February 1, 2021 7:43am
As I have previously stated, a bubble in the sector/market unravels and Q4 and FY20 results could cause further turbulence
Pre-open indication: 5 SELLs and 5 BUYs
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Dow futures are UP +0.8% (+253 points), S&P futures are UP +1.09% (+41) and NASDAQ futures are UP +1.13% (+146 points)
Stock futures rise in early trading on Monday,
European stocks climbed, with the pan-European Stoxx 600 climbing +1.2% by late morning,
Asia-Pacific markets surged on Monday
Data Docket: A private survey showed Chinese manufacturing activity growth slowing in January, with the Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) coming in at 51.5. That compared against expectations for a reading of 52.7 by analysts. <Reuters>. Figures above 50 in PMI readings represent expansion, while those below that level signify contraction.
Friday ended with sector equities falling sharply on Friday, wrapping up a roller-coaster week with threes (3) negative and two (2) closes as heightened speculative trading by retail investors continued to unnerve the market.
All three major averages dropped more than 3% this week, posting their worst week since October.
A glimpse into the healthcare earnings arena this week as Pfizer (PFE) and Biogen (BIIB) report.; in our “our” universe Mesoblast (MESO) reported last Thursday and AxoGen (AXGN) will report on 2/22/21.
Friday’s evening’s recap: RegMed Investors’ (RMi) closing bell: “sector’s low volume doesn’t reflect volatility as share pricing gets overpowered. It’s re-inventing the impact of retail investor “rebellion” as short sellers’ targets scatter”
- The Nasdaq closed DOWN - 266.46 points (-2%);
- The IBB closed up +0.14% and XBI closed up +0.82%
- Sector volume was LOW with 2 of the 12-upside having higher than the 3-month average volume with the increased volume of 3 of 22-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +2.88 points or +9.53% at 30.09;
- Friday’s percentage (%) of the 12-upside were +0.36% (EDIT) to +21.09% (BLCM) while the 22-downside ranges from -0.25% (AGTC) to-4.20% (BCLI);
- 10 positive, 9 negative closes and 1 holiday, so far
Companies in my headlights – It’s your decision; I provide an idea and context:
Biostage (BSTG) closed down -$0.06 to $1.80 with 7,338 shares traded after Thursday’s +$0.06 to $1.86 with 15,597 shares traded, Wednesday’s $1.80 with 2,300 shares traded, Tuesday’s $1.80 with 2,500 shares traded fand last Monday’s $1.52 with 100 shares traded.
- Question#1: Is there desperation in buying against the selling with all the volume that is accumulating as BSTG attempts to exercise the outstanding warrants?
- Question#2: isn’t TRANSPARENCY a major issue for BSTG’s new board of director’s audit designation member, Herman Sanchez?
- Question#3” Has he done the level of due diligence needed – reach out to sources?
- Question#4: WHEN does the clinical trial initiate or is there yet, another payment issue with a CRO as the last one refused to file IND unless paid?
Bellicum Pharmaceuticals (BLCM) closed up +$0.81 to $4.65 after Thursday’s -$0.04 to $3.84 after Wednesday’s -$0.57 to $3.88, Tuesday’s $4.45 and last Monday’s $4.39, with a negative -$0.07 or -0.12% pre-market indication after Friday’s +45.31% share price leap;
Ionis Pharmaceuticals (IONS) closed down -$0.62 to $60.07 after Thursday’s $60.69, Wednesday’s $59.19, Tuesday’s $62.52 and last Monday’s $63.78 with a positive +$0.60 or +1% aftermarket indication;
Sage Therapeutics (SAGE) closed up +$1.38 to $80.65 after Thursday’s $79.27, Wednesday’s $80.53, Tuesday’s $83.48 and last Monday’s $90.46 with a negative -$0.15 or -0.19% aftermarket indication;
Vericel (VCEL) closed up +$0.17 to $41.27 after Thursday’s $41.10, Wednesday’s $40.15, Tuesday’s $40.85 and last Monday’s $43.63 with a negative -$2.06 or -4.09% aftermarket indication;
bluebird bio (BLUE) closed down -$0.45 to $44.55 after Thursday’s -$1.77 to $45.00, Wednesday’s $46.77, Tuesday’s $46.07 and last Monday’s $48.10 with a positive +$2.82 or +6.33% pre-market indication;
Global Blood Therapeutics (GBT) closed up +$1.78 to $50.12 after Thursday’s -$2.46 to $48.34, Wednesday’s +$3.31 to $50.80, Tuesday’s $47.49, Monday’s $48.34 and last Friday’s $47.65 with a positive +$1.86 or +3.71% aftermarket indication;
Homology Medicine (FIXX) closed down -$0.29 to $12.15 after Thursday’s -$0.03 to $12.44, Wednesday’s -$0.57 to $12.47, Tuesday’s $13.04, Monday’s $13.59 and last Friday’s +$13.29 with a positive +$0.35 or +2.888% aftermarket indication;
Pluristem (PSTI) closed down -$0.12 to $6.99 after Thursday’s $7.11, Wednesday’s $7.08, Tuesday’s $7.30 and last Monday’s $7.45 with a negative +$0.08 or +1.07% pre-market indication;
Precigen (PGEN) closed up +$0.07 to $8.50 after Thursday’s $8.43 Wednesday’s $9.28, Tuesday’s $8.14 and last Monday’s $8.90 with a positive +$0.30 or +3.53% pre-market indication;
The BOTTOM LINE: As I have stated, “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.