September 28, 2021 7:44am

The market is like a voting machine--tallying up which firms are popular and unpopular <Ben Graham>

Pardon the evolve or change, in the short and near term, the sector is like a weighing machine--assessing the sentiment of a clinical outcome in a company while Mr. Market deals the terms

Pre-open indications: 1 BUY and 6 SELLs

The Biostage (BSTG) Chronicles: fiduciary liability? <read more>

Remember that overnight and pre-open actions in futures doesn't necessarily translate into actual trading in the coming day’s session.

Dow futures are DOWN -0.42% (-139 points), S&P futures are DOWN -0.83% (-37 point) and NASDAQ futures are DOWN -1.56% (-236 point)

 

U.S. stock futures were lower on Tuesday projecting a down open as climbing bond yields pressured stocks,

European markets declined digesting the fallout of the German election,

Asia-Pacific markets mostly declined, as various firms downgraded China’s GDP forecasts amid a power crunch.

 

Henry’omics:

The stock market rally had a mixed Monday, with the Dow and small-cap Russell 2000 rallying while the S&P 500 and Nasdaq retreated.

House Speaker Nancy Pelosi told her Democratic caucus late Monday that she is no longer linking the bipartisan $1 trillion infrastructure bill to passage of a much-larger reconciliation package.

That also comes as Senate Republicans blocked a bill to raise the debt limit and extend government financing.

Markets will be in a dilemma … as climbing bond yields pressured stocks.

 

If you didn’t remember what happen at Monday night’s close and the quarter’s “number’s” impact, you won’t be prepared for today’s session:

Q3/21:

  • September, 1 holiday, 10 positive and 7 negative close
  • August - 12 positive and 10 negative close
  • July: 6 positives, 1 holiday and 15 negative closes

 

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

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Biostage (BSTG): Maintaining SELL:

Monday closed flat with 135 shares traded after Friday closed flat at 3.26 with 62 shares traded after Thursday closed up +$0.06 with 839 shares traded, Wednesday closed down -$0.45 with 3,833 shares traded, Tuesday’s +$0.25 with 654 shares traded following last Monday closing down -$0.26 to $3.40 with 563 shares traded.

  • Question#1: Could negligence (not turning over documents and a sanction being initiated) be the reason BSTG’s insurance company dropped coverage and legal reimbursement for the terminal death suit legal costs?
  • Question#2: Board members and officers are fiduciaries, and by statutory and common law mandate, they must act with the utmost responsibility. Board of directors have a fiduciary duty to exercise due care in how they manage a corporation's affairs and also have the duty of loyalty and obedience to the corporation. A fiduciary duty means that both directors and officers handle their powers only for the collective benefit of the corporation and its stockholders.

When a court determines whether there has been a breach of fiduciary duty, what factors may be considered? There are circumstances that make a director liable to the corporation, and sometimes to its creditors, shareholders, or other people, for any losses caused by their inability or failure to exercise due care. A director typically breaches his or her duty in one of two ways:

  • He commits overt acts that constitute mismanagement
  • No action can also be construed as a failure to direct

 

SELL:

Alnylam Pharmaceuticals (ALNY) closed up =$6.45 to $193.85 with a negative -$13.35 or -6.895 aftermarket indication,

CRISP Therapeutics (CRSP) closed up +$0.83 to $117.26 after Friday’s -$4.82 to $116.43, Thursday’s +$3.44 to $121.25, Wednesday’s +$0.56 to $117.81, Tuesday’s +$0.78 to $117.25 and last Monday’s down -$8.05 to $116.47 and has a negative -$2.16 or -1.84% pre-market indication.

Editas Medicine (EDIT) closed down -$0.87 to $57.84 after Friday’s -$3.36 to $58.71, Thursday’s +$2.96 to $62.07, Wednesday’s +$0.43, Tuesday’s $58.68 and last Monday’s $58.20 with a negative -$2.04 or -3.53% pre-market indication with a 52-week change of +101.48%.

Intellia Therapeutics (NTLA) closed down -$1.56 to $147.58 after Friday’s $149.14, Thursday’s $155.26, Wednesday’s $149.05 and last Tuesday’s $147.74 with a negative -1.74 or -1.18%

Sage Therapeutics (SAGE) closed up +$1.44 to $46.86 with a negative -$0.61 or -1.30% pre-market indication

 

BUY:

Global Blood Therapeutics (GBT) closed up +$0.65 to $26.22 after Friday’s down -$0.95 to %25.57 after Thursday’s up +$0.38 to $26.52, Wednesday’s -$0.86 to $26.14, Tuesday’s -$0.10 to $27.00 and Monday’s $27.10 with a positive +$0.32 or +1.22% pre-open indication.

 

 

The BOTTOM LINE: this week is a period of volatility as treasury yields and oil prices keep rising culminating as the quarter (Q3) comes slowly to an end.

Not yielding, I keep reinforcing that increased stock market volatility suppresses the stem, cell and gene therapy sector.

I maintain, the recent stem, cell and gene therapy sector investors should be a bit more defensive, limiting new buys and perhaps curtailing overexposure to electronic trading risks.

Theme is uncertainty, more likely to me: skepticism …

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.

 

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.