May 19, 2021 8:11am

Slumping sector equities may NOT be a bargain quite yet

As investors await the latest minutes from the Federal Reserve meeting

Pre-open indications:  0 BUYs, 7 SELLs and 1 Maintain SELL

Mentions: CRSP, GBT, EDIT, BLUE, BLFS, AGTC, KDNY, BSTG

My version of the morning’s “indications” is written on what you need to know; 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 -0.84% (-286 points), S&P futures are DOWN -1.01% (-42 points) and NASDAQ futures are DOWN -1.51% (-199 points)

 

U.S. stock futures were lower pre-market on Wednesday as selling returns,

European markets fall as losses in all sectors and major bourses traded in the red.

Asia-Pacific stocks slipped with some markets in the region closed for holidays (Honk Kong and South Korea).

 

Data Docket: The Federal Reserve publishes the minutes from its April meeting later Wednesday afternoon

 

Henry’omics:

Stocks have come under pressure lately on fears of inflation that could unravel the Federal Reserve’s easy money and tapering policies.

 

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

 

Tuesday’s evening’s recap: “after yesterday’s sector drop, today’s a pop. I’d have more confidence if the sector disruptors were issued a sustainable vaccine.” … https://www.regmedinvestors.com/articles/11916

  • The Nasdaq closed DOWN -75.41 points (-0.56%);
  • The IBB closed up +0.36% and XBI closed up +0.43%;
  • Sector volume was LOW with 3 of the 21-upside having higher than the 3-month average volume with the volume of 3 of 11-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +1.62 points or +8.22% at 21.34;
  • Tuesday’s percentage (%) of the 21-upside were +0.33% (SAGE) to +12.24% (AGTC) while the 11-downside ranges from -0.28% (ADVM) to -12.42% (BSTG);

Q2/21:

May:  4 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 down -$0.16 to $1.13 with 250 shares traded after Monday’s +$0.15 to $1.30 with 2,642 shares traded and last Friday’s flat with 54 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:

Maintaining SELL:

Chinook Therapeutics (KDNY) closed down -$0.53 to $16.19 after Monday’s +$1.87 to $16.72 with a negative -$0.43 or -2.66% aftermarket indication.

 

SELL from BUY:

Applied Genetic Technologies (AGTC) closed up =$0.47 to $4.31 after Monday’s -$0.04 to $3.84 and after announcing earnings with a positive -$0.06 or -1.39% aftermarket indication.

BioLife Solutions (BLFS) closed up +$0.76 to $30.67 after Monday’s $29.91 with a negative -$0.17 or -0.555 aftermarket indication.

bluebird bio (BLUE) closed up +$0.76 to $30.67 after Monday’s -$0.41 to $29.91 with a negative -$0.66 or -2.15% pre-market indications.

Editas Medicine (EDIT) closed up +$0.46 to $33.57 after Monday’s $33.11 with a negative -$1.05 or -3.13% pre-market indications.

Global Blood Therapeutics (GBT) closed up again +$0.98 to $37.29 after Monday’s +$0.13 to $36.31 and has a negative -$0.01 or -0.03% aftermarket indication.

 

SELL into Strength:

CRISPR Therapeutics (CRSP) closed up +$3.44 to $112.66 after Monday’s $109.22 and Friday’s $106.64 with a negative -$1.34 or -1.19% pre-market indication

 

The BOTTOM LINE: Bad day all-around, EU stocks fall, Asian markets pull-back, Nasdaq futures drop, Fed minutes loom as inflation shows its ugly head!

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.