April 6, 2020 8:44am

For the oversold, it’s time to move on up!

Pre-open indications: 7 BUYs and 2 NEWS followed by many oversold seeking recognition

News: Mesoblast (MESO & ASX: MSB) an IND approved as Alnylam Pharmaceuticals (ALNY), and Dicerna Pharmaceuticals (DRNA) formed collaboration <read more>

What I provide is an “intelligence newspaper” to ensure that shareholders are kept apprised based on a 24-hour surveillance of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets

Dow future are UP +3.35% (+703 points), S&P futures are UP +3.30% (+82 points) and NASDAQ futures +279are up +3.50% (+262 points)

 

U.S. stock futures are surging Monday morning in unity with the EU and AP;

European markets steamed welcoming data showing the rate of new coronavirus infections and deaths is slowing as Europe’s Stoxx 600 jumped +2.7% at the open;

Asia Pacific markets rose as oil prices pared their losses in the afternoon of Asian trading hours after the CEO of Russian sovereign wealth fund RDIF told CNBC that Moscow and Riyadh are “very close” to an oil deal with markets closed in China for a holiday and the MSCI Asia ex-Japan index was +1.99% higher.

 

Henry’omics:

Some optimism seems to have been infuse that might stabilize … some sustainability in an inclining market.

  • A marked slowing increase in death rates and new infections in the hardest-hit countries, such as Italy and Spain, has sparked some positive momentum in global equities, with Europe’s Stoxx 600 jumping 2.5% at the open.

From the title, an idiomatic phrase “back in the saddle” means that (in my words) markets have started to do an “upside” again that they have recently done but then stopped doing …

And I continue, the phrase could be used for investors who had been hurt while riding this market and returned to ride once again once they partially recovered hoping the downside will take a break and the upside will returned.

Last week, the major averages posted their third (3rd) weekly decline in four. The Dow fell -2.7%, the S&P 500 lost -2.1% and the Nasdaq slithered down -1.7%.

 

The BOTTOM LINE: Remain cautious except the RegMed cell and gene therapy sector is totally oversold and should be subject to upside news of clinical data, acquisition at these prices or even “crashes” or selective delisting subject to the lack of capital market access. Let the "machines" set the pace and wait for an entry point of sustainability.

 

Friday night’s title: “any gains have vanished from continued weakness. We still haven’t seen the last of lows to initiate a bottom as no chart can determine a signal.”

  • the NASDAQ closed DOWN – 114.23 points (-1.53%);
  • the IBB closed down -1.35% and XBI also closed down -1.341%;
  • the range of the 12-upside was +0.76% (NTLA) to +10.53% (RENE.L) while the 23A-downside ranged from -0.33% (CRSP) to -13.04% (BSTG -$0.54); 
  • 4 out of the 12-upside had higher than the 3-month average volume;
  • 2 out of the 23-downside had higher than the 3-month average volume;

Q2:

  • April registered 2 negative and 1 positive closes

Q1:

  • March registered 11 negative, 1 neutral and 10 positive closes
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Bounce back targets of strength and volume:

  • ReNeuron (RENE.L),
  • Global Blood Therapeutics (GBT);
  • Homology Medicine (FIXX)

Maintaining targets to BUY:

  • bluebird bio (BLUE) closed down -$0.73 after Thursday’s +$0.10 to $42.61 that’s six (60 sessions of inclines – oversold;  
  • Sage Therapeutics (SAGE) closed down -$0.80 to $25.95 after being flat on Thursday at $26.75 and has down six (6) sessions;
  • CRISPR Therapeutics (CRSP) closed down -$0.13 to $39.38 after being down Thursday to $39.51;
  • Vericel (VCEL) closed down -$0.12 to $8.50 after Thursday’s up +$0.11 or +1.29% to $8.62. On 3/26, VCEL traded at $10.04 having traded 3/2 at $15.36 with a 52-week change of -50.81% - oversold;

BUY on News:

(MESO & ASX: MSB) has received clearance from the United States Food and Drug Administration (FDA) for an Investigational New Drug (IND) application to treat patients with acute respiratory distress syndrome (ARDS) caused by coronavirus infection (COVID-19) with intravenous infusions of its allogeneic mesenchymal stem cell (MSC) product candidate remestemcel-L.

Alnylam Pharmaceuticals (ALNY), and Dicerna Pharmaceuticals (DRNA) formed a development and commercialization collaboration on investigational RNAi therapeutics for the treatment of alpha-1 antitrypsin (A1AT) deficiency-associated liver disease (alpha-1 liver disease).

 

 

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.