December 16, 2020 7:59am

A lot of hope and optimism are built in; however, they disappear in a nano-second on political news

Pre-open indications: 3 BUYs and 2 SELLs

News:  Cellectis SA (CLLS) cancelled proposed $100 M ADS offering (market conditions)

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 +0.27% (+82 points), S&P futures are UP +0.31% (+11 points) and NASDAQ futures are UP +0.20% (+25 points)

 

U.S. stock futures project a flat open on Wednesday; with The Federal Reserve release of its statement with projections on the stance of monetary policy in the afternoon;

European stocks advanced following the trend of U.S. and Asia Pacific markets while there could be progress in talks over a post-Brexit trade agreement;

Asia-Pacific markets were higher following an overnight bounce in U.S. markets as optimism grew over the prospect of more stimulus.

 

Data Docket: we’ll be looking for the Feds post-meeting announcements. MBA Mortgage Applications, week ended Dec. 11 (-1.2% during prior week), Retail sales advance month-over-month, November (-0.3% expected, 0.3% in October); Retail sales excluding autos month-over-month, November (0.1% in November, 0.2% in October); Retail sales excluding autos and gas month-over-month, November (0.2% in November, 0.2% in October); Markit US manufacturing purchasing managers index, December preliminary (55.8 expected, 56.7 in November); Markit US services PMI, December preliminary (56.0 expected, 58.4 in November); Business inventories, October (0.6% expected, 0.7% in September); NAHB Housing Market Index, December (88 expected, 90 in November); FOMC Rate Decision

 

Henry’omics:

Traders are hoping the Federal Reserve will be dovish at the end of its meeting this afternoon, though it may note a brighter long-term outlook when it releases economic forecasts due to vaccine developments.

Reiterating, Indexes rose on Tuesday as Congress continued negotiations on yet another fiscal aid “package” and Covid-19 vaccines began to roll out across the country.

Remember, the Dow, the $&P and the Nasdaq have new record closes – a questionable sign as the Fed will guide markets!

 

Cellectis S.A. (CLLS) cancels $100 M ADS (American Depositary Shares) offering … https://www.regmedinvestors.com/articles/11678

 

An Update: RegMed/Cell and Gene Therapy Earnings Scorecard Q3/20 LPS Results https://www.regmedinvestors.com/articles/11628     

 

Interesting move: Barry Greene has been appointed CEO at Sage Therapeutics (SAGE); he had been a board of director member. Mr. Greene, who most recently served as president of Alnylam Pharmaceuticals (ALNY) from 2007 to September 2020, and as its COO from 2003 to 2016, will also continue as a member of SAGE’s board of directors.

 

Tuesday’s night’s recap: RegMed Investors’ (RMi) closing bell:” there’s a pulling on opposite ends of negotiations between 200,000 K daily infections stretched out by fiscal aid relief and vaccine deliveries to the populous” … https://www.regmedinvestors.com/articles/11680

  • The Nasdaq closed UP +155.02 points (+1.25%);
  • The IBB closed up +0.19% and XBI closed up +0.18%
  • Sector volume STAYED UP with 12 of the 20-upside having higher than the 3-month average volume with the increased volume of 12 of 14-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -1.83 points or -7.40% at 22.89;
  • Tuesday’s percentage (%) of the 20-upside were +0.06% (VYGR) to +23.38% (SLDB) while the 14-downside of -0.06% (CRSP) to -22.32% (PGEN);

Q4:

  • Q4’s December, so far: 1 neutral, 3 negative and 7 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 +$0.06 to $1.42 with 3,122 shares traded after Monday’s +$0.01 to $1.36 with 545 shares traded after Friday’s flat again at $1.35 with 83 shares traded, Thursday’s 337 shares traded and last Wednesday’s flat with 384 shares traded.

  • Question#1: IS DST Capital “pumping” i.e., buying the stock to “protect” the latest $4.00 private placement by Chinese investor, Dao Capital Group Limited, Qianping Huang?

 

BUY from SELL:

Mesoblast (MESO) closed down -$3.32 to $13.57 after Monday’s -$0.07 to $16.89 with a POSITIVE +$0.73 or +5.38% aftermarket indication.

Cellectis SA (CLLS) closed down -$5.35 to $25.86 after Monday’s +$1.70 to $31.21, Friday’s -$0.71 to $29. With a POSITIVE +$0.15 or +0.58% pre-market after proposed $100 M ADS offering was canceled;

Solid Biosciences (SLDB) closed up +$1.12 to $5.91 after Monday’s -$0.82 to $4.79, Friday’s +$1.91 to $5.61 following a $90 M private placement after Thursday’s $3.70 and last Wednesday’s +$3.63 with a POSITIVE +$0.08 or +1.35% aftermarket indication,

 

SELL:

Verastem (VSTM) closed down -$0.06 to $2.21 after Monday’s -$0.12 to $2.27 and has a NEGATIVE pre-open -$0.04 or -1.81% 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).

 

The BOTTOM LINE: Big issue, the deadline on fiscal aid formerly called “stimulus’ is fast approaching during these infection escalation days of the pandemic

Also, Fed meeting results could affect the bond market; possibly in a volatile reaction depending on what the Fed signals about its bond buying program.

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.