September 29, 2021 7:44am

Caution as Thursday ends September and Q3

News: Solid Biosciences (SLDB) reported additional positive pulmonary function data from the first six patients in the ongoing IGNITE DMD Phase I/II clinical trial of SGT-001.

The Biostage (BSTG) Chronicle: negligence? <read more>

Pre-open indications: 6 BUY and 1 SELL

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 UP +0.55% (+186 points), S&P futures are UP +0.63% (+28 point) and NASDAQ futures are UP +0.82% (+121 point)

 

U.S. stock futures were higher Wednesday,

European stocks advanced,

Asia-Pacific stocks fell while only Hong Kong closed higher

 

Henry’omics:

Yesterday’s interest rate induced sell-off is a reminder of how impactful monetary stimulus has been with the Fed signaling a swift removal of the emergency stimulus measures is coming soon. <CNBC>

As the 10-year Treasury yield eased, causing investors to buy some beaten-up stocks on the dip. The 10-year Treasury yield lost 2 basis points on Wednesday to trade right around 1.50%. (1 basis point equals 0.01%). The yield touched a high of 1.567% Tuesday.

The Dow and S&P are both down 3% for September while, the Nasdaq is down more than 4.5%.

 

Economic data Docket: Pending home sales data

 

If you didn’t remember what happen at Tuesday 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 8 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:

The “pump/promote” is back …

Tuesday closed up +$0.48 with 1,251 shares traded after Monday closed flat with 135 shares traded, Friday closed flat at 3.26 with 62 shares traded, Thursday closed up +$0.06 with 839 shares traded, and last Wednesday closed down -$0.45 with 3,833 shares traded, the previous Tuesday’s +$0.25 with 654 shares traded and 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 having 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.
  • Question#3: Will they be held responsible … for letting this all happen?

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:

  • Committing an overt act that constitute mismanagement
  • No action can also be construed as a failure to direct

 

BUY:

CRISP Therapeutics (CRSP) closed down -$5.11 to $112.15 after Monday’s +$0.83 to $117.26, Friday’s -$4.82 to $116.43, Thursday’s +$3.44 to $121.25 and last Wednesday’s +$0.56 to $117.81, and has a positive +$1.05 or +0.94% pre-market indication.

Editas Medicine (EDIT) closed down -$5.39 to $52.45 after Monday’s -$0.87 to $57.84, Friday’s -$3.36 to $58.71, Thursday’s +$2.96 to $62.07 and last Wednesday’s +$0.43, with a positive +1.70 or +3.24% pre-market indication

Alnylam Pharmaceuticals (ALNY) closed down -$16.77 to $177.08 after Monday’s up +$6.45 to $193.85 with a positive +0.17 or +0.10% aftermarket indication, a rebound?

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 +$0.85 or +3.20% pre-open indication.

Solid Biosciences (SLDB) closed down -$0.15 to $2.45 with a positive +$0.15 or +6.12% pre-market indication on news of additional positive pulmonary function data from the first six patients in the ongoing IGNITE DMD Phase I/II clinical trial of SGT-001.

 

The BOTTOM LINE: this week is a period of volatility 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.