November 17, 2021 7:48am

Stagnation in sector equities and stagflation in the economy affecting the markets

Pre-open indications:  SELLs, 1 BUY and 1 Pump (or No Promote)

What I provide is an intelligence daily. RMi outlines a daily bell weather of “indications” about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session.

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 -0.04% (-13 points), S&P futures are UP +0.02% (+1 point) and NASDAQ futures are UP +0.15% (+25 points)

 

Stock futures were mixed, weak and still fluctuating in early pre-market trading Wednesday,

European markets were muted i.e., flat; in today’s biannual stability report, the ECB warned of stretched valuations in property and financial markets,

Asia-Pacific markets declined overnight as Japan’s export growth slowed to an eight-month low, sending shares of automakers lower.

 

Henry’omics:

Yesterday the stock market rally continued to shrug off last week's brief pullback. The Dow rose 0.15%, the S&P 500 index climbed 0.4% while the Nasdaq gained 0.8% after Tuesday's stock market trading. The small-cap Russell 2000 edged up 0.1%.

 

   Economic Data Docket:

  • 7:00 a.m. ET: MBA mortgage applications, week ended Nov. 12 (5.5% during prior week)
  • 8:30 a.m. ET: Building permits, month-over-month, Oct. (2.8% expected, -7.8% in Sept.)
  • 8:30 a.m. ET: Housing starts, month-over-month Oct. (1.5% expected, -1.6% in Sept.)

 

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:

Tuesday’s evening’s recap: “wham-bam and a no thank you. A sector slight comeback at the mid-day collapses at session’s end.” … https://www.regmedinvestors.com/articles/12186

Q4: November, 3 positive and 9 negative close to date

  • October, 8 positive and 13 negative closes

 

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

Maintaining SELL with a Pump or No Promote:

Biostage (BSTG) closed up +$0.39 to $2.99 after Monday’s FLAT  at $2.60 with 35 shares traded after Friday’s 0 shares traded, Thursday’s -$0.22 to $2.60 with 2,005 shares traded, Wednesday’s +$0.18 with 2,006 shares traded and last Tuesday’s -$0.03 with 3,304 shares traded

  • Earnings release: Biostage (BSTG) had a net loss of -$800 K, or -$0.80, a $200 K decrease in grant income and a cash position of $2 m—still with NO clinical trial with a 2-year-old IND. Add in some legal negligence ... where its insurance carrier will NOT cover the terminal death suit filed.

What’s there to invest in – the “Sword of Damocles” hanging over its recent insurance company rejection of legal expense/costs of a terminal death suit against the company?

  • For a company with NO clinical trial, an a one (1) and a half year approved IND, four (4) employees and NO CRO <clinical research organization> initiation.

 

Probabilities versus aftermarket/pre-open share pricing indication moves:

BUY:

Mesoblast (MESO) closed down -$0.67 to $6.42 with a positive +$0.08 or +1.25% pre-open indication.

 

SELL into Strength:

Athersys (ATHX) closed up +$0.10 to $1.25 with a negative -$0.04 or -3.20% pre-open indication.

BioLife Solutions (BLFS) closed up +$2.95 to $52.19 with a positive +$0.80 or +1.53% pre-open indication.

Fate Therapeutics (FATE) closed up +$1.76 to $55.49 and has a negative -$0.09 or -0.16% pre-open indication.

Sage Therapeutics (SAGE) closed up +$0.33 to $41.77 with a positive +$1.23 or +2.94% pre-open indication.

 

 

The BOTTOM LINE: As I ask, are we willing to BUY into these negative closes or SELL into Strength in the moving equity pricing?

Again, “is there a bounce after a trounce and how many stocks will emerge from the depths – I am just not willing to admit or even see it at the moment?”

I am still manning the bully pulpit, expressing the theme of “Reducing exposure as well as being patient in your willingness to stay fully invested, I’d been recommending very careful buy-ins for the hopes of gains through the month and year-end.

We are seeing to date, two (2) net income – Bellicum Pharmaceuticals (BLCM) and BioLife Solutions (BLFS)

  • Twenty-one (25) net losses to date … Earning’s releases that initiated Q3 reporting season began the tug-of-war between share pricing that is softer than usual and the usual LPS (loss-per-share) to be less than estimates and expectations.

The stem, cell and gene therapy earnings continue with coming 11/15 (to date with more coming).

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!”

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.

WHY do I keep analyzing Biostage (BSTG): When one sees an inextricable wrong and morally repulsive scenario; it takes courage, resolve and patience to stay the course of asking the questions without response!

 

 

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.