May 18, 2021 8:00am

Sector slumps, dumps and gets pumped

Pre-open indications:  4 BUYs, 2 SELLs and 1 Maintain SELL

Mentions: AGTC, FATE, BLUE, GBT, AXGN, KDNY, BSTG

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 +0.22% (+74 points), S&P futures are UP +0.20% (+0 points) and NASDAQ futures are UP +0.56% (+75 points)

 

Futures contracts are influencing U.S. stock indexes to rebound on Tuesday,

European stocks advanced looking to break out from the gloomy sentiment seen at the start of the trading week,

Asia-Pacific stocks jumped, as stocks in Taiwan led gains among the region’s major markets.

 

Data Docket: The Fed’s minutes from its last meeting, which will be released Wednesday, could offer some clues on policymakers’ thinking on inflation.

 

Henry’omics:

On Monday, lingering weakness in stem, cell and gene therapy sector assisted technology stocks lower.

Investors blamed that anguish for the S&P 500′s dismal performance last week, which saw the broad market index fall 4% through midweek, rebound and end the week down 1.4%. The Nasdaq, sensitive to inflation fears, dropped 2.3% last week; while the Dow fell 1.1%. All three benchmarks posted their worst week since February 26.

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … thirty (30) to date …  https://www.regmedinvestors.com/articles/11628

 

Monday’s evening’s recap: “A wham, bam but no alakazama in a seesaw session with volatility dragged down by dispersion selling. Repositions going-on post most earnings reported (30 of my 35 covered).” … https://www.regmedinvestors.com/articles/11914

  • The Nasdaq closed DOWN -50.93 points (-0.38%);
  • The IBB closed up +0.21% and XBI closed down -0.23%
  • Sector volume was LOW with 2 of the 14-upside having higher than the 3-month average volume with the volume of 1 of 18-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.91 points or +4.84% at 19.72;
  • Monday’s percentage (%) of the 14-upside were +0.14% (ALNY) to +13.04% (BSTG) while the 18-downside ranges from -0.31% (FIXX) to -4.78% (BLCM);

Q2/21:

May:  3 positive and 8 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 and still “pumping” the volume to keep price moving

Biostage (BSTG) closed up +$0.15 to $1.30 with 2,642 shares traded after Friday’s flat with 54 shares traded after Thursday’s 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 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:

SELL into Strength:

Chinook Therapeutics (KDNY) closed up +$1.87 to $16.72 with a negative -$0.22 or -1.32% aftermarket indication.

 

BUY from Bounce:

Applied Genetic Technologies (AGTC) closed down -$0.04 to $3.84 and after announcing earnings with a positive +$0.02 or +0.52% pre-market indication.

Fate Therapeutics (FATE) closed down -$0.36 to $76.34 with a positive +$0.46 or +0.60% aftermarket indication.

 

SELL:

AxoGen (AXGN) closed down -$0.39 to $21.08 with a negative -$0.76 or -3.61% aftermarket indication. A 52-week change of +160.24%, a 52-week low of $7.65 with a high of $23.94 and a short percentage (%) of float of -3.41%

 

BUY:

bluebird bio (BLUE) closed down -$0.41 to $29.91 with a positive +$0.42 or +1.40% pre-market indications.

Global Blood Therapeutics (GBT) closed up +$0.13 to $36.31 and has a positive +$0.69 or +1.90% pre-market indication.

 

The BOTTOM LINE: Q1 earnings season is wrapping up – 30 of my 35 covered companies have reported.

Post earnings’ release, BUY some (few) short-term dips but, cautiously.

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.