December 15, 2020 8:07am
Makes no difference who you are but, timing sets you back in line and lack of fiscal aid sinks you fast
Pre-open indications: 4 BUYs, 5 SELLs
News: Mesoblast (MESO) had news that suggested that rexlemestrocel-L reduced mortality by mechanisms that are distinct from those of existing drugs that reduce hospitalization rates but do not significantly impact cardiac mortality. A NEGATIVE -$1.71 or -10.12% aftermarket indication. Verastem (VSTM) has a POSITIVE pre-open +$0.06 or +2.64% market pricing after news of the initiation of a P2 registration-directed clinical trial of VS-6766, its RAF/MEK inhibitor, alone and in combination with defactinib, its FAK inhibitor, in patients with KRAS mutant non-small cell lung cancer (NSCLC).
What I provide is a trusted source of share pricing intelligence that ensures that investors are kept apprised of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets
A pre-open briefing on what you need to know in the session ahead!
Dow futures are UP +0.62% (+184 points), S&P futures are UP +0.69% (+25 points) and NASDAQ futures are UP +0.62% (+78 points)
U.S. stock futures anticipate a positive open on Tuesday as fiscal aid negotiations continued and Covid-19 vaccines began to feel the “jab” across the country;
European stocks were mixed as post-Brexit trade deal negotiations and COVID-19 the latest coronavirus continue to dominate market attention;
Asia-Pacific were lower as concerns over a coronavirus surge in multiple countries increased exponentially.
Data Docket: Empire State Manufacturing Survey produces results. The Federal Reserve will begin its two-day December meeting, with a policy statement and press conference for Chair Powell scheduled for Wednesday.
Henry’omics:
Hoping for a "daily" rebound ...
After Monday’s weakness in the S&P 500 and Dow, the three major indexes are trading near record highs are up sharply for the year.
An Update: RegMed/Cell and Gene Therapy Earnings Scorecard Q3/20 LPS Results https://www.regmedinvestors.com/articles/11628
Last night: Cellectis S.A. (Paris: ALCLS) (NASDAQ: CLLS) (EURONEXT GROWTH: ALCLS) proposes $100 M ADS (American Depositary Shares) offering ... https://www.regmedinvestors.com/articles/11678
Monday’s night’s recap: RegMed Investors’ (RMi) closing bell: bumpy roads ahead for equities. Increasing fears of new lockdowns and residual fears as a lot of scar tissue will cover the site of injury, volatility. “Scars can take up to 1 year to mature fully and go through four stages of healing” – so goes the market. Understand the percentage of Americans to be infused and the phase period of times will not happen as quick as we hope” … https://www.regmedinvestors.com/articles/11677
- The Nasdaq closed UP +62.17 points (+0.50%);
- the IBB closed up +2.34% and XBI closed up +2.66%;
- Sector volume INCREASED with 18 of the 23-upside having higher than the 3-month average volume with the increased volume of 8 of 11-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +1.41 points or +6.05% at 24.72;
- Monday’s percentage (%) of the 23-upside were +0.60% (RGNX) to +23.12% (KDNY) while the 11-downside of -0.41% (MESO) to -14.62% (SLDB);
Q4:
- Q4’s December, so far: 1 neutral, 3 negative and 6 positive closes
- Q4’s November: 16 positive and 3 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:
Maintaining Sell:
Biostage (BSTG) closed UP +$0.01 to $1.36 with 545 shares traded after Friday’s flat again at $1.35 with 83 shares traded after Thursday’s 337 shares traded, Wednesday’s flat with 384 shares traded and last Tuesday’s at $1.35 with 761 shares traded.
- Question#1: WHO is inhabiting an EMPTY building, a part-timer turns lights on and off – WHY maintain all that useless space at that pricing?
SELL from BUY –
Cellectis SA (CLLS) propose offering $100 M proposed: closed up +$$1.70 to $31.21 after Friday’s -$0.71 to $29. With a NEGATIVE -$0.53 or -1.70% pre-market indication a 52-week change of +88.68 with a 52-week high of $32.23 and a low of $7.32;
SELL:
Mesoblast (MESO) closed down -$0.07 to $16.89 with a NEGATIVE -$1.71 or -10.12% aftermarket indication. Over a mean 30 months of follow-up, patients with advanced chronic heart failure who received a single endomyocardial treatment with rexlemestrocel-L on top of maximal therapies had 60% reduction in incidence of heart attacks or strokes and 60% reduction in death from cardiac causes when treated at an earlier stage in the progressive disease process. Despite significant reduction in the pre-specified endpoint of cardiac death, there was no reduction in recurrent non-fatal decompensated heart failure events, which was the trial’s primary endpoint. This suggests that rexlemestrocel-L reduces mortality by mechanisms that are distinct from those of existing drugs that reduce hospitalization rates but do not significantly impact cardiac mortality.
BUY
Applied Genetic Technologies (AGTC) closed down -$0.04 to $4.63 after Friday’s $4.67 Thursday’s $4.18, Wednesday’s $4.28 and last Tuesday’s $4.45, with a POSITIVE +$0.15 or +3.24% aftermarket indication and a sincere belief that it is OVERSOLD and I LOVE BOTTOMS;
Pluristem (PSTI) closed up +$0.20 to $6.13 after Friday’s $5.93, Thursday’s $6.22, Wednesday’s $ 7.00 and last Tuesday’s $11.46 with a POSITIVE +$0.10 or +1.63% aftermarket indication
Solid Biosciences (SLDB) closed down -$0.82 to $4.79 after Friday’s +$1.91 to $5.61 following a $90 M private placement after Thursday’s $3.70, Wednesday’s +$3.63 and last Tuesday’s +$3.68 with a POSITIVE +$0.11 or +2.30% aftermarket indication,
Verastem (VSTM) closed down -$0.12 to $2.27 and has a POSITIVE pre-open +$0.06 or +2.64% market pricing after news of the initiation of a P2 registration-directed clinical trial of VS-6766, its RAF/MEK inhibitor, alone and in combination with defactinib, its FAK inhibitor, in patients with KRAS mutant non-small cell lung cancer (NSCLC).
SELL into Strength:
Athersys (ATHX) closed up +$0.12 to $1.96 after Friday’s $1.84, Thursday’s $1.97, Wednesday’s $1.91 and last Tuesday’s $1.87 with NO aftermarket indication. OVERBOUGHT;
Sage Therapeutics (SAGE) closed up +$1.64 to $70.68 after Friday’s $69.04, Thursday’s $69.67, Wednesday’s $69.19 and last Tuesday’s $70.85 with a NEGATIVE -$0.13 or -0.18% aftermarket indication
The BOTTOM LINE: Caution is STILL warranted; investors will be measuring updates on the Covid-19 vaccine rollout while the coronavirus stimulus stalemate in Washington.
As I have been saying, “a storm is coming” and “the sector has been trading water”.
Reiterating, “I am NOT always the naysayer as contrarian thinking that realizes foresight can perceive hidden opportunities and seize them at just the right moment.”
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.
