May 7, 2021 7:51am
The sector is what it is, until it isn’t and even then, it doesn’t seem to be … when you point one finger, there are three fingers pointing back at you!
Pre-open indications: 2 BUYs, 3 SELL and 1 Maintain SELL
Mentions: AGTC, BLUE, BSTG, NTLA, EDIT, RENE.L,
My version of the morning’s “indications” is written to be informative; it’s what could happen or materialize after the opening and what might happen during the session
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Dow futures are UP +0.23% (+80 points), S&P futures are UP +0.20% (+8 points) and NASDAQ futures are UP +0.23% (+31 points)
Stock futures are cautiously up on Friday as investors await the highly anticipated jobs report,
European markets also advanced cautiously,
Asia-Pacific markets trade mixed as investors look ahead to key U.S. jobs report
Data Docket: The Labor Department will release April’s jobs report at 8:30 a.m. ET. Economists expect 1 million jobs to have been added last month and the unemployment rate is expected to have fallen to 5.8% from 6%
- April’s job report will carry extra importance as the Federal Reserve maintains a zero rates policy and other easing measures in the face of a recovering economy.
Henry’omics:
I am NOT expecting much today, make it end and let’s get to the weekend!
For the week, the major stock indexes were mixed as of Thursday’s close. The Dow is up about 2%, the S&P 500 had gained 0.49% and the Nasdaq had shed more than 2.3%.
Q1/21 Earnings: seven (7) yesterday <posted>: https://www.regmedinvestors.com/articles/11628
Thursday’s evening’s recap: “another move to a sector downside. The sell-off progresses as earnings LPS (loss-per-share) miss expectations.” …
- The Nasdaq closed UP +50.42 points (+0.37%)
- The IBB closed down -0.36% and XBI closed down -1.51%
- Sector volume was LOW with 7 of the 12-upside having higher than the 3-month average volume with the volume of 9 of 22-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.76point or -3.97% at 18.39;
- Thursday’s percentage (%) of the 12-upside were +0.10% (SGMO) to +12.47% (AXGN) while the 22-downside ranges from -0.31% (BCLI) to -8.32% (CLLS);
Q2/21:
May: 4 negative closes
April: 11 negative and 10 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 +0.02 to $1.13 with 207 shares traded after Wednesday’s -$0.01 to $1.11 with 3,032 shares traded, Tuesday’s -$0.14 to $1.12 with 249 shares traded, Monday’s flat at $1.26 with 476 shares traded and last Friday’s $1.26 with 1,009 shares traded.
Question#1: Does the past cast aspersions on the reputation and integrity of Biostage (BSTG) as stock pricing continues to “fumble? Have they also forgotten that transparency has its virtues?
Question#2: WHO is still employed, especially related to the management team?
Question#3: With only $1 million left in the “till” WHAT is the runway with a “spend” and “net cash in operations of $4 million during the year ended 12/ 31/20”. Don’t forget the PPP loan remaining as DEBT ($0.4 million).
MINORITY PUBLIC shareholders are waiting, watching and weighing responses to MAINTAIN their RIGHTS.
The morning’s indications, from what I discern are in store:
SELL:
- bluebird bio (BLUE) closed up +$0.46 to $29.67 after Wednesday’s -$0.69 to $29.21 with a negative -$0.17 or -0.57% pre-market indication.
- Editas Medicine (EDIT) closed down -$0.38 to $34.34 after Wednesday’s +$0.06 to $34.72 with a negative -$1.05 or -3.06% aftermarket indication.
- ReNeuron (RENE.L) closed up +$1.00 after Wednesday’s +$2.00 after Tuesday’s +$7.00 and has a positive indication of -$0.39 or -0.26% or +3.73% pre-market indication.
BUY:
- Intellia Therapeutics (NTLA) closed down -$4.88 to $66.48 after Wednesday’s -$0.64 to $71.36, Tuesday’s -$1.80 to $72.00, Monday’s -$2.97 to $73.80 and last Friday’s -$3.31 to $76.77 with a positive +$0.34 or +0.51% pre-market indication.
- Applied Genetic Technologies (AGTC) closed down -$0.14 to $3.72 after Wednesday’s -$0.02 to $3.86 and has a positive +$0.03 or +0.81% pre-market indication on positive news of 12-month data for Groups 5 and 6 evaluating durability of effect and continued safety at higher doses and 24-month data evaluating durability from a subset of Group 4 patients for its P1/2 clinical trial in patients with X-linked Retinitis Pigmentosa (XLRP)
:
The BOTTOM LINE: it’s Friday, the length of my TOUR is over, the share pricing versus earnings “battle” will continue next week.
Once we get through quarterly LPS (loss-per-share) financial results <notice I didn’t say – <earnings season>, it will be easier for investors to possibly recognize a short or a near-term view; but my fear is that Q2 numbers aren't going to look much better than the Q1/21 numbers.
Short-term investment is always about a SELL/BUY moment in time; in the near and long-term, it will be a process which doesn’t always earn a ROI.
Investor expectations are NOT high during “our’ sector earnings season.
My concern, as the cell and gene therapy sector run out of buyers, it runs into trouble (just like a fire that runs out of wood).
I haven’t been wrong in seeing trouble ahead in the markets and any prognostication could be somewhat difficult or unpleasant.
My focus has always been “warning analysis” … my advice, trim and skim any new highs if one can!” I also see some lows that could be in the “pick-up” stock game.
I say, re-asses your risk as some questionable earnings are on the horizon.
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.
