May 24, 2021 8:01am
Pre-open indications: 1 BUY, 8 SELLs and 1 Maintain SELL
Mentions: CRSP, EDIT, BLUE, KDNY, NTLA, BSTG, RGNX, QURE, SAGE, VSTM
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
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Dow futures are UP +0.29% (+101 points), S&P futures are UP +0.43% (+18 points) and NASDAQ futures are UP +0.62% (+83 points)
U.S. stock pre-market futures traded higher on Monday,
European stocks were flat at the start of the trading week
Asia-Pacific markets traded mixed with markets in Japan, Singapore, Indonesia and Malaysia advancing.
Henry’omics:
The cell and gene therapy sector is coming off a mixed (3 negative and 2 positive closes) week which saw the Dow post its fourth (4th) negative week in five (5), while the S&P registered two (2) straight weeks of losses for the first time since February while the Nasdaq gained 0.31% last week, snapping a four (4) week losing streak.
RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … thirty (30) to date … https://www.regmedinvestors.com/articles/11628
Friday’s evening’s recap: “headwinds damped the sector’s upside resolve as the advance/decline (A/D) line closes negative. As I had stated this a.m.” new highs and I say bye cutting some positions” – its’s good to be on target.” … https://www.regmedinvestors.com/articles/11923
- The Nasdaq closed DOWN -64.75 points (-0.48%);
- The IBB closed down -0.53% and XBI closed down -0.71%;
- Sector volume was LOW with 1 of the 14-upside having higher than the 3-month average volume with the volume of 0 of 18-downside having higher than the 3-month average volume;
- The CBOE Volatility Index (VVIX: INDEX) was down -0.52 points or -2.52% at 20.15;
- Friday’s percentage (%) of the 14-upside were +0.16% (GBT) to +8.12% (VYGR) while the 18-downside ranges from -0.03% (ALNY) to -4.45% (FATE);
Q2/21
May: 4 positive and 10 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 +$0.02 to $1.32 with 299 shares traded after Thursday’s at $1.30 with 1 share traded, Wednesday’s +$0.16 to $1.30 with 930 shares traded, Tuesday’s -$0.16 to $1.13 with 250 shares traded and last Monday’s +$0.15 to $1.30 with 2,642 shares traded.
Question#1: Has Hong Yu’s tenure as president brought about ANY change to BSTG’s “condition” of going NOWHERE?
Question#2: 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? With only $1 million left (12/31/20) 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).
Question#3: WHY is BSTG NOT filing the Q1 earnings’ report? Their interim financial officer, Peter A. Pellegrino Jr. of Point Providence Consulting has been appointed since 4/8/21 and still was NOT able to produce a Q1 report? Are there other issues – like being out of cash or soon to be?
MINORITY PUBLIC shareholders are waiting, watching and weighing responses to MAINTAIN their RIGHTS.
The morning’s indications:
BUY:
Verastem (VSTM) closed flat at $3.19 and has a positive +$0.10 or +3.13% pre-market indication with news of the U.S. Food and Drug Administration (FDA) granted Breakthrough Therapy designation for the combination of its investigational RAF/MEK inhibitor VS-6766, with defactinib, its FAK inhibitor, for the treatment of all patients with recurrent low-grade serous ovarian cancer (LGSOC) regardless of KRAS status after one or more prior lines of therapy, including platinum-based chemotherapy.
Maintaining SELL:
Chinook Therapeutics (KDNY) closed up again +$0.46 to $17.95 after Thursday’s +$0.62 to $17.49, Wednesday’s +$0.68 to $16.87, Tuesday’s -$0.53 to $16.19 after Monday’s +$1.87 to $16.72 with NO aftermarket indication. If you sold as I have written, concerned it has become a profit-target.
Maintain SELL:
bluebird bio (BLUE) closed up +$0.83 to $31.55 after Thursday’s +$1.29 to $30.72, Wednesday’s -$1.24 to $29.43, Tuesday’s +$0.76 to $30.67 and last Monday’s -$0.41 to $29.91 with a negative -$0.15 or +0.48% pre-market indications.
Regenxbio (RGNX) closed down -$0.41 to $35.12 following last Monday’s $34.74 with a negative -$2.46 or -7% aftermarket (Friday) indication.
uniQure NV (QURE) closed down -$0.75 to $33.95 following last Monday’s $31.71 with a negative -$0.90 or -2.65% aftermarket (Friday)indication.
Take some Profit off the Table:
Editas Medicine (EDIT) closed down -$0.97 to $33.21 after Thursday’s +$1.07 to $34.18, Wednesday’s -$0.46 to $33.11, Tuesday’s +$0.46 to $33.57 and last Monday’s $33.11 with a negative -$0.21 or +0.87% pre-market indications with a 52-week change of +21.16%
Intellia Therapeutics (NTLA) closed down -$0.60 to $63.48 after Thursday’s -$0.40 to $64.08, Wednesday’s -$1.88 to $64.48, Tuesday’s $66.36 and Monday’s $66.69 with a positive +$0.52 or +0.82% pre-market indication with a 52-week change of +232.36%.
CRISPR Therapeutics (CRSP) closed down -$2.08 to $115.57 after Thursday’s +$7.09 to $117.65 after Wednesday’s -$2.10 to $110.56, Tuesday’s +$3.44 to $112.66 after Monday’s $109.22 and Friday’s $106.64 with a negative -$0.17 or -0.15% pre-market indication with a 52-week change of +74.21%
Sage Therapeutics (SAGE) closed up +$0.27 to $74.41 following last Monday’s $72.75 with a negative -$0.74 or 0.99% aftermarket (Friday) indication with a 52-week change of +90.50%.
The BOTTOM LINE: The cell and gene therapy sector has faced recent weakness, and the Russell 2000 is on track to snap a seven-month winning streak.
As stated, I continue to foresee a pattern of increased volatility as we have been experiencing through these summer months.
I feel like a song from a broken record, “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.
