April 13, 2022 7:54am
By reducing exposure in risky assets; consider some issues, cash positions (runways), grant and collaborator revenue, institutional investor/retail and management holdings, advancing trials and finally a lean G&A
Pre-open indications: 2 BUYS, 2 SELLs and 1 Pimp/Pump/Promote
RMi outlines a daily bell weather of “indications” about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session.
Just the facts … I ask questions and note the indications of what could happen …
Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.
Dow futures are UP +0.37% (+128 points), S&P futures are UP +0.48% (+21 points) and NASDAQ futures are UP +0.67% (+93 points) early in the pre-open
Stocks futures were higher in pointing to a positive opening on Wednesday,
European markets were mixed
Asia-Pacific markets were mostly higher after Chinese exports rose more than expected in March, while New Zealand also hiked its main interest rate by 50 basis points, its biggest increase in more than 20 years.
Yesterday Tuesday, after rallying earlier in the session, indexes closed negative. The Dow fell -87.72 points, or -0.26%, the S&P 500 slipped -15.08 or -0.34%, and the Nasdaq slipped -40.38 or -0.30%.
Economic Data Docket: The March producer prices report for more possible signs inflation is near a peak. March PPI was expected to climb 1.1% last month.
Rising rates are causing a drop in home loan demand, so mortgage bankers are lowering their forecast for the year. The Mortgage Bankers Association said it expects overall mortgage originations, which include refinancing loans, to total $2.58 trillion in 2022, a 35.5% decline from last year.
RegMed Investors’ (RMi) closing bell: “snap, crackle and no pop as liquidity drains from the sector as indexes dives again.” … https://www.regmedinvestors.com/articles/12385
Ebb and flow –
Q2/22 – 1 positive and 6 negative close
· March – 13 negative and 10 positive closes
· February stats: 11 negative, 8 positive closes and 1 holiday
· January stats: 2 holidays, 1 neutral, 13 negative and 6 positive closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS, POSSIBILITIES and POTENTIALS …
Beam Therapeutics (BEAM) closed up +$1.06 to $50.07 with a positive +$1.43 or +2.86% pre-open indication after the equity hit an all-time low of $50.00.
CRISPR Therapeutics (CRSP) closed up +$3.10 to 4.55 with a positive +$0.90 or +1.39% pre-open indication
Intellia therapeutics (NTLA) closed down -$0.32 to $61.35 with a negative -$0.35 or -0.57% pre-open indication
Global Blood Therapeutics (GBT)closed up +$0.97 to $35.01 with a negative -$0.26 or -0.74% pre-open indication.
Pimp/Pump and Promote:
Biostage (BSTG) closed down -$0.30 with 1,634 shares traded after Monday’s flat with 25 shares traded after Friday’s +$0.50 with 3,139 shares traded, Thursday’s -$0.63 to $5.30, Wednesday’s -$0.05 with 1,527 shares traded and last Tuesday’s +$0.59 with 8,743 shares trading.
- WARNING: WHY BUY this equity with a 3-year-old IND, NO clinical trial initiation, a terminal death lawsuit overhang and a precarious financial position dependent on a possible cash infusion? Also, WHY the pump of the volume to gain share appreciation – they have to reverse the multiple private placements (the priciest was $4.71) for a potential/proposed stock offering.
The BOTTOM LINE: As I had stated, “CPI economic release superseded interests and lowered Tuesday’s temperature as the sector closes down making six (6) closes in a row.”
One indication, the aftermarket was weak although a few sector equities are flashing upside benefit forecasted the decline – it’s the little “things or factors” to look for.
I STILL believe, lows are looking appetizing after going as even to LOWER levels on Monday and Tuesday.
I am still holding-on to the realization that the sector will POP for the grossly oversold; however, we are getting close to Q2 reporting season …
So, don’t expect a huge payday or surge; volatility and low volume are the impediments along with soured sentiment.
As until the Nasdaq regains its 50-day line and the S&P 500 recaptures its 200-day line, the short-term trend will remain negative. Even reclaiming those levels likely would still leave the market uptrend "under pressure." <IBD>
But in the here and now, the cell and gene therapy sector will be on hold until clinical results stimulate these equities!
As I had stated, “Draining liquidity has impeded any shares pricing expectation.” I am also more than worried about pricey valuations that (in my mind’s eye) have NO basis.
The oversold need a chance to appreciate from being oversold.
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.
Share pricing 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 their 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 securities referred to in this publication.