December 1, 2021 7:50am
Hopeful better outcomes and share pricing effects in December?
Pre-open indications: 8 BUYs, 1 SELL
News: Sage Therapeutics (SAGE), and Biogen Inc. (BIIB) announced 12-month data for the cohort of patients (n=199), who received zuranolone 50 mg once nightly for 14-days as their initial dose in the ongoing P3 open-label SHORELINE Study and had the opportunity to be followed for 12-months. For the primary endpoint of safety and tolerability, the data analyzed to date show zuranolone was generally well-tolerated, with no new safety findings or trends identified in the long-term safety data available regardless of the number of courses of zuranolone a patient received.
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 UP +0.91% (+312 points), S&P futures are UP +1.28% (+59 points) and NASDAQ futures are UP +1.48% (+240 points)
U.S. stock futures were higher in pre-open trading on Wednesday,
European markets were higher amid fears around the new omicron Covid variant,
Asia-Pacific markets were also higher following losses the day before that were triggered by renewed uncertainty on the omicron Covid variant.
Economic Data Docket: November’s Manufacturing PMI, ISM Manufacturing print and October’s construction spending
Henry’omics:
Tuesday, indexes crash after Moderna (MRNA) CEO’s vaccine comments, but briefly turned mixed until the Fed chief weighed in.
If you didn’t remember what happen at Tuesday night’s close, you won’t be prepared for today’s session:
Tuesday’s evening’s recap: “a sector positive close to close the month. There exist more unknowns than knowns in the sector.” … https://www.regmedinvestors.com/articles/12204
Q4: December begins today
- November, 1 holiday 5 positive and 16 negative close
- October, 8 positive and 13 negative closes
Companies in my headlights – It’s your decision; I provide an idea and context:
Maintaining SELL:
Biostage (OTCQB: BSTG) closed down again -$0.02 with 2,143 shares traded after Monday’s -$0.40 to $2.00 with 6,025 shares traded after Friday’s +$0.10 with 100 shares traded after Wednesday closed flat with 15 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?
- Did press release forget the term “interim” re CEO appointment - SEC filed 8-K says differently? Also, WHY does a newly six (6) person company also need a President, 2 VP’s, a director and a p/t IT?
- For a company with NO clinical trial, an a one (1) and a half year approved IND and NO CRO <clinical research organization> initiation.
- What’s “scary” is a $71.1 m deficit and continue as a “going concern” which also REQUIRES additional funding for future operations.
- What was the last financial/comparable model that justified a $3.45 pricing post the $4.71 to that last PPM (private placement memorandum)?
- Which accounting “firm” audited the Q3 report?
- What will be the FIRST initiative for the new “interim” CEO and Chairman?
Probabilities versus aftermarket/pre-open share pricing indication moves:
BUY:
Cellectis SA (CLLS) closed up +$0.25 to $8.62 after Monday’s -$0.32 to $8.37 after Friday’s -$0.03 to $8.69 and Wednesday’s +$0.38 to $8.72 with a positive +$0.015or +1.74% pre-open indication.
Ionis Pharmaceuticals (IONS) closed down -$0.95 to $26.50 after Monday’s -$1.60 to $27.45 after Friday’s -$0.71 to $29.05 with a positive +$0.20 or +0.75% aftermarket indication.
CRISPR Therapeutics (CRSP) closed up +$1.92 to $79.90 after Monday’s -$0.81 to $77.98 and Friday’s +$0.84 to $80.92 with a positive +$0.80 or +1% pre-open indication.
Fate Therapeutics (FATE) closed up +$3.24 to $55.01 after Monday’s -$0.75 to $51.77, Friday’s +$2.23 to $54.42 and Wednesday’s $54.42 with a positive +$0.64 or +1.16% aftermarket indication.
Global Blood Therapeutics (GBT) closed up +$0.28 to $28.26 after Monday’s $27.98 and Friday’s $29.25 following Wednesday’s $30.29 with a positive +$0.74 or +2.62% pre-open indication.
Editas Medicine (EDIT) closed up +$1.40 to $32.66 after Monday’s $31.26, Friday’s $32.37 and last Wednesday’s $33.30 with a positive +$0.67 or +2.05% aftermarket indication.
Sage Therapeutics (SAGE) closed up +$0.38 to $38.91 after Monday’s -$0.79 to $38.53, Friday’s -$0.69 to $39.32 and last Wednesday’s +$0.27 to $40.01 with a positive +$1.10 or +2.83% pre-open indication.
Sangamo Therapeutics (SGMO) closed up +$0.07 to $8.29 after Monday’s $8.22, Friday’s $ $8.45 and last Wednesday’s $8.94 with a positive +$0.10 or +1.21% pre-open indication.
The BOTTOM LINE: December thoughts, could the market rally rebound on Wednesday? More than probably, however investors won't know if that's something meaningful or just a one-day (or intraday) bounce.
If stocks do have a meaningful run – it’s to do from the algorithms or electronic trading, thus, you'll have time to take advantage and sell into strength those whose companies that are “fragile” as the year comes to a close.
Tuesday, winners trounced losers, with new highs easily outstripping past lows.
Let’s NOT forget that the stem, cell and gene therapy sector has been showing some strain for many weeks. The advance/decline lines deteriorated through-out November even as the Nasdaq kept hitting new highs.
I don’t believe the market and sector conditions are favorable in the very short-term. The risk of market-shaking headlines is very high, at least until there's greater understanding of the omicron variant, and what that might mean for the economy.
Investors should consider taking further profits in winners, slashing strength gains, don’t sell into losses, there seems to be always a bounce.
Take a more-defensive approach, cutting back exposure.
I asked on Monday “Is this the start of a significant market slide … and sector collapse?”
Answer, I haven’t seen any indication of a quick rebound; keep the word – sustainable in your mind. “The current uncertainty makes it difficult to consider a sustainable sector rally. Investors should be maintaining thus, playing defense rather than offense until conditions clearly improve.”
And we can’t ignore the probabilities of outcomes …
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 reporting on 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.
