August 2, 2023 7:42am
Fitch Ratings downgrades America’s rating lowering the U.S.’s long-term foreign currency issuer default rating to AA+ from AAA Tuesday night, citing “expected fiscal deterioration over the next three years.”
Earnings: Editas Medicine (EDIT), Blueprint Medicine (BPMC), Regenxbio (RGNX) and Vericel (VCEL)
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Pre-open Indications: 2 positive and 2 negative indications
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. My interpretation of the morning’s numbers is written to be informative; it’s built on what will happen behind the headlines today, not tomorrow or yesterday
Dow futures are DOWN -0.30% or (-108 point), S&P futures are DOWN -0.47% or ( -21 points) and NASDAQ futures are DOWN -0.72% or (-114 points) early in the pre-open – so far
U.S. stock futures fell Wednesday after Fitch downgraded the U.S.’s long-term rating,
European stock markets were lower
Asia-Pacific markets fell.
Henry’omics:
We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …
Tuesday, indexes closed mixed as the Dow closed UP +71.15 points (+0.20%), the S&P closed DOWN -12.23 points (-0.27%) while the Nasdaq closed DOWN -62.11 points (-0.43%
Economic Data Docket: July ADP jobs report Wednesday before the open. Economists expect a 175,000 increase, which would be lower than the 497,000 rise in the prior month.
Tuesday’s (8/1) RegMed Investors’ (RMi) closing bell: “July ends on high note while sector LPS (loss-per-share) earnings are about to start … https://www.regmedinvestors.com/articles/13056
RegMed Investors (RMi) Research Note: Q2/23 net losses earnings, cash positions and runway outcomes … https://www.regmedinvestors.com/articles/13058
Ebb and flow:
Q3: August – 1 negative close
· July - 1 holiday, 12 positive and 8 negative close
Q2/23 -
· June -1 Holiday, 8 negative and 11 positive closes
· May – 10 negative and 12 positive closes
· April ended - 1 holiday, 8 positive close and 11 negative closes
Q1/23 –-
· March – ended with 10 positive and 13 negative closes
· February – 1 holiday, 2 vacation, 7 negative and 8 positive closes
· January – 2 holidays, 11 positive and 9 negative closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Negative Indications:
Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
CRSPER Therapeutics (CRSP) closed down -$0.92 and a negative -$0.78 aftermarket indication
Intellia Therapeutics (NTLA) closed down -$1.37 with a negative -$0.54 or -1.32% pre-open indication
Positive Indications:
Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Agenus (AGEN) closed down -$0.06 with a positive +$0.06 or +4.11% pre-open indication
Generation Bio (GBIO) closed down -$0.34 with a positive +0.73 or +4.85% aftermarket indication
The BOTTOM LINE:
I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all, as I try to keep it simple and short!
Quote, “the Nasdaq has had some herky-jerky action on a daily or intraday basis in the past couple of weeks. That's not a big deal for longer-held positions generally, but has made new purchases tricky.” <IBD>
Investors should be careful about adding exposure right now, especially if you are already heavily invested. You could nibble on some new buys, or add a few more shares to winning positions, perhaps trimming some laggards.
Earnings are ready for release <uniQure NV (OURE and MDXG yesterday) – questions are …RUNWAYS on track for further downslides?
8/1 - UniQure NV (QURE) – a net loss of -$68.5 M or -$1.44 per share with a cash position of $628.6 M (excluded $100 M from Hemgenix, and $400 M from royalty sale) and a runway until 02.26
· Per-share net loss consensus and revenue misses
8/1 - MiMedx (MDXG) - a net income of +$1.2 M or +$0.00 per share with a cash position of $68.7 M (L-T Debt of $48.8 M) and runway until 1/24
· Beats income, per share and revenue "numbers"
Few stocks are flashing buy, with sector names in particular facing a NO news period in the next few days, investors could NOT consider adding exposure.
There's nothing wrong with standing pat in the short run, holding on to sizable existing exposure.
I hate to be so negative or contrarian but, this is a NO spin zone and truth is its product; I can always be WRONG but, I am mostly EARLY!
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.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. 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 could hold or have positions securities referred to in this publication and he will NOTIFY investors of holdings.
