January 11, 2021 8:04am
As sector momentum were sapped by record highs, outlook for Covid-19 relief stimulus and frustrated by ongoing political turmoil
Pre-open indication: 6 SELLs and 3 BUYs
News: Vericel (VCEL) announced preliminary unaudited financial results for Q4 and FY20 to provide a business update. Mesoblast (MESO) results from the landmark DREAM-HF randomized controlled Phase 3 trial in 537 treated patients with chronic heart failure with reduced left ventricular ejection fraction (HFrEF) who received rexlemestrocel-L (REVASCOR®) or control sham. A single dose of rexlemestrocel-L resulted in substantial and durable reductions in heart attacks, strokes, and cardiac deaths. bluebird bio (BLUE) separates its severe genetic disease and oncology businesses into differentiated and independent publicly traded companies
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Dow futures are DOWN -0.69% (-213 points), S&P futures are DOWN -$0.56% (-21,25 points) and NASDAQ futures are DOWN -0.48% (-62 points)
Stock futures fell in early morning trading Monday;
European markets mostly lower on the alarming surge in coronavirus cases weighs on sentiment;
Asia-Pacific markets dived, with South Korean stocks dropping along with China’s producer price index falling -0.4% versus expected -0.08% expected and markets in Japan were closed on Monday for a holiday.
Henry’omics:
Friday, the three major indices fluctuated between gains and losses throughout the session …
Political turmoil should continue this week and it remains to be seen when or if the markets will be affected by it.
Sector equities slipped sloppily ended a positive first week and record highs Friday afternoon as investors watched the attempt on government buildings, a weaker-than-expected jobs report while attempting to gauge the likelihood of additional stimulus out of Washington.
An important factor, the unemployment rate remained steady at 6.7%.
Forthcoming earnings: Vericel (VCEL) - https://finance.yahoo.com/portfolio/pf_10/view/v1;
Ultragenyx (RARE) preliminary unaudited 2020 Crysvita revenue in Ultragenyx territories and cash and investments at year end 2020 and provided 2021 revenue guidance for Crysvita in Ultragenyx territories - https://finance.yahoo.com/news/ultragenyx-reports-preliminary-2020-revenue-120000215.html
Friday’s evening’s recap: RegMed Investors’ (RMi) closing bell: “the finger came out of the dike and record highs. Right yet again, “it’s time to take some profit off the table from a sprinting sector and run-away market
- The Nasdaq closed UP +134.49 points (+1.03 %);
- The IBB closed up +0.61% and XBI closed up +0.22%;
- Sector volume INCREASED with 12 of the 16-upside having higher than the 3-month average volume with the increased volume of 9 of 18-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.81 points or -3.62% at 21.56;
- Friday’s percentage (%) of the 16-upside were +0.25% (KDNY) to +8.12% (VSTM) while the 18-downside ranges from -0.22% (BCLI) to -20.99% (SLDB);
January:
- 4 positive and 1 negative close, so far
Companies in my headlights – It’s your decision; I provide an idea and context:
Maintaining Sell:
Biostage (BSTG) closed down -$0.04 to $1.16 with 700 shares traded after Thursday’s -$0.01 to $1.20 with 2,600 shares trade, Wednesday’s -$0.06 to $1.21 with 400 shares traded after Tuesday’s -$0.10 to $1.15 with 11,900 shares traded and last Monday’s flat at $1.25 with 2,652 shares traded. Reiterating the questions …
- Question#1: WHO is running this company, WHAT is the relationship with … LIU Dong-hai of Dixintong Technology Group in China of which Jason Chen, chairman of BSTG and a VP Dixintong. WHAT is LIU Dong-hai’s relationship with DST Capital in funding the company managed and Mrs. bin Zhao?
- Questio#2: HOW many times did Shunfu Hu, VP of business development and operations say to me – that Beijing, China based LIU Dong-hai was the ULTIMATE AUTHORITY in BSTG’s future and constantly emphasized and quoted BANKRUPCY as a solution?
SELL into Strength:
Alnylam Pharmaceuticals (ALNY) closed up +$7.26 and has a positive +$2.23 or +1.52% pre-open indication;
Editas Medicine (EDIT) closed up +$0.92 to $90.58 after Thursday’s +$9.12, Wednesday’s +$3.70, Tuesday’s +$5.25 and last Monday’s +$1.48 with a negative pre-open -$1.08 or -1.19%;
Global Blood Therapeutics (GBT) closed up +$2.58 to $48.81 and has a negative pre-open indication of -$0.11 or -0.23%;
Intellia Therapeutics (NTLA) closed up +$0.88 to $78.36 after Thursday’s +$10.74, Wednesday’s +$5.73, Tuesday’s +$5.10 and Monday’s +$1.51; take some profit;
Vericel (VCEL) closed up +$1.37 to $36.17 after Thursday’s +$3.02 with Q4 and FY20 earnings preliminary results
BUY:
Applied Genetic Technologies (AGTC) closed down -$0.18 to $4.54 and has a positive +$0.06 or +1.32% pre-open indication;
bluebird bio (BLUE) closed up +$0.18 to $48.54 and has a positive +$2.71 or +5.58% pre-open indication on news of separating its severe genetic disease and oncology businesses into differentiated and independent publicly traded companies - https://finance.yahoo.com/news/bluebird-bio-separate-oncology-business-113000757.html
Mesoblast (MESO) closed down -$0.26 to $8.66 and has a positive +$9.34 or +107.85% pre-open indication on news of results from the landmark DREAM-HF randomized controlled P3 trial in 537 treated patients with chronic heart failure with reduced left ventricular ejection fraction (HFrEF) who received rexlemestrocel-L (REVASCOR®) or control sham. A single dose of rexlemestrocel-L resulted in substantial and durable reductions in heart attacks, strokes, and cardiac deaths.
The BOTTOM LINE: Amid the chaos, investors are looking to brighter days as the economy rebounds and vaccines conquer COVID-19; although they are competing with the risks—ahead.
The market has gotten too optimistic, a bit of pessimism was blended-in as the week settled.
Emotionally, it was a bruising week. Rioters stormed the Capitol Building, Friday’s payrolls report showed that the U.S. shed 140,000 jobs in December, the first decline since April, a depressing sign for anyone whose gaze extends beyond Wall Street. All three could have—should have—caused the stock...
Earnings season Is about to begin. Investors are considering whether they should ignore and wait for Q2.
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.
