April 20, 2021 7:38am
Although some of the “falling knives” many slip in the tug-of-war between algorithms
Pre-open indications: 4 BUY, 6 SELLs and 1 Maintain SELL
Mentions: ADVM, AXGN, BSTG, CRSP, EDIT, FATE, GBT, IONS, MESO, NTLA, PSTI, 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 DOWN -0.39% (-134 points), S&P futures are DOWN -0.45% (-19 points) and NASDAQ futures are DOWN -0.40% (-56 points)
U.S. stock futures are pointing down on Tuesday, a second day of losses for a stock market that had been climbing steadily to record after record,
European stocks slid into negative territory showing lackluster sentiment,
Asia-Pacific stocks were mixed as China kept its benchmark lending rate unchanged, with Japanese stocks leading losses among the region’s major markets.
Weakness defined Monday’s market and the cell and gene therapy sector’s session as the session’s pull-backed from record highs that indexes reached last week.
The Nasdaq was the relative underperformer, dipping nearly -1%.
The small-cap benchmark Russell 2000 dropped 1.4% on Monday and was set for more losses Tuesday with futures on the index down 0.8%.
Monday’s evening’s recap: “cell and gene therapy sector suffered from arrested development and falling knives” … https://www.regmedinvestors.com/articles/11872
- The Nasdaq closed DOWN -137.58 points (-0.98%);
- The IBB closed down -1.10% and XBI closed down -2.15%;
- Sector volume was LOW with 0 of the 3-upside having higher than the 3-month average volume with the volume of 3 of 31 downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +1.05 points or +6.46% at 17.30;
- Monday’s percentage (%) of the 3-upside were +0.55% (SAGE) to +1.13% (ADVM) while the 31-downside ranges from -0.02% (GBT) to -6.57% (VCEL);
Q2/21 and April: 6 negative and 6 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 down -$0.06 (was -$0.23 until minutes before the close) to $1.28 with 1,760 shares traded after Friday’s +$0.01 to $1.34 with 510 shares traded, Thursday’s +$0.16 to $1.33 with 224 shares traded, Wednesday’s +$0.06 to $1.17 with 2,011 shares traded and last Tuesday’s -$0.06 to $1.11 with 1,165 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 based on proxy filed:
Adverum Biotechnologies (ADVM) closed up +$0.10 to $8.86 with NO aftermarket indication however, a proxy was filed by the Sonic Fund II, L.P. with a letter to stockholders which … “Believes Board’s Abject Failure to Exert Sufficient Oversight of Management Has Led to Significant Stockholder Value Destruction and Must Be Immediately Addressed”. This will cost the company management time and money to address this issue. I believe will affect management’s ability to focus on its current duties.
BUY the BOUNCE:
AxoGen (AXGN) closed down -$1.05 to $17.80 with a positive +$0.56 or +3.15% aftermarket indication.
Editas Medicine (EDIT) closed down -$0.50 to $34.17 after Friday’s -$6.31 to $34.67 with a positive +$0.13 or +0.38% pre-market indication.
Fate Therapeutics (FATE) closed down -$1.52 to $79.65 with a positive +$3.98 or +5% aftermarket indication.
Ionis Pharmaceuticals (IONS) closed down -$0.84 to $39.64 after Friday’s -$0.25 to $40.78 and Thursday’s -$0.80 to $41.03 with a positive +$1.02 or +2.55% pre-market indication.
Mesoblast (MESO) closed down -$0.13 to $8.81 with a positive +$0.19 or +2.16% aftermarket indication.
Pluristem (PSTI) closed down -$0.24 to $4.10 with a positive +$0.34 or +8.29% aftermarket indication.
CRISPR Therapeutics (CRSP) closed down -$3.52 to $115.04 after Friday’s -$5.29 to $118.56, Thursdays +$0.74 to $123.85, Wednesday’s +$2.23 to $123.11 and last Tuesday’s +$6.49 to $120.88 with a negative -$0.95 or -0.83% pre-market indication.
Global Blood Therapeutics (GBT) closed down -$0.01 to $40.80 with a negative -$0.80 or -1.96% aftermarket indication.
Intellia Therapeutics (NTLA) closed down -$3.12 to $67.33 after Friday’s -$4.32 to $70.45 after Thursday’s -$1.58 to $74.77 with a negative -$1.58 or -2.35% pre-market indication.
Maintaining SELL into Strength – take some profit:
Vericel (VCEL) closed down -$3.85 to $54.77 after Friday’s +$0.64 to $58.62, Thursday +$0.92 to $57.98, Wednesday’s +$0.46 to $57.06 and last Tuesday’s -$1.58 to $56.60 with a positive +$0.73 or +1.33% pre-market indication.
The BOTTOM LINE: There has been a tug-of-war between the IBB and XBI, volatility and the sector’s closes since 4/5/21.
Reiterating, mini-rotations have made the sector rally challenging – how the same words fit the circumstances!
Volatility boosted by see-sawing sentiment seems brought-about by algorithmic or electronic selling.
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.