February 11, 2021 7:57am

With bounce-backs being ready to happen even though confidence is shaky

Pre-open indication: 7 BUYs and 2 SELLs

News: Mesoblast (MESO +$3.06 or +30.98% pre-market indication) announced results from the P3 randomized controlled trial of its allogeneic mesenchymal precursor cell (MPC) therapy rexlemestrocel-L in 404 enrolled patients with chronic low back pain (CLBP) due to degenerative disc disease (DDD) refractory to conventional treatments. <read more>

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Dow futures are UP +0.25% (+78 points), S&P futures are UP +0.31% (+12 points) and NASDAQ futures are UP +0.45% (+62 points)

 

U.S. stock index futures rose in early morning trading on Thursday,

European stocks inched higher with the pan-European Stoxx 600 hovering +0.3% above the flatline by late morning,

Asia-Pacific stock movement was muted as China, Japan, South Korea and Taiwan markets were closed for holidays.

 

Data Docket: weekly jobless claims, due 8:30 a.m. ET; economists expect new claims for jobless benefits to come in at 760,000 last week, slightly lower than a total of 779,000 in the week prior.

 

Henry’omics:

Even after Wednesday’s lousy session, the week has all three (3) major averages higher, and on track to post their second (2nd) positive week in a row.

While still early in the month, the indexes are also higher for February. The Russell 2000 continues to attract attention, and the small cap index is outpacing the S&P for the week, month and year so far. <CNBC>

For color, Astra-Zeneca (AZN) reported earnings: product sales totaling $25.8 billion for 2020, a 10% rise from the previous year. The AZN posted a Q4/20 sales rise of 12% to just over $7 billion as shares moved +0.50 or +1% to $50.47 pre-open.

 

Wednesday’s evening’s recap: “fiddling on a “risky flooring” – indexes flip-flop, sector falls. Will fiscal aid/stimulus, when it happens and in what format cause the Fed to face challenges to economic re-opening and keep equities moving upward as they decline?”  … https://www.regmedinvestors.com/articles/11764

  • The Nasdaq closed DOWN -35.16 points (-0.25%);
  • The IBB closed down -0.82% and XBI closed down -2.24%;
  • Wednesday’s percentage (%) of the 8-upside were +0.13% () to +6.69% (PSTI) while the 25-downside ranges from -0.04% (BLUE) to -11.42% (EDIT);
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.36 points or +1.66% at 21.99;
  • Sector volume was LOW with 5 of the 8-upside having higher than the 3-month average volume with the increased volume of 8 of 25-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 8-upside were +0.13% () to +6.69% (PSTI) while the 25-downside ranges from -0.04% (BLUE) to -11.42% (EDIT);

February: 6 positive and 2 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:

Maintaining Sell: Questions continue …

Biostage (BSTG) closed flat at $1.82 with 4,292 shares traded after being up +$0.28 following Tuesday’s +$0.01 to $1.82 with 525 shares traded, Monday -$0.19 to $1.81 with 1,725 shares traded, Friday’s -$0.06 to $2.00 and last Thursday’s +$2.06 with 1,500 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?

Question#5: WHY aren’t all those dollars expended to elevate (i.e., pump) the share price? WOULDN’T working on BSTG’s image in the marketplace better its perception and sentiment?

 

BUY:

Applied Genetic Technologies (AGTC) closed up +$0.24 to $5.15 with a positive +$1.10 or +20.21% pre-market indication;

AxoGen (AXGN) closed down -$0.61 to $19.29 with a positive +$0.55 or +2.85% aftermarket indication;

Bellicum Pharmaceuticals (BLCM) closed up +$0.31 to $5.28 with a positive +0.36 or +6.82% pre-market indication;

Chinook Therapeutics (KDNY) closed down -$0.27 to $15.14 after Tuesday’s $15.41, Monday’s $16.04, Friday’s $16.15 and last Thursday’s $16.25 with a positive +$0.29 or +1.92% aftermarket indication;

CRISPR Therapeutics (CRSP) closed down -$7.35 to $160.20 with a positive +$1.12 or +0.70% pre-market indication;

Editas Medicine (EDIT) closed -$7.62 to $59.11 with a positive +$1.74 or +$2.94% pre-market;

Mesoblast (MESO) closed down -$0.12 to $9.91 with a positive +$3.07 or +30.98% pre-market indication after news of results from the P3 randomized controlled trial of its allogeneic mesenchymal precursor cell (MPC) therapy rexlemestrocel-L in 404 enrolled patients with chronic low back pain (CLBP) due to degenerative disc disease (DDD) refractory to conventional treatments. The results indicate that a single injection of rexlemestrocel-L may provide a safe, durable, and effective opioid-sparing therapy for patients with chronic inflammatory back pain due to degenerative disc disease, and that greatest benefits are seen when administered earlier in the disease process before irreversible fibrosis of the intervertebral disc has occurred.

 

SELL into Strength:

Pluristem (PSTI) closed up +$0.51 to $8.13 after Tuesday’s down -$0.12 to $7.62 and has a positive +$0.17 or +2.09% pre-market 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.