August 8, 2022 7:52am
After a week of a surge (4 positive of 5 closes), comes a purge as a downside seems evident as a lot of bulging stocks could use a breather
Earnings: CRISPR Therapeutics (CRSP), UniQure NV (QURE), Verastem Oncology (VSTM), Precigen (PGEN) and possibly Global Blood Therapeutics (GBT)
Pfizer Inc. (NYSE: PFE) and Global Blood Therapeutics (GBT) (GBT) have entered into a definitive agreement under which PFE will acquire GBT. The transaction valued at $68.50 per GBT share in cash, for a total enterprise value of approximately $5.4 billion
Pre-open indications: No Indications, the market and sector are questionable so let “them” run. Although BSTG is still in my “gunsights”
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 UP +0.35% or (+115 points), S&P futures are UP +0.42% (+17 points) and NASDAQ futures are UP +0.53% (+70 points) early in the pre-open – so far,
Stock futures rose on Monday morning,
European markets climbed,
Asia-Pacific market were mixed
Indexes wavered Friday in a volatile trading session after the July jobs report was much better than expected, as investors assessed what a strong labor market would mean for the Fed’s rate tightening campaign.
The Dow closed UP +76.65 points (+0.23%); the S&P closed DOWN -6.75 points (-0.16%) while the Nasdaq closed DOWN -63.02 points (-0.50%)
Sector News: On August 5, 2022, Agenus (AGEN) filed a Certificate of Amendment (the “Certificate of Amendment”) to its Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) with the Secretary of State of the State of Delaware to increase the number of authorized shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), from 400,000,000 shares to 800,000,000 shares. (Current Report on Form 8-K).
Economic Data Docket: A new reading for the consumer price index, slated for release Wednesday, will give investors more clarification about the central bank’s next move at its policy meeting in September. Traders are now pricing in a higher likelihood of a 0.75 percentage point hike next month, which would be the third straight increase of that magnitude. <CNBC>
RegMed Investors’ (RMi) closing bell: “follow the bouncing share pricing as acquisition re-heats sector” … https://www.regmedinvestors.com/articles/12551
Ebb and flow –
Q3/22 – August – 4 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
I am abstaining today -- very iffy without a negative or positive flavor
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed Friday flat after Thursday’s 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 = 1,054 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: 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.