April 26, 2022 8:00am
I’d rather watch than be torn between BUY/SELL options after a very weak aftermarket
Pre-open indications: 1 Upside indications, 2 SELL into Strength, 1 Downside indications 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 DOWN -0.46% (-152 points), S&P futures are DOWN-0.45% (-19 points) and NASDAQ futures are DOWN -0.52% (-70 points) early in the pre-open
Stock futures are falling and are moving deeper on Tuesday
European stocks added to early gains as market sentiment rallied,
Asian Pacific stocks were up after Chinese stocks turned around from early declines, Hong Kong was flat, Japan rose while Australia dipped.
Monday, the Nasdaq jumped 1.3%, the Dow advanced 0.7%, after cutting a 500-point loss from earlier in the day, and the S&P 500 gained 0.6%.
The bounce was welcomed by investors after stocks ended the previous week on a sour note, with the Dow falling to its fourth down week in a row and the S&P and Nasdaq hitting three-week losing streaks Friday. <CNBC>
In the economic data docket, investors are expecting fresh numbers for new home sales and consumer confidence.
Last night’s RegMed Investors’ (RMi) closing bell post: “big share price reversal helps resets the cell and gene therapy sector’s oversold” … https://www.regmedinvestors.com/articles/12404
Ebb and flow –
Q2/22 -1 holiday, 5 positive and 11 negative closes
· 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
Caribou Biosciences (CRBU) closed up +$0.14to $7.93 (52-week low of $7.64 to high of $32.65) with a positive +$0.39 or +4.92% pre-open indication
SELL into Strength:
Intellia Therapeutics (NTLA) closed up +$2.93 to $53.50 with a positive +$0.50 or +0.93% preopen indication
CRISPR Therapeutics (CRSP) closed up +$1.59 to $57.27 after Monday’s+$0.15 with a positive +$0.23 or +0.40% pre-open indication,
Flipping to the downside:
Editas Medicine (EDIT) closed up +$0.40 to $14.99 after Friday’s +$0.22 (52-week low of $13.25 and a high of $70.03) with a negative -$0.58 or -3.87% preopen indication,
Pimp/Pump and Promote:
Biostage (BSTG) closed up +$0.05 with 1,227 shares trading after Friday’s +$0.05 with 3,233 shares traded, Thursday’s +$0,90 with 771 shares traded, Wednesday’s -$0.48 to $5.50 with 1,131 shares traded and last Tuesday’s +$0.48 with 1,168 shares traded.
- 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.
- Last question: Has BSTG filed their FDA annual report on their IND – it needs to explain why it has not gone forward to date and their plan to go forward?
The BOTTOM LINE: A good Monday as the sector rebounded but, for how long before the algorithms “rule”?
I am NOT a sector optimist in light of current macro earnings and the coming “swarm” of cell and gene therapy sector companies our very own “loss-per-share” companies reporting season
Repeating from last nights’ post,” “This week may easily be a fork in the road of equities. … Bottom-up drivers will either confirm or reject what the challenging macro backdrop has given us over the last three weeks,” MKM’s JC O’Hara said in a note.
I maintain a warning to investors to reduce exposure.
I try to keep it simple … and short!
To expect a payday; volatility and low volume are part of the equation which could set-up BUY/SELL opportunities.
Investors should consider taking at least partial profits quickly on winners to avoid round-tripping moves.
I am still, in the here and now, the cell and gene therapy sector will continue to “flutter”; we are about to enter the earnings’ zone!
Earnings’ season is upon us as Alnylam Pharmaceuticals (ALNY) reports Thursday, 4/28 followed so far by Sage Therapeutics (SAGE) on 5/3 and AxoGen (AXGN), Fate Therapeutics (FATE), Ionis Pharmaceuticals (IONS), MiMedx (MDXG) and Vericel (VCEL) on 5/4 so far.
Whether information or intelligence is good, bad or somewhere in between; 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.
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.
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 securities referred to in this publication.