May 11, 2021 7:50am
So, bounce or trounce? I fall back on my past statement: As the cell and gene therapy sector runs out of buyers, it runs into trouble (just like a fire that runs out of wood).
Pre-open indications: 0 BUYs, 7 SELLs and 1 Maintain SELL
Mentions: AGTC, ALNY, BLFS, BLUE, EDIT, NTLA, BSTG, CLLS, SAGE, 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 DOWN -0.47% (-163 points), S&P futures are DOWN -0.80% (-34 points) and NASDAQ futures are DOWN -1.38% (-1185 points)
Futures are slipping on Tuesday as tech selling continues as gasoline stations experience disruption after a ransomware attack forced Colonial Pipeline to close the largest U.S. fuel pipeline.
European markets dropped sharply following a sell-off in U.S. tech stocks at the start of the week and as global markets turn their focus on inflation data.
Asia-Pacific markets fell sharply, also following a sell-off in tech stocks that weighed down major U.S. indexes overnight.
Data Docket: the latest results of its Job Openings and Labor Turnover Survey. Several high-ranking Fed officials, including Governor Lael Brainard and New York Fed President John Williams, are scheduled to deliver remarks.
Henry’omics:
Monday, the Nasdaq suffered the worst of the selling and fell 2.5%, finishing the day at its session low.
Q1/21 Earnings: <posted>: twenty-three (23) to date … https://www.regmedinvestors.com/articles/11628
Monday’s evening’s recap: “after Friday’s bump another cell and gene therapy sector deep dive further propelled by a market drag down. A weakening quarter associated with quarterly earnings.” … https://www.regmedinvestors.com/articles/11903
- The Nasdaq closed DOWN -350.38 points (-2.55%);
- The IBB closed down -1.79% and XBI closed down -3.64%;
- Sector volume was LOW with x of the 3-upside having higher than the 3-month average volume with the volume of 9 of 30-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was up +2.97 points or +17.80% at 19.66;
- Monday’s percentage (%) of the 3-upside were +1.72% (MESO) to +4.35% (BSTG) while the 30-downside ranges from -0.24% (SAGE) to -9.91% (NTLA);
Q2/21:
May: 1 positive and 5 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 +$0.05 to $1.20 with 1,888 shares traded after Friday’s +$0.02 to $1.15 with 2,364 shares traded (the “pump and promote” was back), Thursday’s +0.02 to $1.13 with 207 shares traded, Wednesday’s -$0.01 to $1.11 with 3,032 shares traded and last Tuesday’s -$0.14 to $1.12 with 249 shares traded.
Question#1: WHY hasn’t the constancy of “promoting and pumping” the share price come to the attention of regulatory officials?
Question#2: 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:
BUY:
Maintaining SELL:
- Alnylam Pharmaceuticals (ALNY) closed down -$2.67 to $128.63 with a negative -$0.86 or -0.67% aftermarket indication.
- Applied Genetic Technology (AGTC) closed down -$0.08 to $3.81 with a negative -$0.20 or -5.25% pre-market indication.
- BioLife Solutions (BLFS) closed down -$0.77 to $30.90 with a negative -$0.90 or -2.91% aftermarket indication.
- bluebird bio (BLUE) closed down to -$2.08 to $28.40 and has a negative -$0.66 or -2.32% pre-market indication.
- Intellia Therapeutics (NTLA) closed down -$6.71 to $61.03 with a negative -$1.59 or -2.61% pre-market indication.
- Sage Therapeutics (SAGE) closed down -$0.18 to $74.89 with a negative -$1.40 or -1.87% aftermarket indication
- Cellectis SA (CLLS) closed down -$1.30 to $15.00 after Friday’s +$0.77 to $16.30 and Thursday’s -$1.41 with a negative -$1.21 or -8.07% aftermarket indication.
- ReNeuron (RENE.L) closed down again -$0.50 after Friday’s -$1.00 after Thursday’s +$1.00 after Wednesday’s +$2.00 after Tuesday’s +$7.00 and has a negative indication of -$8.00 or -5.44% pre-market indication.
The BOTTOM LINE: last night, I wrote: “Another session of “slim pickings” in the upside-down sector.” It’s the second session of a new week, and the “combustion factors” of which I spoke are coming to fruition.
Investor expectations have NOT been high during “our’ sector earnings season. 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.
My motto, never leave an investor uninformed about what I know!
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.
