December 6, 2021 7:42am
The stem, cell and gene therapy sector has sold off sharply in the past few weeks
Pre-open indications: 5 SELLs and 4 BUYs and they are iffy
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 +0.65% (+226 points), S&P futures are UP +0.25% (+12 points) and NASDAQ futures are DOWN -0.46% (-73 points)
Dow and S&P futures jumped and Nasdaq futures were down as investors prepared for Monday’s pre-open
European markets moved higher making a positive start to the trading week
Asia-Pacific markets dropped as investors monitored bitcoin prices after they fell sharply over the weekend.
Henry’omics:
Indexes suffered sharp losses last week, with the stem, cell and gene therapy sector dived to new depths shrugging off Thursday’s rebound.
The omicron Covid variant has been identified in dozens of countries. Early indications are that it's more infectious than previous strains, including the delta variant. But so far, most cases have been mild. Many of those cases involve people who are vaccinated, suggesting that vaccines provide solid protection against hospitalizations and deaths. But all of this is speculative for now. <IBD>
If you didn’t remember what happen at Friday night’s close, you won’t be prepared for today’s session:
Friday’s evening’s recap: “the “Limbo Dance” how low can we go? As I stated this a.m., “Friday could be a quick-out to an exit session” as the 52-week lows are conspicuous about the state of the sector – all week!” … https://www.regmedinvestors.com/articles/12210
Q4: December, 1 negative and 2 negative closes
- November, 1 holiday 5 positive and 16 negative close to date
- October, 8 positive and 13 negative closes
RegMed Investors (RMi): “The week in review, A mixed week of November leaving and December beginning.” … https://www.regmedinvestors.com/articles/12211
Companies in my headlights – It’s your decision; I provide an idea and context:
Maintaining SELL:
Biostage (OTCQB: BSTG) Friday closed flat with 200 shares traded after 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.
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?
… Finally, the website reflected the change in management – took them a while … most of it is “OLD” news regurgitated to look like it’s current news …
- 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.
Probabilities versus aftermarket/pre-open share pricing indication moves:
BUY:
Applied Genetic Technologies (AGTC) closed down again -$0.12 to $1.94 after Thursday’s $2.06, Wednesday’s $2.08, Tuesday’s $2.17 and last Monday’s $2.17 with also a positive +$0.01 or +0.52% aftermarket indication. AGTC had reached a 52-week low of $1.92 on Friday after Thursday’s $1.97.
BioLife Solutions (BLFS) closed -$2.03 to $35.09 after Thursday’s $37.12, Wednesday’s $37.15, Tuesday’s $37.50, Tuesday’s $38.16 and last Monday’s $39.09 with a positive +$0.06 or +1.07% pre-open indication.
Mesoblast (MESO) closed down -$0.26 to $5.21 after Thursday’s $5.447, Wednesday’s $5.77, Tuesday’s $6.05 and last Monday’s $6.04 with a positive +$0.27 or +5.18% aftermarket indication
Solid Biosciences (SLDB) closed down -$0.08 to $1.69 after Thursday’s $1.77, Wednesday’s $1.70, Tuesday’s $1.75 and last Monday’s $1.82 with a positive +$0.01 or +0.59% aftermarket indication.
Pluristem (PSTI) closed down -$0.08 to $2.31 after Thursday’s $2.39, Wednesday’s $2.49, Tuesday’s $2.71 and last Monday’s $2.67 with a positive +$0.02 or +0.87% aftermarket indication.
Maintaining SELL:
Fate Therapeutics (FATE) closed down -$4.60 to $8.00 after Thursday’s $52.60, Wednesday’s $52.13, Tuesday’s $55.01 and last Monday’s $51.77 with a negative -$0.20 or -0.42% aftermarket indication
CRISPR Therapeutics (CRSP) closed down -$6.76 to $70.09 after Thursday’s +$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 with a negative -$0.09 or -0.13% pre-open indication.
Cellectis SA (CLLS) closed down again -$0.37 to $8.24 after Thursday’s -$0.19 to $8.61, Wednesday’s +$0.18 to $8.80, Tuesday’s +$0.25 to $8.62 and last Monday’s -$0.32 to $8.37 with a negative -$0.03 or -0.36% pre-open indication.
The BOTTOM LINE: The advance-decline lines, after Thursday's brief respite, resumed their precipitous retreat on Friday.
I haven’t changed my December thoughts; risk appetites are waiting to take a cue what the new variant means – now in fifteen (15) states and thirty-eight (38) countries.
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.
