June 14, 2021 7:27am

Do we foresee another rotation?

Pre-open indications: 5 BUYs: CLLS, PSTI, RARE, VCEL, VYGR; 4 SELLS: BLFS, PGEN, GBT, MESO; 1 Maintain SELLs: BSTG

My version of the morning’s “indications” is about 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 +0.03% (+11 points), S&P futures are UP +0.10% (+4 point) and NASDAQ futures are UP +0.36% (+49 points)

 

U.S. stock futures were little changed in early premarket trade on Monday,

European stocks advanced higher to start the week

Asia-Pacific stocks were mixed with markets in mainland China, Hong Kong and Australia closed for public holidays.

 

Data Docket: The Fed’s two-day policy meeting will likely dominate investor behavior this week. Although the central bank is not expected to take any action, its forecasts for interest rates, inflation and the economy could move the markets. The Fed could possibly move up its forecast for a rate hike after saying in its last quarterly update that it would keep its benchmark rate near zero through 2023

 

Henry’omics:

For the week, the S&P 500 posted a 0.4% gain and marked its third consecutive positive week. the Nasdaq was the outperformer with a rally of nearly 1.9% and posting its fourth winning week in a row and the Dow fell 0.8%.

Many of the neglected cell and gene therapy/biotech stocks posted the best week since November, fueled by the Biogen (BIIB) regulatory decision.

There is one more key readout biotech investors are waiting on: results from a trial in major depression from Biogen (BIIB) and its partner Sage Therapeutics (SAGE) with a win for BIIB and a loss for Vertex (VRTX).

The BIIB/SAGE results could very well determine which direction biotech goes next as data is expected by the end of June.

The potential of M&A deals as it possibly rears could also determine the direction of biotech’s for the rest of 2021.

With years that start off with five (5) or more deals over $500 million usually drives the outperformance of nearly 4% for the Nasdaq Biotech index, according to JPMorgan’s analysis.

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … thirty (32 – MESO added) to date …  https://www.regmedinvestors.com/articles/11628

 

Friday’s evening’s recap: “another positive session to end the week” … https://www.regmedinvestors.com/articles/11952

  • The Nasdaq closed UP +49.09 points (+0.35%);
  • The IBB closed down -0.67% and XBI closed down -0.19%
  • Sector volume was WEAK with 11 of the 21-upside having higher than the 3-month average volume with the volume of 1 of 12-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.45 points or -2.80% at 15.65
  • Friday’s percentage (%) of the 21-upside were +0.62% (ATHX) to +7.37% (RENE.L) while the 12-downside ranges from -0.14% (VCEL) to -2.95% (BLCM);

Q2/21:

June: 7 positive and 2 negative close

May:  8 positive, 12 negative closes and 1 holiday

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:

The Biostage (BSTG) - Maintaining Sell – It’s about saying WHAT NEEDS to be written …

Biostage (BSTG) closed up +$0.04 with 1,395 shares traded to $1.25 after Thursday’s +$0.01 to $1.21 with 1,325 shares traded after Wednesday’s +$0.13 to $1.26 with 1,216 shares traded.

Question#`1: Notice the volume numbers per session? WHY the need to “pump, promote and inflate” the share price; does the volume reflects the manipulation to execute the last remaining warrants?

Question#2: will the annual meeting result in ANY news to/about the future of the company?

MINORITY PUBLIC shareholders are waiting, watching and weighing responses to MAINTAIN their RIGHTS.

 

The morning’s indications:

BUY:

Cellectis SA (CLLS) closed down -$0.12 to $15.18 and has a positive +$0.26 or +1.76% pre-market (Friday) indication.

Pluristem (PSTI) closed up +$0.04 to $4.36 after Thursday’s flat at $4.32 and has a positive +$0.01 or +0.23% pre-market indication.

Ultragenyx (RARE) closed up +$2.35 to $101.71 and has a positive $3.24 or +3.19% pre-market indication.

Vericel (VCEL) closed down -$0.08 to $57.58 and has a positive +$2.32 or +4.03% aftermarket (Friday) indication.

Voyager Therapeutics (VYGR) closed down -$0.11 to $4.73 with a positive +$0.02 or +0.42% pre-market indication.

SELL:

BioLife Solutions (BLFS) closed +$1.13 to $38.00 with a negative -$0.57 or -1.50% after market (Friday) indication.

Precigen (PRGN) closed up +$0.34 to $7.33 and has a negative -$0.25 or -3.41% pre market indication.

Global Blood Therapeutics (GBT) closed down -$1.03 to $40.64 with a negative -$0.49 or -$1.21% aftermarket (Friday) indication.

Mesoblast (MESO) closed up +$0.56 to $8.53 and has a negative -$0.13 or -11.52% aftermarket (Friday) indication

 

The BOTTOM LINE: As we head through these summer months, the cell and gene therapy sector has good clinical results or it doesn’t…. for these valuations “TO STICK”.

News always helps the flow of share pricing however; higher share prices are just temporary or about to be deflated?

Wake-up volatility is NOT going away!

I continue to MAINTAIN, this is a confused sector as sentiment fades, momentum is usurped, fundamentals are being ignored – or is it a test of our staying power in certain equities.

It’s going be a long hot summer – expects the fizzle on stock pricing until it isn’t!

Although, “I would consider new highs … to be SOLD into …complacency is in store as many investors actually get out to vacations (one indicator).”

A true contrarian thought …

My focus has always been “warning analysis” … my advice, trim and skim any new highs if one can!” I also see a number of 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.