July 13, 2022 8:01am
Pre-open indications: 5 Positive Indication, 3 Negative Indications and 1 Puff/Pump/Promote
NEWS: AVROBIO (AVRO +$0.09 or +9.66%) the U.S. FDA has granted orphan drug designation for AVR-RD-05, its gene therapy for the treatment of mucopolysaccharidosis type II (MPSII), or Hunter syndrome, a rare and seriously debilitating lysosomal disorder that primarily affects young boys.
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.
What I provide is a trusted source of share pricing intelligence – it’s more than opinion, I deal in the facts and numbers that back them up.
The 8:00 A.M., ET edition
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 -1.19% or (-367 points), S&P futures are DOWN -1.67% (-63 points) and NASDAQ futures are DOWN -2.36% (-277 points) early in the pre-open – so far,
Stock futures dropped in a panic on Wednesday as investors reported a key inflation report,
European stocks traded lower,
Asia-Pacific markets were higher as China released trade data, and the Bank of Korea and Reserve Bank of New Zealand hiked rates.
Last night, the Dow closed DOWN -188.82 points (-0.61%); the S&P closed DOWN -35.29 points (-0.92%) while the Nasdaq closed DOWN -107.87 points (-0.95%)
An expected headline reading of 8.8%, a new four-decade high, would likely cement the case for faster rate hikes heading into the autumn.
Core CPI, which strips out those volatile components, is expected to rise around 0.6% on the month, reflecting an easing in rents, airfares and used car prices. "Today’s numbers, then, will mark the end of the run of Fed-scaring gargantuan increases in the headline measure," said Ian Shepherdson of Pantheon Macroeconomics. "But we, and markets, ultimately are more interested in what happened in the core."<TheStreet>
Economic Data Docket: Consumer prices accelerated again last month to the hottest print of the current inflation cycle. The Bureau of Labor Statistics' June Consumer Price Index (CPI) reflected a year-over-year increase of 9.1% last month, up from the prior 40-year high of 8.6% in May.
Mortgage applications to purchase a home fell 4% for the week and were 18% lower than the same week one year ago. The average contract interest rate for 30-year fixed mortgages with conforming loan balances ($647,200 or less) remained at 5.74%. Applications to refinance a home loan, which have been incredibly weak due to higher interest rates, rose 2% for the week but were 80% lower than the same week one year ago.
RegMed Investors’ (RMi) closing bell: “a bounce after a trounce. Sector sentiment seesawed with trading support.” … https://www.regmedinvestors.com/articles/12512
Ebb and flow –
Q3/22 – 1 holiday, 2 negative and 5 positive closes
June – 1 holiday, 9 positive and 11 negative closes
· May - 11 positive and 10 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
Verve Therapeutics (VERV) closed up +$1.72 to $22.20 with a positive +$0.80 or +3.60% pre-open indication,
Avrobio (AVRO closed down -$0.073 to $0.96 with a positive +$0.09 or +9.66% pre-open indication; helping their current NASDAQ listing to above $1.00,
BioLife Solutions (BLFS) closed down -$1.87 to $15.49 with a positive +$0.36 or +2,32% pre-open indication,
Editas Medicine (EDIT) closed up +$0.57 to $14.39 with a positive +$0.19 or +1.32% pre-open indication,
Chinook Therapeutics (KDNY) closed down -$0.02 to $17.92 after Monday’s -$0.57 with a positive +$0.58 or +3.24% pre-open indication.
Applied Genetic Technologies (AGTC) closed down -$0.11 to $0.84 with a negative -$0.45 or -52.80% after announcing an offering of 16.66 M shares priced at $0.60. I was NOT kind in reviewing this equity’s move to financing to raise $10 M.
Global Blood Therapeutics (GBT) closed up +$1.13 to $34.84 with a negative -$0.42 or -1.21% pre-open indication,
Ultragenyx (RARE) closed down -$0.01 to $65.86 with a negative -$1.74 or -2.64% pre-open indication.
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.03 to $4.55 with 175 shares traded after Monday’s -$1.189 with 5,387 shares traded, Friday’s -$0.55 to $5.70 with 2,334 shares traded, Thursday’s +$0.23 to $6.25 with 4,771 shares traded and last Wednesday’s +$1.22 to $6.02 with 14, 121 shares traded <3 mo. Average = 1,721 shares>.
· BSTG seems to always finagling a finagle and NOTHING is CLEAN and STRAIGHTFORWARD; is it the ONLY avenue to finance to utilize non-U.S. Chinese investors?
· How much lipstick is a lot on this pig with an almost 4-year-old IND and NO clinical trial initiation?
· WATCH and be ready for a BIG reverse of shares to enable offering from multiple private placements as it tries to facilitate an offering with Newbridge Securities
The BOTTOM LINE: I try to keep it simple … and short!
I remain cautious,
A few bad days would turn recent buys into clear losses, with the sector heading back into new lows once again.
BUILD CASH POSITIONS, the upward spiral will be STRIPPED, maybe NOT all today but, it’s coming.
Be prepared, earnings or LPS (loss-per-share) sessions are on their way and many companies will be just as glad to get them out as fast-as-possible to re-set ANY trajectory in August for September.”
There is VALUE out there however, it’s about playing or betting the timing of the sector.
We are left with choosing to hang on to “our” portfolio position as it is a given that the sector shifts from fierce, sudden sell-offs to gaining altitude or ascending not to its value but, better than it was.
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.