October 5, 2021 7:45am
There’s still risk lurking but, selectively beat the electronic traders to the bid
The Biostage (BSTG) Chronicle: Should BSTG be considered a Chinese company and subject to SEC de-listing as U.S. regulators start a countdown that will force many <Chinese companies> to leave stock exchanges? The real question behind it, was Q2 8-k and 10-Q audited? <read more>
Pre-open indications: 6 BUYs 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 +0.47% (+158 points), S&P futures are UP +0.43% (+18 point) and NASDAQ futures are up +0.36% (+52 point)
Stock futures rebounded on Tuesday as some investors are beginning to buy into the dips,
European markets rose as the pan-European Stoxx 600 added 0.7% by late morning,
Asia-Pacific markets largely declined, with Japan’s Nikkei 225 falling more than 2%, the Reserve Bank of Australia decision to leave interest rates unchanged as markets in mainland China remained closed for the holidays.
Henry’omics:
On Monday, the Nasdaq dropped 2.1% for its sixth (6th) negative day in seven (7).
The market suffered a tumultuous September as inflation fears, slowing growth and rising rates (by a rise in 10-year government bond yield) yield kept investors on edge. The 10-year Treasury yield traded slightly higher to 1.49% on Tuesday after hitting a high of 1.56% last week.
After Monday’s sell-off, the Nasdaq is now -7.5% off from its record.
Economic data Docket: U.S. trade deficit and the Institute for Supply Management survey of purchasing managers
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:
- Monday’s evening’s recap: “sector was under heavy pressure, with a muddy path forward for sector equities. Upcoming earnings season needs to be plugged into share pricings model; be prepared for the unveiling of Q3 results which I am sure we won’t like what is coming” … https://www.regmedinvestors.com/articles/12123
Q4: 2 negative closes
Q3/21:
- September, 1 holiday, 10 positive and 10 negative close
- August - 12 positive and 10 negative close
- July: 6 positives, 1 holiday and 15 negative closes
Companies in my headlights – It’s your decision; I provide an idea and context:
Biostage (BSTG): Maintaining SELL:
The “pump/promote” is back …
Monday closed up +$0.58 with 2,189 shares traded following Friday closing up +$0.05 to $3.05 with 2,113 shares traded
The Biostage (BSTG) Chronicles: wrongful death law suit, insurance claim denied … https://www.regmedinvestors.com/articles/12110
An extrapolation from the WSJ as I question BSTG, “For years, U.S. regulators <have> said they never got the transparency they needed into the auditing … on Chinese companies because “some” firms won’t routinely hand over papers and files that were needed.”
Sound familiar …
Questions:
- WERE BSTG’s Q2 8-K and 10-Q filings AUDITED or UN-AUDITED for investor’s review?
- WHO were the auditors for this Q2/21 8-K and 10-Q?
- Auditor, RSM US LLP “walked” post Q1 – WHY?
- Final question – another … WHY the inclusion of this disclosure (from reading) in the 10-K, BSTG has “identified a material weakness … “in our internal control over financial reporting. Our ability to remediate this, our discovery of additional weaknesses and our ability to achieve and maintain effective control over financial reporting, could adversely affect our results of operations, our stock price and investor confidence in our company.”
- WHAT is the status of the $1,000,000.00 “gift” to Connecticut Childrens (hospital) where the CEO, James Schmerling of this hospital is a board of director member and $429,500.00 is still OWED (that is NOT listed as a payable in FY20 and Q1 and Q2/21 financials by BSTG, when the company is all but broke?
Maintaining BUY:
Fate Therapeutics (FATE) closed down -$3.09 to $56.41 after Friday’s +$0.23 to $59.50, Thursday’s $59.27, Wednesday’s $59.80 and last Tuesday’s $60.79 with a positive +$0.13 or +0.23% pre-open indication.
BUY from SELL:
Cellectis SA (CLLS) closed down -$0.52 to $12.17 with a positive =$0.40 or +3.29% pre-market indication.
Intellia Therapeutics (NTLA) closed down again -$7.28 to $126.78 after Friday’s -$0.09 to $134.06, Thursday’s -$3.41 to $134.14, Wednesday’s -$1.85 to $137.56 and last Tuesday’s $139.41 with a positive +$0.72 or +0.57% pre-market indication.
CRISPR Therapeutics (CRSP) closed down again -$8.86 to $102.43 after Friday’s -$0.64 to $111.29 with a positive +$1.13 or +1.10% pre-market indication.
Editas Medicine (EDIT) closed down again -$2.62 to $37.29 after Friday’s -$1.17 to $39.91, Thursday’s $41.08, Wednesday’s $42.50 and last Tuesday’s $53.45 with a positive +$0.30 or +0.80% pre-open indication.
Global Blood Therapeutics (GBT) closed down -$0.13 to $26.12 with a positive +0.47 or +1.80% pre-market indication.
The BOTTOM LINE: new month and quarter, this full week will not end the history of volatility.
Not yielding in my thoughts, I keep reinforcing that increased stock market volatility suppresses the stem, cell and gene therapy sector.
I do not believe the recent bout of share pricing depression will lead to buyable equities and maintain the stance … not to buy into many of the weaknesses.
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.
