September 1, 2021 5:11pm

The Biostage (BSTG) Chronicles: WHY hasn’t the SEC looked into this share pricing activity – Is this another Theranos – faking it to not make it?  <red more)

Pre-open indications: 4 HITs and 1 MISS

My comments try to distinguish the temporary from real pricing digression or progress with a 360-degree view.

The Dow closed DOWN -48.20 points (-0.14%); the S&P closed UP +1.41 points (+0.03%) while the Nasdaq closed UP +50.15 points (+0.33%)

 

Henry’omics:

Indexes were mixed moving slowly most of the first session of the month of September

The stem, cell and Genene therapy sector outperformed, despite the weakness in quarterly financial reporting.

August proved to be a month not too dissimilar to every other month this year -up, down round and round …

The Nasdaq was the top performing index once again, but closed off highs despite gaining 0.3%.

I am still looking for a downdraft in September, some predict weakness could be short-term and contained in the 5% to 8% range.!

 

Q3/21: 

  • September – 1 positive close.
  • August - 12 positive and 10 negative close
  • 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

 

Data Docket: U.S. companies created far fewer jobs than expected in August with private payrolls rising just 374,000, according to payroll services firm ADP. That is well below the estimate of 600,000.

 

RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines:

  • Wednesday opened positive at 2/7, 3 flats and 1 acquired, stayed positive at the mid-day at 26/7, 1 flat and 1 acquired, ending with a positive close of 26/7, 1 flat and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “A risk-on environment although sentiment remains weak, following in the market not leading for the sector. Lighten some “loads’, I’m on the lookout for a correction in September>” … https://www.regmedinvestors.com/articles/12075

 

The Biostage (BSTG) Chronicles: “Facts from filed 10-Q” … still a few to reporthttps://www.regmedinvestors.com/articles/12055

 

Q2/21 Earnings releases … https://www.regmedinvestors.com/articles/11542  … to date:

  • Net Income: 3 and Net losses: 23

 

Key Metrics:

  • Sector volume was LOW with 7 of the 26-upside having higher than the 3-month average volume with very LOW volume of 2 of 7-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 27-upside were +0.11% (BLUE) to +16.83% (BLCM) while the 7-downside -0.52% (KDNY) to -10.71% (BSTG);

 

The Biostage (BSTG) Chronicles: Wednesday traded 22,299 shares (-$0.36 to $3.00) after Tuesday traded 11,564 shares traded (-$0.44 to $3.36), Monday’s 25,607 shares traded (+$0.75 to $3.80), Friday traded 13,942 (+$0.47 to $3.07), Thursday traded 3,137 shares, last Wednesday traded 18,472 shares traded (+$0.16 to $2.21), the previous Tuesday closed up +$0.28 with 10,590 shares trade and following last Monday’s +$0.68 with 38,354 shares traded following the previous Friday’s -$0.07 with 570 shares traded.

Questions to consider:

  • Today is just another fact, how the share trades with the “push/promote” - another typical example,
  • WHAT is BSTG’s value proposition, after all the share price pumping?
  • What’s the end game of the “pumping” buys of stock in a company with NO clinical trial after an approved IND for 1.5 years and only three (3) or was it four (4) employees left in a 17,00 sq. foot lab? <Questions to consider – read more>
  • WHAT is the end game of “pumping” the share price as the float is MINIMAL compared to the ever-OUTSTANDING shares?
  • WHERE is the SEC?
  • Does the SEC [Securities and Exchange Commission] have a term for this – could it be said, it’s an affinity fraud?
  • Affinity scams often involve “Ponzi” or pyramid schemes where new investor money is used to pay earlier investors, making it appear as if the investment is successful and legitimate.

 

Pre-open Indications: 4 HITs <SELL into Strength: Intellia Therapeutics (NTLA +$3.51 after Tuesday’s +$6.40); CRISPR Therapeutics (CRSP +$1.41 after Tuesday’s +$4.24), Editas Medicine (EDIT +$3.01 after Tuesday’s +$1.79), Mesoblast (MESO -$0.48)> 1 MISS < BioLife Solutions (BLFS +$2.14) >

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Intellia Therapeutics (NTLA) - again, Ultragenyx (RARE) - again, Editas Medicine (EDIT) - again, Vericel (VCEL), BioLife Solutions (BLFS) to name 5 of the 26 inclining of the 35 covered

Hammered in today’s market:

  • Alnylam Pharmaceuticals (ALNY) - again, Mesoblast (MESO) - again, Biostage (BSTG) - again, Applied Genetic Technologies (AGTC), Chinook therapeutics (KDNY), Caladrius Bioscience (CLBS), Athersys (ATHX) to name 7 of the 7 declining of the 35 covered

 

Wednesday’s (10 of 26) incliners:

  • Intellia Therapeutics (NTLA +$3.51 after Tuesday’s +$6.40 and Monday’s -$6.05);
  • Ultragenyx (RARE +$3.36 after Tuesday’s +$0.50 and Monday’s +$1.84);
  • Editas Medicine (EDIT +$3.07 after Tuesday’s +$1.79 and Monday’s -$3.73);
  • Vericel (VCEL +$2.31 after Tuesday’s -$1.51 and Monday’s +$0.07),
  • BioLife Solutions (BLFS +$2.14),
  • Fate Therapeutics (FATE +$2.05 after Tuesday’s -$0.90);
  • CRISPR Therapeutics (CRSP +$1.41 after Tuesday’s +$4.24 and Monday’s -$3.10);
  • Regenxbio (RGNX +$1.32 after Tuesday’s +$0.53);
  • Global Blood Therapeutics (GBT +$1.16 after Tuesday’s +$0.61 and Monday’s -$0.35);
  • Sage Therapeutics (SAGE +$0.62 after Tuesday’s +$1.39);

Wednesday’s (7 of 7) decliners:

  • Alnylam Pharmaceuticals (ALNY -$2.08 after Monday’s -$0.42);
  • Mesoblast (MESO -$0.79);
  • Biostage (BSTG -$0.44 after Monday’s +$0.75),
  • Applied Genetic Technologies (AGTC -$009);
  • Chinook Therapeutics (KDNY -$0.07);
  • Caladrius Bioscience (CLBS -$0.03);
  • Athersys (ATHX -$0.01);

Closing –1 – ReNeuron (RENE.L) and 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB closed up +1.03% and XBI closed up +1.69%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.37 points or -2.25% at 16.11

Upside volume:

  • Wednesday:  7 out of the26-upside had higher than the 3-month average volume;

Downside volume:

  • Wednesday: 2 out of the 7-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: price versus percentage …

  • Wednesday’s percentage (%) of the 27-upside were +0.11% (BLUE) to +16.83% (BLCM) while the 7-downside -0.52% (KDNY) to -10.71% (BSTG);

 

September, the third month of Q3/21:

Wednesday closed positive with 20 advancers, 13 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: the month of September begins …

I am still waiting for clinical data to validate the rush to the upside.

The upbeat mood for equities came despite signs that Asia's factory activity lost momentum in August and that U.S. private employers hired far fewer workers than expected last month, likely due to a resurgence in COVID-19 infections. (Reuters>

When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started.

Q2 reporting season has essentially run its course; although a few remain with my questions of WHY so late …?

I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim any new highs if one can!”

 

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.

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.