October 21, 2022 7:56am
Problem, sentiment’s ladder rungs have been glued with broken glass as technical resistance coincided with Treasury yields moving higher yet again
Indications: 2 BUY Dips, 4 Negative Indication and 1 Pump/Promote (BSTG – the usual suspect)
My daily prognostication of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today, not tomorrow or yesterday
Why do I keep writing this blog/newsletter to inform investors, what they need to hear that others won’t say or write!
8:00 a.m. 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 -0.29% or (-89 points), S&P futures are DOWN -0.31% or (-11 points) and NASDAQ futures are DOWN -0.60% or (-66 points) early in the pre-open – so far,
Stock futures are falling on Friday’
European markets were lower,
Asia Pacific markets traded lower
Indexes flopped down in choppy trading on Thursday as investors weighed several key earnings reports and kept an eye on the bond market, where Treasury yields continue to climb.
The Dow closed DOWN -91.01 points (-0.30%), the S&P closed DOWN -29.58 points (-0.80%) while the Nasdaq closed DOWN -65.66 points (-0.61%)
Even with Thursday’s losses, indexes are still up more than 2% for the week – propelled by rallies on Monday and Tuesday – and are on pace for the best week since early September.
A relevant quote, “Thursday’s trading fits a broader picture of jittery investors making knee-jerk decisions based on the news of the day, said Jamie Cox, managing partner for Harris Financial Group. He said investors are increasingly moving into shorter-term strategies as they see the Federal Reserve creating a volatile market as it seeks to bring down inflation through interest rate hikes.” <CNBC>
RegMed Investors’ (RMi) closing bell: “The upside didn’t last long after Wednesday’s extreme downside from an upside open. Thursday initial rally attempts were challenged as downslider creeped.” … https://www.regmedinvestors.com/articles/12660
Ebb and flow:
Q4 – 1 neutral, 7 positive and 6 negative closes
· September – 1 holiday, 10 positive and 11 negative closes
· August – 1 neutral, 11 positive and 11 negative closes
· July - 1 holiday, 10 negative and 10 positive closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
My Favorites: BUY Dips
Agenus (AGEN) closed down -$0.05 to $2.54 after Wednesday’s-$0.13, Tuesday’s +$0.04 and Monday’s +$0.24 with a negative -$0.01 or -0.39% pre-open indication,
Solid Biosciences (SLDB) closed up +$0.0026 to $0.45 after Wednesday’s -$0.0226, Tuesday’s +$0.0073 and Monday’s +$0.0064 with a positive $0.01 or +2.11% pre-open indication. Sharpen your pencil – new investment and management coming from Bain funds,
Brainstorm Cell Therapeutics (BCLI) closed down -$0.28 to $3.18 after Wednesday’s -$0.25 with a negative -$0.08 or -2.52% pre-open indication,
Ionis Pharmaceuticals (IONS) closed up +$0.36 to $44.83 after Wednesday’s -$1.73, Tuesday’s -$0.32, Monday’s +$0.16 and last Friday’s +$0.69 with a negative -$0.98 or -2.19% pre-open indication,
Sage Therapeutics (SAGE) closed down again -$0.30 to $35.83 after Wednesday’s -$2.00 with a negative -$0.59 or -1.65% pre-open indication,
CRISPR Therapeutics (CRSP) closed down -$2.78 to $51.29 after Wednesday’s -$2.83, Tuesday’s +$0.57, Monday’s +$2.26 and last Friday’s -$3.99 with a negative -0.21 or -0.41% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$0.08 with 2,031 shares traded after Tuesday’s +$0.28 with 1,010 shares traded, Monday’s +$0.92 with 3,006 shares traded, Friday’s -$1.06 with 1,401 shares traded and last Thursday’s +$0.06 with 1,400 shares traded <3-month average = 2,142 shares>,
Questions need to be answered and they NEVER are for shareholders; as the First Amendment of the U.S. Constitution does guarantee the “freedom of speech, or of the press” … but I guess NOT to respond?
- Who, WHAT and WHERE are pumping and promoting the “spikes” in volume and share price … coming from?
- What is DST Capital? Is DST Capital really managed by Mrs. bin Zhao of Weston, Mass and Hong Yu, president of BSTG? Is LIU Dong-hai chairman of D. Phone, one of the largest smartphone retailers in China and Dixintong Technology group; the ultimate funder of DST Capital?
- Are Chinese communist bureaucrats from Beijing, China directing the company’s activities with BSTG being their corporate “concubine”?
The BOTTOM LINE: volatility adds to investor risk. The sector can look promising at the open, but then saw gains vanish in morning hours.
Set aside volatility and there still aren't good reasons to be invested now; companies are saving ANY news for the earnings season.
Reiterating, “I try to keep it simple … and short …
The sector is what it is, until it isn’t and even then, it doesn’t seem to be… as NOT much changes as the sector’s share pricing rides the waves of volatility, algorithms, electronic trading and short covering.
We will be seeing what October brings – Q3 earnings LPS (loss-per-share) season and a whole lot of economic indicators.
The final Q4 is HERE … and then back to earnings season which could be a minefield:
· Alnylam Pharmaceuticals (ALNY) is the first to declare is Q3 earnings report on Thursday, 10/27 at 8:30 a.m. MiMedx (MDXG) comes in second on 11/2 at 5 p.m. followed by AxoGen (AXGN) on 11/8 at 8a.m.
Reiterating, “I believe the sector is showing mixed signals, some BUYs more SELLs – yet I also believe we should BUY Agenus (AGEN) and Solid Biosciences (SLDB).
DISPOSE of Avrobio (AVRO) who experiences news and the stock drops after a de-listing notice while the management DID NOTHING to AVOID this dilemma while president, CEO and director Geoff Mackay carries home a HUGE salary of $754.39 K per year?
• AVRO closed up +$0.0065 on Thursday after Wednesday’s -$0.0032 after Tuesday ‘s +$0.07 with news of Granted ILAP Designation from U.K. MHRA for gene therapy potential treatment for Gaucher Disease after Monday’s +$0.02 to $0.60 which does NOT get close to the $1.00 up-listing amount.
· Where is the upside coming from to “solve” the de-listing “position” on Nasdaq?
· Will AVRO have to “commission" a stock reverse to address its delisting?
Amid the ongoing cell and gene therapy sector volatility, “our” universe’s trend remains " in correction." That means that investors are safer on the sidelines as again … earnings are coming.
WHY can’t Applied Genetic Technologies get out from under the “boulder” of share pricing compression – ask Sue Washer, CEO … she has NEVER had the right answers for the past two (2) years, time for a management change as AGTC closed down again -$0.0046 on Thursday, after Wednesday’s -$0.0080 and Tuesday’s barely +$0.0022 while Washer pockets almost $800 K a year!!18 sessions under Nasdaq’s $1.00 listing threshold.
“There is STILL many a concern of sentiment and conviction in the cell and gene therapy sector”.
I STILL believe the sector is headed into “correction” which means that investors should remain cautious.
If you have gains, you might want to lock-in profit if any … before earnings season begins!
As I continually write, “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!”
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.
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.