January 29, 2021 7:45am
WHAT is driving the sector - volatility, indigestion, weakness followed by altitude mixed in by the start of earnings releases
Pre-open indication: 3 SELLs, SELL into Strength and 5 BUYs
Earnings Mesoblast (MESO) Q2 results: Operational and financial highlights … http://www.globenewswire.com/news-release/2021/01/29/2166359/0/en/Mesoblast-Operational-and-Financial-Highlights-for-Quarter-Ended-December-31-2020.html
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Dow futures are DOWN -0.48% (-146 points), S&P futures are -0.58% (-22 points) and NASDAQ futures are DOWN -0.83% (-109 points)
U.S. stock futures are lower pre-open on Friday as heightened speculative trading by retail investors unnerves the market,
European markets retreated as market jitters also persist over a retail trading frenzy with the pan-European Stoxx 600 falling -1.1% by mid-morning,
Asia-Pacific markets were lower, as South Korea’s Kospi lead losses among the region’s major markets with the MSCI index of Asia-Pacific shares declining -1.12%.
Thursday’s rally was a reversal from recent weakness in equities fueled by market volatility spurred by speculative trading from retail investors.
Big issue: Tensions between vaccine maker AstraZeneca and the European Union continued on Thursday, with the bloc warning drug companies on Thursday that it would wield all possible legal power to prevent exports unless they committed to supplying inoculations as promised.
The market also experienced the highest trading volume in years as the mania heated up. On Wednesday, total market volume hit more than 23.7 billion shares, surpassing the level during the height of the financial crisis in 2008. Thursday also saw extremely heavy trading with more than 19 billion shares changing hands.
On the vaccine front, biotech firm Novavax said Thursday that its coronavirus vaccine was more than 89% effective in protecting against Covid-19 in its phase three (3) clinical trial conducted in the United Kingdom. <CNBC>
Thursday’s evening’s recap: RegMed Investors’ (RMi) closing bell: “today’s speculative behavior is bounce-back based, another FTL (follow-the-leader) and FOMO (fear-of-missing-out) moves” … https://www.regmedinvestors.com/articles/11743
- The Nasdaq closed UP +66.56 points (+0.50%);
- The IBB closed up +0.35% and XBI closed down -0.43%
- Sector volume was LOW with 4 of the 18-upside having higher than the 3-month average volume with the increased volume of 6 of 15-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -7.00 points or – 18.81% at 30.21, Wednesday’s up +14.19 points or +61.64% at 37.21, Tuesday’s down -0.17 points or -0.73% at 23.02 following Monday’s up +1.28 points or +5.84% at 23.19;
- Thursday’s percentage (%) of the 18-upside were +0.42% (PSTI) to +10.98% (NTLA) while the 15-downside ranges from -0.24% (FIXX) to-11.24% (AGTC);
- 10 positive, 8 negative closes and 1 holiday, so far
Companies in my headlights – It’s your decision; I provide an idea and context:
Biostage (BSTG) closed up +$0.06 to $1.86 with 15,597 shares traded after Wednesday’s $1.80 with 2,300 shares traded, Tuesday’s $1.80 with 2,500 shares traded following Monday’s $1.52 with 100 shares traded post last Friday’s $1.45 with 400 shares traded.
- Question#1: Is desperation setting in as BSTG “pumps’ the share price to exercise the warrants?
- Question#2: WHERE are the regulators -SEC and Mass Secretary of State Enforcement Division?
- Question#3: Doesn’t it seem that DST Capital is behind the race to exercise the remaining warrants?
- Question#4: Have investors forgotten about the terminal death $$$ lawsuit that is still pending against the company?
- Question#5: is TRANSPARENCY a major issue for BSTG’s board of directors?
Bellicum Pharmaceuticals (BLCM) closed down -$0.04 to $3.84 after Wednesday’s -$0.57 to $3.88, Tuesday’s $4.45, Monday’s $4.39 and last Friday’s $4.17, with a positive +$1.74 or +45.31% aftermarket indication;
BUY from SELL:
bluebird bio (BLUE) closed down -$1.77 to $45.00 after Wednesday’s $46.77, Tuesday’s $46.07, Monday’s $48.10 and last Friday’s $46.64 with a positive +$0.50 or +1.11% pre-market indication;
Precigen (PGEN) closed down -$0.85 to $8.43 after Wednesday’s $9.28, Tuesday’s $8.14, Monday’s $8.90 and last Friday’s $9.21, with a positive +$0.26 or +3.08% aftermarket indication;
Global Blood Therapeutics (GBT) closed down -$2.46 to $48.34 after Wednesday’s +$3.31 to $50.80, Tuesday’s $47.49, Monday’s $48.34 and last Friday’s $47.65 with a positive +$0.41 or +0.85% aftermarket indication;
Homology Medicine (FIXX) closed down -$0.03 to $12.44 after Wednesday’s -$0.57 to $12.47, Tuesday’s $13.04, Monday’s $13.59 and last Friday’s +$13.29 with a positive +$0.06 or +0.48% aftermarket indication;
Maintaining SELL/SELL into Strength:
Alnylam Pharmaceuticals (ALNY) closed down -$0.65 to $154.74 after Wednesday’s -$14.63 to $155.39 after Tuesday’s $170.02, Monday’s $175.69 and last Friday’s $172.38 with a negative -$0.74 or -0.48% aftermarket indication;
Mesoblast (MESO) closed up +$0.27 to $9.21 after Wednesday’s $8.94 after Tuesday’s $9.17, Monday’s $9.18 and last Friday’s $9.25 with a negative -$0.06 or -0.65% aftermarket indication after reporting Q2 (12/31/20). Operational and financial highlights: http://www.globenewswire.com/news-release/2021/01/29/2166359/0/en/Mesoblast-Operational-and-Financial-Highlights-for-Quarter-Ended-December-31-2020.html
The BOTTOM LINE: New market and tradting component: attitude!
As I have stated, “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.
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.