August 30, 2022 7:45am
Investors need to come to terms of the cell and gene therapy sector’s state of affairs and health as individual company’s actions cast doubt toward sentiment
Pre-open indications: 3 Negative Indications, 4 Positive Indications 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.
More frequently right than consequentially wrong; there is VALUE out there. What I provide is an intelligence daily.
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 +0.64% or (+204 points), S&P futures are UP +0.76% (+31 points) and NASDAQ futures are UP +1.05% (+131 points) early in the pre-open – so far,
Stock futures rose Tuesday,
European markets moved higher,
Asia-Pacific markets were mixed as Chinese and Hong Kong indexes declined
Monday’s market decline deepened the major averages’ losses for August with just two (2) sessions to go in August.
Indexes slipped on Monday but bounced back from their earlier losses; yet, still down. The Dow closed DOWN -184.41 points (-0.57%); the S&P closed DOWN -27.05 points (-0.67%) while the Nasdaq closed DOWN -124.04 points (-1.02%)
“The market has given back some of its summer gains after recent comments by Federal Reserve officials made clear that the central bank aims to continue its rate hikes, even if they cause economic pain.” <CNBC>
Economic Data Docket: the FHFA home price index for June, the Conference Board’s consumer confidence survey for August, and Friday’s job’s report.
RegMed Investors’ (RMi) closing bell: “a wobbly start on Monday post Friday’s sell-off” … https://www.regmedinvestors.com/articles/12583
Ebb and flow –
Q3/22 – August – 11 positive and 10 negative closes
· 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
Chinook Therapeutics (KDNY) closed up +$0.33 to $21.45 after Friday’s $0.00 and Thursday’s -$2.16 with a negative -$0.37 or -1.72% pre-open indication,
Sangamo Therapeutics (SGMO) closed down -$0.15 to $5.25 with a negative -$0.20 or -3.81% pre-open indication,
Sage Therapeutics (SAGE) closed up +$0.37 to $39.38 with a negative -$0.93 or -2.36% pre-open indication,
Beam Therapeutics (BEAM) closed down -$1.22 to $55.04 after Friday’s -$5.89, Thursday’s +$2.31, Wednesday’s +$5.60 and last Tuesday’s +$2.83 following the previous Monday’s -$1.88 with a positive +$1.76 or +3.20% preopen indication,
CRISPR Therapeutics (CRSP) closed down -$1.60 to $65.77 after Friday’s -$5.07, Thursday’s +$0.47, Wednesday’s +$3.27 and last Tuesday’s +$2.35 following the previous Monday’s -$2.25 with a positive +$1.11 or +1.69% pre-open indication,
Intellia Therapeutics (NTLA) closed up +$0.31 to $59.06 after Friday’s -$4.75, Thursday’s +$1.12, Wednesday’s +$1.82 and last Tuesday’s +$6.31 following the previous Monday’s -$2.05 with a positive +$0.94 or +1.59% pre-open indication,
Ionis Pharmaceuticals (IONS) closed down -$0.35 to $42.00 with a positive +$0.62 or +1.48% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$1.75 with 17,027 shares traded after Friday’s +$0.15, Thursday’s -$0.40 (was -$2.20) trading 7,913 shares <3-month average = 1,343>, Wednesday’s +$2.20 with 13,882 shares traded and last Tuesday’s +$0.45 with 1,249 shares traded following the previous Monday’s flat,
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?
Questions that need to be answered: investors have the right to ask (the Constitution’s First Amendment protects freedom of speech, the press) … transparency
· Who is behind the purchases of pump/promote; is it DST Capital?
· Is DST Capital managed by Mrs. bin Zhao?
· WHAT is her relationship with … LIU Dong-hai of D. Phone, is one of the largest smartphone retailers in China and its sub-unit and parent company of Dixintong Technology Group in China of which Jason Chen, board member of BSTG and a VP Dixintong?
· Is LIU Dong-hai the ultimate funder of DST Capital?
· HOW many times did Shunfu Hu, VP of business development and operations say to me – that Beijing, China based LIU Dong-hai was the ULTIMATE AUTHORITY in BSTG’s future?
· Is there a relationship with MSS (China’s State Security Ministry i.e., secret police) and D. Phone and Dixintong Technology Group in relation to BSTG?
The BOTTOM LINE: I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
I try to keep it simple … and short!
How many companies are LOSING the investment high ground?
TOO MANY …!!!
Sector’s fundamentals have NOT improved since the beginning of the year – they roll up, down and round.
Investors need to come to terms of the cell and gene therapy sector’s state of affairs and health as individual company’s actions cast doubts upon sentiment as reflected by two (2) negative sessions, followed by three (3) positive sessions and five (5) negative sessions
Companies NEED transparency and advantage of good practices in relation to outreach to investors which means … NOT to enrich themselves at shareholder’s expense!
CEO salaries, spending the G&A are totally OUT-OF-WHACK; these are companies are in the development stage and will be for years without products in most cases not like the tech companies, who CEOs and management teams think they should be compared to for bi-weekly cash and “beanies”!
When it comes time to invest or even hold onto an investment; I’d say … focus on what percentage ownership of stock … NOT options CEOs and management teams own versus their salary and bonus.
Also, investors can’t afford the outsized valuation price targets by I-Banks research and believe that CEOs are “accomplices” to over-estimating expectation and guidance in regard to valuation
The only thing investors are able to hang to at that point is HOPE – which is not a technical or fundamental indicator. Keep your eyes on historical pricings that, haven’t responded to I-Bank research price targets.
As I have written, “I devote a lot of time to the direction of the sector to reckon the geography of my coverage group.”
As I continually question, “As I have further questioned, “The real question that should be asked is how many companies are at the end of sentiments leash? Start by looking at cell and gene therapy companies trading below cash!”
That doesn't mean you should flee entirely to cash, but investors make sure gains don't evaporate thus … be quick to drop losing positions.
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.