February 12, 2021 7:43am

No hurrahs or bows, just another dip ending the week with modest gains

Pre-open indication: 4 BUYs and 3 SELLs

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Dow futures are DOWN -0.1% (-53 points), S&P futures are DOWN -0.21% (-9 points) and NASDAQ futures are DOWN -0.15% (-21 points)

 

U.S. equity futures dipped early Friday

European stocks retreated slightly, with newly released economic data while i vaccinations against Covid-1ncreased,

Asia Pacific stocks were barely trading due to the Lunar New Year holiday. Markets in China and most of southeast Asia are closed on today. China’s stock and bond markets, foreign exchange and commodity futures markets will remain closed through to Feb. 17. Shares in Australia and Japan slipped into negative territory. Australian stocks were down 0.6%, while shares in Tokyo edged 0.1% lower.

 

Henry’omics:

It seems major averages are on track to take a breather.

Sector Q4 and FY 20 earnings are coming-in below expectations and consensus to date but … there are more coming.

 

Thursday’s evening’s recap: “earnings’ season is hurting share pricing as LPS (loss-per-share) are enhancing velocity of instability in the sector” … https://www.regmedinvestors.com/articles/11766

  • The Nasdaq closed UP +53.24 points (+0.38%);
  • The IBB closed down -0.31% and XBI closed down -1.30%
  • Sector volume was LOW with 5 of the 13-upside having higher than the 3-month average volume with the increased volume of 4 of 21-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.74 points or -3.37% at 21.25;
  • Thursday’s percentage (%) of the 13-upside were +0.41% (AXGN) to +16.67% (CLBS) while the 21-downside ranges from -0.24% (IONS) to -3.68% (ATHX);

February: 7 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 up +$0.30 to $2.12 with 8.09 shares traded after Wednesday’s 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 and last Friday’s -$0.06 to $2.00.

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 to better its perception and sentiment?

Question#6: WILL RSM US LLP “WHITEWASH” BSTG's Q4 and FY20 audit findings, many are watching and waiting?

 

Maintaining BUY:

Applied Genetic Technologies (AGTC) closed up +$0.75 to $5.90 after Wednesday’s +$0.24 to $5.15 with a positive +$0.27 or +4.56% pre-market indication;

Global Blood Therapeutics (GBT) closed down-$1.04 to $47.54 after Wednesday’s $44.58, Tuesday’s $49.15, Monday’s $50.74 and last Friday’s $50.81 with a positive +$0.14 or +0.29% pre-market indication. I’m in the hole but, not giving-up on GBT.

Homology Medicine (FIXX) closed down -$0.27 to $13.75 after Wednesday’s $14.02, Tuesday’s $14.37, Monday’s $14.80 and last Friday’s $13.78 with a positive +$0.44 or +3.20% pre-market

Ultragenyx (RARE) closed down -$4.44 to $162.78 after Wednesday’s $167.22, Tuesday’s $167.73, Monday’s $165.84 and last Friday’s $162.22 with a positive +$5.62 or +3.45% aftermarket indication. RARE came out with a quarterly loss of $1.34 per share versus the Zacks Consensus Estimate of a loss of $1.06. This compares to loss of $1.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -26.42%. A quarter ago, it was expected that this biotechnology company would post a loss of $1.24 per share when it actually produced a loss of $1.13, delivering a surprise of 8.87%.

 

Sell into Strength from BUY:

AxoGen (AXGN) closed up +$0.08 to $19.37 after Wednesday’s -$0.61 to $19.29 with a negative -$0.52 or -2.68% aftermarket indication;

Mesoblast (MESO) closed up +$1.04 to $10.95 after Wednesday’s -$0.12 to $9.91 with a negative -$1.25 or -1125% pre-market indication after yesterday’s 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 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.”

As I have also stated, “MY warning became self-evident: as new highs evolve, so won’t the declines as electronic trading reap profits before earnings’ season appears – keep watching the advance/decline (A/D) lines.”

Many talk of horizons; “I said on Tuesday, my horizon is Friday’s close …”

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.