November 26, 2021 7:49am

Risk is dipping beyond comfort levels in a shortened trading day because of the Thanksgiving holiday with U.S. markets closing at 1 p.m. E.T.

Pre-open indications: 6 SELLs, 1 Pump or No Promote <the usual suspect – Biostage (BSTG)>

If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the extenuating factors of share pricing!

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

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

Dow futures are DOWN -2.26% (-805 points), S&P futures are DOWN -1.72% (-81 points) and NASDAQ futures are DOWN -0.89% (-140 points)

 

U.S. stock futures dropped on Friday on renewed Covid fears over a new variant found in South Africa,

European markets were plunging,

Asia markets were hit hard with Japan’s Nikkei 225 and Hong Kong’s Hang Seng index both falling more than 2% each.

 

Henry’omics:

The downward moves came after WHO officials warned of a new Covid-19 variant that’s been detected in South Africa. The new variant contains more mutations to the spike protein, the component of the virus that binds to cells, than the highly contagious Delta variant. Because of these mutations, scientists fear it could have increased resistance to vaccines, though WHO said further investigation is needed. <CNBC>

  • The U.K. temporarily suspending flights from six countries in southern Africa.
  • The new Covid variant has more than 30 mutations to the spike protein, according to South African scientists.

Bond prices rose and yields tumbled amid a flight to safety.

Equities are coming off of slight gains on Wednesday that staunched the week’s losses for the Nasdaq with a thinly end-of-week holiday trading.

 

Note: vaccine makers are spiking, Moderna (MRNA) shares gained more than 8%. Pfizer (PFE) shares added 5%.

 

Economic Data Docket: The market did receive some bullish news on the economic front. Initial jobless claims for the prior week came in at 199,000, the lowest level in more than 50 years. GDP growth for the third quarter was revised up slightly to 2.1%, though economists expected it to rise to 2.2%. Personal income and consumer spending both rose more than expected in October. <CNBC>

 

If you didn’t remember what happen at Wednesday night’s close, you won’t be prepared for today’s session:

Wednesday’s evening’s recap: “the week is almost over – celebrate Thanksgiving, forget markets; dig into the stuffing. The sector closed up for the second (2nd) session after thirteen (13) session downslides” …  https://www.regmedinvestors.com/articles/12198

Q4: November, 1 holiday 5 positive and 13 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) Wednesday closed flat with 15 shares traded after Tuesday’s flat with 0 shares traded, Monday’s -$0.30 with 1,141, Friday’s -$0.39 with 8.625 shares traded and last Thursday’s $0.00 with 17 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. It’s fake since you can’t make it …

 

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

Maintaining SELL:

Fate Therapeutics (FATE) closed up +$2.23 to $54.42 after Tuesday’s -$0.26 to $52.19, Monday’s -$3.52 to $52.45, Friday’s $55.97, Thursday’s $55.00 and last Wednesday’s $53.48 with a negative -$3.27 or -6.01% pre-open indication.

Brainstorm Cell Therapeutics (BCLI) closed up +$0.46 to $3.43 with a negative -$0.12 or -3.50% pre-open indication.

Cellectis SA (CLLS) closed up +$0.38 to $8.72 with a negative -$0.16 or -1.83% pre-open indication.

CRISPR Therapeutics (CRSP) closed up +$0.84 to $80.92 with a negative -$1.92 or -2.37% pre-open indication.

Intellia Therapeutics (NTLA) closed down -$0.52 to $115.92 with a negative -$0.52 or -0.45% pre-open indication.

Sage Therapeutics (SAGE) closed up +$0.27 to $40.01 with a negative -$0.46 or -1.15% pre-open indication.

 

 

The BOTTOM LINE: Looking to be a “bad and mad” in Friday's session as external factors cause a possible panic in markets.

Investors should have reduced exposure over the past couple of weeks; much of that by taking partial or total gains in winners that had sold-off hard.

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.