January 6, 2021 8:06am
However, the advance/decline (A/D) line was already deteriorating (Tuesday = 19/14, 1 flat and 1 acquired) versus (Monday = 26/7, 1 flat and 1 acquired)
European regulator approves Moderna (MRNA) COVID-19 vaccine for use in the EU
Pre-open indication: 4 SELLs and 3 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 UP +0.17% (+52 points), S&P futures are DOWN -0.24% (-9 points) and NASDAQ futures are DOWN -1.44% (-184 points)
U.S. stock futures were mixed early Wednesday;
European stocks were higher as euro-zone economic activity contracted more sharply than expected in December as the pan-European Stoxx 600 climbed 0.9% by late morning trade;
Asia-Pacific also traded mixed U.S. President Trump signed an executive order banning transactions with eight Chinese software applications, including WeChat Pay and Ant Group’s Alipay. The order is only set to go into effect after Trump leaves office.
Data Docket: EIA status report (crude oil stocks, gasoline stocks and distillates) and factory orders
There aren’t many signs of worry in the stock market, just a lot of words…
As the market bounced back a bit from Monday’s drubbing as manufacturing data surprised to the upside on Tuesday with the S&P 500 rising +0.7% to 3726.86, the Nasdaq gaining +1% to 12,818.96, and the Dow advancing 167.71 points, or 0.6%, to 30,391.60.
One key factor was manufacturing activity finishing 2020 on a high note and more gains could/should be on tap for early 2021.
However, there exists a fear that a Democrat-controlled Senate could lead to higher corporate taxes and tougher regulations on companies, which could weigh on the broader market.
Yet, this outcome could also facilitate the passing of additional fiscal stimulus, which could give a boost to companies hit hardest by the coronavirus pandemic.
Tuesday’s evening’s recap: RegMed Investors’ (RMi) closing bell: “sector stays up as momentum re-performs. Key word of session: sustainability”
- The Nasdaq closed UP +120.51 points (+0.95%);
- The IBB closed up +0.21% and XBI closed down -0.35%;
- Sector volume was LOW with 6 of the 19-upside having higher than the 3-month average volume with the increased volume of 2 of 14-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -1.63 points or -6.04% at 25.34;
- Tuesday’s percentage (%) of the 19-upside were +0.22% (MDXG) to +9.72% (CLBS) while the 14-downside ranges from -0.13% (RGNX) to -12.60% (PGEN);
- 2 positive closes, so far
Companies in my headlights – It’s your decision; I provide an idea and context:
Biostage (BSTG) closed down -$0.10 to $1.15 with 11,943 shares traded after Monday’s flat at $1.25 with 2,652 shares traded, Thursday’s +$0.04 to $1.15 with 5,491 shares traded and last Wednesday’s -$0.01 to $1.21 with 6,82 shares traded. Reiterating 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?
- Question#4: is WeChat issue on-coming BAN, a further problem in communication with Chinese dominating investors?
Aftermarket and pre-market indications:
Precigen (PGEN) closed down -$1.38 to $9.52 after Monday’s $10.95, Thursday’s $10.20, and last Wednesday’s $9.95 with a positive +$0.13 or +1.36% aftermarket indication;
bluebird bio (BLUE) closed up +$0.27 to $44.93 after Monday’s $44.66, Thursday’s $43.27 and last Wednesday’s $44.11 with a positive +$0.27 or +$0.60% aftermarket indication;
Pluristem (PSTI) closed up +$0.14 to $7.22 and has a pre-market indication of +0.06 or +0.83% on news of new Directors enhance the Board's strategic capabilities in preparation for future growth and commercialization endeavors; <https://finance.yahoo.com/news/pluristem-announces-appointments-two-directors-120000910.html >
SELL into Strength:
Caladrius Biosciences (CLBS) closed up +$0.14 to $1.58 after Monday’s $1.44, Thursday’s $1.43, and last Wednesday’s $1.49 with a negative -$0.02 or -1.27% aftermarket indication;
CRISPR Therapeutics (CRSP) closed up +$2.61 to $160.62 after Monday’s $158.01 and last Thursday’s $153.11 and last Wednesday’s $151.57 with a negative -$1.12 or -0.70% aftermarket indication;
Editas Medicine (EDIT) closed up +$5.25 to $76.84 after Monday’s $71.59 and last Thursday’s $70.11 and last Wednesday’s $76.50 with a negative -$1.34 or -1.74% aftermarket indication;
Intellia Therapeutics (NTLA) closed up +$5.25 to $61.01 after Monday’s $55.91, Thursday’s $54.40 and last Wednesday’s $56.58 with a positive +$0.79 or +1.29% aftermarket indication;
The BOTTOM LINE: Let's NOT panic ... some investors fear that a Democrat-controlled Senate could lead to higher corporate taxes and tougher regulations on companies, which could weigh on the broader market.
However, this outcome could also facilitate the passing of additional fiscal stimulus, which could give a boost to companies hit hardest by the coronavirus pandemic.
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.