May 31, 2018 5:42pm
Investors are leaving, algorithms are ruling and traders doing what they do - betting the risk and spreads for a ROI
Pre-open indications: 2 HIT and 3 MISS (money was made on 2 and was sold into minimal strength)
One (1) out of three (3) gene editing equities CRISPR Therapeutics’ (CRSP -$5.00) got hooked by the sector’s “Gong Show” while (EDIT +$0.34) and (NTLA +$0.31) open down and rebounded as the FDA “put the brakes” on Vertex (VRTX) and CRSP’s trial for more data … while VCEL dropped on news of an offering
The downside of 18 equities faded in a range of -$0.02 to -$1.85 with toppers of --$3.75 and $4.68 while the 24 upside equities oscillated from +$0.0072 to +$0.89 also with toppers of +$2.95 and $1.35
Quarterly (Q4) financial results: Organovo Holdings (ONVO)
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Henry’omics:
From the pre-open newsletter, “suspicion, big swings are usually a sign of another downdraft and the month of May is ending and should we be prepared for a June swoon?”
I also stated, “Watch as some of Wednesday’s “upsiders” take a “whack”!
Sector equities ended May on a sweet note with major indexes posting monthly gains and with the small-cap Russell 2000 outpacing its large-cap rivals.
Thursday’s performance left the Dow with a 1% monthly rise, while the S&P 500 advanced 2.2% and the NASDAQ booked a 5.3% increase.
The Russell 2000 index (RUT) of small-cap stocks left its large-cap rivals behind with a 6% May advance. The index finished at an all-time high on Wednesday, up 1.4%, to 1,646.36, and rose in early action Thursday before retreating 0.8% on the day.
What’s really happening, investors are getting hit with "unalike" risk scenarios!
June swoon?
The advance/decline line scenario of 45 covered companies:
- The open was positive with an A/DL of 28/16 and 4 flats;
- The mid-day slipped negative with an A/DL of 15/28 and 2 flat;
- The close was positive with an A/DL of 24/18 and 3 flats;
Pre-open indications: 2 HIT and 3 MISS
- bluebird bio (BLUE) closed down -$3.75 – miss;
- CRISPR Therapeutics (CRSP) closed up +$4.68 – hit;
- Editas Medicine (EDIT) closed up +$0.39 – miss;
- Intellia therapeutics (NTLA) closed up +$0.40 – miss;
- Vericel (VCEL) closed down -$0.50 – hit;
We are done with the month of May as measured by twenty two (22) sessions with fourteen (14) positive, seven (7) negative closes and one (1) holiday;
- Thursday (May 31) closed POSITIVE with 18 decliners, 24 advancers and 3 flat;
- Wednesday closed POSITIVE with 12 decliners, 31 advancers and 2 flat;
- Tuesday closed NEGATIVE with 27 decliners, 15 advancers and 3 flat;
- Monday (May 28) was a holiday
- Friday closed NEGATIVE with 21 decliners, 18 advancers and 6 flat;
- Thursday closed POSITIVE with 18 decliners, 23 advancers and 4 flats;
- Tuesday closed POSITIVE with 16 decliners, 27 advancers and 2 flat;
- Monday (May 21) closed NEGATIVE with 30 decliners, 12 advancers and 3 flat
- Friday closed barely NEGATIVE with 23 decliners, 22 advancers and 0 flat
- Thursday closed POSITIVE with 20 decliners, 23 advancers and 2 flat
- Wednesday closed POSITIVE with 15 decliners, 27 advancers and 3 flat
- Tuesday closed NEGATIVE with 21 decliners, 20 advancers and 4 flat
- Monday (May 14) closed POSITIVE with 10 decliners, 33 advancers and 2 flat;
- Friday closed POSITIVE with 16 decliners, 29 advancers and 0 flat;
- Thursday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;
- Wednesday closed POSITIVE with 12 decliners, 31 advancers and 2 flats;
- Tuesday closed NEGATIVE with 28 decliners, 16 advancers and 1 flat;
- Monday (May 7) closed POSITIVE with 15 decliners, 29 advancers and 1 flat;
- Friday closed POSITIVE with 8 decliners, 34 advancers and 3 flat
- Thursday closed NEGATIVE with 29 decliners, 11 advancers and 5 flats;
- Wednesday closed POSITIVE with 15 decliners, 22 advancers and 8 flats;
- Tuesday (May 1) closed POSITIVE with 15 decliners, 25 advancers and 5 flats;
MY working five (5) trend lines:
… The greatest volume to the downside: IONS, VCEL, BMRN, BLUE and ALNY
… Upside volume was weighted to: SGMO, VSTM, NTLA, ONVO and EDIT
… Biggest $ downside: CRSP (-$4.68), BLUE (-$3.75), SAGE (-$1.85), ONCE (-$1.74) and ALNY (-$0.99)
… Best moves to the $ upside: AXGN (+$2.95), GBT (+$1.35), RARE (+$0.89), BOLD (+$0.85) and SGMO (+$0.50)
… Flats: AGTC, OSIR and RENE.L
Quarterly (Q4) financial results: Organovo Holdings (ONVO)
Reported total revenue of $4.6 million, which was up 9 percent from the year-ago period. Total revenue increased primarily due to higher grant payments related to the NIH project and increased sales from cell-based products.
- During Q4, ONVO generated net proceeds of approximately $2.1 million from the issuance of 1.5 million shares of common stock in at-the-market offerings at a weighted average price of $1.40 per share,
Reported a net loss of -$7.449 M or -$0.07 per share as compared to $10.6 M or 0.10 per share in Q4/17,
- Reported FY18 net loss of $34.8 million or $0.32 per share, as compared to net loss of $38.4 million, or $0.39 per share, for fiscal 2017,
ONVO had cash and cash equivalents balance of $43.7 million.
Runway: 2020.
Daily analytics:
Stocks fell on Thursday after President Donald Trump slapped tariffs on the European Union, Mexico and Canada, sparking fears the U.S. could enter a trade war with some key partners.
- The Dow dropped 251.94 points or -1.02% to close at 24,415.84.
- The S&P 500 declined -18.74 points or-0.7% to 2,705.27.
- The NASDAQ closed down -20.34 points or - 0.3% to 7,442.12.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,
- Thursday traded at 15.43, up +3.38%
- Wednesday traded at 14.89, down -2.14%
- Tuesday traded at16.98, up +28.44%
- Monday was a holiday
- Friday traded at 13.22, up +5.51%
- Last Thursday traded at 12.62, up +0.32%
The iShares Russell 2000 (IWM) indicated:
- Thursday was down -0.84%
- Wednesday was up +1.57%
- Tuesday was down -0.12%
- Monday was a holiday
- Friday closed down -0.15 %
- Last Thursday closed up +0.05 %
The iShares NASDAQ Biotechnology (IBB) indication:
- Thursday was down -0.06%
- Wednesday was up +1.34%
- Tuesday was down -0.45%
- Monday was a holiday
- Friday closed up +0.22%
- Last Thursday closed up +0.08%
The count in May - decliners versus gainers:
……. look at the differences in decliners:
- Thursday’s decliners ranged from -0.29% <BMRN -$0.26 > to -6.36% <CRSP -$4.68 > in 18 equities;
- Wednesday’s decliners ranged from -0.24% <MDXG -$0.02 > to -3.13% <AST -$0.05> in 12 equities;
- Tuesday’s decliners ranged from -0.22% < AXGN -$0.10> to -4.56% <BSTG -$0.13> in 27 equities;
- Monday was a holiday
- Friday’s decliners ranged from -0.21% <GBT -$0.10> to -6.11% <VSTM -$0.35 > in 21 equities;
- Last Thursday’s decliners ranged from – 0.20% <BMRN-$0.18 > to -15.09% <AGTC -$0.80 > in 16 equities;
Versus
… Look at the percentage’s (%) and spreads …
- Thursday’s gainers ranged from +0.15% <FIXX +$0.03 > to +67.39% < AXGN +$2.95> in 24 equities;
- Wednesday’s gainers ranged from +0.07% <BMRN +$0.06 > to +7.03% <RGNX +$3.55 > in 31 equities;
- Tuesday’s gainers ranged from +0.08% <ALNY +$0.08 > to +7.49% <SLDB +$1.42 > in 15 equities;
- Monday was a holiday
- Friday’s gainers ranged from +0.06% <FIXX +$0.06 > to +5.53% <BCLI +$0-.24 > in 18 equities;
- Last Thursday’s gainers ranged from +0.11% <CRSP +$0.08 > to +7.5% <VSTM +$0.40 > in 23 equities;
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.
