January 26, 2021 7:59am

While fundamentals get forgotten, short-positions are soon to be exercised

Pre-open indication: 7 SELLs, SELL into Strength and 0 BUYs

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Dow futures are UP +0.19% (+59 points), S&P futures are UP +0.09% (+3.50 points) and NASDAQ futures are UP +0.00% (+0.50 points)

 

U.S. stock futures are edging slightly higher on Tuesday as corporate earnings season ramp-up;

European stocks nudged higher, amidst the battle between vaccine maker AstraZeneca (AZN) and the EU, polarized by political uncertainty in Italy;

  • AstraZeneca has been accused by the EU of not doing enough to resolve a dispute over how many doses it will be able to supply to the bloc. The AstraZeneca vaccine has not yet been approved by the European Medicines Agency but is expected to be imminent. AstraZeneca said last week that it is facing production problems. <CNBC>

Asia Pacific equities declined, with Chinese stocks leading losses among the region’s major markets as the MSCI’s index (of Asia-Pacific shares outside Japan) fell 1.72%. Markets in Australia and India were closed on Tuesday for holidays.

 

Data Docket: economic releases include data on consumer confidence and home prices.

 

Henry’omics:

The RegMed/Stem/Cell and gene therapy sector closed positive after touching positive, neutral and negative bases during yesterday’s session.

On the Covid-19 front, health officials and policymakers caution the public about new strains of the virus.

Although, “Moderna (MRNA) said Monday that its vaccine does provide some protection against a variant found in South Africa, while officials in Minnesota reported the first U.S. confirmed case of a strain found in Brazil.” <CNBC>

The impeachment article from the house was delivered against FORMER president Donald Trump to the Senate last night … while some Republicans have signaled, they could vote to hold the president responsible, others have dismissed the impeachment process as illegitimate. President Biden, thinks the trial has to happen despite its potential to … derail his agenda and … noted that he does not think 17 GOP senators will vote to convict Trump.

Politics and the current level of polarization will destroy this country, President Biden DO the Job you were elected to do - ignore the rapid (even in your own party) and you will have a successful term – they want you to sink to their level of animosity!

 

Monday’s evening’s recap: RegMed Investors’ (RMi) closing bell: “a ying-yang sector, who’s performing and which are not. The sector is bubblicious, blowing a bubble, popping it, chewing and doing it again” … https://www.regmedinvestors.com/articles/11737

  • The Nasdaq closed UP +92.93 points (+0.69%);
  • The IBB closed up +1.86% and XBI closed up +3% after •Friday’s IBB closed up +0.81% and XBI closed up +1.18%;
  • Sector volume was LOW with 6 of the 21 -upside having higher than the 3-month average volume with the increased volume of 7 of 13-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 21-upside were +0.10% (CLLS) to +10.82% (ATHX) while the 13-downside ranges from -0.44% (EDIT) to -4.18% (CLBS);
  • The CBOE Volatility Index (VVIX: INDEX) was up +1.28 points or +5.84% at 23.19 following Friday’s +0.50-point upside or +2.77% at 21.91;

January:

  • 9 positive, 6 negative closes and 1 holiday, so far

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Maintaining Sell:

Biostage (BSTG) closed down up +$0.07 with 126 shares traded after Friday’s -$0.07 with 441 shares traded, Thursday’s +$0.10 to $1.52 with 1,501 shares traded, Wednesday’s +$0.01 to $1.42 with 1,277 shares traded and last Tuesday’s +$0.06 to $1.22 with 8,637 shares traded. Reiterating the WHY bottom-line questions:

  • Question#1: WHY did BSTG appoint (finally) an audit board member without a CPA?
  • Question#2: Let’s hope he knows what he is walking into with all the “missing” billing to consultants <e-mails exist> and the odd $429,500.00 remainder of the $1 M Connecticut’s Children’s (Hospital) “gift”?
  • Question#3: Doesn’t it seem that DST Capital is behind the race to exercise the warrants?

 

Maintaining SELL into Strength:

Vericel (VCEL) closed up $2.40 to $43.63 after Friday’s +$1.08, Thursday’s +$0.42 to $40.15, Wednesday’s $39.73 and last Tuesday’s $38.98 with a positive +$0.66 or +1.51% pre-market indication;

Ultragenyx (RARE) closed up +$6.29 to $146.76 after Friday’s +$7.38 to $140.47 with a positive +$3.24 or +2.21% aftermarket indication

Alnylam Pharmaceuticals (ALNY) closed up +$5.63 after Thursday’s $166.75, Wednesday’s $170.67, Tuesday’s $168.41 with a negative -$0.49 or -0.28% aftermarket indication;

Athersys (ATHX) closed up again +$0.21 to $2.15 after Friday’s +$0.11 to $1.94, Thursday’s $1.83, Wednesday’s $1.88 and Tuesday’s $1.87 with a positive +$0.09 or +4.19% pre-market indication;

Global Blood Therapeutics (GBT) closed up +$0.69 to $48.34 after Friday’s $47.65, Thursday’s $47.89, Wednesday’s $48.26 and Tuesday’s $50.85 with a negative -$0.76 or-1.57% aftermarket indication;

Ionis Pharmaceuticals (IONS) closed up again +$2.03 to $63.78 after Friday’s +$0.48 to $61.75, Thursday’s -$1.27 to $61.27, Wednesday’s +$1.51 to $62.54 and last Tuesday’s -$0.25 to $61.03 and with a negative -$0.02 or -0.03% aftermarket indication;

 

The BOTTOM LINE: As I stated last night, “Signs of a bubble continues to concern (haunt is a better word) me, record highs declining quickly with come backs in a variety of equities.”

There is STILL a short-term tone in the sector – “our’ universe of RegMed, stem, cell and gene therapy equities.

Monday’s up and down trading after last week’s three (3) negative closes, one (10 positive and a holiday followed a week of two (2) negative and three (3) positive closes; leaves me with NOT a lot of trust in this market which infects the sector as “coming” earnings after a “stay-at-home” Q4 won’t help the “numbers’.

Again, “Forewarned … Earnings LPS (los-per-share) season is coming quickly – my advice, trim and skim!”

 

 

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.