May 13, 2022 7:48am
The cell and gene therapy sector searches for direction on Friday, the 13th; the “most unlucky day on the calendar or is it”?
Pre-open indications: 1 Downside Indication and 1 Puff/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 UP +0.84% (+265 points), S&P futures are UP +1.20% (+47 points) and NASDAQ futures are UP +1.74% (+208 points) early in the pre-open – so far,
Stock futures were higher early Friday morning,
European stocks bounced to the upside,
Asia-Pacific stocks closed higher on Friday with Japan’s Nikkei 225 leading the way on a 2.6% climb.
The stock market saw big intraday swings Thursday, with the major indexes rebounding to close narrowly mixed, while “our” beaten-up cell and gene therapy universe rebounded.
The Nasdaq closed Thursday closed up +6.73 points or +0.06% but, down more than -29% from its all-time high.
Global equity funds witnessed a surge in outflows in the week ended May 11, as fears of an economic slowdown and further tightening by major central banks to tame stubborn inflation spooked investors.
In a fifth straight week of net selling, investors liquidated global equity funds worth $10.53 billion, compared with just $1.65 billion worth of net selling in the previous week, according to Refinitiv Lipper. <Reuters>
Economic Data Docket: April import prices and an early look at May consumer confidence.
RegMed Investors’ (RMi) closing bell: “miracle moves, the oversold ascended to the upside. The cell and gene therapy sector spikes – short covering (?) as market rebound attempt flounders” … https://www.regmedinvestors.com/articles/12434
Ebb and flow –
May - 4 positive and 4 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
RegMed Investors (RMi) - Q1/22 Cell and Gene Therapy Earnings Scorecard Results … https://www.regmedinvestors.com/articles/11628
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Maintaining Position …
Sage Therapeutics (SAGE) closed up +$0.18 to $29.52 <52-week of $27.36> after Wednesday’s -$0.76 to $29.34 after Tuesday’s +$2.58 with a negative -$1.47 or -4.98% pre-open downside indication.
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed flat again with 0 shares traded <52-week low of $1.11> after Tuesday’s flat with 1,845 shares traded, Monday’s -$0.39 with 6,422 shares traded, Friday’s flat at $6.00 and last Thursday’s +$0.49 to $6.00 with 628 shares traded following the previous Wednesday’s -$0.36 with 5,171 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: I STILL think FEAR pervades this market and earnings’ reporting sector.
From last night’s post, an on-target quote of which I agree, “It’s my opinion that this is a market that’s trading on emotions and not rational logic,” Jim Lebenthal of Cerity Partners. “Every day for the last however many days, you get this pop in the morning, and then it dribbles off.” <CNBC>
Cell and gene therapy stocks have suffered massive losses in recent weeks.
I am PRAYING that the ill-tempered ALGORITMIC rules are in my favor today.
Weakness has also been driven by earnings’ reporting, the lack of sentiment, conviction and confidence enhanced by volatility.
This inflation induced market correction and Nasdaq dive show “so-so” signs of slowing as the 52-week lows are become OVERWHELMING!
To me, it says – no SUSTAINABLE bottoms are in sight"
Repeating, "We're going to see more volatility. This is not going to be an easy path forward as we still have a lot of unknowns," Omar Aguilar, Schwab asset management CEO and chief investment officer, told Yahoo Finance Live on Tuesday. "There's still a lot of uncertainty in many parts, not just in the macroeconomic and the economic structure, but also just geopolitically …” <Yahoo! finance>
As I continue to maintain, “State the obvious, investors are NOT in control of daily market driven sector appreciation or downward dives.”
Earnings’ season is STILL upon us with: Brainstorm Cell Therapeutics (BCLI) and Biostage (BSTG) on 5/16 so far.
Q1/22 earnings season is more than three/quarters (3/4) completed (28 of 35 reported) having reported LPS (loss-per-share) results so far MISSING estimates and revenues.
I try to keep it simple … and short!
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.