May 13, 2021 7:45am

I will take it as long as creeping occurs or develops gradually, a gigantic leap of valuation will be subject to being overbought and sold down

Pre-open indications:  2 BUYs, 5 SELLs and 1 Maintain SELL

Mentions: AGTC, IONS, MESO, NTLA, BLUE, BSTG, CLLS, GBT, VYGR, RENE.L

Earnings: BioLife Solution (BLFS)

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

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  

Dow futures are DOWN -0.41% (-138 points), S&P futures are DOWN -0.12% (-4.75 points) and NASDAQ futures are UP +0.32% (+40 points)

 

Stock futures

Are mixed as the Nasdaq goes positive after the Dow’s worst day since January,

European stocks fall as inflation data shock spooks global sentiment

Asia markets slump on rate hike fears as India, Malaysia, the Philippines and Singapore are closed on Thursday due to holidays; while Japan’s Nikkei drops -2.5%

 

Henry’omics:

On Wednesday, cell and gene therapy sector stocks fell on low volume.

The “fear gauge” or the CBOE Volatility Index jumped was jumping again although the volume was low

Investors have been quick to dump growth stocks amid creeping inflation concerns since rising prices tend to squeeze margins and erode corporate profits. If price pressures run too hot for a sustained period of time, the Federal Reserve would be forced to tighten monetary policy.in the descending and volatile sector. <CNBC>

 

Q1/21 Earnings: <posted>: twenty-six (26) to date …  https://www.regmedinvestors.com/articles/11628

 

Wednesday’s evening’s recap: “sector strikes out on fear as the VIX pops +26.33%. I keep looking for the batter/buyers, hopefully missing the strike-out/electronic sellers and wondering where the incentive to touch base is or was.” … https://www.regmedinvestors.com/articles/11908

  • The Nasdaq closed DOWN -357.74 points (-2.67%);
  • The IBB closed down -1% and XBI closed down -0.78%;
  • Sector volume was LOW with 4 of the 10-upside having higher than the 3-month average volume with the volume of 2 of 23-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +5.75 point or +5.75% to 27.59
  • Wednesday’s percentage (%) of the 10-upside were +0.72% (ALNY) to +8.01% (BCLI) while the 23-downside ranges from -0.38% (SAGE) to -7.32% (FATE);

Q2/21:

May:  2 positive and 6 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 $1.25 with 456 shares traded after Tuesday’s flat at $1.20 with 388 shares traded, Monday’s +$0.05 to $1.20 with 1,888 shares traded, Friday’s +$0.02 to $1.15 with 2,364 shares traded (the “pump and promote” was back) and last Thursday’s +0.02 to $1.13 with 207 shares traded.

Question#1: What is there to invest in, an IND a year old with NO clinical trial, NO management, barely any employees and a huge overhead (buildings etc.) expense with WHAT capacity to finance?

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:

Maintaining SELL:

  • bluebird bio (BLUE) closed up +$0.35 to $29.85 after Tuesday’s+$1.10 to $29.50 and Monday’s -$2.08 to $28.40 and has a negative -$0.62 or -2.08% aftermarket indication.
  • Intellia Therapeutics (NTLA) closed down -$2.17 to $64.00 after Tuesday’s +$5.14 to $66.17, Monday’s -$6.71 to $61.03, Friday’s $67.74 and last Thursday’s $66.48 with a negative -$0.50 or -0.78% aftermarket indication.
  • Sangamo therapeutics (SGMO) closed down -$0.18 to $10.47 after Tuesday’s $10.65, Monday’s $10.17, Friday’s $10.54 and last Thursday’s $10.40 with a negative -$0.50 or -4.78% aftermarket indication.
  • Sage Therapeutics (SAGE) closed down -$0.28 to $73.88 after Tuesday’s $74.16, Monday’s $74.89, Friday’s $75.07 and last Thursday’s $72.07 with a negative -$1.08 or -1.46% aftermarket indication.
  • ReNeuron (RENE.L) closed down again -$14.00 after Monday’s -$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 +$5.42or -4.11% pre-market indication

BUY:

  • Fate therapeutics (FATE) closed down -$5.71 to $72.29 after Tuesday’s $78.00, Monday’s $75.71, Friday’s $76.49 and last Thursday’s $76.55 with a positive +$0.49 or +0.68% pre-market indication.
  • Global Blood Therapeutics (GBT) closed down -$1.19 to $36.60 after Tuesday’s +$0.32 to $37.79, Monday’s $37.47, Friday’s $38.62 and last Thursday’s $38.23 with a positive +$0.40 or +1.09% aftermarket indication.

 

The BOTTOM LINE: 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.

With news that inflation is speeding up faster than it has in more than a decade, investors are on edge. That’s because when the cost of living goes up, investment returns also need to go higher for people to maintain the same buying power. But they don’t always do that. As a result, investors are left with less.

“The risk is that if inflation heats up that that could gobble up everything you’re earning,” <Christine Benz, director of personal finance at Morningstar> it’d extreme but, so are realities!

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.