May 20, 2022 7:32am
Barely an aftermarket response to Thursday’s session as bottom fishing lacks little strength
Pre-open indications: 3 Sell into Strength, 1 BUY post 52-week Low 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 and answer questions in … “The Bottom Line”
The week is coming to an end - TGIF
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% (+263 points), S&P futures are UP +1.05% (+41 points) and NASDAQ futures are UP +1.42% (+168 points) early in the pre-open – so far,
U.S. stock futures bounced to the upside pointing to a positive open Friday,
European markets were higher,
Asia-Pacific markets advanced as China kept its one-year benchmark lending rate unchanged at 3.7% but cut its five-year loan prime rate by 15 basis points. Australia, Japan and South Korea also gained.
A serious “possible” rebound comes after a “diving” day on Thursday.
Indexes struggled to a sharp sell-off from Wednesday’s session’s decline following disappointing retail earnings that reignited concerns about the impact of inflation. The Dow closed DOWN -236.81 points (-0.75%); the S&P closed DOWN -22.95 points (-0.58%) while the Nasdaq closed DOWN -29.66 points (-0.26%)
RegMed Investors’ (RMi) closing bell: “RegMed Investors’ (RMi) closing bell: sector was kicked, but not put on its butt. This week, two (2) sessions do NOT mark a sustainable rally; FEAR is a sub-surface reality regarding sustainability. As I have been writing, “we are renting the upside”; keep the lows in your minds-eye. The algorithmic “Pac-men” are STILL lurking! … https://www.regmedinvestors.com/articles/12444
Ebb and flow –
May - 7 positive and 6 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 -- added Brainstorm Cell Therapeutics (BCLI), Homology Medicine FIXX) and Biostage (BSTG)
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Sell into Strength: once you see the movement, usually end of day …
CRISPR Therapeutics (CRSP) closed up +$1.73 to $56.49 <52-week low of $42.51> after Thursday’s +$0.40, Tuesday’s +$2.82 after Monday’s -$0.69 with a positive +$1.38 or +2.44% pre-open indication.
Fate Therapeutics (FATE) closed up +$0.57 to $22.40 <52-week low of $20.49> after Wednesday’s -$1.90, Tuesday’s +$1.09 and Monday’s -$1.58 with a positive +$1.12 or 5% pre-open indication,
Vericel (VCEL) closed up +$0.91 to $27.79 <52-week low of $25.11> after Wednesday’s -$1.84, Tuesday’s +$1.10 and Monday’s -$0.68) with a positive +$0.71 or +2.55% pre-open indication
BUY a Possible or Due Bounce:
Ultragenyx (RARE) closed DOWN -$0.70 to $47.00 <52-week low of $46.14> after Wednesday’s -$6.65, Tuesday’s -$0.91 and Monday’s +$3.79) – another barely above 52-week low that’s due a bounce … with a neutral pre-open indication.
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.63 with 916 shares traded, after Wednesday’s +$0.10 with 980 shares traded after Wednesday’s -$0.89, Monday’s flat and earnings report post Friday’s flat (it was down -$0.89) with 1,811 shares traded and last Thursday’s and following the previous Wednesday’s 0 shares traded.
- WARNING: Earnings reported a VERY SAD picture of a company’s status without U.S investors and reliance on non-U.S. Chinese investors. Another PPM -private placement – this one for $5.1 M without a price per share notification. Also, the terminal death lawsuit just got settled (4/28) for $6 M with a PPM – a preferred convertible debt financing. is it the ONLY avenue to finance utilizing non-U.S. Chinese investors?
The BOTTOM LINE: I am NOT trusting this market …
Cell and gene therapy sector companies have been under pressure this week — with Nasdaq losing more than 3%.
Some (I am one) think, the extremely oversold are due for some kind of a bounce.
Catalysts are needed (the reason why and what); to turn the sector share pricing cents into dollars – What is also NEEDED is a RADICAL cost cutting by many companies … Agios Pharmaceuticals (AGIO) is an example in initiating an “evolution of its research organization”. I say GO further beyond just research …!!
I have NOT seen ANY step-up of investment by ANY CEOs and their management teams – WHY NOT?
I am STILL NOT seeing a short or even near-term bottom approach although they usually appear out of nowhere.
There's enough fear among investors to see a few more downdrafts.
Q1/22 earnings season is more than completed (31 of 35 reported) having reported LPS (loss-per-share) results so far MISSING estimates and revenues.
I try to keep it simple … and short!
I caution investors that the severe share pricing’s – technical and fundamental damage has been suffered these past several months which will take longer than a few good sessions to repair.
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.