May 9, 2022 7:07am
The old adage, “Sell in May and go away,” hypes the May conditions after a brutal April
Earnings: Beam Therapeutics (BEAM), BioLife Solutions (BLFS)
Pre-open indications: 4 BUYs, 4 DOWN Indications 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 -1.63% (-536 points), S&P futures are DOWN -1.96% (-80 points) and NASDAQ futures are DOWN -2.44% (-309 points) early in the pre-open – so far,
Stock futures are falling early Monday,
European stocks collapsed tracking negative sentiment,
Asia-Pacific stocks largely declined, markets in Hong Kong were closed on Monday for a holiday as investors watched for market reaction to Chinese trade data that came in better-than-expected.
Last week saw dramatic losses and starting this week looks like a downer.
Friday, the Dow shed 98.60 points, or -0.30%, the S&P 500 shed -23.53 points or -0.57%, while the Nasdaq fell -173.03 points or -1.40%.
The losses on Friday clinched a losing week for all three major indexes despite starting off the period with three straight positive sessions.
Economic Data Docket: Key inflation reports are on tap this week. That could be a market catalyst either way. While a rally attempt is still technically underway on the S&P 500 and Dow Jones, the market correction isn't showing many signs of a bottom. <IBD>
RegMed Investors’ (RMi) closing bell: “wipe-out session and jarring week - screw the lid on it so it won’t escape easily again. Wednesday’s gains were short-lived followed by Thursday’s pain and earnings’ reports helped spur the dive as sentiment continue to dwindle dry.” … https://www.regmedinvestors.com/articles/12426
Ebb and flow –
May - 3 positive and 2 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
BUY from SELL:
Sage Therapeutics (SAGE) closed down -$2.70 to $28.61 <52-week low of $28.17> after Thursday’s -$2.89, Wednesday’s +$1.41, Tuesday’s +$0.19 and last Monday’s +$1.08 with a positive +$0.59 or +2.06% pre-open indication post earnings
Vericel (VCEL) closed down -$1.62 to $26.90 <52-week low of $26.49> after Thursday’s -$2.53, Wednesday’s $0.31, Tuesday’s +$1.40 and Monday’s +$1.44 with a positive +$0.10 or +0.37% pre-open indication,
uniQure (QURE) closed down -$0.49 to $14.64 <52-week low of $14.29> after Thursday’s $15.13, Wednesday’s $16.42, Tuesday’s $15.92 and last Monday’s $15.77 with a positive +$1.36 or +9.29% pre-open indication,
Ultragenyx (RARE) closed down -$8.89 to $57.54 <52-week low of $60.53> after Thursday’s -$4.50, Wednesday’s -$0.54, Tuesday’s -$0.82 and Monday’s +$1.60) with a positive +$0.42 or+0.73% pre-open indication,
AxoGen (AXGN) closed down -$0.74 to $9.03 <52-week of $6.87> after Thursday’s +$1.51 with a negative -$0.48 or -5.32% pre-open indication,
Fate Therapeutics (FATE) closed down -$3.03 to $24.16 <52-week low of $24.34> after Thursday’s -$3.50, Wednesday’s +$1.91, Tuesday’s -$0.99 and last Monday’s +$1.21) with a negative -$0.25 or -1.03% pre-open indication,
Intellia Therapeutics (NTLA) closed down -$2.46 to $47.57 <52-week low of $46.51> after Thursday’s -$5.67, Wednesday’s $3.92, Tuesday’s $0.17 and last Monday’s +$2.58 with a negative -$0.83 or -1.74% pre-open indication,
Sangamo Therapeutics (SGMO) closed down-$0.16 to $4.14 <52-week low of $3.87> with a negative -$0.14 or -3.38% pre-open indication,
Pimp/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed flat at $6.00 after Friday’s +$0.49 to $6.00 with 628 shares traded, Wednesday’s -$0.36 with 5,171 shares traded, Tuesday’s -$0.12 with 3,350 shares traded and last Monday’s $0.00 with 3,925 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 payment 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: More pain; the question will be how bad a trounce?
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”.
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: 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.