December 2, 2021 7:52am

An accordion sector with unpredictable music played

Pre-open indications: 8 BUYs, 3 SELLs

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 +0.51% (+173 points), S&P futures are UP +0.21% (+10 points) and NASDAQ futures are DOWN -0.21% (+30 points)

 

Stock index futures pointed to a dipping and mixed open on Thursday as the CDC confirmed the first known case of the omicron variant in the U.S.,

European stocks struggled in a downward spiral,

Asia-Pacific markets were mixed focused on impact of the omicron Covid variant weighing on investor sentiment.

 

Economic Data Docket: weekly initial jobless claims numbers will be released at 8:30 a.m. ET. Economists are expecting a print of 240,000, according to estimates; the prior reading showed 199,000 first-time filers, which was the lowest since November 1969.

 

Henry’omics:

Wednesday’s whipsaw trading created a highly volatile period mid-day for stocks as the market processed news what the Omicron variant meant.

Thursday seems early to be a little unpredictable and uncertain to sustainability…

 

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: “snap, crackle and drop. Few happy endings or should I write outcomes today” … https://www.regmedinvestors.com/articles/12206

 

Q4: December, 1 negative close

  • November, 1 holiday 5 positive and 16 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:

Biostage (OTCQB: BSTG) Wednesday closed up +$0.95 to $2.93 with 2,590 shares traded after Tuesday’s -$0.02 with 2,143 shares traded after Monday’s -$0.40 to $2.00 with 6,025 shares traded.

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, four (4) employees 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 the latest $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?
  • What is the value proposition and valuation criteria that has ‘sponsored” the “pump and promote” of i.e., buying to stroke the share price?
  • My view, “the grifters are still running the company”

 

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

Maintaining BUY:

CRISPR Therapeutics (CRSP) closed down -$4.62 to $75.28 after Tuesday’s +$1.92 to $79.90, Monday’s -$0.81 to $77.98 and last Friday’s +$0.84 to $80.92 with a positive +$0.05 or +0.76% pre-open indication.

Editas Medicine (EDIT) closed down -$2.25 to $30.41 after Tuesday’s +$1.40 to $32.66, Monday’s $31.26 and last Friday’s $32.37 with a positive +$0.52 or +1.71% aftermarket indication.

Intellia Therapeutics (NTLA) closed down -$8.09 after Tuesday’s $115.01, Monday’s $111.73 and last Friday’s $113.13 with a positive +$2.08 or +1.95% pre-open indication.

Ionis Pharmaceuticals (IONS) closed up +$0.89 to $25.61 after Tuesday’s -$0.95 to $26.50, Monday’s -$1.60 to $27.45 after Friday’s -$0.71 to $29.05 with a positive +$0.24 or +0.94% aftermarket indication.

Global Blood Therapeutics (GBT) closed down -$1.13 to $27.13 after Tuesday’s +$0.28 to $28.26, Monday’s $27.98 and Friday’s $29.25 with a positive +$0.96 or +3.54% pre-open indication.

Sangamo Therapeutics (SGMO) closed down -$0.28 to $8.01 after Tuesday’s +$0.07 to $8.29, Monday’s $8.22, Friday’s $ $8.45 and last Wednesday’s $8.94 with a positive +$0.08 or +1% pre-open indication.

Verastem (VSTM) closed down -$0.12 to $2.55 after Tuesday’s $2.67, Monday’s $2.59, Friday’s $2.68 and last Wednesday’s $8.94 with a positive +$0.13 or +5.10% pre-open indication.

uniQure NV (QURE) closed down -$1.43 to $26.42 after Tuesday’s $27.85, Monday’s $28.52 and last Friday’s $2.80 with a positive +$0.65 or +2.46% pre-open indication.

 

SELL from BUY:

Cellectis SA (CLLS) closed up +$0.18 to $8.80 after Tuesday’s +$0.25 to $8.62, Monday’s -$0.32 to $8.37 and Friday’s -$0.03 to $8.69 with a negative -$0.06 or -0.68% pre-open indication.

Fate Therapeutics (FATE) closed down -$2.88 to $52.13 after Tuesday’s +$3.24 to $55.01, Monday’s -$0.75 to $51.77 and last Friday’s +$2.23 to $54.42 with a negative -$0.68 or -1.30% aftermarket indication.

 

The BOTTOM LINE: I haven’t changed my December thoughts, could the market rally rebound on Wednesday – didn’t happened – so I could have been a session early or late?

Tuesday, winners trounced losers, with new highs easily outstripping past lows while Wednesday was the opposite; thus, Thursday’s ascent could be a timing ascent

Wednesday saw a volatile streak for stocks as the COVID-variant’ Omicron slowed any sustainability and we will likely see risk appetites take a cue what the new variant means.

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.

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.