February 10, 2021 7:36am
Prolonged exposure to lack of fiscal aid and slow roll-out of vaccine could turn into more weakness
Pre-open indication: 2 BUYs and 4 SELLs
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Dow futures are UP +0.26% (+82 points), S&P futures are UP +0.29% (+12 points) and NASDAQ futures are UP +0.29% (+40 points)
Futures rose early Wednesday as stocks looked to bounce-back to their previous February upsides,
European stocks were mixed with the pan-European Stoxx 600 hovered slightly above the flatline by mid-morning,
Asia-Pacific stocks were higher as Chinese stocks led gains among the region’s major markets.
On Tuesday, the Dow and the S&P 500 fell slightly, snapping a six-day winning streak while the Nasdaq bumped upward.
While the sector bounced to the downside as traders skimmed profits from many equities pre-earnings; LPS (loss-per-share) releases.
Data Docket: The Consumer Price Index report is scheduled to be released at 8:30 a.m. ET; economists expect a consensus 0.3% increase in the index, a measure of inflation, or a year-over-year gain of 1.5% ...excluding food and energy, it is projected to rise by 0.1%. Traders will also be watching closely
Federal Reserve Chairman Powell’s speech before The Economic Club of New York at 2:00 p.m. ET.
Mortgage demand drops as interest rates hit a three-month high
- The average contract interest rate for 30-year fixed-rate mortgages increased to 2.96% from 2.92%.
- Refinance demand, which is most sensitive to weekly rate fluctuations, fell 4% last week but were 46% higher than a year ago.
- Mortgage applications to purchase a home fell 5% for the week but were still 17% higher year over year.
Tuesday’s evening’s recap: “RegMed Investors’ (RMi) closing bell: “markets fluctuate as sector poops the bed, sixth session streak is over. The upside slid as I have been warning, stop chewing on the bubble’s “gum” … https://www.regmedinvestors.com/articles/11762
- The Nasdaq closed UP +20.06 points (+0.14%);
- The IBB closed down -0.54% and XBI closed down -1.22%;
- Sector volume was LOW with 1 of the 11-upside having higher than the 3-month average volume with the increased volume of 7 of 23-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.39 points or +1.84% at 21.63;
- Tuesday’s percentage (%) of the 11-upside were +0.19% (MDXG) to +4.41% (BLCM) while the 23-downside ranges from -0.54% (ATHX) to -6.48% (AGTC);
February: 6 positive and 1 negative 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 up +$0.01 to $1.82 with 525 shares traded after Monday -$0.19 to $1.81 with 1,725 shares traded, Friday’s -$0.06 to $2.00, Thursday’s +$2.06 with 1,500 shares traded and last Wednesday’s $2.00 with 100 shares traded.
Question#1: WHY do I question BSTG because I was brought-in by the major shareholder, Mrs. bin Zhao, DST Capital to reduce some headcounts, to straighten "things-out", over billing issues and to get the IND filed (for which I had a greater influence" in augmenting and after fulfillment pf mission there was a "specific-blood-letting” orchestrated after irregular “ISSUES” being identified … and more?
Question#2: WHY were financial accounts payable, accrued and other current liabilities and “other” liabilities suddenly “LOST or MISPLACED” by V.P. of business development and operations - Shunfu Hu?
Question#3: 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#4: DON’T daily, weekly, monthly and quarterly reporting support the ever-evolving multiple contracts which were “CHANGED” by WHOM and for WHAT reasons and WHICH firm after internal intimidations and harassments were put into writing and exposed?
SELL into Strength:
Verastem (VSTM) closed up again +$0.04 to $2.49 after Monday’s +$0.12 to $2.45 with a negative -$0.04 or -1.61% aftermarket indication;
CRISPR Therapeutics (CRSP) closed down -$1.68 to $167.55 with a positive +$2.34 or +1.40% pre-market indication;
Pluristem (PSTI) closed down -$0.12 to $7.62 and has a positive +$0.24 or +3.15% pre-market indication;
Global Blood Therapeutics (GBT) closed down -$1.59 to $49.15 after Monday’s-$0.07 to $50.74, Friday’s +$0.74 to $50.81, Thursday’s $50.07 and last Wednesday’s $50.01 with a positive +1.10 or +2.24% aftermarket indication.
Homology Medicine (FIXX) closed down -$0.43 to $14.37 after Monday’s +$1.02 to $14.80 with a positive +$0.13 or +0.90% aftermarket indication;
The BOTTOM LINE: It’s all about, the “bouncing ball” of market and sector momentum …
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.