February 9, 2021 7:45am
RegMed Investors’ (RMi) pre-open: a correction could be catching-up to us
The question was always, low long would the trend stay our friend; as I stated yesterday, new highs say bye to me in some sector equities
Pre-open indication: 4 BUYs and 10 SELLs
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Dow futures are DOWN -0.17% (-52 points), S&P futures are DOWN -0.12% (-4.50 points) and NASDAQ futures are DOWN -0.08% (-9.25 points)
U.S. stock futures edged lower early Tuesday
European stocks retreated as their rally cooled;
Asia-Pacific stocks mostly advanced with Chinese mainland shares leading gains.
The three (3) major indexes set another round of record high on Monday; as the Dow and S&P 500 have now advanced for six (6) straight sessions, while the Nasdaq has finished in the green on five (5) of those six (6) sessions.
At the same times, the Russell 2000 led the way on Monday, jumping 2.5% to its own record high. The index has gained nearly 16% year to date.
Data Docket: more updates on the state of the economic recovery with the NFIB’s small business survey and the Labor Department’s job openings and labor turnover data. St. Louis Fed President James Bullard is slated to speak at noon ET.
Monday’s evening’s recap: “RegMed Investors’ (RMi) closing bell: early upside sector moves provides a slight advantage in this market as in chess but not a solved “game” going forward” … https://www.regmedinvestors.com/articles/11760
- The Nasdaq closed UP +131.35 points (+0.95%);
- The IBB closed up +2.10% and XBI closed up +4.32%
- Sector volume was LOW with 9 of the 26-upside having higher than the 3-month average volume with the increased volume of 2 of 7-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.37 points or +1.77% at 21.24;
- Monday’s percentage (%) of the 26-upside were +0.02% (ALNY) to +14.16% (PSTI) while the 7-downside ranges from -0.14% (GBT) to -9.50% (BSTG);
February: 6 positive closes to date
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:
Biostage (BSTG) closed down -$0.19 to $1.81 with 1,725 shares traded after Friday’s -$0.06 to $2.00, Thursday’s +$2.06 with 1,500 shares traded after Wednesday’s $2.00 with 100 shares traded and Tuesday’s being flat at $1.93 with 205 shares traded.
Maybe more questions need to be asked … since there has NOT been ANY clinical trial initiation coming-up on a year since its IND approval. Most and all companies after an approval would have hired a CRO and begun patient recruitment to begin studies; yet … NOTHING?
- 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?
- Question#5: WHY the constant revolving door – operational and leadership ISSUES – should organizational stability be a factor that should be addressed by RSM US LLP in their Q4 and FY20 audit valuation and verifications?
- Question#6: What is the relationship between Mrs. bin Zhao of DST Capital and Lui Dong-Hai of Dixintong Technology Group, the largest cell phone technology company and possibly is there a linkage to the Ministry of State Security (MSS) - the civilian intelligence, security and secret police agency of the People's Republic of China?
- Question#7: HOW many times did Hong Yu president and Shunfu Hu, VP of business development and operations speak of fear to me (?) that Beijing, China based LIU Dong Hai was the ULTIMATE AUTHORITY in BSTG’s future?
- Question#8: WHY does Chinese investor DST Capital and Beijing, China based Dixintong Technology Group need a regenerative medicine/biotech public, PPP debtor and money losing company that resides in this corner of medical and scientific innovation of America and draw attention to itself?
- Question#2: NOT a conspiracy theorist but, don’t U.S. public shareholders deserve accountability of WHAT on-going relationship exist that have hindered the initiation of clinical trials with an approved IND and WHAT further data are they accumulating or need to initiate trials?
SELL into strength:
Athersys (ATHX) closed up +$0.05 to $2.77 with a negative -$0.02 or -0.725 pre-market indication;
BioLife Solutions (BLFS) closed up +$1.59 to $42.94 after Friday’s +$41.25 to $1.35, Thursday’s -$0.32, Wednesday’s -$0.74 and last Tuesday’s +$1.57 – that’s +$5.16 or +12.01% in six (6) sessions. There is a very positive 52-week change of +198.56% with a 52-week low of $7.37 and high of $47.22 and short percentage (%) of float of 2.80%.
Bellicum Pharmaceuticals (BLCM) closed up +$0.27 to $4.76 with a positive +$0.06 or +1.26% pre-market indication;
bluebird bio (BLUE) closed up +$0.19 to $47.89 with a negative -$0.11 or -0.23% aftermarket indication;
Cellectis SA (CLLS) closed up +$1.56 to $28.05 with a negative -$0.37 or -1.32% pre-market indication;
Ionis Therapeutics (IONS) closed down -$0.46 to $59.73 after Friday’s +$0.78 to $60.19, Thursday’s -$1.83 to $59.41, Wednesday’s $61.24 and last Tuesday’s $61.22 with a negative -$0.50 or -0.84% aftermarket indication.
Fate Therapeutics (FATE) closed up +$3.31 to $108.50 after Friday’s +$2.57 to $105.28, Thursday’s +$4.38, Wednesday’s +$0.75 and last Tuesday’s +$4.83 with a positive +$0.52 or +0.48% pre-market indication. A $18.37 or +16.9% move over six (6) sessions, a 52-week change of +293.53%, a 52-week low of $16.75 and a high of $121.16 with a short percentage (%) of float of 15%.
Vericel (VCEL) closed up +$2.48 to $49.66 with a positive +$0.17 or +0.34% aftermarket indication;
Verastem (VSTM) closed up +$0.12 to $2.45 with a positive +$0.02 or +0.82% pre-market indication;
Alnylam Pharmaceuticals (ALNY) closed up +$0.04 to $165.15 with a positive +0.85 or +0.51% aftermarket indication;
Global Blood Therapeutics (GBT) closed down -$0.07 to $50.74 after Friday’s +$0.74 to $50.81, Thursday’s $50.07, Wednesday’s $50.01 and last Tuesday’s $49.53 with a positive +0.61 or +1.20% aftermarket indication. A +$1.25 move in only six (6) sessions and a 52-week change of -29.95%, 52-week low of $36.49 and a high of $83.69 with a short percentage (%) of float of 21.04%.
Homology Medicine (FIXX) closed up +$1.02 to $14.80 with a positive +$0.40 or +2.70% aftermarket indication;
uniQure NV (QURE) closed up +$2.75 to $38.75 after Friday’s -$0.17 to $36.00 after Thursday’s $36.17, Wednesday’s $35.71, Tuesday’s $36.40 and last Monday’s $36.00 with a positive +$0.70 or +1.81% pre-market indication. A 52-week change of -42.68%, a 52-week low of $34.38 and a high of $71.45 and a short percentage (%) of float of 7.53%. “After QURE said an independent data safety monitoring board said there were no safety concerns in a Phase 2/3 clinical trial for its experimental Huntington's disease treatment.”
The BOTTOM LINE: It’s all about, the appetite for risk …
I am NOT the only one to mention the word “bubble”, “Let’s settle one thing up front. We’re clearly witnessing a speculative bubble in the financial markets. This time is no different. This mania will end the same way they all do: in tears. I started banging the gong in mid-2020 about the imminent risk of financial crisis stemming from three potential causes: a severe market correction, a deteriorating U.S. fiscal position from unsustainable growth in deficits and debt, and the inflation that was likely to follow.” <Barons>
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.