RegMed Investors’ (RMi) pre-open: bottom-fishing in a small pond and maybe watching a knife fall

March 25, 2021 7:38am

The question will be, which sector equities are ready for a bounce, are undervalued, having sustainable pricing based on wandering investor behavior or fundamental changes?

Pre-open indications:  7 BUY and 3 SELLs

Mentioned: BLUE, BSTG, CRSP, EDIT, EDIT, FIXX, MDXG, SAGE, SGMO, VSTM, VCEL

If you’re looking for sector intel, ideas and opinions or Insight from a volatile climate; RMi defines the mitigating factors of share pricing! 

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 +0.10% (+32 points), S&P futures are UP +0.12% (+5 points) and NASDAQ futures are UP +0.25% (+33 points)

U.S. equity futures rose modestly on Thursday boosted by Washington’s optimistic outlook for a recovery

European markets pulled-back because of a surge in coronavirus cases and severed its lockstep movement with bonds for the first time in months.

Asia-Pacific markets were mixed following a sell-off in Chinese technology shares due to concerns they will be delisted from US indexes and worries about a semiconductor shortage rattled some investors.

Data Docket: labor department’s report on jobless claims is expected to report that 735,000 Americans filed for unemployment last week.

Henry’omics:

The stock market closed at lows as the S&P 500 and Nasdaq broke key levels as the cell and gene therapy had another rough session Wednesday.

The S&P 500 fell 0.6% after rising as much as 0.8% during the day, while the tech-heavy Nasdaq dropped 2% to close at its session low.

The sector has been moving lower for the past four (4) of five (5) sessions, while rotating into and out of multiple equities.

Time for an uplift?

Wednesday’s evening’s recap: “we are suffering from a lack of appetite for cell and gene therapy companies. Is the lack of positive news, volatility, risks and pricing slides causing the suppressant or just plain-old profit taking?” … https://www.regmedinvestors.com/articles/11830  

• The Nasdaq closed DOWN -265.81 points (-2.01%),
• The IBB closed down -2.84% and XBI closed down -5.14%
• Sector volume had LOW with 1 of the 1-upside having higher than the 3-month average volume with the volume of 11 of 33-downside having higher than the 3-month average volume;
• The CBOE Volatility Index (VVIX: INDEX) was up +0.90 points or +4.43% at 21.20,
• Wednesday’s percentage (%) of the 1-upside was +3.06% (BCLI) while the 33-downside ranges from -0.71% (IONS) to -11.05% (EDIT);

March: 7 positive, 10 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 -$0.04 to $1.50 with 688 shares traded, after Tuesday’s +$0.04 to $1.54 with 1,001 shares traded, Monday’s +$0.05 to $1.50 with 2001 shares traded (“pumping and promoting” again?), Friday’s +$0.13 to $1.45 with 605 shares traded and last Thursday’s +$0.02 to $1.32 with 375 shares traded.

Question#1: Is there more of a reasons to rank BSTG, as a “zombie” company?

Question#2: Will BSTG be included, as top U.S. securities regulator on Wednesday adopted measures that would kick foreign companies off American stock exchanges if they do not comply with U.S. auditing standards, and require them to disclose any governmental affiliations. The Holding Foreign Companies Accountable Act, signed into law by then-President Donald Trump in December, is aimed at removing Chinese companies from U.S. exchanges if they have failed to comply with American auditing standards for three years in a row. The rules also require firms to prove to the SEC they are not owned or controlled by an entity of a foreign government and to name any board members who are Chinese Communist Party officials, the SEC said in a statement.

• The agency fast-tracked the rules around how companies should submit documentation because it was required to issue them within 90 days of the Act becoming law.

Question#3: WHEN are the 10-K and 10-Q filings to be filed versus due?

Question#4: WHY is this board of directors in the position of “seeing no problem, hearing no problem, and communicating no problem?

Question#5: RSM US LLP, will their AUDIT “OPINION” be “CRAYONED” about the MANY operational issues, lack of strategy and focus especially when they “seem” to be “pumping and promoting “the daily share price with stimulated volume”?

MINORITY PUBLIC shareholders are waiting, watching and weight responses to MAINTAIN their RIGHTS.

BUY after Decline:

bluebird bio (BLUE) closed down -$1.02 to $28.28 after Tuesday’s $29.30, Monday’s $31.07 and last Friday’s $31.58 with a positive +$1.22 or +4.31% pre-market indication.

CRISPR Therapeutics (CRSP) closed down again -$10.94 to $115.55 after Tuesday’s $126.49, Monday’s $133.00 and last Friday’s $129.61 with a positive +$0.95 or +0.82% pre-market indication.

Editas Medicine (EDIT) closed down again -$5.09 to $40.99 after Tuesday’s -$2.40 to $46.08, Monday’s +$3.48 to $48.48, Friday’s $45.00 and last Thursday’s $43.25 with a positive +$1.01 or +2.46% pre-market indication.

Homology Medicine (FIXX) closed down -$0,76 to $9.40 after Tuesday’s $10.16, Monday’s +$10.64, Friday’s $16.70 and last Thursday’s $10.10 with a positive +$0.10 or +1.06% aftermarket indication.

MiMedx (MDXG) close down -$0.64 to $10.11 after Tuesday’s $10.75, Monday’s +$10.57, Friday’s $10.15 and last Thursday’s $8.81 with a positive +$0.40 or +3.96%.

Sangamo Therapeutics (SGMO) closed down -$1.03 to $11.56 after Tuesday’s -$1.00 to $12.59, Monday’s $13.59 and Friday’s $13.23 with a positive +$0.40 or +3.46% aftermarket indication.

Sage Therapeutics (SAGE) closed down -$2.96 to $70.81 after Tuesday’s $73.76, Monday’s +$79.51, Friday’s $76.69 and last Thursday’s $75.07 with a positive +$1.86 or +2.63% aftermarket indication

Falling Knife:

Verastem (VSTM) closed down -$0.06 to $2.31 after Tuesday’s $2.37, Monday’s +$2.43, Friday’s $2.44 and last Thursday’s $2.37 with a negative -$0.04 or -1.73%.

Vericel (VCEL) closed down -$4.05 to $51.52 after Tuesday’s $55.57, Monday’s +$57.66, Friday’s $59.48 and last Thursday’s $53.07 with a negative -$0.52 or -1.01% even with last week’s news that VCEL had been tipped for inclusion in S&P Dow Jones SmallCap 600 index.

The BOTTOM LINE: As I stated last night, “The cell and gene therapy sector has seesawed this week (so far) following a two and a half (2.5) month-long rotation which has skewered my outlook for growth, leaving a haphazard path traveled and to be traversed!”

A quote from Oliver Brennan, head of research at TS Lombard: “Earnings expectations have caught up with the pre-crisis level; risk here remains to the upside.”

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 … ANY new highs … 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.