RegMed Investors’ (RMi) pre-open: share pricing exhibits a streaking on the field anticipating a tackling

April 7, 2021 7:31am

Streaking is an act or instance of running naked, usually for a short distance

Pre-open indications:  4 BUYs, 5 SELLs and 1 Maintain SELL

Mentions: BSTG, FIXX, IONS, CRSP, EDIT, FATE, NTLA, SGMO, VCEL, VYGR

If you’re looking for sector intel, ideas and opinions or Insight in 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 +0.03% (+9 points), S&P futures are UP +0.0% (+2 points) and NASDAQ futures are UP +$0.0% (+4 points)

U.S. stock index futures inch higher indicating a mixed open on Wednesday,

European stocks were down and facing uncertainty,

Asia-Pacific markets traded mostly up but shares on the Chinese mainland and in Hong Kong lost ground.

Data Docket: Mortgage rates moved higher again last week, causing homeowners and potential homebuyers to pull back on borrowing. Applications to refinance a home loan, which are most sensitive to weekly rate moves, fell 5% for the week and were 20% lower than a year ago, the Mortgage Bankers Association said.

• The Federal Open Market Committee will publish the minutes from its March meeting, where the central bank opted to leave interest rates unchanged

Henry’omics:

Last night, Tuesday’s session, the indexes pulled back from record highs to close in negative territory. The Dow slid 97 points, or 0.3%, breaking a two-day winning streak, the S&P hit a record high, but retreated during afternoon trading and ultimately closed 0.1% lower for its first negative session in four; while the Nasdaq declined 0.05%, also snapping a three-day winning streak.

Tuesday’s evening’s recap: “what’s being shaken in today’s sector? Answer: The advance/decline line and sentiment by upside momentum profit-taking” …

• The Nasdaq closed DOWN -7.21 points (-0.05%);
• The IBB closed down -0.39% and XBI closed down -2.62%
• Sector volume was LOW with 4 of the 10-upside having higher than the 3-month average volume with the volume of 2 of 24-downside having higher than the 3-month average volume;
• The CBOE Volatility Index (VVIX: INDEX) was up +0.21 points or +1.17% at 18.12;
• Tuesday’s movement percentage (%) of the 10-upside were +0.17% (QURE) to +7.41% (MDXG) while the 24-downside ranges from -0.07% (GBT) to -8.10% (PGEN);

Q2 and April: 1 negative and 2 positive closes

• Tuesday closed negative with 10 advancers, 24 decliners and 1 acquired
• Monday (4/5) closed positive with 24 advancers, 8 decliners, 2 flat and 1 acquired
• Friday was a market holiday
• Thursday (4/1) closed positive with 19 advancers, 13 decliners, 2 flat and 1 acquired

Q1/21: March: 10 positive, 12 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:

Biostage (BSTG): Maintaining Sell, questions continue

Biostage (BSTG) closed down again -$0.05 to $1.25 with 2008 shares traded after Monday’s -$0.04 to $1.30 with 2401 shares traded, Thursday’s flat at 1.34 with 26 shares traded and last Wednesday’s -$0.035 to $1.34 with 295 shares traded.

Question#1: SEC form NT 10-K was filed saying, Biostage (BSTG) “could not complete the filing of its Form 10-K for the period ended 12/31/2020 due to disruptions in staffing… delaying their ability to obtain and compile the information required to be included in the Form 10-K, which delay could not be eliminated … without unreasonable effort and expense.

Question#2: WHY, on 1/29/21, did Danforth Advisors terminate (8-K, filed 2/4/21) its (accounting and financial officer) consulting agreement and months later – STILL … NO qualified candidates?

Question#3: Consider the attrition rate of the past five (5) years: two (2) CEOs, one (1) CMO who became president, two (2) CFOs, two (2) interim CFOs who walked-out and away, three (3) controllers, a VP of Finance who left without notice and reappeared as a consultant three (3) times, five (5) members of the board of directors of which four (4) were on the audit committee, three (3) other operating VPs and twenty (20) scientific employees.

Question#4: Are there MORE issues related to accrued liabilities NOT being recorded and WHAT about the previously awarded PPP loan coming due for repayment?

Question#5: Is RSM US LLP still the auditor, notice there was NO statement in the SEC filing?

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

SELL before Offering:

Homology Medicine (FIXX) closed down -$0.34 to $9.39 with a negative -$0.97 or -10.43% pre-market indication to $8.38 after announcing a proposed $50 M offering.

Ionis Pharmaceuticals (IONS) closed up +$0.41 to $47.25 with a negative -$2.54 or -5.38% aftermarket indication to $44.71 after announcing a proposed $500 million private placement of Convertible Senior Notes

Maintaining SELL;

Editas Medicine (EDIT) closed down -$0.22 to $42.64 after Monday’s +$0.03 to $42.86 and Thursday’s +$0.93 to $42.83 with a negative -$0.13 or -0.30% pre-market indication.

Intellia Therapeutics (NTLA) closed down -$0.61 to $79.62 after Monday’s +$0.17 to $80.23 after Thursday’s -$0.19 to $80.06 with a negative -$0.62 or -0.78% pre-market indication.

Sangamo Therapeutics (SGMO) closed down -$0.79 to $11.85 after Monday’s $12.64 with a negative -$0.05 or -0.42% pre-market indication

BUY:

CRISPR Therapeutics (CRSP) closed down -$0.36 to $121.63 after Monday’s +$2.58 to $121.99 and Thursday’s -$2.44 to $119.41 with a positive +$1.07 or +0.88% aftermarket indication.

Fate Therapeutics (FATE) closed down -$3.56 to $80.10 after Monday’s -$1.75 with a positive +$4.85 or +6.05% aftermarket indication.

Voyager Therapeutics (VYGR) closed down -0.13 to $4.91 after Monday’s $ with a positive +$0.05 or +1.02% pre-market indication

Maintaining SELL into Strength:

Vericel (VCEL) closed up again +$1.27 to $55.54 after Monday’s +$1.07 to $54.27 with NO aftermarket indication.

The BOTTOM LINE: I’ m “blowing on the dice” today before the “throw” into today’s session.

I’m STILL 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!”

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.