside having higher than the 3-month average volume with the increased volume of 3 of 13-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.89 points or +2.74% at 33.45;
  • Tuesday’s percentage (%) of the 19-upside were +0.09% (GBT) to +6.78% (RARE) while the 13-downside of -0.05% (VCEL) to -4.14% (ATHX);

Q4’s October, so far: 1 neutral, 10 positive and 8 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 $1.40 after Monday’s +$0.04 to $1.40 with 217 shares traded after Friday’s -$0.07 to $1.36 with 200 shares traded.  

Let me repeat the questions for U.S. public investors …

  • Question#1: WHAT is the status of the multi-million terminal death law suit that STILL hangs over the company like a “Sword of Damocles” to its future?
  • Question#2: Shouldn’t RSM US, LLP BSTG’s auditors have an opinion going forward to “inform” investors?
  • Question#3: Harvard Bio (HBIO) has been indemnified against losses as a co-defendant; is BSTG fully responsible for the law suit?
  • Question#4; What other claims are forthcoming that can be made against the company in relation of non-payments of services rendered - many?

Maintaining SELL into Strength:

CRISPR Therapeutics (CRSP) closed up again +$3.99 to $98.12 after Monday’s +$1.48 to $94.13 after Friday’s $92.65 with a NEGATIVE -$0.42 or -0.43% aftermarket indication;

Adverum Biotechnologies (ADVM) closed up +$0.30 to $12.18 after Monday’s $11.88 and Friday’s $12.36 with a NEGATIVE -$0.08 or -0.625 aftermarket indication;

Editas Medicine (EDIT) closed up +$0.38 to $32.51 after Monday’s $32.13 and Friday’s $32.76 with a POSITIVE +$0.40 or +1.22% aftermarket indication;

Intellia Therapeutics (NTLA) closed up +$0.94 to $25.44 after Monday’s $24.50 and last Friday’s $24.88 with a NEGATIVE -$0.24 or -0.94% aftermarket indication;

BUY:

Alnylam Pharmaceuticals (ALNY) closed -$1.85 to $126.82 after Monday’s -$3.12 to $128.67 and Friday’s -$2.46 to $131.84 with NO aftermarket indication.  Oversold as October 1st began at $143.74 and seeing a high of $147.00;

 

The BOTTOM LINE: Uncertainty about COVID-19-related mobility restrictions and US election political uncertainty mean investors should expect volatility to remain elevated for the next week or even two (2).

 

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.