May 14, 2021 7:17am

The upside is coming back at you however, value perceived is not always value achieved

Pre-open indications:  7 BUYs, 2 SELLs and 1 Maintain SELL

Mentions: AGTC, BSTG, BLFS, BLUE, CRSP, EDIT, FIXX, GBT, RENE.L

Earnings: Solid Biosciences (SLDB)

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 UP +0.4% (+155 points), S&P futures are UP +0.62% (27 points) and NASDAQ futures are UP +1% (+131 points)

 

Pre-open market futures are pointing upward on Friday

European markets climbed modestly

Asia-Pacific markets rose as Japan and China led gains

 

Henry’omics:

The Dow is down 2.2% for the week, while the S&P has shed 2.8% while the Nasdaq down 4.6% for the week.

The market’s volatility this week comes as economic data points to inflation. The Consumer Price Index jumped 4.2% from a year earlier in April, which was the fastest rate since 2008. This has sparked fears that the Federal Reserve could be forced to dial back its accommodative monetary policy. <CNBC>

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … twenty-seven (27) to date …  https://www.regmedinvestors.com/articles/11628

 

Wednesday’s evening’s recap: “Dow, S&P and Nasdaq rebound as cell and gene therapy sector tanks again. Since when does inflation and interest rates effect drug and biotech stocks, we create, they deflate.” …  https://www.regmedinvestors.com/articles/11910

  • The Nasdaq closed UP +93.31 points (+0.72%);
  • The IBB closed down -0.16% and XBI closed down -1.32%
  • Sector volume was LOW with 1 of the 8-upside having higher than the 3-month average volume with the volume of 8 of 25-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -4.46 point or -16.17% to 23.13;
  • Thursday’s percentage (%) of the 8-upside were +0.67% (MESO) to +1.40% (VCEL) while the 35-downside ranges from -0.33% (ALNY) to -8.05% (PSTI);

Q2/21:

May:  2 positive and 7 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 down -$0.10 to $1.15 with 950 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 down -$0.54 to $29.31 after Thursday’s +$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 -$0.09 or -0.31% pre-market indication.

BUY on bounce-back:

  • Applied Genetic Technologies (AGTC) closed down -$0.09 to $3.67 with a positive +$0.26 or +7.08% pre-market indication;
  • BioLife Solutions (BLFS) closed down -$0.85 to $29.53 with a positive +$0.97 or +3.78% aftermarket indication and reported earnings that had a Q1 loss but topped revenue.
  • CRISPR Therapeutics (CRSP) closed up +$0.16 to $101.00 with a positive +$2.98 or +2.95% pre-market indication
  • Editas Medicine (EDIT) closed down -$0.32 to $31.40 and has a positive +0.01 or +0.03% pre-market indication.
  • Homology Medicine (FIXX) closed down -$0.22 to $6.35 with a positive +$0.15 or +2.36% pre-market indication.
  • Global Blood Therapeutics (GBT) closed down -$1.14 -$1.19 to $36.60 after Wednesday’s -$1.19, Tuesday’s +$0.32 to $37.79, Monday’s $37.47, Friday’s $38.62 and last Thursday’s $38.23 with a positive +0.69 or +1.95% aftermarket indication;
  • ReNeuron (RENE.L) closed down again -$4.50 after Wednesday’s -$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 +$2.25 or +1.76% pre-market indication

 

The BOTTOM LINE: post the downdrafts …  buy SOME short-term dips but, cautiously.

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.