September 3, 2021 7:10pm

The Biostage (BSTG) Chronicles: WHY hasn’t the SEC looked into this share pricing activity – Is this another Theranos – faking it to not make it?  <red more)

Pre-open indications: 2 HITs and 4 MISS

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

The week in review …

The Dow closed DOWN -74.73 points (-0.21%); the S&P closed DOWN -1.52 points (+0.03%) while the Nasdaq closed UP +32.34 (+0.21%) points

Henry’omics:

The Dow retreated on Friday and the S&P 500 slipped from a record high after the August jobs report came in short of expectations, showing the impact of the delta-fueled Covid resurgence.

The Nasdaq was the best performing index for the week, rising 1.5% while the S&P 500 gained roughly 0.6%, and the Dow shed -0.2%.

 

Data Docket: Nonfarm payrolls increased by 235,000 in August, the Labor Department said Friday. Economists surveyed by Down Jones were expecting 720,000 jobs. The report marks a significant slowdown from July’s revised number of 1.053 million and comes as the delta variant of Covid-19 has led to health restrictions being put back in place in some states and cities. <CNBC>

 

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

  • Friday opened negative at 11/22, 1 flat and 1 acquired, stayed negative at the mid-day at 8/26, 1 flat and 1 acquired, ending with a negative close of 8/26 and 1 acquired;
  • Thursday opened positive at 27/7 and 1 acquired, stayed positive at the mid-day at 24/9, 1 flat and 1 acquired, ending with a positive close of 27/5, 2 flats and 1 acquired;
  • Wednesday opened positive at 2/7, 3 flats and 1 acquired, stayed positive at the mid-day at 26/7, 1 flat and 1 acquired, ending with a positive close of 26/7, 1 flat and 1 acquired;
  • 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: “forward momentum but, is no clinical news good or bad. Jobs Friday amid the Delta variant's spread” … https://www.regmedinvestors.com/articles/12079

 

The Biostage (BSTG) Chronicles: “Facts from filed 10-Q” … still a few to report … 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 1 of the 8-upside having higher than the 3-month average volume with very LOW volume of 2 of -downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 8-upside were +0.69% (RGNX) to +12.54% (BSTG) while the 26-downside -0.58% (QURE) to -7.51% (ADVM);

 

The Biostage (BSTG) Chronicles: Friday closed up +$0.39 to $3.50 with 980 shares traded after Thursday closed up +$0.11 with 14,939 shares traded after Wednesday traded 22,299 shares (-$0.36 to $3.00) after Tuesday traded 11,564 shares traded (-$0.44 to $3.36), 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, last Wednesday traded 18,472 shares traded (+$0.16 to $2.21), the previous Tuesday closed up +$0.28 with 10,590 shares trade and following last 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? <Questions to consider – read more>
  • 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: 2 HITs < Fate Therapeutics (FATE -$2.52), Mesoblast (MESO +$0.24)> 4 MISS < Biostage (BSTG +$0.39), Cellectis SA (CLLS -$0.09), Sage Therapeutics (SAGE -$0.76), Global Blood Therapeutics (GBT -$0.37)   >

 

There are clear winners and losers

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), Intellia Therapeutics (NTLA) – yet another again, Ultragenyx (RARE) – again, MiMedx (MDXG), Biostage (BSTG) - pumped, Mesoblast (MESO), Regenxbio (RGNX), Pluristem (PSTI) to name 8 of the 8 inclining of the 35 covered

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), Editas Medicine (EDIT), Vericel (VCEL), Alnylam Pharmaceuticals (ALNY), BioLife Solutions (BLFS) to name 5 of the 26 declining of the 35 covered

 

Friday’s (8 of 8) incliners:

  • ReNeuron (RENE.L +$4.00);
  • Intellia Therapeutics (NTLA +$2.77 after Thursday’s +$9.47, Wednesday’s +$3.51, Tuesday’s +$6.40 and Monday’s -$6.05);
  • Ultragenyx (RARE +$0.93 after Thursday’s +$1.82, Wednesday’s +$3.36, Tuesday’s +$0.50 and Monday’s +$1.84);
  • MiMedx (MDXG +$0.51);
  • Biostage (BSTG +$0.39);
  • Mesoblast (MESO +$0.24);
  • Regenxbio (RGNX +$0.24);
  • Pluristem (PSTI +$0.12 after Thursday’s -$0.06);

Friday’s (10 of 26) decliners:

  • CRISPR Therapeutics (CRSP +$5.11 after Thursday’s +$0.71, Wednesday’s +$1.41, Tuesday’s +$4.24 and Monday’s -$3.10);
  • Editas Medicine (EDIT -$4.69 after Thursday’s +$6.28, Wednesday’s +$3.07, Tuesday’s +$1.79 and Monday’s -$3.73);
  • Vericel (VCEL -$3.37 after Thursday’s +$3.27, Wednesday’s +$2.31, Tuesday’s -$1.51 and Monday’s +$0.07),
  • Alnylam Pharmaceuticals (ALNY -$2.72 after Thursday’s +$3.14, Wednesday’s -$2.08 and Monday’s -$0.42);
  • BioLife Solutions (BLFS -$2.60 after Thursday’s -$4.64, Wednesday’s +$2.14 as BLFS registers acquisition),
  • BioLife Solutions (BLFS -$2.60);
  • Fate Therapeutics (FATE -$2.52);
  • Ionis Pharmaceuticals (IONS -$1.03);
  • Sage Therapeutics (SAGE -$0.76 after Thursday’s +$0.41, Wednesday’s +$0.62 and Tuesday’s +$1.39);
  • Chinook Therapeutics (KDNY -$0.53);

Closing –1 - Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Friday, the IBB closed down -0.11% and XBI closed down -1.41%
  • Thursday, the IBB closed up +1.11% and XBI closed up +1.07%
  • Wednesday, the IBB closed up +1.03% and XBI closed up +1.69%
  • 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:

  • Friday was flat at 0.00 points or 0.00% at 16.41
  • Thursday was up +0.30 points or +1.86% at 16.41
  • Wednesday was down -0.37 points or -2.25% at 16.11
  • 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:

  • Friday:  1 out of the 8-upside had higher than the 3-month average volume;
  • Thursday:  9 out of the 27-upside had higher than the 3-month average volume;
  • Wednesday:  7 out of the26-upside had higher than the 3-month average 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:

  • Friday: 2 out of the 26-downside had higher than the 3-month average volume;
  • Thursday: 2 out of the 5-downside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 7-downside had higher than the 3-month average 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 …

  • Friday’s percentage (%) of the 8-upside were +0.69% (RGNX) to +12.54% (BSTG) while the 26-downside -0.58% (QURE) to -7.51% (ADVM);
  • Thursday’s percentage (%) of the 27-upside were +0.16% (PGEN) to +9.42% (EDIT) while the 5-downside -0.28% (BCLI) to -7.67% (BLFS);
  • Wednesday’s percentage (%) of the 27-upside were +0.11% (BLUE) to +16.83% (BLCM) while the 7-downside -0.52% (KDNY) to -10.71% (BSTG);
  • 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);

 

September, the third month of Q3/21:

Friday closed negative with 8 advancers, 26 decliners and 1 acquired

Thursday closed positive with 27 advancers, 5 decliners, 2 flat and 1 acquired

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

 

 

The BOTTOM LINE: the month of September begins with the cell and gene therapy sector up for two (2) sessions and down for the third (3) on Friday.

I am still waiting for clinical data to validate the rush to the upside.

The upbeat mood for equities came despite signs that Asia's factory activity lost momentum in August and that U.S. private employers hired far fewer workers than expected last month, likely due to a resurgence in COVID-19 infections. (Reuters>

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.