November 18, 2020 8:23am
Even though, sector equities are having a strong month on the back of earnings’ releases
Pre-open indications: 3 BUYs and 4 SELLs into Strength
News: Cellectis SA (CLLS) announced that the U.S. FDA has lifted the clinical hold on the P1 MELANI-01 trial evaluating the UCARTCS1 product candidate for the treatment of patients with relapsed or refractory multiple myeloma (MM).
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 +0.49% (+147 points), S&P futures are UP +0.34% (+12 points) and NASDAQ futures are UP +0.18% (+22 points)
U.S. stock futures are exhibiting upward movement Wednesday;
European markets were muted as a global rally faltered increasing infections offset by coronavirus news as the pan-European Stoxx 600 hovered around the flatline in early trade;
Asia-Pacific markets were mixed as investors remain cautious as coronavirus cases continuing to surge. Data from Japan showed exports did much better than expected in October, falling 0.2%, according to the Ministry of Finance. That’s compared to a 4.5% decline forecast by economists in a Reuters poll. It followed a 4.9% drop in September. While two (2) of three (3) China regional markets were higher; and MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.42%.
Data Docket: Building permits, EIA, Housing Starts, Mortgage Bankers Indexes
Markets are cowed by COVID case numbers increasing exponentially and the anticipated timing of when a vaccine could be (?) delivered to which group of the populace.
The economy has been recovering faster than many expected, as consumer spending has held up quite well throughout the crisis; however, many upon many are NOT back to work or still working remotely.
While this has been beneficial to the economy overall, it has created an alienated populace.
As the U.S. seven-day average of daily new Covid-19 infections surpassed 150,000 for the first time on Monday.
Thursday night’s recap: RegMed Investors’ (RMi) closing bell: “the upside was poured into a less than half-empty sector glass” … https://www.regmedinvestors.com/articles/11639
- The Nasdaq closed DOWN -24.79 points (-0.21%);
- The IBB closed down -0.23% and XBI closed up +0.88%;
- Sector volume was the usual LOW with 4 of the 18-upside having higher than the 3-month average volume with the increased volume of 7 of 15-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.26 points or +1.16% at 22.71;
- Tuesday’s percentage (%) of the 18-upside were +0.45% (GBT) to +4.22% (PSTI) while the 15-downside ranges from -0.09% (BLUE) to -66.33% (BCLI);
Q4’s: November, so far: 10 positive and 2 negative closes
- Q4’s October: 1 neutral, 11 positives with 1 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:
Biostage (BSTG) closed up +$0.05 to $1.40 with only 371 shares traded, after Monday’s -$0.12 to $1.35 with 200 shares traded, Friday’s +$0.045 with 1,010 shares traded to $1.47, Thursday’s -$0.075 to $1.42 with 800 shares traded, Wednesday’s flat at $1.50 with 55 shares traded and last Tuesday’s +$0.15 to $1.50 with 200 shares traded).
Question#1: IS THERE A REGULATORY ISSUE, as their private placement (Reg D) fund raising utilizes restricted shares that are not registered with the Securities and Exchange Commission (SEC).
- Claims of an increasing value to the private placement ($3.20, $3.60 and $3.70 based on what or which valuation model (do NOT exist) with little or no risk definitions);
- Being sold by an unregistered investment professional without a series #7 license;
- The company is and was not in good standing having a “going concern” designation (page F-2 of 2018 10-K);
- Selling unregistered shares is typically considered a felony (from government regs), but there are exceptions to this rule. SEC Rule 144 lays out the conditions under which unregistered shares may be sold;
- They must be held for a prescribed period;
- There MUST be adequate public information about the security’s historical performance;
- The sale must be of less than one (1%) percent of shares outstanding and less than one percent of the previous four weeks’ average trading volume.
BUY from SELL;
Global Blood Therapeutics (GBT) closed up +$0.19 to $42.80 after Monday’s -$0.50 to $42.61, Friday’s +$2.88 to $43.11, Thursday’s +$2.58 to $40.23, Wednesday’s $37.65 and last Tuesday’s $37.80 with a POSITIVE +$0.63 or +1.47% aftermarket indication
Applied Genetic Technologies (AGTC) closed down again -$0.60 to $4.33 after Monday’s $4.93, Friday’s $4.96, Thursday’s $5.15 and last Wednesday’s $5.19 with a POSITIVE +$0.04 or +0.92% aftermarket indication. A 52-week low of $2.29 and a high of $10.42 plus there is a total cash ($66 million) and a per share of $2.57 but, debt of $14.79 million - OVERSOLD;
Cellectis SA (CLLS) closed down -$0.36 to $19.70. this morning focused an upside move as announced that the U.S. Food and Drug Administration (FDA) has lifted the clinical hold on the Phase 1 MELANI-01 trial evaluating the UCARTCS1 product candidate for the treatment of patients with relapsed or refractory multiple myeloma (MM) with a +$1.10 or +5.58% pre-market indication;
SELL into Strength:
CRISPR Therapeutics (CRSP) closed up again +$1.81 to $108.57 after Monday’s +$2.80 to $106.76, Friday’s $103.96, Thursday’s $101.77, Wednesday’s $100.64 and last Tuesday’s $98.70. NO aftermarket indication but, a “peaky” chart and a 52-week change of +55.95% and a short percentage (%) of float of -10.18%
Ionis Pharmaceuticals (IONS) closed up again +$0.36 to $52.51 after Monday’s +$0.58 to $52.15, Friday’s +$2.32 to $51.57, Thursday’s $49.25 and last Wednesday’s $49.21, with a NEGATIVE -$0.18 or -0.35% aftermarket indication;
uniQure NV (QURE) closed up again +$0.40 to $44.39 after Monday’s +$0.74 to $43.99, Friday’s $43.29, Thursday’s $42.44, Wednesday’s $43.12 and last Tuesday’s $44.00 with a NO aftermarket indication with a short percentage (%) of -6.49%;
The BOTTOM LINE: Watch the patterns: Advance/Decline (A/D) lines are slipping … again
- Tuesday closed positive at 18/15 and 2 flats;
- Monday closed positive at 19/15 and 1 flat;
- Friday closed positive at 22/11 and 1 flat;
- Thursday closed negative at 15/19 and 1 flat;
- Wednesday closed positive at 17/15 and 3 flats;
- Tuesday closed positive at 22/11 and 2 flats;
- Monday closed positive at 21/12 and 2 flats;
- Friday closed negative at 6/28 decliners and 1 flat
Reiterating: 0’dark hundred came early this a.m. - Just another session of uncertainty … as the algorithms are hungry for profit!
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.