December 8, 2021 7:30am
Pre-open indications: 12 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 +0.38% (+136 points), S&P futures are UP +0.31% (+14 points) and NASDAQ futures are UP +0.23% (+37 points)
U.S. stock futures are slipping after turning and still green (after being mixed) in pre-market trading on Wednesday after Pfizer (PFE) and BioNTech (BNTX) said three doses of their vaccine are effective at neutralizing the omicron variant
European stocks were higher with health care stocks gaining 1%
Asia-Pacific stocks were also mixed as Hong Kong stocks lagged other markets, with troubled Chinese real estate developers back in the spotlight. Chinese social media giant Weibo also had a disappointing market debut in Hong Kong.
Economic data Docket: The Bureau of Labor Statistics will release October’s Job Openings and Labor Turnover Survey. Economists are expecting there were 10.6 million open positions in October, up from 10.4 million in September.
Makes me nervous, when …
- The Nasdaq spikes as the stand-out performer after gaining more than 3%.
- The week’s gains have put the major averages back within striking distance of their record highs.
- The Dow is 2.3% from its record, the S&P 500 is up +1.2% and Nasdaq +3.2% from their all-time highs.
Note: Pfizer said early Wednesday that three doses of its coronavirus vaccine neutralize the omicron variant. Late Tuesday, a small study in South Africa suggested that the Covid variant partly eludes the Pfizer (PFE) and BioNTech (BNTX) vaccine. Pfizer and BioNTech are still working on possible vaccine tweaks to target the omicron variant specifically. Moderna (MRNA) also is doing so. PFE, BNTX and MRNA all fell in premarket trade. <IBD>
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 bottom was found although, new sector equity highs were being skimmed as market closed” … https://www.regmedinvestors.com/articles/12215
Q4: December, 2 negative and 3 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:
Biostage (OTCQB: BSTG) Tuesday closed down -$0.20 with 2,980 shares traded after Monday closed up with 6,466 shares traded, Friday closed flat with 200 shares traded, Thursday closed up +$0.07 with 3,527 shares traded and last Wednesday closed up +$0.95 to $2.93 with 2,590 shares traded.
- What’s “scary” is a $71.1 m deficit without a clinical trial beginning after a 1 and ¾ year; BSTG continue as a “going concern” which also REQUIRES additional funding for future operations.
- BIG question, are they going to have to “restate” their financials for past two (2) years?
- What is BSTG’s future after the rejection of the insurance claim for the terminal death suit which also entails the indemnification of Harvard Bioscience (HBIO)?
- Another question, “Without the insurance, BSTG has to “front” the legal fees to fight the opposition lawyers who were not given the discovery documents requested resulting in a court sanction (which was later reversed).
- The real question is there … what if they lose, WILL there be an issue of personal liability for those who run the company and for HBIO?
Probabilities versus aftermarket/pre-open share pricing indication moves:
SELL into Strength there’s going to be blood on the street; it’s coming, so be early:
Intellia Therapeutics (NTLA) closed up +$16.34 to $117.10 after Monday’s -$0.27 with a +$1.56 or +1.33% aftermarket indication
CRISPR Therapeutics (CRSP) closed up +$7.27 to $78.39 after Monday’s +$1.03 to $71.12, Friday’s -$6.76 to $70.09, Thursday’s +$1.57 to $76.85 and last Wednesday’s -$4.62 to $75.28 with a positive +$0.86 or +1.10% pre-open indication.
Fate Therapeutics (FATE) closed up +$6.75 to $54.59 after Monday’s -$0.16 to $47.84 after Friday’s -$4.60 to $8.00, Thursday’s $52.60, Wednesday’s $52.13 and last Tuesday’s $55.01 with a positive +$0.36 or +0.66% aftermarket indication
Ionis Pharmaceuticals (IONS) closed up +$3.07 to $30.57 after Monday’s +$1.11 with a -$2.12 or -6.93% aftermarket indication.
Editas Medicine (EDIT) closed up +$2.90 to $30.97 after Monday’s $28.07 and last Friday’s $27.72 with a positive +0.08 or +0.26% aftermarket indication.
Vericel (VCEL) closed up +$2.24 to $39.71 after Monday’s +$1.81 with a positive +0.29 or +0.73% aftermarket indication.
Sage Therapeutics (SAGE) closed up +$2.11 to $39.60 after Monday’s $37.49, Friday’s $37.06, Monday’s $38.37, Tuesday’s $37.15 and last Wednesday’s $38.91 with a +$0.40 or +1.01% aftermarket indication.
Global Blood Therapeutics (GBT) closed up +$1.45 to $29.62 after Monday’s +$0.71 to $28.17 after Friday’s $27.46, Thursday’s $28.91, Wednesday’s $27.13 and last Tuesday’s $28.26 with a positive +$0.31 or +1.11% aftermarket indication
Ionis Pharmaceuticals (IONS) closed up +$3.07 to $30.57 after Monday’s +$1.11 to $27.50 with new of entering into a strategic collaboration agreement with AstraZeneca to develop and commercialize eplontersen with a negative -$2.12 or -6.93% aftermarket indication
Mesoblast (MESO) closed up +$0.64 to $6.51 after Monday’s +$0.66 to $5.87 after Friday’s -$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 negative -$0.11 or -1.69% aftermarket indication
Pluristem (PSTI) closed up +$0.12 to $2.40 after Monday’s -$0.03 to $2.28 after Friday’s -$0.08 to $2.31, Thursday’s $2.39 and last Wednesday’s $2.49 with a negative -$0.10 or -4.17% aftermarket indication.
The BOTTOM LINE: be ready to scale back out quickly.
Investors need to a continual rally before committing; there might be a follow-through day but, caution is priced at a premium.
Don't just buy any stock on a follow-through day; after such sessions … SELL … into strength and pricing indications – it’s still a game of chance.
Keep your eye on volume and the rate of incline to determine the probability of sustainability.
From my “early” days, I “was learned” to “watch my corners” – one never knew what could be coming at you!
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.