January 5, 2021 7:57am
Could it be an overexpression of multiple regression, a statistical technique that predicts values of one variable on the basis of two or more other variables
Pre-open indication: 6 SELLs and 2 BUYs
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 DOWN -0.17% (-52 points), S&P futures are DOWN -0.16% (-6 points) and NASDAQ futures are DOWN -0.09% (-12 points)
Stock futures fluctuated to the downside in early morning trading on Tuesday;
European stocks were mostly higher after a sloppy open;
Asia-Pacific markets were mixed.
Data Docket: ISM manufacturing index
After a sharp index sell-off that kick off Monday’s first session of 2021; the sector (stem, cell and gene therapy companies) floated clear of losses with an advance/decline (A/D) line of 26/7 and 2 flats.
Another metric to review, The iShares NASDAQ Biotechnology (IBB) closed down -0.66% and the SPDR S&P ETF (XBI) closed up +0.12%, sustainability is at stake for “our’ universe.
Uncertainty looms as investors fear that increased tax rates and more progressive policies could weigh upon the market if Democrats gain control of the Senate in today’s election in Georgia.
Sustainability is my question of the day …
Changing the tune, the NYSE announced that it would NO LONGER delist the three Chinese telecommunication firms. <Hong Kong-listed shares of China Mobile, China Unicom and China Telecom>
Monday’s (1/4) evening’s recap: RegMed Investors’ (RMi) closing bell: “sector rolls as markets drool. Hurdles and momentum bumps exist in the market’s outlook as election politics confuse market and economic growth while vaccine distribution as COVID-19 cases continue to confuse yet, slowly increase”
- The Nasdaq closed DOWN -189.84 points (-1.47%);
- The IBB closed down -0.66% and XBI closed up +0.12%;
- Sector volume was LOW with 7 of the 26-upside having higher than the 3-month average volume with the increased volume of 2 of 7-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +4.22 points or +18.55% at 26.97;
- Monday’s percentage (%) of the 26-upside were +0.14% (PSTI) to +12.73% (RENE.L) while the 7-downside ranges from -0.80% (SAGE) to -3.68% (BLCM);
Companies in my headlights – It’s your decision; I provide an idea and context:
Biostage (BSTG) closed flat at $1.25 with 2,652 shares traded after Thursday’s +$0.04 to $1.15 with 5,491 shares traded, Wednesday’s -$0.01 to $1.21 with 6,82 shares traded and last Tuesday’s +$0.01 to $1.22 with 552 shares traded. Continuing the questions …
- Question#1: “As previously disclosed (12/30/2020), Biostage issued warrants to acquire shares of common stock with an exercise price of $3.70 per share that were exercisable until December 31, 2020. On December 30, 2020, the Company agreed to extend the expiration date to June 30, 2021 with respect to warrants exercisable for an aggregate of 122,554 shares of common stock.” WHY the extension, can’t they “move” the warrants?
- Question#2: Does it have anything to do with the 2020’s share price depreciation with a 52-week low of $0.80 and a 52-week high of $4.88, a current share price of $1.25 (up from $1.21 on 12/30 and 12/28) following the last price placement priced at $4.00?
- Question#3: HOW will RSM US LLP, their accounting firm explain their operational audit of the years progress and the “going concern” issues, lack of audit committee BOD members and the continued rental CFO status?
Applied Genetic Technologies (AGTC) closed up +$0.25 to $4.34 and has a positive +$0.11 or +2.53% aftermarket indication;
Pluristem (PSTI) closed up +$0.01 to $7.08 and has a positive +$0.16 or +$2.26% aftermarket indication;
SELL into Strength:
Athersys (ATHX) closed up +$0.05 to $1.80 and has a positive +$0.02 or +1.11% after market indication. They are enrolling patients for a P2 trial at University of Texas Health Science Center at Houston and any results are a long way off;
Homology Medicine (FIXX) closed up =$0.35 to $11.64 and has a negative -$0.27 or -2.32% aftermarket indication;
Solid Biosciences (SLDB) closed up +$0.26 to $7.84 and has a positive +0.08 or +1.02% aftermarket indication. After raising money and its after effect, stock is running wild on optimism after a very serious clinical hold – questionable;
Verastem (VSTM) closed up +$0.07 to $2.20 and has a negative -$0.04 or -1.81% aftermarket indication;
SELL on news of proposed $350 M offering:
Fate Therapeutics (FATE) closed down -$1.25 to $89.68 with a negative -$3.68 or -4.10% aftermarket indication;
The BOTTOM LINE: With the Georgia runoff elections on Tuesday and the electoral college drama on Wednesday, expect increased volatility this week.
Well said by others, “Even if the Democrats gain control, the margin will be remarkably thin, and analysts are skeptical over whether a meaningful shift in tax or regulatory policy is possible,” Mark Hackett, Nationwide’s chief of investment research, said in a note. “Democrat control could, however, spark another round of coronavirus stimulus and potentially an infrastructure package.” <CNBC>
To reiterate, my soapbox is still in place as I re-emphasize volatility will remain elevated into the New Year.
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.