February 22, 2021 7:39am
The sector’s optimism is shaky over worries that enable fears of earning’s season LPS (loss-per-share) missing expectations
Pre-open indication: 2 BUYs and 10 SELLs
This week’s Q4 & FY20 earnings’ releases: Monday, 2/22 – AxoGen (AXGN); Wednesday, 2/24 - Ionis Pharmaceuticals (IONS), Vericel (VCEL), Sangamo Therapeutics (SGMO), Global Blood Therapeutics (GBT); Thursday, 2/25 - Caladrius Biosciences (CLBS), Editas Medicine (EDIT), Voyager Therapeutics (VYGR), Intellia Therapeutics (NTLA)
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Dow futures are DOWN -0.53% (-168 points), S&P futures are DOWN -0.71% (-28 points) and NASDAQ futures are DOWN -1.26% (-171 points)
Stock futures declined in early trading on Monday,
European stocks retreated with the pan-European Stoxx 600 dropping -0.7% by late morning trade,
Asia-Pacific stocks mostly declined as China left its benchmark lending rate unchanged over the weekend with MSCI’s index of Asia-Pacific shares outside Japan was -0.96% lower.
Data Docket: Federal Reserve Chairman Powell, who delivers his semi-annual testimony on the economy before the Senate Banking Committee on Tuesday.
Henry’omics:
The final week of February …
A brief recap of the week: Indexes came under pressure Friday afternoon, reversing early gains as the Dow finished the day up less than 0.00% (1 point) after climbing more than 150 points earlier in the session; the S&P 500 finished down 0.19% while the Nasdaq gained less than 0.1%.
- For the week, the S&P 500 lost 0.71% while the Nasdaq shed 1.57% while the Dow fared better with a slight gain of 0.11%.
The Russell 2000 added 2% while leading declines were Global Blood Therapeutics (GBT -$0.43), Bellicum Pharmaceuticals (BLCM -$0.38) and Applied Genetic Technologies (AGTC -$0.28); while inclining were Fate Therapeutics (FATE +$8.08%), Intellia Therapeutics (NTLA +$5.76) and Ultragenyx (RARE +$3.59).
Friday’s evening’s recap: “Zip-a-dee-doo-dah, zip-a-dee-ay; my, oh, my, what a wonderful session. Plenty of upside WAS headed my way as MY expectancy has briefly returned to the sector” … https://www.regmedinvestors.com/articles/11777
- The Nasdaq closed UP +9.11 points (+0.07%);
- The IBB closed up +0.98% and XBI closed up +1.62%;
- Sector volume was LOW with 4 of the 24-upside having higher than the 3-month average volume with the increased volume of 2 of 9-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.44 points or -1.96% at 22.05;
- Friday’s percentage (%) of the 24-upside were +0.08% (ADVM) to +8.65% (NTLA) while the 9-downside ranges from -0.19% (MESO) to -6.28% (BLCM).
February: 8 positive, 6 negative closes and 1 holiday to date
January: 10 positive, 9 negative closes and 1 holiday
Companies in my headlights – It’s your decision; I provide an idea and context:
Maintaining Sell: Questions continue …
Biostage (BSTG) closed down again -$0.00 to $1.85 with only 23 shares traded (interesting how no share traded without the “pumping of buys” after Thursday’s -$0.115 to $1.85 with 303 shares traded, Wednesday’s -$0.12 to $1.97 with 4.656 shares traded, Tuesday’s -$0.03 to $2.09 with 1,243 shares “pumped” following and last Friday’s flat at $2.12 with 88 shares traded. Reiterating …
Question#1: WHY cut the pay of the chief scientific officer (CSO), William Fodor, PhD by 50% to support short-term expenses (2/19.21 8-K filing)?
Question #2: WHY the cut, expenses must be extremely LOW as most employees have left and NO CRO hired or patient recruitment; WHAT has changed, there is still NO clinical trial initiation with an approved IND since last March 20, 2020?
Question#3: Any reason, Biostage’s ISS Governance Quality Score is ranked N/A. The pillar scores are significant … Audit: N/A; Board: N/A; Shareholder Rights: N/A; Compensation: N/A … an issue of transparency?
Question#4: WHAT is the relationship of DST Capital beyond being BSTG’s investor as they are BOTH based in the same offices – together. WHEN was the last time Mrs. bin Zhao was in the Holliston, Mass back office and WHO or WHOM is “pushing the buying” of daily stock?
BUY after Downside Bounce:
blue bird bio (BLUE) closed down again -$0.27 to $26.88 after Thursday’s -$1.07 to $26.95 with a positive +$0.35 or +1.31% pre-market indication. (‘m not giving-up on my bottom perception
Global Blood Therapeutics (GBT) closed down again -$0.43 to $48.33 after Thursday’s -$0.41 to $48.76 with a positive +$0.65 or +1.34% aftermarket indication.
SELL:
BioLife Solutions (BLFS) closed up +$0.47 to $40.92 with a negative -$0.42 or -0.45% aftermarket indication;
Fate therapeutics (FATE) closed up +$8.08 to $110.08 after Thursday’s $102.10, Wednesday’s $103.22, Tuesday’s $101.44 with a negative -0.18 or -0.16% pre-market indication.
Intellia therapeutics (NTLA) closed up +$5.76 to $72.37 after Thursday’s $66.71, Wednesday’s $68.80 and Tuesday’s $68.15 with -$2.37 or -3.27% pre-market indication. Earnings release this week, be prepared.
Mesoblast (MESO) closed down -$0.02 to $10.30 after Friday’s -$0.10 to $10.32, Wednesday’s +$0.24 to $10.42, Tuesday’s -$0.42 to $10.18 with a negative -$0.19 or -1.84% pre-market indication.
Regenxbio (RGNX) closed up +$0.94 to $43.22 and has a negative -$2.97 or -6.87% aftermarket indication.
Sangamo Therapeutics (SGMO) closed down -$0.21 to $13.21 after Thursday’s $13.42 with a positive -$0.02 or -0.15% pre-market indication;
Cellectis SA (CLLS) closed up +$1.07 to $25.09 after Thursday’s $24.02, Wednesday’s $25.51 and Tuesday’s $27.33 with -$0.54 or -2.15% pre-market indication.
Editas Medicine (EDIT) closed up +$1.13 to $56.49 after Thursday’s $55.36, Wednesday’s $56.51 and Tuesday’s $56.45 with -1.19 or -2.11% pre-market indication.
SELL into Strength:
Sage Therapeutics (SAGE) closed up +$3.86 to $82.33 after Friday’s -$4.01 to $78.47 with a positive +$0.92 or +1.12% aftermarket indication.
The BOTTOM LINE: Saw more than a large swing number of ups and less down …
Friday, the cell and gene therapy sector tracked to the upside with fewer declines (Friday closed positive at 24/9, 1 flat and 1 acquired; Thursday closed negative at 2/32 and 1 acquired; Wednesday closed negative at 11/23 and 1 acquired; Tuesday closed negative at 14/20 and 1 acquired following a market holiday.
Reiterating, “The short-term path to sector equities rolling higher is smaller ... to put it succinctly, earnings’ season seems to disengage buyers to wait for bigger dips pre- and post-releases to buy back into “our’ universe.
It’s STILL all about, the “bouncing ball” of sector momentum …
Many talk of horizons; “as I have said last week, my horizon is usually a Friday’s close …”
Again, “forewarned … earnings LPS (loss-per-share) season is upon us – my advice, trim and skim … if one can!”
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.
