August 2, 2021 7:26am

Twelve (12) earnings’ releases this week, I am still in the non-sustainable pricing camp

Biostage (BSTG) Chronicles: WHAT is the end game or play-book for this company, it has NOT done ANYTHING to monetize their asset of an approved IND in over one and one-half years; still without a clinical trial initiation … so WHERE and WHAT is the value proposition?

Pre-open indications: 2 SELLs; 5 BUYs; and 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

There is no breadline for fact and numbers-based share pricing intelligence!

 


Dow futures are UP +0.24% (+84 points), S&P futures are UP +0.35% (+15 points) and NASDAQ futures are +0.36% (+54 points)

 

U.S. stock futures were headed up on Monday in a new month’s pre-open (August) session,

European stocks climbed pursuing positive sentiment,

Asia-Pacific stocks climbed as investors picked-up bargains following a recent rout, while data showed Chinese manufacturing activity growth slowed in July.

 

Henry’omics:

U.S. stock futures rose in overnight trading on Sunday as investors geared up for the first trading day of August.

Although, indexes managed to notch their sixth month of gains in July; the cell and gene therapy sector suffered irritable harm through the month of July.

To make the hurt more harmful is that this week begins earnings with multiple releases this week: two (2) on Monday, three (3) on Tuesday, followed by four (4) on Wednesday and two (2) on Thursday and one (1) on Friday …

 

Friday’s evening’s recap: “last session in July with an ugly month for the cell and gene therapy sector’s pricings. Breakdowns were again the theme of the session as volatility wreaked havoc with low volume pricing choppiness in July” … https://www.regmedinvestors.com/articles/12028

  • The Nasdaq closed down -105.59 points (-0.71%);
  • The IBB closed down -0.01% and XBI closed down -1.41%;
  • Sector volume was LOW with 3 of the 10-upside having higher than the 3-month average volume with very LOW volume of 2 of 22-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +0.53 points or +2.99% at 18.23
  • Friday’s percentage (%) of the 10-upside were +0.23% (KDNY) to +14.49% (BCLI) while the 22-downside ranges from -0.10% (EDIT) to -4.62% (ADVM);

Q3/21:

August …

July: 6 positives, 1 holiday and 15 negative closes

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 flat again on Friday with 170 shares traded after Thursday with 1 share traded, Wednesday’s flat with 450 shares traded, on Tuesday’s down -$0.06 to $1.65 on last Monday with 406 shares traded after being flat.

Question#1: WHAT is the end game or play-book for this company, it has NOT done ANYTHING to monetize their asset of an approved IND with NO clinical trial initiative … so WHERE and WHAT is the value proposition?

Open ended Question#2: WHAT is the status of the $404,221.00 PPP Loan? Referencing the loan agreement, “In the event that any portion of the PPP Loan is not forgiven in accordance with the PPP, following a six-month deferred period that ends November 4, 2020, the Company will be required to pay the Bank monthly payments of principal and interest to repay the PPP Loan in full on or before the maturity date.”

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

 

Morning Indications:

Let’em ride, hoping for upside or oversold “recognition” …

 

A few for the road:

Sell on pre-open indications; Athersys (ATHX), Fate Therapeutics (FATE),

BUY on pre-open indications: CRISPR Therapeutics (CRSP), Editas Medicine (EDIT), bluebird bio (BLUE), Intellia Therapeutics (NTLA), Pluristem (PSTI),

 

Earnings preview:

Intellia therapeutics (NTLA) reports Thursday and is expected to deliver flat earnings compared to the year-ago quarter on lower revenues when it reports results for the quarter ended June 2021. EDIT is projected to report earnings of -$0.61 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.03 million, down 26.03% from the year-ago period. NTLA's full-year Zacks Consensus Estimates are calling for earnings of -$2.56 per share and revenue of $36.32 million. These results would represent year-over-year changes of -6.67% and -37.37%.

Alnylam Pharmaceuticals (ALNY)reports earnings on Tuesday, 8/3 and is expected to post a quarterly loss of -$1.57 per share in its upcoming report, which represents a year-over-year change of -0.6%. Revenues are expected to be $199.77 million, up 92.2% from the year-ago quarter. < Zacks Consensus Estimates>

Editas Medicine (EDIT) reports Wednesday with analysts expecting EDIT to post earnings of -$0.85 per share. This would mark a year-over-year decline of 97.67%. Meanwhile, our latest consensus estimate is calling for revenue of $6.69 million, down 37.8% from the prior-year quarter. EDIT's full-year Zacks Consensus Estimates are calling for earnings of -$3.67 per share and revenue of $25.41 million. These results would represent year-over-year changes of -85.35% and -72%, respectively.

 

The BOTTOM LINE: … earnings truly begin this week after two (2) releases to date … uniQure NV (QURE) and CRISPR Therapeutics (CRSP) released net income earnings’ reports.

Q2 earnings potential LPS (loss-per-share) this week:

  • Ultragenyx Pharmaceuticals (RARE), Verastem (VSTM) on Monday, 8/2;
  • Sage Therapeutics (SAGE), Global Blood Therapeutics (GBT) and Alnylam Pharmaceuticals (ALNY) release “earnings” on Tuesday, 8/3
  • Vericel (VCEL), MiMedx (MDXG), AxoGen (AXGN), and Editas Medicine (EDIT) on Wednesday, 8/4,
  • Brainstorm Cell Therapeutics (BCLI) and Intellia therapeutics (NTLA) on Thursday,8/5]
  • Cellectis SA (CLLS) on Friday, 8/6

Remember: Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out.

Risk is no doubt increasing as we head into the troublesome August and September months

RMi’s daily report is a primer that may say little or a lot; yet it serves as insurance that all indications are being examined and evaluated.

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.