April 19, 2021 7:38am
A session of “irrational exuberance” or manic displacement
News: Applied Genetic Technologies Corporation (AGTC) announced a licensing agreement that provides its proprietary cone specific promoter technology to SparingVision SAS, a genomic medicine company developing vision saving treatments for ocular diseases. <read more>
Pre-open indications: 4 BUY, 4 SELLs and 1 Maintain SELL
Mentions: BLUE, BSTG, CRSP, EDIT, NTLA, VCEL, IONS, RARE
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 DOWN -0.21% (-72 points), S&P futures are DOWN -0.22% (-9 points) and NASDAQ futures are DOWN -0.26% (-37 points)
U.S. stock index futures were lower on Monday,
European markets edged mostly higher,
Asia-Pacific markets mostly rose, although India’s markets lagged as the country continues to see a huge surge in Covid-19 infections.
Henry’omics:
Friday, indexes were up to another record, as the Dow gained 0.5%, the S&P 500 rose 0.4% and the Nasdaq was up 0.1%.
For the week, the S&P inclined +1.38%, the Dow advanced 1.18% for their fourth straight week of gains, while the Nasdaq posted its third positive week in a row.
The Russell 1000 Growth index has outperformed over the last month, gaining 10% compared to the Russell 1000 Value index’s 4% rise, clawing back some of the recent losses after a jump in yields sparked a rotation out of technology and growth-oriented areas of the market. <CNBC>
Applied Genetic Technologies Corporation (AGTC) <continued>:
- Under the terms of the agreement, SparingVision SAS receives nonexclusive rights to AGTC’s PR1.7 promoter for use in the development of two non-competing products with an opportunity to obtain rights to use the promoter for one additional product in the future. AGTC will receive an upfront fee and be eligible to receive milestone payments for successful clinical development and royalties on future sales on a per product basis.
Friday’s evening’s recap: “RegMed Investors’ (RMi) closing bell: TGIF after a three (3) session run, the cell and gene therapy sector was pre-ordained to decline as profiteering lightened the upside … https://www.regmedinvestors.com/articles/11870
- The Nasdaq closed UP +13.58 points (+0.10%);
- The IBB closed up +0.05% and XBI closed down -1.47%
- Sector volume was LOW with 0 of the 6-upside having higher than the 3-month average volume with the volume of 6 of 27 downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.36 points or -2.17% at 16.21;
- Friday’s percentage (%) of the 6-upside were +0.52% (CLLS) to +4.33% (KDNY) while the 27-downside ranges from -0.10% (ALNY) to -15.40% (EDIT);
Q2/21 and April: 5 negative and 6 positive closes
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): Questions continue … Maintaining Sell
Biostage (BSTG) closed up +$0.01 to $1.34 with 510 shares traded after Thursday’s +$0.16 to $1.33 with 224 shares traded, Wednesday’s +$0.06 to $1.17 with 2,011 shares traded, Tuesday’s -$0.06 to $1.11 with 1,165 shares traded and last Monday’s -$0.08 to $1.17 with 3,631 shares traded.
Question#1: WHERE is the next level of funding coming from, is it further warrant execution and the only cash generation for further funding? Will $1 million dollars left in the till last for another quarter?
MINORITY PUBLIC shareholders are waiting, watching and weighing responses to MAINTAIN their RIGHTS.
SELL/Falling Knife:
bluebird bio (BLUE) closed down -$1.44 to $28.28 after Thursday’s +$0.18 to $29.72 with a negative -$0.23 or -0.81% pre-market indication.
CRISPR Therapeutics (CRSP) closed down -$5.29 to $118.56 after Thursdays +$0.74 to $123.85, Wednesday’s +$2.23 to $123.11, Tuesday’s +$6.49 to $120.88 and last Monday’s -$1.35 to $114.39 with a negative -$0.70 or -0.59% pre-market indication.
Editas Medicine (EDIT) closed down -$6.31 to $34.67 with a negative -$0.02 or -0.06% pre-market indication.
Intellia Therapeutics (NTLA) closed down again -$4.32 to $70.45 after Thursday’s -$1.58 to $74.77 with a negative -$2.06 or -2.92% pre-market indication.
BUY:
Ionis Pharmaceuticals (IONS) closed down another -$0.25 to $40.78 after Thursday’s -$0.80 to $41.03 with a positive +$0.02 or +0.59% aftermarket indication.
Ultragenyx (RARE) closed down -$0.86 to $108.72 after Thursday’s +$1.61 to $109.58 with NO aftermarket indication.
Maintaining SELL into Strength – take some profit:
Vericel (VCEL) closed up +$0.64 to $58.62 after Thursday +$0.92 to $57.98, Wednesday’s +$0.46 to $57.06, Tuesday’s -$1.58 to $56.60 and last Monday’s +$0.41 to $58.18 with NO aftermarket indication; but an Icarus flight pattern.
The BOTTOM LINE: Mini-rotations have made the sector rally challenging!
Volatility boosted by see-sawing sentiment seems brought-about by algorithmic or electronic selling.
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.
