February 25, 2021 7:51am
The Fed will intervene to make sure rising rates don’t become too restrictive and disrupt equity markets
Pre-open in 0 BUYs and 7 SELLs
Today’s Earnings’ releases: Caladrius Biosciences (CLBS), Editas Medicine (EDIT), Voyager Therapeutics (VYGR), Intellia Therapeutics (NTLA)
Companies mentioned: BSTG, CRSP, CLBS, EDIT, NTLA, PSTI
What I provide is a trusted source of share pricing intelligence that ensures that investors are kept apprised of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets
Dow futures are UP +0.13% (+39 points), S&P futures are DOWN -0.19% (-8 points) and NASDAQ futures are DOWN -0.63% (-83 points)
Two (2) of three (3) U.S. stock index futures were slightly down on Thursday …
European stocks were mixed as the pan-European Stoxx 600 slipped fractionally below the flatline by noon, having earlier been up by as much as 0.5%;
Asia-Pacific stocks jumped with the MSCI’s index of Asia-Pacific shares outside Japan rising +1.54%.
Data Docket: First-time jobless claims fell to 730,000 for the week ended Feb. 20, the Labor Department said Thursday. That was well below the 845,000 estimate and a sharp decline from the 841,000 the previous week. Continuing claims hit a fresh pandemic-era low just above 4.42 million.
- Other … economic reports showed that spending on long-lasting goods jumped 3.4% on the headline and 1.4% excluding transportation, both well above estimates. Also, the second reading of gross domestic product in Q4/2020 showed an increase of 4.1%, up one-tenth of a percentage point from the initial reading but slightly below the 4.2% estimate.
Today’s moves come after the Dow jumped 425 points on Wednesday to close at a record high in a volatile session that at one point dropped more than 110 points.
The S&P 500 advanced 1.1%, while the Nasdaq gained 1% which was down 1.3%.
The 10-year Treasury yield hit 1.46% on Thursday morning, the highest level since February 2020.
- The benchmark rate has risen 35 basis points this month.
- Higher rates could spur investors to rotate out of stocks and into bonds. Higher rates could also hit the growth-oriented technology sector especially hard.
Coming attractions: earnings’ releases – Monday, 3/1 - Precigen (PGEN), Adverum Biotechnologies (ADVM) and Regenxbio (RGNX)
Wednesday’s evening’s recap: “volatility provides a comeback after a bounce and more than an ounce of upside” … https://www.regmedinvestors.com/articles/11785
- The Nasdaq closed UP +132.77 points (+0.99%);
- The IBB closed up +0.97% and XBI closed up +1.51%;
- Sector volume was LOW with 5 of the 25-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 down -1.77 points or -7.66% at 21.34
- Wednesday’s percentage (%) of the 25-upside were +0.24% (NTLA) to +13.37% (CLBS) while the 7-downside ranges from -0.22% (FATE) to -5.74% (MESO);
February: 9 positive, 8 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 -$0.20 to $1.80 with 4,062 shares traded after Monday’s +$0.145 to $2.00 with 2,094 shares traded, Friday’s -$0.00 to $1.85 with only 23 shares traded (interesting how no share traded without the “pumping of buys”, Thursday’s -$0.115 to $1.85 with 303 shares traded and last Wednesday’s -$0.12 to $1.97 with 4.656 shares traded. Reiterating …
Question#1: WHERE is all the money from DST Capital going or even coming FROM – “to pump the public share price”? just think over the past months if those dollars were put into the company coffers, they wouldn’t be cutting back on employees’ salaries – also WHAT did they take PPP funds for or MAYBE a clinical trial would have been initiated?
Question#2: WHAT is the relationship of DST Capital beyond being BSTG’s investor as they are BOTH based in the same offices – together. WHY is Dixintong Technology Group in Beijing, China led by Donghai Lui defining BSTG’s path forward as Hong Yu, BSTG’s president reports to him through Jason Chen, BSTG’s chairman who also reports to him while managing DST Capital, bottom-line his wife’s (Mrs. bin Zhao) money?
Question#3: Is Biostage (BSTG) a majority Chinese owned through Private Placements and warrants executions with a minority U.S. investors managed from Beijing?
SELL into Strength:
CRISPR Therapeutics (CRSP) closed down -$1.78 to $133.52 after Tuesday’s -$3.26 to $135.30, Monday’s $138.56, Friday’s $148.98 and last Thursday’s $146.66 with a negative -$0.03 or -0.02% pre-market indication.
Caladrius Biosciences (CLBS) closed up +$0.25 to $2.12 after Tuesday’s $1.87, Monday’s $2.23, Friday’s $2.29 and last Thursday’s $2.19 with a negative -0.02 or -0.94% pre-market indication.
Editas Medicine (EDIT) closed up +$0.56 to $49.70 after Tuesday’s $49.14, Monday’s $52.52, Friday’s $46.49 and last Thursday’s $55.36 with a negative -$1.70 or -3.42% pre-market indication;
Intellia Therapeutics (NTLA) closed UP +$0.15 to $63.72 after Tuesday’s -$2.59 to $63.57, Monday’s $66.16 with a negative -$0.92 or -1.42% pre-market indication. Earnings’ release today …
Global Blood Therapeutics (GBT) closed up +$1.16 to $49.19 after Tuesday’s $48.03, Monday’s $48.47, Friday’s $48.33 and last Thursday’s $48.76 with a negative -$2.69 or -5.47% aftermarket indication post earnings’ release. SG&A expenses for Q4 were $58.6 million compared with $44.6 million for Q4/19. SG&A expenses for the year ended December 31, 2020, were $210.9 million compared with $117.1 million for the same period in 2019. Net loss was $61.8 million compared with $96.0 million for Q4/19. Basic and diluted net loss per share for the three months ended December 31, 2020, was $1.00 compared with $1.59 for the same period in 2019. Net loss for the year ended December 31, 2020, was $247.6 million compared with $266.8 million for the same period in 2019. Basic and diluted net loss per share for the year ended December 31, 2020, was $4.04 compared with $4.57 for the same period in 2019. Cash, cash equivalents, and marketable securities totaled $560.9 million at December 31, 2020, compared with $695.0 million at December 31, 2019.
Pluristem (PSTI) closed up +$0.26 to $6.74 with a negative -$0.16 or -2.37% pre-market indication;
The BOTTOM LINE: Again, “forewarned … earnings LPS (loss-per-share) season is upon us – my advice, trim and skim … if one can!”
BUY those who have “reported” earnings … 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 …”
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.