July 25, 2022 7:57am
As sentiment appears and disappears at our least convenience with electronic trading substituting for investor response; as we climb the wall of worry concerning multiple earnings including one from our own universe which will also include insights into up-coming interest rate hikes from the Fed
Pre-open indications: 4 positive Indications, 2 Negative Indication and 1 Puff/Pump/Promote
Earnings this week: Alnylam Pharmaceuticals (ALNY) on Thursday 7/28
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 +0.51% or (+163 points), S&P futures are UP +0.48% (+19 points) and NASDAQ futures are UP +0.44% (+54 points) early in the pre-open – so far,
U.S. stock futures rose on Monday morning anticipating a positive open,
European markets were mixed,
Asia Pacific markets were also mixed
The stock market rally had strong weekly gains, even with Friday's retreat.
Friday, the Nasdaq traded lower, the Dow lost, while the S&P 500 declined. The Dow closed DOWN – 136.29 points (-0.43%); the S&P closed DOWN -37.05 points (-0.93%) while the Nasdaq closed DOWN -225.50 points (-1.87%)
It was the second positive week in the last three for the major averages.
Economic Data Docket: The Fed on Wednesday will conclude its two-day policy meeting. Economists are anticipating a three-quarter (3/4) point hike.
RegMed Investors’ (RMi) closing bell: “exiting the fire engulfed barn in a negative sector sell-off. An example of the volatility that investors should expect as earnings are reported.” … https://www.regmedinvestors.com/articles/12530
Ebb and flow –
Q3/22 – 1 holiday, 6 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
Beam Therapeutics (BEAM) closed down -$5.60 to $62.88 after Thursday’s +$0.54, Wednesday’s +$3.30 to $67.91, Tuesday’s +$6.60 and Monday’s +$0.39 with a positive +$0.39 or -0.84% pre-open indication.
BioLife Solutions (BLFS) closed down -$1.75 to $17.74 after Thursday’s +$1.06 and Wednesday’s +$1.49 with a positive +$0.46 or +2.59% pre-open indication,
Editas Medicine (EDIT) closed down -$1.10 to $15.05 <52-week low of $9.59> after Thursday’s -$0.36) with a positive +$0.06 or +0.38% pre-open indication,
Global Blood Therapeutics (GBT) closed down again -$1.16 to $33.66 after Thursday’s -$0.47 with a positive +$0.41 or +1.22% pre-open indication,
Sage Therapeutics (SAGE) closed down again -$0.81 to $34.77 after Thursday’s -$0.97, Wednesday’s +$3.62, Tuesday’s +$1.72 and Monday’s -$1.07 with a negative -$0.14 or -0.40% pre-open indication,
Sangamo Therapeutics (SGMO) closed down -$0.211 to $4.50 with a negative -$0.10 to -2.22% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.30 to $5.40 with 998 shares traded after Thursday’s +$0.09 with 1,018 shares traded, Wednesday’s flat with 21 shares traded, Tuesday’s +$0.01 with 300 shares traded and last Monday’s flat at $5.00 with 1,319 shares traded <3 mo. Average = 1,758 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!
Sector expectations are really low as earnings season begins next week; remember, a little bit of good news can go a long way when you have low expectations.
· Friday’s Percentage (%) of the decliners (34) ebbed from -0.97% to -8.98% while the advancer (1) got "pumped and promoted" at+5.88%. After Thursday’s percentage (%) of the decliners (18) ebbed from -8.63% to -0.03% while the advancers (14) receded +6.84% to $0.44%. <me from Friday>
Maintaining my theme, BEWARE sector dramatic daily highs … what goes up will spiral down!
When a cell and gene therapy sector equity sells off to or below the buy point, investors face a tough decision: hold tight, exit or trim the position. There's not necessarily a "right" answer. Sometimes the stock will bounce right back, others will keep falling — perhaps after briefly bouncing. A more-cautious approach may make more sense in the current volatile market. Buying near the entry can offer a bit more cushion as well. <some IBD>
Sector equity pricing are trending in a roller coaster fashion, currently being at the mercy of electronic trading, inflation, interest rates and earnings.
We are up, down, up and down – it gets tiring! Portfolios are wailing, not crying.
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.
So be extra cautious for the next few days. If you do make new purchases, look for early buying opportunities and try to buy as close to those entries as possible. <IBD>
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.