May 6, 2022 7:30am
Is sentiment disconnected from reality, or reflecting the true state of investor attitude and satisfaction?
Pre-open indications: 2 BUYs, 2 SELLs 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 -0.49% (-161 points), S&P futures are DOWN -0.66% (-27 points) and NASDAQ futures are DOWN -0.87% (-112 points) early in the pre-open – so far,
U.S. stock futures pointed to further selling in early premarket trade on Friday,
European markets retreated tracking global caution
Asia-Pacific markets also declined, with Hong Kong’s Hang Seng index leading regional losses as tech stocks sold off following the Nasdaq’s overnight drop stateside.
Friday’s futures fell modestly, with the jobs report on tap after stocks sold off sharply on Thursday.
The Dow lost 1,063 points, or 3.12%, the S&P 500 fell -153.30 or -3.56% and the Nasdaq fell 153.30 points or 4.99%, its lowest closing level since November 2020.
· The Dow and Nasdaq experienced the worst single-day drops since 2020 while, the S&P 500 marking its second worst day of the year.
Economic Data Docket: April jobs report is set to be released. Economists surveyed expect employers added 400,000 jobs to nonfarm payrolls, down slightly from 431,000 in March. The unemployment rate is expected to fall to 3.5% in April, down from 3.6% in March. Wages are expected to jump 5.5% versus a year earlier, slightly below March's pace and not keeping up with inflation.
RegMed Investors’ (RMi) closing bell: “volatility reigns as the cell and gene therapy sector convulses, maybe a bottom could be in sight. There are just so many cross-currents as animal spirits are unleashed with clinical trial catalysts desperately needed. My job is to make sure that the right news gets to the right people, which is a win-win for investors.” … https://www.regmedinvestors.com/articles/12424
Ebb and flow –
May - 3 positive and 1 negative closes
· April - 1 holiday, 6 positive and 13 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
Sage Therapeutics (SAGE) closed down -$2.89to $31.31 after Wednesday’s +$1.41 and Tuesday’s +$0.19 with a negative -$2.27 or -7.25% pre-open indication post earnings
Vericel (VCEL) closed down-$2.53 to $28.53 after Wednesday’s $0.31 after Tuesday’s +$1.40 and Monday’s +$1.44 with a negative -$1.43 or -5.01% pre-open indication,
Intellia therapeutics (NTLA) closed down -$5.67 to $50.03 after Wednesday’s $3.92, Tuesday’s $0.17 and Monday’s +$2.58 with a positive +$0.44 or +0.88% pre-open indication,
BUY from SELL into Strength:
CRISPR Therapeutics (CRSP) closed down -$4.28 to $51.34 after Wednesday’s +$3.00, Tuesday’s +$0.64 after Monday’s +$2.36 and last Friday’s -$2.00 <52-week low of $48.38> and a high of $169.76> with a positive +$0.59 or +1.15% pre-open indication,
Pimp/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.49 to $6.00 with 628 shares traded after Wednesday’s -$0.36 with 5,171 shares traded, Tuesday’s -$0.12 with 3,350 shares traded, Monday’s $0.00 with 3,925 shares traded and last Friday’s +$0.10 with 2,819 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 offensive there called: aggravated assault 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: Back to pain after gain; the question will be another sut or a continuing bleeder - we do have bandaids?
There has been 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 important the 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 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 continue… the earnings “black hole next 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 and Cellectis SA (CLLS) on 5/13, 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.