May 5, 2022 7:56am
I’d be “skimming” some of the pattern highs and limiting BUYs
Earnings: Sangamo Therapeutics (SGMO) and Ultragenyx Pharmaceuticals (RARE)
Pre-open indications: 1 BUY, 1 SELL from BUY, 2 SELL into Strength, 3 Maintain SELL and 1 Pimp/Pump/Promote
RMi outlines a daily bell ringing 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 -0.48% (-162 points), S&P futures are DOWN -0.67% (-28 points) and NASDAQ futures are DOWN -0.86% (-116 points) early in the pre-open – so far,
Stock futures pulled back in pre-market trade on Thursday; on-track to give back some of sharp gains,
European markets bounced back as the pan-European Stoxx 600 index climbed 1% by mid-morning,
Asia-Pacific markets also bounced following the Fed decision, with mainland Chinese stocks leading gains following several days of holidays.
Henry’omics:
After the surge, there always seems to be a purge …
Markets got what they asked for yesterday as the Fed delivered on a 50-basis point hike in the policy rate.
Powell once again used his post-meeting news conference to talk investors off the ledge. One of the key moments was when he told journalists that raising rates by 75 basis points at a time "is not something the committee is actively considering." Nevertheless, he was once again masterfully able to walk the line between showing he is not afraid to meet the inflation problem head-on. "Inflation is much too high and we understand the hardship it is causing. We're moving expeditiously to bring it back down," Powell said. <IBD>
Economic Data Docket: jobless claims data, which is due out at 8:30 a.m.
RegMed Investors’ (RMi) closing bell: “a wild and volatile sector ride that ended to the upside/ As I stated this a.m., “don't be surprised by big swings in today’s session” Never totally wrong, more than frequently right!” … https://www.regmedinvestors.com/articles/12422
Ebb and flow –
Q2/22 –
May - 3 positive closes
· April - 1 holiday, 6 positive and 13 negative closes
Q1/22:
· 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
SELL into Strength from BUY:
Beam Therapeutics (BEAM) closed up +$3.16 after Tuesday’s -$0.75 after Monday’s +$3.25 < 52-week low of $36.31 and a high of $138.52> after Friday’s -$2.04 with a negative -$1.44 or -3.33% pre-open indication,
Fate Therapeutics (FATE) closed up +$1.91 to $30.69 <52-week low of $27.76 and a high of $97.43> after Tuesday’s -$0.99 and Monday’s +$1.21, Friday’s -$3.09 and Thursday’s -$0.22 with a negative -$0.34 or -1.11% pre-open indication Earnings today.
BUY Indication:
Global Blood Therapeutics (GBT) closed up +$0.11 to $32.15 <52-week low of $ and a high of $> after Tuesday’s -$0.05 and Monday’s $1.39, Friday’s -$1.33 and last Thursday’s -$0.31 with a positive +$0.85 or +2.64% pre-open indication
SELL from BUY post Earnings:
Sage Therapeutics (SAGE) closed up again +$1.41 to $34.20 after Tuesday’s +$0.19 with a negative -$0.40 or -1.17% pre-open indication post earnings
Maintaining SELL into Strength:
Alnylam Pharmaceuticals (ALNY) closed up again +$0.54 to $143.43 after Tuesday’s +$3.84 <52-week low of $125.00 and a high of $212.00> after Monday’s +$5.62, Friday’s -$9.73 and last Thursday’s -$11.76 with a negative -$0.83 or -0.58% pre-open indication,
CRISPR Therapeutics (CRSP) closed up again +$3.00 to $55.62 after Tuesday’s +$0.64 after Monday’s +$2.36 and Friday’s -$2.00 <52-week low of $48.38> and a high of $169.76> with a negative -$0.72 or -1.29% pre-open indication,
Ionis Pharmaceuticals (IONS) closed up +$1.08 to $39.58 after Tuesday’s +$0.13 after Monday’s +$1.61 <52-week low of $25.04 and a high of $44.42> with a negative -$0.58 or -1.47% pre-open indication. Earnings today.
Pimp/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down again -$0.36 with 5,171 shares traded after Tuesday’s -$0.12 with 3,350 shares traded, Monday’s $0.00 with 3,925 shares traded, Friday’s +$0.10 with 2,819 shares traded, and last Thursday’s flat at $5.90 with 1,905 shares traded.
- WARNING: A terminal death lawsuit that just got settled (4/28) for $6 M by a “broke” company with yet another preferred convertible debt financing?
- A “ZOMBIE” company, WHY BUY this equity with a 3-year-old IND, NO clinical trial initiation, 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.
- One positive, Chairman and interim CEO Green shifted the burden of the death suit from management’s responsibility to shareholders with this new settlement with a debt financing.
- Question didn’t Chairman and then CEO invite Paola Macchiarini, the individual responsible for the terminal death (to Harvard Apparatus, now Biostage) who is just going on trial in Sweden for similar but, aggravated assault reasons against patients?
- Last question: Has BSTG filed their FDA annual report on their IND to the FDA – which defines its capacity and capability why it can go forward to a clinical trial and their CRO plan forward?
The BOTTOM LINE: Cell and gene therapy sector’s advance/Decline(A/D) line closed positive for a third (3rd) straight day to start the month.
There has be pain associated with earnings’ going forward as market forces helped build the sector’s upside as LPS (loss-per-share) is painful but, more than importantthe on-going clinical trials outcomes, cash positions and “runway’s”.
Reminder … Don't get sucked into morning rallies!
Reiterating, I am STILL NOT trusting the beginning of the month of May – too many earning releasees.
Market/sector breadth is anemic, with losers outpacing winners and new lows trouncing new highs.
So, brace for more choppiness in the near-term as we enter… the earnings “black hole beginning this week
I try to keep it simple … and short!
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”; as we are about to enter the earnings’ zone!
Earnings’ season is upon us with: BioLife Solutions (BLFS) on 5/9, Agenus (AGEN) on 5/10 and Brainstorm Cell Therapeutics (BCLI) on 5/16 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.
