July 22, 2022 7:48am
Earnings are a ‘Comin’, LPS (loss-per-share) will squeeze valuations
Pre-open indications: 4 Negative 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.
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 UP +0.10% or (+31 points), S&P futures are DOWN -0.24% (-10 points) and NASDAQ futures are DOWN -0.45% (-57 points) early in the pre-open – so far,
Indexes fluctuated mixed on Friday,
European markets were also fluctuating mixed,
Asia-Pacific markets were mixed as investors digested a slight rise in Japanese inflation in June, after the Bank of Japan kept interest rates on hold at ultra-low levels.
The Dow added 162.06 points, or +0.51%, the S&P 500 rose 39.05 or +0.99% to 3,998.95 while the Nasdaq finished up +161.96 points or +1.36% higher.
The Dow is on track for a 2.4% weekly gain, the S&P +3.6% and the Nasdaq should close out the week +5.3% higher.
Appropriate quote to start the morning, ““This is showing you that market expectations are really low, that a little bit of good news can go a long way when you have low expectations,” said Truist’s Keith Lerner, noting that investors rotated back into growth stocks even amid this weak economic data.”
RegMed Investors’ (RMi) closing bell: “when investors stare into the downside, it’s not that deep. Portfolios are just hanging-on, as investors do not understand which way to turn as weak economic reports and greater inflationary pressures iterates those markets or the cell and gene therapy sector have yet to bottom” … https://www.regmedinvestors.com/articles/12528
Ebb and flow –
Q3/22 – 1 holiday, 5 negative and 9 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
Sage Therapeutics (SAGE) closed down -$0.97 to $35.58 after Wednesday’s +$3.62, Tuesday’s +$1.72 and Monday’s -$1.07 with a negative -$0.58 or -1.63% pre-open indication,
Verve Therapeutics (VERV) closed down -$3.10 to $32.81 after Wednesday’s +$3.62, Tuesday’s +$5.98, Monday’s +$2.60 and last Friday’s -$0.49 with a negative -$0.85 or -2.59% pre-open indication,
Beam Therapeutics (BEAM) closed up +$0.54 to $ after Wednesday’s +$3.30 to $67.91, Tuesday’s +$6.60 and Monday’s +$0.39 with a negative -$2.52 or -3.68% pre-open indication.
CRISPR Therapeutics (CRSP) closed down again -$2.39 to $79.95 after Wednesday’s -$1.44, Tuesday’s +$4.42 and Monday’s -$4.03 with a negative -$0.56 or -0.70% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.09 with 1,018 shares traded after Wednesday’s flat with 21 shares traded, Tuesday’s +$0.01 with 300 shares traded, Monday’s flat at $5.00 with 1,319 shares traded and last Friday’s -$1.00 to $5.00 with 10.658 shares traded <3 mo. Average = 1,806 shares>
· BSTG seems to have 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!
The Nasdaq could be ready for a pullback, however, especially with so many earnings coming next week. Once again, the Nasdaq led the way, though on Thursday the Russell 2000 was somewhat of a laggard. The Nasdaq has risen significantly over the past week, and is near the high end of a regression line. That could signal a pause or a pullback soon. <IBD>
Maintaining my theme, BEWARE sector dramatic daily highs … what goes up will spiral down!
Sector equity pricing are trending in a roller coaster fashion, currently being at the mercy of trading, inflation, interest rates and earnings.
We are up, down, up and down – it gets tiring! Portfolios are wailing, not crying.
Thin volumes keep trading volatile in, with the CBOE Volatility index closing <Thursday’s 23.03 after Wednesday’s 23.79 points, Tuesday’s 24.68 and last Monday’s 25.38>.
We always need a … villain and they are multiplying – low volume as “Earnings’ season is coming, investors NEED to focus on LPS (loss-per-share), collaboration revenues and cash positions i.e., runways”.
Upcoming earnings announcements: earnings as Alnylam Pharmaceuticals (ALNY) Q2 announcement on Thursday 7/28, Sage Therapeutics (SAGE) on Tuesday, 8/2 and AxoGen (AXGN), Vericel (VCEL) and MiMedx (MDXG) on Wednesday, 8/3.
Investors are going to need to prepare for another reporting cycle to confirm whether or not a bottom is even close to happening.
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 while 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.