September 7, 2021 5:52pm

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: 4 HITs and 5 MISS

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

Some investors might love stem, cell and gene therapy stocks for their lottery ticket-like returns when a company strikes medical gold. A lottery ticket, however, costs only a buck or two, while getting a biotech company wrong can hurt a lot more than that.

The Dow closed DOWN -269.09 points (-0.76%); the S&P closed DOWN -15.40 points (-0.34%) while the Nasdaq closed UP +10.81points (+0.07%)

 

Henry’omics:

The Dow and S&P fell on Tuesday while the Nasdaq rose less than 0.1% (notching a record close) amid lingering concerns about the delta variant’s impact on the economic reopening.

Goldman Sachs downgraded its economic outlook over the weekend, citing the delta variant and fading fiscal stimulus. <CNBC>

Year-to-date, the Dow is up about 14.7%, the S&P has gained 20.3% and the Nasdaq has risen 19.3%. as Investors and analysts are still on the lookout for a major correction in September.

 

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

  • Tuesday opened positive at 25/8, 1 flat and 1 acquired, flipped negative at the mid-day to 9/24, 1 flat and 1 acquired, closing negative 10/22, 2 flats and 1 acquired;
  • Monday was a holiday
  • 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;

 

RegMed Investors’ (RMi) pre-open: “RegMed Investors’ (RMi) pre-open: through looking glass, what does one see? Some think by climbing through a mirror into the world that can see beyond; that the market is just a reflection, where everything is reversed, including logic. A holiday session short week with Rosh Hashanah (Jewish New Year) = low volume, high volatility?” … https://www.regmedinvestors.com/articles/12082

 

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 3 of the 10-upside having higher than the 3-month average volume with very LOW volume of 4 of 22-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 10-upside were +0.25% (FATE) to +12.31% (QURE) while the 22-downside -0.24% (BLFS) to -21.43% (BSTG);
  • Monday was a holiday

 

The Biostage (BSTG) Chronicles: Tuesday closed down -$0.75 to $2.75 with 6,705 shares traded following Monday’s holiday

Last Friday closed up +$0.39 to $3.50 with 980 shares traded, 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),

The previous 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: 4 HITs <SELL: Pluristem (PSTI -$0.13), ReNeuron (RENE.L -$0.00), Intellia Therapeutics (NTLA -$13.53), Biostage (BSTG -$0.75)> 5 MISS < BUY: Alnylam Pharmaceuticals (ALNY -$9.19), bluebird bio (BLUE -$0.63), Cellectis SA (CLLS -$0.25), CRISPR Therapeutics (CRSP -$0.25), Editas Medicine (EDIT -$1.53)>

 

There are clear winners and losers

Jumping with share pricing momentum:

  • uniQure NV (QURE), Chinook Therapeutics (KDNY), AxoGen (AXGN), Fate Therapeutics (FATE), Mesoblast (MESO) - again, to name 5 of the 10 inclining of the 35 covered

Hammered in today’s market:

  • Intellia Therapeutics (NTLA), Alnylam Pharmaceuticals (ALNY) - again, Ionis Pharmaceuticals (IONS), Editas Medicine (EDIT) - again, CRISPR Therapeutics (CRSP) - again, to name 5 of the 22 declining of the 35 covered

 

Tuesday’s (10 of 10) incliners:

  • uniQure NV (QURE +$3.83);
  • Chinook Therapeutics (KDNY +$0.52);
  • AxoGen (AXGN +$0.27);
  • Fate Therapeutics (FATE +$0.18);
  • Mesoblast (MESO +$0.17);
  • Precigen (PGEN +$0.12);
  • MiMedx (MDXG +$0.12);
  • Solid Biosciences (SLDB +$0.03);
  • Voyager therapeutics (VYGR +$0.02);
  • Applied Genetic Technologies (AGTC +$0.02);

Tuesday’s (10 of 22) decliners:

  • Intellia Therapeutics (NTLA -$13.530;
  • Alnylam Pharmaceuticals (ALNY -$9.19);
  • Ionis Pharmaceuticals (IONS -$1.97);
  • Editas Medicine (EDIT -$1.52);
  • CRISPR Therapeutics (CRSP -$1.45);
  • Biostage (BSTG -$0.75 after Friday’s +$0.39);
  • Regenxbio (RGNX -$0.64);
  • Sage Therapeutics (SAGE -$0.63);
  • bluebird bio (BLUE -$0.63);
  • Ultragenyx (RARE -$0.42);

Closing - 2 - Homology Medicine (FIXX), ReNeuron (RENE.L) and 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Tuesday, the IBB closed down -0.21% and XBI closed down -0.54%
  • Monday was a holiday
  • Friday, the IBB closed down -0.11% and XBI closed down -1.41%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +1.73 points or +10.54% at 18.14
  • Monday was a holiday
  • Friday was flat at 0.00 points or 0.00% at 16.41

Upside volume:

  • Tuesday: 3 out of the 10-upside had higher than the 3-month average volume;
  • Monday was a holiday
  • Friday:  1 out of the 8-upside had higher than the 3-month average volume;

Downside volume:

  • Tuesday: 4 out of the 22-downside had higher than the 3-month average volume;
  • Monday was a holiday
  • Friday: 2 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 10-upside were +0.25% (FATE) to +12.31% (QURE) while the 22-downside -0.24% (BLFS) to -21.43% (BSTG);
  • Monday was a holiday
  • 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);

 

September, the third month of Q3/21:

Tuesday closed negative with 10 advancers, 22 decliners, 2 flats and 1 acquired

Monday was a holiday

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 two (2) sessions and a holiday.

Drug stocks including Johnson & Johnson (J&J), Merck (MRK) and Amgen (AMGN) all closed lower after Morgan Stanley downgraded the three stocks.

I am still waiting for clinical data and foresee a bumpy September-October.

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.