March 26, 2021 7:45am
Sell into “tourist’ trading highs as an end-of-quarter rebalancing of portfolios added to weekly seesaw sessions in which the sector rose and fell amid ongoing rotations from risk orientated equities
Pre-open indications: 8 SELLs into strength and 1 Maintain SELL
Mentioned: AGTC, ATHX, BLUE, BSTG, EDIT, NTLA, SAGE, VSTM, VCEL
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Dow futures are UP +0.35% (+115 points), S&P futures are UP +0.20% (+8 points) and NASDAQ futures are DOWN -0.24% (-30 points)
U.S. futures are mixed on Friday looking to open positive on the last session of the week,
European stocks were higher even after the spike in infections has kept stocks reeling,
Asia-Pacific stocks rose with shares in Australia, mainland China and Japan as the MSCI’s index of outside Japan gained +1.39%.
Data Docket: investors will get another look at inflation possibilities on Friday, with reports due for personal income and consumption expenditures in February.
Friday edges markets as the Thursday sector close broke a recent trend of poor finishes for the week trimming some losses.
The Dow and S&P 500 are now down less than 0.1% for the week, while the Nasdaq is in the red by -1.8%.
Thursday’s evening’s recap: “RegMed Investors’ (RMi) closing bell: the zig and the zag, from weakness to strength in four (4) hours as volatility facilitates an upside bounce but, are these buyers’ term oriented or just algorithm driven – don’t guess, it’s the electronics” … https://www.regmedinvestors.com/articles/11832
- The Nasdaq closed UP +15.79 points (+0.12%);
- The IBB closed up +1.02% and XBI closed up +2.88%
- Sector volume was LOW with 7 of the 22-upside having higher than the 3-month average volume with the volume of 6 of 11-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -1.39 points or -6.56% at 19.81;
- Thursday’s percentage (%) of the 22-upside was +0.03% (RGNX) to +10.32% (ADVM) while the 11-downside ranges from -0.12% (RARE) to -6.44% (BCLI);
March: 8 positive, 10 negative and 1 neutral closes <with four (4) sessions left in month and quarter>
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 flat at $1.50 with 39 shares traded, after Wednesday’s -$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?) and last Friday’s +$0.13 to $1.45 with 605 shares traded.
Question#1: Is there more of a reason 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” regarding 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 weighting responses to MAINTAIN their RIGHTS.
Reversing the BUYs, SELL into Strength:
Applied Genetic Technologies (AGTC) closed up +$0.20 to $5.27 with a negative -$0.12 or -2.28% pre-market indication.
Athersys (ATHX) closed up +$0.10 to $1.74 after an earnings loss with a negative -$0.02 or -1.15% pre-market indication.
bluebird bio (BLUE) closed up +$1.33 to $29.61 after Wednesday’s -$1.02 to $28.28, Tuesday’s $29.30, Monday’s $31.07 and last Friday’s $31.58 with a positive +$0.89 or +3.01% pre-market indication.
Editas Medicine (EDIT) closed up +$1.19 to $42.18 after Wednesday’s -$5.09 to $40.99, Tuesday’s -$2.40 to $46.08, Monday’s +$3.48 to $48.48 and last Friday’s $45.00 with a positive +$0.82 or +1.94% aftermarket indication.
Intellia Therapeutics (NTLA) closed up +$2.25 to $63.46 with a negative -$1.46 or -2.30% aftermarket indication.
Sage Therapeutics (SAGE) closed up +$0.63 to $71.44 after Wednesday’s -$2.96 to $70.81, Tuesday’s $73.76, Monday’s +$79.51 and last Friday’s $76.69 with a positive +$0.56 or +0.78% aftermarket indication.
Verastem (VSTM) closed up +$0.03 to $2.34 after Wednesday’s -$0.06 to $2.31, Tuesday’s $2.37, Monday’s +$2.43 and last Friday’s $2.44 with a positive +$0.21 or +6.84% pre-market indication.
Vericel (VCEL) closed up +$2.79 to $54.31 after Wednesday’s -$4.05 to $51.52 after Tuesday’s $55.57, Monday’s +$57.66 and last Friday’s $59.48 with NO aftermarket indication even with last week’s news that VCEL had been tipped for inclusion in S&P Dow Jones SmallCap 600 index.
The BOTTOM LINE: After a volatile rebound with a sector rally, it's not a good time to buy.
I would be looking for stocks that are holding up well in the current market, with relatively strong fundamentals and previously released earnings.
However, Q1 has not lit the campfire by any means as many stock charts look damaged and need time to repair.
Based on entry levels, investors should be more traders and stay largely in cash and should be thinking about short-term engagements.
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!”
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 lately, my time horizon is from a Monday to 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.