August 5, 2022 7:53am
As appreciation jumps up, the path forward gets steeper; careful not to slip
Pre-open indications: 2 Negative Indications, 3 Positive Indications, 2 Sell into Strength 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.
I DEVOTE a HUGE amount of time to “reckoning” the geography of my coverage group - 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 -0.43% or (-140 points), S&P futures are DOWN -0.67% (-28 points) and NASDAQ futures are DOWN -0.84% (-120 points) early in the pre-open – so far,
Stock futures were lower and fluctuating on Friday as investors waited for the July jobs report,
European markets were slightly lower,
Asia-Pacific markets were mostly higher overnight, with Taiwanese stocks leading gains in the region post China’s military threats.
Stock market trades mixed as investors are torn by rising jobless claims and falling oil prices. The Dow closed DOWN -85.68 points (-0.26%); the S&P closed DOWN -3.23 points (-0.08%) while the Nasdaq closed UP +52.42 points (+0.41%)
Economic Data Docket: July jobs report
- The labor market added 528,000 jobs in July, easily beating an estimate of a 258,000 increase. The unemployment rate ticked down to 3.5%, below the 3.6% estimate. Wage growth also ticked up more than estimated, up 0.5% for the month and 5.2% higher than a year ago, signaling that high inflation is likely still a problem.
RegMed Investors’ (RMi) closing bell: “gravity was not a downward force as anticipated. It’s coming” … https://www.regmedinvestors.com/articles/12549
Ebb and flow –
Q3/22 – August – 3 positive and 1 negative close
July -1 holiday, 10 negative and 10 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
Sell into Strength: profit post earnings
Alnylam Pharmaceuticals (ALNY) closed up +$12.04 to $124.05 after Wednesday’s +$70.04, Tuesday’s +$2.02 and Monday’s -$2.09 with a positive +$0.95 or +0.42% pre-open indication.
Chinook Therapeutics (KDNY) closed up +$1.11 to $20.37 with a positive +$0.57 or +2.80% pre-open indication.
AxoGen (AXGN) closed up +$0.03 to $10.49 after Wednesday’s +$0.19 with a positive +$0.51 or +4.86% pre-open indication.
Fate Therapeutics (FATE) closed down -$0.26 to $32.55 with a positive +$0.98 or +3.01% pre-open indication.
Cellectis SA (CLLS) closed down -$0.20 to $3.12 with a positive +$0.28 or +8.97% pre-open indication.
Ionis Pharmaceuticals (IONS) closed up +$2.27 to $43.29 with a negative -$0.29 or -0.67% pre-open indication.
MiMedx (MDXG) closed up +$0.19 to $3.79 with a negative -$0.22 or -5.80% pre-open indication.
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$0.40 to $5.00 with 208 shares traded after Wednesday’s flat, Tuesday and Monday’s flat traded 0 flats and last Friday’s $0.00 with 0 shares traded, <3 mo. Average = 1,068 shares>
· Its BOD approved on 7/28 amending and restating their Certificate of Incorporation to affect a reverse split of the issued and outstanding common stock at a ratio of not less than 1-for-1.25 and not greater than 1-for-5. What about all those PPM (private placements) as an offering follows?
· BSTG seems to have the ONLY avenue to finance to utilize non-U.S. Chinese investors? Are we in favor of Beijing funding and continue to control BSTG in our own country? Another question, makes one wonder, Newbridge Securities?
· 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!
Earnings, earnings and earnings continue t0 ramp-up so far this week …
Most reporting sector companies … to date have reported net losses, lagging revenue estimates although AXGN, FATE, RGNX and NTLA beat on revenues generating forward motion while ATM use is up.
This earnings continuum is overshadowed by Alnylam Pharmaceuticals (ALNY) clinical news and the possibility of Global Blood Therapeutics (GBT) being an acquisition target while many public and private companies are facing conflicting signs of growth.
Sector equity pricing are trending in a roller coaster fashion. Also, consensus expectations are low.
We always need a … villain and they are multiplying – low volume as “Earnings’ season is here and now, investors NEED to focus on LPS (loss-per-share), trial status, product revenues, collaboration revenues and cash positions i.e., runways”.
This week: Precigen (PGEN) and Global Blood Therapeutics (GBT) on 8/8 followed by Agenus (AGEN), BioLife Solutions (BLFS) and Ionis Pharmaceuticals (IONS) on 8/9, Brainstorm Cell Therapeutics on 8/15, Monday … to date.
As I have written, “It’s STILL nice to be RIGHT” about the direction of the sector having “DEVOTED a HUGE amount of time to “reckoning” the geography of my coverage group.”
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.