April 15, 2021 7:41am
Retail and even institutional investors have lost any control of share pricing momentum
Pre-open indications: 1 BUY, 4 SELLs and 1 Maintain SELL
Mentions: BSTG, FIXX, RGNX, FATE, VCEL, CRSP, VCEL
My version of the morning’s “numbers” is written to be informative rather than just about changes to share pricing; it’s what happened or will materialize after the opening and what might happen during the session
My comments are important in trying to distinguish the temporary from real pricing progress.
Dow futures are UP +0.42% (+142 points), S&P futures are UP +0.45% (+19 points) and NASDAQ futures are UP +0.65% (+89 points)
U.S. stock indexes futures rose in Thursday pre-open after better-than-expected Q1 earnings results,
European markets advanced to record highs
Asia-Pacific markets were mixed as Chinese markets declined while Australia (jobs data for March beating expectations), Japan and South Korea slowly gained.
Data Docket: The Labor Department’s latest report on the number of Americans filing first-time claims for unemployment insurance. Economists expect the government to report that another 710,000 filed claims for the first time during the week ended April 10.
- March retail sales data are expected show a robust uptick in consumer spending, with some economists seeing a gain of 10% or more thanks to the arrival of the $1,400 stimulus checks. The consensus forecast is more modest growth of 6.1%.
On Wednesday, the Dow gained +16%, the S&P closed down -0.41% and the Nasdaq closed down -0.99% while the cell and gene therapy sector was up Wednesday and Tuesday after Monday’s WEAKNESS.
Wednesday’s evening’s recap: “the sure way of gambling is getting something for nothing” after a Tuesday bounce” … https://www.regmedinvestors.com/articles/11866
- The Nasdaq closed DOWN -138.26 points (-0.99%);
- The IBB closed up +1.43% and XBI closed up +2.65%;
- Sector volume was LOW with 3 of the 23-upside having higher than the 3-month average volume with the volume of 1 of 9 downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +0.34 points or +2.04 % at 16.99
- Wednesday’s percentage (%) of the 23-upside were +0.41% (CLLS) to +7.85% (NTLA) while the 9-downside ranges from -0.31% (EDIT) to -3.06% (BLFS);
Q2/21 and April: 4 negative and 5 positive closes
- 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): Questions continue … Maintaining Sell
Biostage (BSTG) closed up +$0.06 to $1.17 with 2,011 shares traded after Tuesday’s -$0.06 to $1.11 with 1,165 shares traded, Monday’s -$0.08 to $1.17 with 3,631 shares traded, Friday’s flat at $1.25 with 260 shares traded and last Thursday with 6 shares traded.
Question#1: WHO is in charge of clinical and pre-clinical development?
Question2: WHY the need to “promote” or “pump” the share price, is it further warrant execution?
Question#3: WHY the inclusion of this disclosure (from reading) in the 10-K, BSTG “has “identified a material weakness in our internal control over financial reporting. Our ability to remediate this, our discovery of additional weaknesses, and our ability to achieve and maintain effective control over financial reporting, could adversely affect our results of operations, our stock price and investor confidence in our company.”
Question#4: BSTG must be glad to file the LATE Q4 and FY20 numbers; are they sure they have included all the PAST accounts payable and accumulated liabilities?
Question#5: WHERE is continued funding coming from? As of 12/30/21, BSTG had $1 million of operating cash, an accumulated deficit of $69 million, an IND that was approved for clinical initiation which has YET to START and a civil lawsuit over a deceased individual caused by tracheal implants and has to indemnify Harvard Bioscience?
Question#6: WHY has NOT a notice of “The top U.S. securities regulator adopting 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” been included in 10-K disclosures? 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. Three (3) directors of BSTG, Jason Jing Chen (chairman of BSTG’s board of directors), Ting Li (Donghai Securities Co., Ltd) and Wei Zhang, MD (Peking University) all reside in China – what are their affiliations?
Question#7: An additional and lingering question regards the role of Lui, Dong Hai, chairman of Dixintong Technology Group (D. Phone, the largest smartphone retailer in China) and Mrs. bin Zhao, who resides in Weston, Ma. of DST Capital?
Question#8: Has the principal investigator, member of the scientific advisory board, Dr. Christine Finck, MD, Connecticut Childrens Hospital disclosed shares personally owned whose lab was funded by the SBIR from the Eunice Kennedy NICHD grant to BSTG and corporate GIFT of $1 million dollars (with $429,500.00 outstanding) spending and R&D reimbursements from BSTG? Are there issues of should a principal investigator own share in BSTG amid issues of accountability and the hospital and its CEO James Schmerling (also being a BOD member) both owning shares - disclosure?
Question#9: Transparency and disclosures have been affirmed to and by corporate signatures in the recent 10-K filing, are they on the same page with RSM US LLP, certifications by management and U.S. securities laws?
MINORITY PUBLIC shareholders are waiting, watching and weighing responses to MAINTAIN their RIGHTS.
Homology Medicine (FIXX) closed up +$0.04 to $7.22 after Tuesday’s $7.18, Monday’s $7.17, Friday’s $7.32 and last Thursday’s $7.48 with a positive +$0.18 or +2.49% pre-market indication.
SELL into Strength:
Fate Therapeutics (FATE) closed up +$5.83 to $84.73 with a positive +$1.56 or -$1.84% aftermarket indication. A 52-week change of +175.14%, a 52-week low of $25.60 and a high of $121.16 position with a very “peaky” chart.
Regenxbio (RGNX) closed up +$0.68 to $35.34 after Tuesday’s $34.66, Monday’s $33.85, Friday’s $35.17 and last Thursday’s $35.18 with a positive +$0.21 or +0.59% aftermarket indication.
Maintaining SELL into Strength:
CRISPR Therapeutics (CRSP) closed up +$2.23 to $123.11 after Tuesday’s +$6.49 to $120.88 after Monday’s -$1.35 to $114.39, Friday’s -$4.64 to $115.74 and last Thursday’s $120.38 with a positive +$2.87 or +2.33% pre-market indication.
Vericel (VCEL) closed up +$0.46 to $57.06 after Tuesday’s -$1.58 to $56.60, Monday’s +$0.41 to $58.18, Friday’s -$2.05 to $57.77 and last Thursday’s +$4.35 to $59.82 with a negative -$0.06 or -0.11% aftermarket indication; but an Icarus flight pattern.
The BOTTOM LINE: Volatility boosted by a see-sawing sentiment seems brought-about by electronic trading versus investing.
Reiterating, “Momentum is fragmented, volatility exceeds volume and we shouldn’t base our buying or selling positions in this climate on prospects that have lately gone unfulfilled!”
I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … my advice, trim and skim any new highs if one can!”
Welcome to my world of defining the “grey’ in our universe!
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.