March 2, 2021 7:59am
New highs scare me, they’re usually a recipe for a down slide as both the Dow and the Nasdaq clinched their best trading day since November while the $&P ha its best session since June
Pre-open in 3 BUY and 10 SELLs
News: Mesoblast (MESO; ASX: MSB) has executed a private placement for a total of US$110 million via the issue of 60 million shares in a led by a US investor group (SurgCenter Development), at A$2.30 per share, a 6.5% discount to the price at the close of trading 2/25/21.
Companies mentioned: AGTC, BSTG, CRSP, EDIT, GBT, MDXG, NTLA, PSTI, RGNX, QURE
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 DOWN -0.13% (-40 points), S&P futures are DOWN -0.14% (-6 points) and NASDAQ futures are DOWN -0.10% (-13 points)
U.S. stock indexes traded lower early Tuesday,
European stocks advanced, building on the previous session’s rally as U.S. bond yields continued to retreat,
Asia-Pacific stocks were mixed following strong gains overnight in U.S. markets,
Data Docket: Investors on Tuesday will pore over comments made by both Securities and Exchange Commission Chair nominee Gary Gensler and Federal Reserve Governor Lael Brainard. Gensler will testify before the Senate Banking Committee at 10 a.m. ET while Brainard will deliver a speech entitled “U.S. Economic Outlook and Monetary Policy” via a virtual meeting hosted by the Council on Foreign Relations. <CNBC>
Let’s put the today down as intruding into a previous rally …
U.S. equities began Monday 3/1 on a strong note with the S&P 500 up 2.38%, the Dow adding 1.95% and the Nasdaq jumping +3% after shedding 4.9% last week.
While, the 10-year Treasury yield, an anxiety for equity investors, was flat at 1.45% <from last week’s high of 1.61%>.
Coming attractions: earnings’ release, Thursday, 3/4 – Cellectis SA (CLLS)
Monday’s evening’s recap: “sector rebounds after a tough February as sentiment was boosted by of Johnson & Johnson’s (JNJ) advisory panel approval. While the $1.9 trillion fiscal aid/stimulus bill after a House narrow approval now moves to the Senate which expects to propose amendments.” … https://www.regmedinvestors.com/articles/11791
- The Nasdaq closed UP +396.48 points (+3.01%);
- The IBB closed up +1.73% and XBI closed up +2.43%;
- Sector volume was LOW with 1 of the 27-upside having higher than the 3-month average volume with the increased volume of 2 of 6-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -4.60points or -16.46% at 23.25;
- Monday’s percentage (%) of the 27-upside were +0.44% (ALNY) to +8.46% (AGTC) while the 6-downside ranges from -0.23% (VCEL) to -5.41% (RENE.L);
March: 1 positive close
February: 9 positive, 10 negative closes and 1 holiday
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 -$0.01 to $1.64 with 1,838 shares traded after Friday’s -$0.15 to $1.65 with 959 shares traded, Thursday’s -$0.00 to $1.80 with 3310 shares traded, Wednesday’s -$0.00 with 0 shares traded and last Tuesday’s -$0.20 to $1.80 with 4,062 shares traded. Reiterating …
Question#1: WHERE is all the money from DST Capital going or even coming FROM – “to PROMOTE 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 Beijing while managing DST Capital, bottom-line his wife’s (Mrs. bin Zhao) money?
Question#3: WHY are there NO answers from BSTG and some actions to resolve these real issues? STILL NO finance professionals employed by company – HOW can RSM US LLP facilitate their AUDIT of financial and operational controls?
MiMedx (MDXG) closed up +$0.76 to $10.67 after Friday’s $ with a positive +$0.43 or +4.03% aftermarket indication.
Pluristem (PSTI) closed down -$0.13 to $6.21 after Friday’s $6.34, Thursday’s $6.31, Wednesday’s $6.74 and last Tuesday’s $6.48 with a positive +$0.12 or +1.93% pre-market indication.
Applied Genetic Technologies (AGTC) closed up =$0.43 to $5.51 after Friday’s -$0.22 to $5.08, Thursday’s $5.30, Wednesday’s $5.65 and last Tuesday’s $5.41 with a positive +$0.14 or +2.54% aftermarket indication;
SELL after earnings:
uniQure NV (QURE) closed up +$1.35 to $38.05 after Friday’s $36.70 and a positive +$0.05 or +0.13% aftermarket indication. Some issues arose from earnings release, “December 2020, the Company and Bristol Myers Squibb amended the CLA to limit Bristol Myers Squibb to four existing collaboration targets. The amendment also terminated two warrants previously granted to Bristol Myers Squibb to increase Bristol Myers Squibb’s ownership in the Company up to 19.9%. The companies agreed that upon the consummation of a change of control transaction of the Company, uniQure will make a pre-specified payment to Bristol Myers Squibb, subject to certain terms and conditions.” Also, “In January 2021, the Company and CSL Behring received requests for additional information by the Federal Trade Commission (FTC) as part of its antitrust review of a global licensing agreement for etranacogene dezaparvovec that was announced in June 2020. The Company expects to fulfill the request by the end of the first quarter of 2021 and, subject to completion of the FTC review, close the transaction during the second quarter of 2021.” Thirdly, “in January 2021, the Company amended its current debt facility with Hercules Capital from $35 million to $135 million and drew down $35 million of that principal, bringing the total outstanding debt to $70 million.”
Regenxbio (RGNX) closed up +$1.60 to $42.51 after Friday’s $40.91 with a negative -$3.00 or -7.06% aftermarket indication. Some issues, “RGNX came out with a quarterly loss of $1.24 per share versus the Zacks Consensus Estimate of $1.11. This compares to loss of $0.72 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -211.71%. A quarter ago, it was expected that this biotechnology company would post a loss of $0.89 per share when it actually produced earnings of $0.23, delivering a surprise of 125.84%. A second issue, “earnings per share fell 72.22% over the past year to ($1.24), which missed the estimate of ($0.43). Revenue of $21,445,000 rose by 82.23% year over year, which missed the estimate of $61,500,000.”
SELL into Strength:
Athersys (ATHX) closed up +$0.13 to $2.17 after Friday’s 2.94 Thursday’s $2.08, Wednesday’s $2.25 and last Tuesday’s $2.18 with NO aftermarket indication.
Cellectis SA (CLLS) closed up +$1.19 to $22.69 after Friday’s $21.50, Thursday’s $20.64, Wednesday’s $22.47 and last Tuesday’s $21.94 with a negative -$0.09 or -0.40% aftermarket indication as earnings’ release are Wednesday.
CRISPR Therapeutics (CRSP) closed up +$4.56 to $130.25 after Friday’s -$1.59 to $125.69, Thursday’s -$6.24 to $127.28, Wednesday’s -$1.78 to $133.52 and last Tuesday’s -$3.26 to $135.30 with a positive +$0.75 or +0.58% pre-market indication.
Editas Medicine (EDIT) closed up +$3.03 to $46.89 after Friday’s -$0.90 to $43.86, Thursday’s -$4.94 to $44.76, Wednesday’s +$0.56 to $49.70 and last Tuesday’s $49.14 with a negative -$0.37 or -0.79% pre-market indication.
Fate Therapeutics (FATE) closed up +$6.89 to $96.61 after Friday’s $89.72, Thursday’s $86.27, Wednesday’s $95.27 and last Tuesday’s $95.48 with a negative -$0.61 or -0.63% pre-market indication.
Intellia Therapeutics (NTLA) closed up again +$3.57 to $64.03 after Friday’s +$2.99 to $60.46, Thursday’s -$6.25 to $57.47, Wednesday’s +$0.15 to $63.72 and last Tuesday’s -$2.59 to $63.57 with a positive +$0.93 or +1.45% aftermarket indication.
Global Blood Therapeutics (GBT) closed up +$1.88 to $44.48 after Friday’s -$0.90 to $42.60, Thursday’s $43.50, Wednesday’s $49.19 and last Tuesday’s $48.03 with a positive +$0.22 or +0.49% aftermarket indication;
The BOTTOM LINE: New highs give me “goosebumps” …
I am a “beware Man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim … if one can!”
If you want to BUY, consider those who have “reported” earnings … it’s STILL all about, the “bouncing ball” of sector momentum.
Also, an added hurdle, prospects of the next $1.9 trillion stimulus package tripped its way out of the House of Representatives; however, the U.S. Senate is set to begin debating the fiscal aid/stimulus/relief package – in WHAT format will it be approved after warring political parties “grind” the package?
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.