March 3, 2021 5:23pm

On the positive, lower valuations underline the prospects of a coming upside

Pre-open indication results: 3 HITs and 3 MISS

 

What I provide is an intelligence daily. RMi outlines the prelude to the daily dose of facts and objectivity!

 

What do analysts do, they separate actionable numbers or intelligence and news into a short-term investment thesis to tackle the “unknown unknowns”

Numbers based facts speak better then opinion as I see answers in numbers to speak truth over opinion!

The Dow closed DOWN -121.43 points (-0.39%); the S&P closed DOWN -50.57 points (-1.31%) while the Nasdaq closed DOWN -361.03 points (-2.70%)

 

Henry’omics:

Indexes were up. down, round and round … closing in the pits.

The weakness came as the 10-year Treasury yield extended its gains.

The benchmark rate climbed more than 8 basis points to 1.49% Wednesday after surging to a high of 1.6% last week in a move that some described as a “flash” spike.

  • Initial jobless claims sank far more than expected last week, though at least some of the drop appeared to have stemmed from data collection issues due to the extreme winter weather blanketing the country mid-month. <Yahoo Finance>
  • Still, new jobless claims are expected to tick up only modestly after last week's pronounced drop, suggesting some underlying improvements in unemployment trends.

These are NOT the ONLY reasons; sentiment is in the “grinder” as fiscal aid/stimulus gets argued and the economy falters as … finally more vaccines come on-line

  • “A VIX spike is what happens when the fear gauge makes a hard move up out of nowhere and then gives it away almost as fast. It represents a moment of panic that you’ve got to buy, because it quickly subsides.” <Jim Cramer>

 

Data Docket: private companies added 117,000 new jobs in February, according to a report Wednesday from payroll processing firm ADP. Economists expecedt225,000 private jobs were added last month.

  • Meanwhile, the pace of growth in the services side of the U.S. economy decelerated in February. The ISM Nonmanufacturing Index showed a reading of 55.3 for last month, down 3.4% points from January and below the 58.7 estimate.

 

RegMed Investors’ (RMi) pre-open: “so, what again is the theme, we rotating into? Key word – trading, not investing. What’s down will usually be up the next session.”  … https://www.regmedinvestors.com/articles/11794

 

Pre-open indication results:  3 HITs < SELL: Biostage (BSTG -$0.01 with 32 shares traded); MiMedx (MDXG +$0.12), Fate Therapeutics (FATE -$7.42)> and 3 MISS < Applied Genetic Technologies (AGTC -$0.39), Pluristem (PSTI -$0.56), Sage Therapeutics (SAGE -$7.97) >

 

RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Wednesday opened negative at 2/30, 2 flat and 1 acquired, stayed negative at the mid-day to 4/29, 1 flat and 1 acquired, closing negative at 3/30, 1 flat and 1 acquired;

 

There are clear winners — and losers — heading into the second month and Q1 of 2021.

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), Caladrius Bioscience (CLBS), MiMedx (MDXG) to name 3 of the 3 inclining of the 35 covered

Hammered in today’s market:

  • Ultragenyx (RARE), CRISPR Therapeutics (CRSP), Alnylam Pharmaceuticals (ALNY), Sage Therapeutics (SAGE), Fate Therapeutics (FATE) to name 5 of the 30 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 1 of the 3-upside having higher than the 3-month average volume with the volume of 5 of 30-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 3-upside were +1.08% (MDXG) to +3.90% (RENE.L) while the 30-downside ranges from -0.17% (KDNY) to -10.46% (RARE);

 

Wednesday’s (3 of 3) incline

  • ReNeuron (RENE.L +$4.00 after Tuesday’s +$2.50 and Monday’s -$6.00);
  • Caladrius Bioscience (CLBS +$0.04);
  • MiMedx (MDXG +$0.12 after Tuesday’s +$0.49 after Monday’s +$0.76);

Wednesday’s (10 of 30) decliners:

  • Ultragenyx (RARE +$14.63 after Tuesday’s -$2.54);
  • CRISPR Therapeutics (CRSP -$10.69);
  • Alnylam Pharmaceuticals (ALNY -$8.09 after Tuesday’s +$3.94);
  • Sage Therapeutics (SAGE -$7.97 after Tuesday’s -$3.14 and Monday’s +$2.71);
  • Fate Therapeutics (FATE -$7.42);
  • Vericel (VCEL -$4.69 after Tuesday’s -$1.38 and Monday’s -$0.11);
  • Intellia Therapeutics (NTLA -$4.26 after Tuesday’s -$2.06 after Monday’s +$3.57);
  • Editas Medicine (EDIT -$2.56 after Tuesday’s -$1.20 and Monday’s +$3.03);
  • Ionis Pharmaceuticals (IONS -$2.48 after Tuesday’s +$1.25 and Monday’s +$1.65);
  • Cellectis SA (CLLS -$2.02);

Closing 1 – Biostage (BSTG) and 1 - Stemline Therapeutics (STML – acquired)

 

Sentiment and COVID-19 infections:

  • Growing optimism over the vaccine rollout sparked a rally in cyclical stocks and reopening plays.

Infection cases <Million>: never to forget …

  • Wednesday 28.73 M cases,
  • Wednesday’s death rate totaled 517,813 <Johns Hopkins University>

 

Stats:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB closed down -3.58% and XBI closed down -4.71%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +2.57 points or +10.86% at 26.67

Upside volume: low

  • Wednesday: 1 out of the 3-upside had higher than the 3-month average volume

Downside volume: low

  • Wednesday: 5 out of the 30-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: % and pricing drop

  • Wednesday’s percentage (%) of the 3-upside were +1.08% (MDXG) to +3.90% (RENE.L) while the 30-downside ranges from -0.17% (KDNY) to -10.46% (RARE);

 

March, the 3rd month of Q1/21:

Wednesday closed negative with 3 advancers, 30 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: NOT much has changed, I am STILL sending up a red flag on stock pricing until earnings’’ season completes its run.

There is always a shift going-on however, these last two (2) months continues to leave me … QUESTIONING staying longer than a WEEK as I have said recently - my horizon on Monday is to meet on Friday.

As to earnings’ season: “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.