August 31, 2021 5:04pm

The Biostage (BSTG) Chronicles: WHY hasn’t the SEC looked into this share pricing activity – another 11,564 shares traded (-$0.44) after a week of “pumping” the volume? Is this another Theranos – faking it to not make it?

Pre-open indications: 4 HITs and 0 MISS

My comments try to distinguish the temporary from real pricing digression or progress with a 360-degree view.

Never leave an investor uninformed!


The Dow closed DOWN -39.11 points (-0.11%); the S&P closed DOWN -6.11 points (-0.13%) while the Nasdaq closed DOWN -6.65 points (-0.04%)

 

Henry’omics:

Indexes edged lower on Tuesday.

August is proving to be a month not too dissimilar to every other month this year -up down round and round …

Q3/21: 

  • August - 12 positive and 10 negative close
  • July: 6 positives, 1 holiday and 15 negative closes

Q2/21:

  • June: 15 positive and 8 negative closes
  • May:  8 positive, 12 negative closes and 1 holiday
  • April: 11 negative and 10 positive closes

Q1/21:

  • March: 10 positive, 12 negative and 1 neutral closes
  • February: 9 positive, 10 negative closes and 1 holiday
  • January: 10 positive, 9 negative closes and 1 holiday

 

Data Docket: The S&P CoreLogic Case-Shiller national home price index showed that prices were up 18.6% year over year in June. An August consumer confidence report from the Conference Board showed a larger-than-expected decline.

 

RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines:

  • Tuesday opened positive at 22/9, 3 flats and 1 acquired, stayed positive at the mid-day at 31/1, 2 flats and 1 acquired, ending with a positive close of 27/7 and 1 acquired;
  • Monday opened positive at 22/9, 3 flats and 1 acquired, flipped negative at the mid-day to 14/18, 2 flats and 1 acquired, closing negative 7/26, 1 flat and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “end it, last session of the month. Futures are like playing whack-a-ball” …  https://www.regmedinvestors.com/articles/12073

 

The Biostage (BSTG) Chronicles: “Facts from filed 10-Q” … https://www.regmedinvestors.com/articles/12055

 

Q2/21 Earnings releases … https://www.regmedinvestors.com/articles/11542  … to date:

  • Net Income: 3 and Net losses: 23

 

Key Metrics:

  • Sector volume was LOW with 7 of the 27-upside having higher than the 3-month average volume with very LOW volume of 3 of 7-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 27-upside were +0.07% (BLFS) to +4.16% (NTLA) while the 7-downside -0.75% (VSTM) to -11.58% (BSTG);

 

The Biostage (BSTG) Chronicles: Tuesday traded 11,564 shares traded (-$0.44 to $3.36) after Monday’s 25,607 shares traded (+$0.75 to $3.80), Friday traded 13,942 (+$0.47 to $3.07), Thursday traded 3,137 shares, Wednesday traded 18,472 shares traded (+$0.16 to $2.21), Tuesday closed up +$0.28 with 10,590 shares trade and Monday’s +$0.68 with 38,354 shares traded following the previous Friday’s -$0.07 with 570 shares traded.

Questions to consider:

  • Today is just another fact, how the share trades with the “push/promote” - another typical example,
  • WHAT is BSTG’s value proposition, after all the share price pumping?
  • What’s the end game of the “pumping” buys of stock in a company with NO clinical trial after an approved IND for 1.5 years and only three (3) or was it four (4) employees left in a 17,00 sq. foot lab? 
  • WHAT is the end game of “pumping” the share price as the float is MINIMAL compared to the ever-OUTSTANDING shares?
  • WHERE is the SEC?
  • Does the SEC [Securities and Exchange Commission] have a term for this – could it be said, it’s an affinity fraud?
  • Affinity scams often involve “Ponzi” or pyramid schemes where new investor money is used to pay earlier investors, making it appear as if the investment is successful and legitimate.

 

Pre-open Indications: 4 HITs <BUY:  bluebird bio (BLUE +$0.45), Cellectis SA (CLLS +$0.43), Intellia Therapeutics (NTLA +$6.40); SELL: Vericel (VCEL -$1.51)> 0 MISS>

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Intellia Therapeutics (NTLA), CRISPR Therapeutics (CRSP), Editas Medicine (EDIT), Sage Therapeutics (SAGE), Fate Therapeutics (FATE) to name 5 of the 27 inclining of the 35 covered

Hammered in today’s market:

  • Alnylam Pharmaceuticals (ALNY), Vericel (VCEL), ReNeuron (RENE.L), Mesoblast (MESO), Biostage (BSTG), Bellicum Pharmaceuticals (BLCM), Verastem (VSTM) to name 7 of the 7 declining of the 35 covered

 

Tuesday’s (10 of 27) incliners:

  • Intellia Therapeutics (NTLA +$6.40 after Monday’s -$6.05);
  • CRISPR Therapeutics (CRSP +$4.24 after Monday’s -$3.10);
  • Editas Medicine (EDIT +$1.79 after Monday’s -$3.73);
  • Sage Therapeutics (SAGE +$1.39);
  • Fate Therapeutics (FATE -$0.90);
  • Ionis Pharmaceuticals (IONS +$0.62 after Monday’s -$0.49);
  • Global Blood Therapeutics (GBT +$0.61 after Monday’s -$0.35);
  • AxoGen (AXGN +$0.58 after Monday’s -$0.34);
  • Regenxbio (RGNX +$0.53);
  • Ultragenyx (RARE +$0.50 after Monday’s +$1.84);

Tuesday’s (7 of 7) decliners:

  • Alnylam Pharmaceuticals (ALNY -$2.08 after Monday’s -$0.42);
  • Vericel (VCEL -$1.51 after Monday’s +$0.07),
  • ReNeuron (RENE.L -$1.50);
  • Mesoblast (MESO -$0.79);
  • Biostage (BSTG -$0.44 after Monday’s +$0.75),
  • Verastem (VSTM -$
  • Bellicum Pharmaceuticals (BLCM -$0.06);
  • Verastem (VSTM -$0.02);

Closing –1 Stemline Therapeutics (STML) – acquired

 

Stats:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Tuesday, the IBB closed up +0.17% and XBI closed up +0.92%
  • Monday, the IBB closed up +0.10% and XBI closed down -0.30%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.29 points or +1.79% at 16.48
  • Monday was down -0.20 points or -1.22% at 16.19

Upside volume:

  • Tuesday:  3 out of the 7-upside had higher than the 3-month average volume;
  • Monday: 3 out of the 7-upside had higher than the 3-month average volume;

Downside volume:

  • Tuesday: 7 out of the 27-downside had higher than the 3-month average volume;
  • Monday: 4 out of the 26-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: price versus percentage …

  • Tuesday’s percentage (%) of the 27-upside were +0.07% (BLFS) to +4.16% (NTLA) while the 7-downside -0.75% (VSTM) to -11.58% (BSTG);
  • Monday’s percentage (%) of the 7-upside were +0.13% (VCEL) to +24.59% (BSTG) while the 26-downside -0.04% (SAGE) to -5.69% (EDIT);

 

August, the second month of Q3/21:

Tuesday closed positive with 27 advancers, 7 decliners and 1 acquired

Monday (8/30) closed negative with 7 advancers, 26 decliner, 1 flat and 1 acquired

Friday closed positive with 30 advancers, 2 decliners, 2 flats and 1 acquired

Thursday closed negative with 9 advancers, 23 decliners, 2 flats and 1 acquired

Wednesday closed positive with 20 advancers, 13 decliners, 1 flat and 1 acquired

Tuesday closed positive with 21 advancers, 12 decliners, 1 flat and 1 acquired

Monday (8/23) closed positive with 32 advancers, 1 decliner, 1 flat and 1 acquired

Friday closed positive with 26 advancers, 5 decliners, 3 flats and 1 acquired

Thursday closed negative with 4 advancers, 28 decliners, 2 flats and 1 acquired

Wednesday closed negative with 9 advancers, 24 decliners, 1 flat and 1 acquired

Tuesday closed positive with 21 advancers, 12 decliners, 1 flat and 1 acquired

Monday (8/16) closed negative with 5 advancers, 28 decliners, 1 flat and 1 acquired

Friday closed negative with 6 advancers, 24 decliners, 4 flats and 1 acquired

Thursday closed positive with 19 advancers, 13 decliners, 2 flats and 1 acquired

Wednesday closed negative with 13 advancers, 16 decliners, 5 flats and 1 acquired

Tuesday closed negative with 12 advancers, 21 decliners, 1 flat and 1 acquired

Monday (8/9) closed positive with 18 advancers, 15 decliners, 1 flat and 1 acquired

Friday closed positive with 18 advancers, 16 decliners and 1 acquired

Thursday closed positive with 29 advancers, 1 decliner, 4 flats and 1 acquired

Wednesday closed negative with 12 advancers, 19 decliners, 3 flats and 1 acquired

Tuesday closed negative with 10 advancers, 233 decliners, 1 flat and 1 acquired

Monday (8/2) closed positive with 21 advancers, 13 decliners and 1 acquired

 

The BOTTOM LINE: the month of August ends.

When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started.

Q2 reporting season has essentially run its course; although a few remain with my questions of WHY so late …?

I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim any new highs if one can!”

 

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.

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.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.

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.