March 19, 2020 8:38am

Also, to express something that follows as a direct consequence of more market losses and being grossly oversold

Pre-open indications: 9 BUYs and 1 SELL

March continues as a rollercoaster theme month – my version of the morning’s forecast is written to what I perceive is about to happened 

Dow future are DOWN -3.02% (-599 points), S&P futures are DOWN -2.88% (-69 points) and NASDAQ futures are DOWN -2.20% (-158 points)

 

U.S. futures are gyrating to a negative open after alternating in overnight trading;

European markets traded higher after the European Central Bank launched a 750 billion-euro (US$820 billion) bond-buying program designed to help the region’s economy as the pan-European Stoxx 600 advanced 1.5% in early trade;

Asia Pacific markets declined, sliding over continuing fears and economic impact as the Wuhan originating pandemic continued to weigh on investor sentiment.

 

Data Docket: The Fed emergency authority created a backstop for prime money market mutual funds; the new Money Market Mutual Liquidity Fund will provide loans to financial institutions to buy assets from prime money market funds. The White House is also weighing a fiscal package of more than $1 trillion that includes direct payments to Americans and financial relief to small businesses and the airline industry.

 

Henry’omics:

Last night (Wednesday) futures contracts tied to the major U.S. stock indexes jumped after the European Central Bank (ECB) joined the Fed in announcing a massive stimulus plan to help combat the impact the coronavirus.

  • Futures swung higher after the ECB announced a new Pandemic Emergency Purchase Program that will deploy €750 billion ($819 billion) to purchase securities to help support the European economy. The central bank said purchases will be conducted until the end of 2020 and include a variety of assets including government debt.

 

Investors are having difficulty analyzing the stock market because there are no prior models similar to the scope of the coronavirus or the truth as I call it, the Wuhan virus.

BUY, or hold or be complacent as one shouldn’t sell too much into a decline other than to raise cash depends on your entry pricing.

It might seem … very early but, I would forget the sticks and cautiously … start the game of “pick-up-stocks”!

When in the big casino, bet’em if you’re feelin’ lucky!

 

Wednesday night’s title: “another liquidity scramble as volatility speeds through open lanes of resistance. Buying opportunities are beginning, adjust portfolios in reaction to share pricing, revenue, runways, operating cash usage specifically G&A and not always management team longevity.”

  • the NASDAQ closed DOWN -344.94 points (-4.70%);
  • the IBB closed down -2.93% and XBI also closed down -2.94%;
  • the range of the 10-upside was +0.68% (QURE) to +11.64% (PGEN) the 25-downside ranged from -2.22% (GBT) to -26.64% (ADRO); 
  • 9 out of the 10-upside had higher than the 3-month average volume;
  • 15 out of the 25-downside had higher than the 3-month average volume;

 

Q1:

  • March registered 8 negative and 5 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.

Q4:

  • December register 11 negative and 10 positive closes
  • November registered 8 negative, 12 positive and 1 holiday closes;
  • October registered 14 negative, 10 positive and 1 neutral closes;

 

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

Pre-open indications: after hugging the ground, one has to advance under fire to achieve your mission of taking the high ground for safety forgetting share pricing attrition - save the portfolio!

SELL:

  • Fate Therapeutics (FATE closed up +$0.77 to $22.97 and had a -$0.81 or -3.52% aftermarket indication);

BUY:

  • ReNeuron (RENE.L with an early U.S. pre-market indication of +$2.30 or +2.97% - was oversold;
  • Ionis Pharmaceuticals (IONS closed down -$1.04 to $43.46 and started 3/2/2020 at $52.30 – continues oversold;
  • Athersys (ATHX closed down -$0.04 to $1.42 and has a pre-market indication of +$0.22 or +15.49%;

Maintaining BUY: 

  • Applied Genetic Therapeutics (AGTC closed down -$0.29 to $2.36 and on 3/2/2020 traded at $4.82 after it has completed the planned enrollment in all dose groups for adult patients (age 18 years or older), including the two higher dose groups, of its P1/2 clinical programs with achromatopsia due to mutation in the ACHM CNGB3 or ACHM CNGA3 genes. The company continues to enroll pediatric patients at the higher dose groups in both trials on 3/16/2020.
  • Sage Therapeutics (SAGE closed down -$0.80) announced next steps in the Landscape Program, the clinical program evaluating zuranolone (SAGE-217) for the treatment of postpartum depression (PPD) and major depressive disorder (MDD), following a Breakthrough Therapy guidance meeting with the FDA. SAGE has identified three potential pathways intended, if successful, to support a possible filing for approval of zuranolone in the U.S. in two novel indications – PPD and acute treatment of MDD when co-initiated with a new antidepressant – along with the previously disclosed development plan for the treatment of MDD as an episodic therapy.
  • Global blood Therapeutics (GBT closed down -$1.05 with a -$0.16 aftermarket indication) – with Willie Brown, Director of the company spent $524k on stock at an average price of $52.37 – on 3/2/2020 the stock was trading at $66.21; I believe oversold;
  • Vericel (VCEL closed down -$2.11 with a +$0.17 aftermarket indication) – repeating the chart looked forlorn, down -$5.30 in seven (7) sessions, on 3/2/2020 the shares were trading at $15.36 - oversold;
  • bluebird bio (BLUE closed down -$1.58 and on 3/2/2020 was trading at $73.84 – oversold;

The gene editors:

  • CRISPR Therapeutics (CRSP closed up +$1.47 to $38.47 and has a +$0.13 aftermarket indication with a 3/2/2020 pricing of $53.35;
  • Editas Medicine (EDIT closed up +$1.51 to $18.29 with a +$0.12 aftermarket indication and a 3/2/2020 share pricing of $22.72;
  • Intellia Therapeutics (NTLA closed down -$0.47 to $11.11 and has a -$0.21 aftermarket indication with a 3/2/2020 share price of $13.40;
  • Sangamo Therapeutics (SGMO closed up +$0.06 to $5.56; a baby step share pricing model that started 3/3/2020 at $8.50;

 

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.