February 5, 2021 7:47am
Johnson & Johnson (JNJ) asks the FDA to authorize its ONE-SHOT coronavirus vaccine that prevents 100% of COVID-19 hospitalizations and deaths - it could be greenlit within WEEKS
Pre-open indication: 6 BUYs and 3 SELLs
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Dow futures are UP +0.47% (+146 points), S&P futures are UP +0.49% (+19 points) and NASDAQ futures are UP +0.38% (+51 points)
Stock futures rose early Friday as investors awaited a closely watched January jobs report;
European stocks were modestly higher as investors look to vaccine rollouts for hopes of normalization;
Asia-Pacific stocks rose following the action of U.S. markets as Japanese automakers rallied following a Nikkei report that Apple is in discussions with at least six companies about working on the “Apple Car”. Overnight, the MSCI Asia Pacific Index added 0.7% while Japan's Topix index closed 1.4% higher.
Data Docket: The U.S. jobs market remained steady as investors looked ahead to the end ofCovid-19 restrictions.
- Job growth returned to the U.S. in January, with nonfarm payrolls increasing by 49,000 while the unemployment rate fell to 6.3% ...
- The sharp drop in the unemployment came as the labor force participation rate edged lower to 61.4% and 406,000 workers left the labor force;
- However, a more encompassing measure of unemployment that includes discouraged workers and those holding part-time positions for economic reasons also fell, dropping to 11.1% from 11.7% in December. <CNBC>
Henry’omics:
Stimulus talks and possible stronger-than-expected jobs data should propel stocks to new highs …
The indexes are on pace their best weekly performance since November; the Dow has gained +3.6%, the S&P 500 +4.2% and the Nasdaq 5.4% as speculative trading dissipated.
The MSCI ACWI, an index of the world’s 50 largest markets, rose 0.24% to 668.36 early in the European trading session, closing in on the record high of 670.82 notched around two weeks ago. <CNBC>
Also, the EU’s drug regulator said Thursday that it was assessing data on therapeutic antibody treatments for some outpatients from U.S. drug makers Regeneron (REGN) and Eli Lilly (LLY)
Thursday’s evening’s recap: “key factor of session - momentum driven by econ data. Risk-on’ equities are rocking upward” … https://www.regmedinvestors.com/articles/11755
- The Nasdaq closed UP +167.20 points (+1.23%);
- The IBB closed up +1.37% and XBI closed up +1.06%
- Sector volume was LOW with 6 of the 27-upside having higher than the 3-month average volume with the increased volume of 0 of 7-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -1.14 points or -4.98% at 21.77;
- Thursday’s percentage (%) of the 27-upside were +0.12% (GBT) to +27.71% (BCLI) while the 7-downside ranges from -0.27% (VYGR) to -4.67% (RENE.L);
February: 4 positive closes
January: 10 positive, 9 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 up +$0.07 to $2.00 with 129 shares traded after Tuesday’s being flat at $1.93 with 205 shares traded, Monday’s +$0.13 to $1.93 with 1,211 shares traded, Friday’s -$0.06 to $1.80 with 7,338 shares traded and last Thursday’s +$0.06 to $1.86 with 15,597 shares traded.
- Question#1: As of 1/29/20, from an 8-K filed 2/4/21… WHY the departure of “Danforth Advisors, LLC (“Danforth”) WHO notified Biostage, that “Danforth was terminating its Consulting Agreement with the Company. As a result, and effective as of such termination, James Mastridge, is no longer serving as the Company’s interim Vice President of Finance or principal accounting and financial officer. The Company is actively in the process of identifying a qualified candidate to serve as the Company’s principal accounting and financial officer.”
- Question#2: I am NOT the ONLY one who has seen the BSTG “troubles” in financial reporting and operations; WHAT are the other ISSUES that a recognized, extremely responsible and quality firm <Danforth Advisors> see as an impediment to an audit and financial review for Q4 and ending FY20?
- Question#3: WHAT will RSM US LLP, BSTG’s audit firm NOW do as yet another financial officer (7 to date) leaves – don’t they have a FIDUCIARY responsibility to report to the SEC after all these financial/accounting employment terminations in the past years?
- Question#4: Does it also put MORE fiduciary and transparency responsibility on the new board and audit committee member, Herman Sanchez?
BUY:
Applied Genetic Technologies (AGTC) closed up +$0.09 to $4.49 after Wednesday’s $4.40, Tuesday’s $4.01, Monday’s $3.95 and last Friday’s $3.94 with a positive +$0.66 or +14.70% pre-market indication;
Brainstorm Cell Therapeutics (BCLI) closed up +$1.71 to 7.88 after Wednesday’s $6.17, Tuesday’s $5.87, Monday’s $5.64 and last Friday’s $6.04with a positive +$0.25 or +3.17% pre-market indication.
- “BCLI’s stock price shot up by nearly 30% yesterday, on the one-two punch of an encouraging metric or two in its quarterly results and an update about its most promising pipeline drug. For BCLI's Q4 of 2020, the clinical-stage biotech said that its net loss deepened to $31.8 billion, from the year-ago shortfall of nearly $23.3 million. What was likely a stronger tailwind for the stock on Thursday was BCLI's news about NurOwn, its treatment that originally targeted the fatal neurological disease amyotrophic lateral sclerosis (ALS).” <Motley Fool>
Cellectis SA (CLLS) closed up +$2.80 to $25.74 after Wednesday’s $22.94, Tuesday’s $28.89, Monday’s $28.44 and last Friday’s $27.34with a positive +$0.54 or +2.10% pre-market indication;
Pluristem (PSTI) closed up +$0.06 to $6.46 after Wednesday’s $6.40, Tuesday’s $6.53, Monday’s $7.46 and last Friday’s $7.00with a positive +$0.09 or +1.39% pre-market indication;
Precigen (PGEN) closed up +$0.05 to $7.66 after Wednesday’s $7.61, Tuesday’s $7.61, Monday’s $8.47 and last Friday’s $8.50 with a positive +$0.04 or +0.52% aftermarket indication;
Ultragenyx (RARE) closed up +$4.76 to $155.00 after Wednesday’s $150.24, Tuesday’s $153.15, Monday’s $145.63 and last Friday’s $138.59 with a positive +$5.00 or +3.23% aftermarket indication;
SELL into strength:
Alnylam Pharmaceuticals (ALNY) closed up +$6.66 to $157.91 after Wednesday’s $151.25, Tuesday’s $154.05, Monday’s $149.25 and last Friday’s $150.48 with a negative -$6.66 or -4.22%
Homology Medicine (FIXX) closed up +$0.43 to $13.39 after Wednesday’s $12.96, Tuesday’s $13.04, Monday’s $12.45 and last Friday’s $12.15with a negative -$0.10 or -0.75% aftermarket indication;
The BOTTOM LINE: It’s all about, the appetite for risk …
After four (4) straight days of gains, the major averages are on pace their best weekly performance since November; or are they …?
Reiterating, “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.
