December 3, 2021 7:42am
A debt showdown and an Omicron expansion
Pre-open indications: 5 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 +0.02% (+8 points), S&P futures are UP +0.02% (+1 points) and NASDAQ futures are UP +0.10% (+6 points)
Stock futures were mixed, weak and fluctuating in early trading Friday ahead of the November jobs report which hoped to top expectation (showing job growth)
European markets were slightly higher
Asia-Pacific markets were mostly higher
Economic Data Docket: The November jobs report is set for release this morning. Investors expect to see solid jobs growth last month, with economists predicting 581,000 jobs added in November.
- The most important job report data point may be labor force participation. If Americans stream back into the work force, that could ease labor shortages that are limiting economic growth while pushing up inflation via higher wages. The labor force participation rate is expected to tick up to 61.7% of all Americans age 16 and up. <IBD>
Henry’omics:
Stock futures were lower in overnight trading Thursday ahead of the November jobs report as the market nears the end of a roller-coaster week driven by the Covid omicron variant developments.
Despite Thursday’s rally, the averages are on pace for a losing week. The Dow and the Nasdaq Composite are each about 0.7% lower on the week, while the S&P 500 is down 0.4%.
Although, the Nasdaq gained 0.8%; the cell and gene therapy sector was led by the percentage achievers … Athersys (ATHX +7.92), AxoGen (AXGN +7.21%) and Global Blood Therapeutics (GBT +6.56%)
- Different from the dollar versions … Intellia therapeutics (NTLS +2.83%), Ultragenyx (RARE +3.89%) and Alnylam Pharmaceuticals (ALNY +$2.92%0 – slim percentages to be called a rally versus in my words a rebound
While losers were Brainstorm Cell Therapeutics (BLI -6.45%, Mesoblast (MESO -5.20%) and Pluristem (PSTI -4.02%.
- Also were different from the dollar versions … ReNeuron (RENE.L -1.58%), BioLife Solutions (BLFS -1.01%) and Editas Medicine (EDIT -$0.38)
The market bounced on Thursday, but remains under pressure as the jobs report looms.
Note: vaccines
- Moderna (MRNA) was among the biggest gainers (+$11.62) with its shares rising 3.85% in pre-market trading.
- GlaxoSmithKline (GSK -0.20 or -0.48%) announced (on Thursday) that lab tests indicated that its antibody-based therapeutic drug will be effective against omicron.
If you didn’t remember what happen at Thursday night’s close, you won’t be prepared for today’s session:
Thursday’s evening’s recap: “finding its footing in an up sector on the verge of the best session in a while” … https://www.regmedinvestors.com/articles/12208
Q4: December, 1 negative and 1 negative closes
- 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) Thursday closed up +$0.07 with 3,527 shares traded after 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 and Chairman 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” as the “pump and promote” stock pricing actions continue
Probabilities versus aftermarket/pre-open share pricing indication moves:
Sell into Strength:
Athersys (ATHX) closed up +$0.08 to $1.80 after Wednesday’s $1.01, Tuesday’s $1.06 with news, Monday’s $1.02 and last Friday’s $1.03 with also a negative -$0.02 or -1.83% aftermarket indication.
CRISPR Therapeutics (CRSP) closed up +$1.57 to $76.85 after Wednesday’s -$4.62 to $75.28, 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 negative -$0.60 or -0.78% pre-open indication.
Sangamo Therapeutics (SGMO) closed up +$0.44 to $8.45 after Wednesday’s -$0.28 to $8.01, Tuesday’s +$0.07 to $8.29, Monday’s $8.22, Friday’s $ $8.45 and last Wednesday’s $8.94 with a positive +$0.34 or +4.02% pre-open indication.
Maintaining SELL:
Cellectis SA (CLLS) closed down -$0.19 to $8.61 after Wednesday’s +$0.18 to $8.80, Tuesday’s +$0.25 to $8.62, Monday’s -$0.32 to $8.37 and last Friday’s -$0.03 to $8.69 with a negative -$0.17 or -1.97% pre-open indication.
The BOTTOM LINE: The sector “rebound” on Thursday but, quivering pre-market.
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 was a timing ascent i.e., oversold but, Friday could be a quick-out to an exit session.
Risk appetites are waiting to take a cue what the new variant means – now in Five (5) states.
Sector equities did 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’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.
