July 16, 2021 7:44am

As trading drives the sector down, investors could be less willing to jump in until … <keep reading the dailies to find out>

Pre-open indications: 5 BUYs: CLLS, BLUE, IONS EDIT, NTLA; 1 SELL: MESO; 1 Maintain SELL: 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

I challenge the status quo to achieve what most believe is impossible, each session breaking down tactical ways to earn

Dow futures are UP +0.11% (+39 points), S&P futures are UP +0.14% (+6 point) and NASDAQ futures are UP +0.16% (+23 points)

 

Futures contracts were fractionally higher in early pre-market trade on Friday,

European stocks struggled as the pan-European Stoxx 600 hovered around the flatline,

Asia-Pacific stocks were mixed as the Bank of Japan held steady on monetary policy.

 

Henry’omics:

TGIF and the vacation time that never came to fruition due to rain.

Stock futures rose Friday morning to reverse losses from a day earlier, with traders looking ahead to a new economic data report on the state of consumer spending. <Yahoo finance news>

The muted moves in reaction to corporate earnings have contributed to an equally lackluster week for the S&P 500, which has dipped 0.2% so far this week.

One factor, “The iShares Russell 2000 ETF, containing small cap shares more reliant on the U.S. economy, gained 0.5% in premarket trading.” <CNBC>

A second factor (of positivity), “Moderna will replace Alexion Pharmaceuticals in the index before the opening of trade on July 21. Alexion (ALXN) is set to be acquired by U.K.'s AstraZeneca (AZN). Shares of Moderna (MRNA) have more than trebled over the past 12 months, sending the Cambridge, Massachusetts-based company’s market value above $100 billion for the first time this week.” <Bloomberg>

 

Thursday’s evening’s recap: “the challenge, when to BUY the dips? Define the risks first and anticipate the earnings LPS (los-per-share) declines as “runways” will be the caveats as barely any news pervades the sector” … https://www.regmedinvestors.com/articles/12003

  • The Nasdaq closed DOWN – 101.82 points (-0.70%);
  • The IBB closed up +0.23% and XBI closed down -0.01%
  • Sector volume was LOW with 1 of the 8-upside having higher than the 3-month average volume with very LOW volume of 5 of 21-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.68 points or +4.16% at 17.01;
  • Thursday’s percentage (%) of the 8-upside were +0.01% (RARE) to +3.27% (PSTI) while the 21-downside ranges from -0.58% (BSTG) to -5.06% (BLCM);

Q3/21: 3 positive and 7 negative close

Q2/21:

  • June: 15 positive and 8 negative closes
  • 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) Chronicles - Maintaining Sell – Could the share price stay up if it wasn’t being “pumped”?

Biostage (BSTG) closed down -$0.01 to $1.70 with 1,596 shares traded after Wednesday’s +$0.06 to $1.71 with 996 shares traded, Tuesday’s +$0.14 to $1.64 with 1,100 shares traded, Monday’s flat with 2,600 shares traded and last Friday’s ($1.50) flat with 1,100 shares traded.

Question#1: WHY no clinical trial initiation after an IND approval that is over a year and ½ old?

Question#2: WHAT is the amount of “runway”, isn’t it diminishing by month? ANY new money is due to a minimal warrant exercise?

MINORITY PUBLIC shareholders are waiting for the specific time, watching and weighing responses to MAINTAIN their RIGHTS.

 

The morning’s indications: 

Bounce-back BUYs:

bluebird bio (BLUE) closed down again -$0.23 to $27.53 after Wednesday’s-$1.10 to $27.76, Tuesday’s $28.86, Monday’s $29.79 and last Friday’s $30.57 with a positive +$0.17 or +0.63% pre-market indication.

Editas Medicine (EDIT) closed down -$0.72 to $43.08 after Tuesday’s $43.80, Monday’s $46.07 and Friday’s $48.57 although with a negative -$0.82 or -1.95% pre-market indication.

Intellia Therapeutics (NTLA) closed down again -$2.96 to $138.10 after Wednesday’s -$2.26 to $141.06 and has a negative -$0.10 or -0.07% pre-market indication.

Ionis Pharmaceuticals (IONS) closed up +$0.41 to $35.67 with a positive +$0.55 or +1.54% aftermarket indication.

 

BUY from SELL:

Cellectis SA (CLLS) closed down again -$0.26 to $13.68 after Wednesday’s -$0.80 to $13.94 and has a positive +0.71 or +5.19% aftermarket indication.

 

SELL:

Mesoblast (MESO) closed down -$0.16 to $7.40 with a negative -$0.10 or -1.35% after news of COVID-19 ARDS trial previously announced, the trial did not meet its endpoint of 43% reduction in overall mortality,

 

The BOTTOM LINE: Is this yet, another session of “any which way” works … I also continue to MAINTAIN, this is a confused sector as sentiment rages and fades, momentum is usurped, fundamentals are being ignored.

 It takes courage to not being discouraged by “our” universe of cell and gene therapy equities or sector.

My focus has always been “indication and 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.

Q2 earnings LPS (loss-per-share) release date are being divulged.

Some VERY serious investors believe a 10% or worse correction is coming < Hayes Martin, president of investment advisory firm Market Extremes>. Martin bases his sobering forecast on the increasing divergences within the U.S. market, as indicated by fewer and fewer stocks participating in the headline-grabbing strength of the leading indices. One indicator of these divergences is the growing number of stocks hitting new lows, for example. <MarketWatch>

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.

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.