March 11, 2021 8:00am
When you drink from a glass, the question of a refill is whether we drank too much or a clumsy move, I’m for a water before any next action? There are “some” undervalued equities out there … so drink the water, watch and wait.
Pre-open indications: 3 BUYs and 5 SELLs
Companies mentioned this a.m.: SELL: BSTG, FATE; BUY: BLUE, CLLS, CRSP, and FIXX; SELL into Strength: NTLA and a Falling Knife: GBT
RMi’s daily report is a primer that may say little or a lot; yet it serves as insurance that all indications are being examined and evaluated.
Dow futures are UP +0.31% (+100 points), S&P futures are UP +0.66% (+26 points) and NASDAQ futures are UP +1.65% (+209 points)
U.S. stock futures are up and rising on Thursday with the Nasdaq up the highest,
European stocks were mostly higher as the middle kingdoms watched the COVID-19 relief measures,
Asia-Pacific markets traded broadly higher following a relative and strong U.S. market finish
Data Docket: The Labor Department reported that first-time filings for unemployment insurance in the week ended March 6 totaled a seasonally adjusted 712,000, below the estimate of 725,000.
This week, almost over has been stronger for the growth stocks yet the cell and gene therapy sector has suffered and faltered … as a surge for the Nasdaq on Tuesday pulled the index out of correction territory.
Remember, “higher rates make profits in far-off years seem less attractive to investors and can knock down stocks with relatively high valuations.”
Wednesday’s evening’s recap: “What went down Monday, went up Tuesday, then left Wednesday’s sector half-empty. House passes $1.9 trillion coronavirus/fiscal aid/ stimulus relief bill.” … https://www.regmedinvestors.com/articles/11805
- The Nasdaq closed DOWN -4.99 points (-0.04%)
- The IBB closed up +0.03% and XBI closed up +0.20%
- Sector volume was LOW with 2 of the 15-upside having higher than the 3-month average volume with the volume of 2 of 15-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -1.47 points or -6.12% at 22.56
- Wednesday’s percentage (%) of the 15-upside were +0.43% (VSTM) to +8.12% (BLUE) while the 15-downside ranges from -0.26% (VCEL) to -7.26% ();
March: 3 positive, 4 negative and 1 neutral closes
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 -$0.10 to $1.50 with 1,254 shares traded after Monday’s -$0.03 to $1.60 with 6,196 shares traded (pumped re promoted”) after being flat Friday with 217 shares traded, Thursday’s 2,083 shares being traded and last Wednesday’s being flat at $1.63 with 32 shares traded. Reiterating
Question#1: Has Jason Chen, the chairman of the Board condoned many of the past year and months transactions having been made aware of many operational and financing “challenges”?
Question#2: Should Mrs. bin Zhao of DST Capital, BSTG’s major funder be interviewed by regulatory bodies to validate the past particulars of stock placements? (Those securities are usually issued through private placements, Regulation D offerings)
- Selling unregistered shares is typically considered a felony (from government regs), but there are exceptions to this rule. SEC Rule 144 lays out the conditions under which unregistered shares may be sold: a few are …
- They must be held for a prescribed period;
- There must be adequate public information about the security’s historical performance;
- The sale must be of less than one percent (1%) of shares outstanding and less than one percent (1%) of the previous four weeks’ average trading volume;
- All normal trading conditions that apply to any trade must be met;
- Sales of more than 500 shares or more than $10,000 worth of shares must be pre-registered with the SEC. An exception to this condition occurs if the seller is not associated with the company that issued the unregistered shares (and has not been associated with it for at least three months) and has owned the shares for more than one year.
Question#3: is there an issue re un or even solicited investment offers to U.S and foreign national individuals - checks were sent to and cashed to/by Mrs. bin Zhao’s – copies of multiple TD bank and B of A checks and deposit slips EXIST.
Question#4: Which also brings up a question of legal, regulatory and legitimacy of gifting for re-selling these restricted and unregistered shares by Mrs. Bin Zhao? Do they pass the regulatory net worth test, definition of risk parameters that underscore the “going concern” issue of Biostage as a public company?
Question#5: Don’t these questions of issues put MORE governmental, fiduciary and transparency responsibility on the new board and audit committee member, Herman Sanchez and RSM US LLP as to the potentials or the possibilities of SEC investigation(s)?
MINORITY PUBLIC shareholders are waiting, watching and weighting responses to MAINTAIN their RIGHTS.
Cellectis SA (CLLS) closed down -$1.52 to $20.13 after Tuesday’s +$3.37 to $21.65, Monday’s +$0.09 to $18.28, Friday’s $18.19 and last Thursday’s earnings’ release with a negative -$0.26 or -1.29% pre-market indication.
Fate therapeutics (FATE) closed up +$1.33 to $89.85 after Wednesday’s $88.52, Tuesday’s $79.16 and Monday’s $83.65 with a negative -$1.34 or -1.49% pre-market indication,
bluebird bio (BLUE) closed up +$2.44 to $32.48 after Wednesday’s $30.04, Tuesday’s $26.25 and Monday’s $28.68 with a positive +$0.82 or +2.52% pre-market indication.
CRISPR Therapeutics (CRSP) closed down -$1.48 to $124.15 after Tuesday’s +$12.03 to $125.63, Monday’s -$1.03 to $113.62 after Friday’s -$0.84 to $114.65 with a positive +$4.78 or +3.85% pre-market indication.
Homology Medicine (FIXX) closed flat at $10.07 after Tuesday’s $10.07, Monday’s $9.44, Friday’s $9.46, Monday’s $9.73 and last Thursday’s $10.45 with a positive +$0.26 or +2.58% aftermarket indication.
Global Blood Therapeutics (GBT) closed down -$0.31 to $41.52 after Tuesday’s +$2.89 to $41.83, Monday’s -$2.02 to $38.94 and Friday’s $40.96 with a negative -0.57 or -1.57% pre-market indication.
SELL into Strength:
Intellia Therapeutics (NTLA) closed up +$2.23 to $59.37 after Tuesday’s +$10.55 to $57.14, Monday’s -$5.22 to $46.59, Friday’s -$2.61 to $51.81 and Thursday’s -$3.29 to $54.42 with a positive +$2.13 or +3.59% pre-market indication.
The BOTTOM LINE: I’m STILL espousing “Selling into Strength” as there exists a tug-of-war taking place in the sector as investors wade through volatile trading.
It is said that, inflation and rising rates would likely remain a central theme for investors this period; my concern is where are the new buyers of cell and gene therapy coming from as many have suffered from the multiple downside rotations that … seem to return pricing levels.
But, for how long …
I STILL am a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim … if one can!”
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.