June 3, 2021 7:57am

Pre-open indications: 4 BUYs – EDIT, FATE, VSTM, RENE.L and 4 SELLs – BSTG, BLUE, MESO, AGTC

My version of the morning’s “indications” is about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  

Dow futures are DOWN -0.56% (-194 points), S&P futures are DOWN -0.67 % (-28 points) and NASDAQ futures are DOWN -0.95% (-130 points)

 

U.S. stock futures are lower in Thursday’s pre-open

European stocks were slightly lower

Asia-Pacific stocks were mostly higher in overnight trade

 

Data Docket: ADP’s employment report and weekly jobless claims data are due

  • Data releases in Australia showing positive retail sales growth and the latest economic data out of China slowing Chinese services activity growth in May. The Caixin/Markit services Purchasing Managers’ Index for May came in at 55.1 on Thursday, lower than the reading of 56.3 in April.

 

Henry’omics:

The S&P 500 sits less than 1% from its all-time high reached earlier last month, but it has been stuck around these levels for about the last two weeks. The S&P 500 is up 12% this year so far. Looking down today!

Not much to look forward to, the oversold need a “stroke” to get back on/in the green …

  • Wednesday, a stake was driven into the heart of the sector with a negative advance/decline line of 10/23 in the cell and gene therapy sector closing seriously downward;
  • Tuesday opened positive at 18/15, 1 flat and 1 acquired, strayed neutral by the mid-day to 16/16, 2 flats and 1 acquired, closing positive at 17/16, 1 flat and 1 acquired.

It also helps to also “Review the month of May, last week:  there were 3 negative sector closes of five sessions (beginning 5/24) after the previous week’s) beginning 5/17) two negative closes of five sessions following the mid-month (5/10) four negative closes of five sessions as Monday began the month (5/3) with one negative close.”

  • Bottom line: May ended with 8 positive, 12 negative beginning June with 1 positive and 1 negative closes.

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … thirty (31) to date …  https://www.regmedinvestors.com/articles/11628

 

Wednesday’s evening’s recap: “cell and gene therapy trips over the falling sentiment. A negative sector close following a barely positive Tuesday post a negative sector close on last Friday.” … https://www.regmedinvestors.com/articles/11938

  • The Nasdaq closed UP +19.85 points (+0.14%);
  • The IBB closed up +0.12% and XBI closed up +0.62%
  • Sector volume was LOW with 1 of the 10-upside having higher than the 3-month average volume with the volume of 4 of 23-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.42 points or -2.35% at 17.48
  • Wednesday’s percentage (%) of the 10-upside were +0.10% (BLUE) to +5.59% (BLCM) while the 23-downside ranges from -0.28% (BLFS) to -9.02% (BSTG);

Q2/21:

June: 1 positive and 1 negative close

May:   8 positive, 12 negative closes and 1 holiday

April: 10 positive and 11 negative closes

Q1/21:

  • March: 10 positive, 12 negative and 1 neutral closes
  • February: 9 positive, 10 negative closes and 1 holiday
  • January: 10 positive, 9 negative closes and 1 holiday

 

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

The Biostage (BSTG) - Maintaining Sell

Biostage (BSTG) closed down -0.11 to $1.11 with 5,673 shares traded, after Tuesday’s +$0.10 to $1.22 with 2216 shares traded post Monday’s holiday and Friday’s -$0.20 to $1.12 with 4.372 shares traded, Thursday’s flat at $1.30 after being down -$0.21 to $1.11 with 5617 shares traded (the “pump and promote” was back) and the previous Wednesdays at $1.30 again with 45 shares traded.

Question#1: WHY don’t they bring CREDIBILTY back to BSTG?

Question#2: Notice the volume numbers per session? WHY the need to “pump, promote and inflate” the share price; does the volume reflects the manipulation to execute the last remaining warrants?

MINORITY PUBLIC shareholders are waiting, watching and weighing responses to MAINTAIN their RIGHTS.

 

The morning’s indications:

SELL from BUY:

bluebird bio (BLUE) closed up +$0.03 to $31.14 after Tuesday’s -$0.01 to $31,11 and has a negative -$0.40 to -1.28% pre-market indication.

 

SELL:

Mesoblast (MESO) closed up +$0.15 to $7.54 with a negative -$0.25 or -3.32% pre-market indication post earnings and corporate updates.

 

Maintaining BUY:

Editas Medicine (EDIT) closed up +$0.82 to $35.04 after Tuesday’s +$0.27 to $34.22 and last Friday’s -$0.64 to $33.95 and has a negative -$0.61 or -1.74% pre-market indication.

 

BUY on Bounce:

Fate Therapeutics (FATE) closed down -$3.52 to $68.94 with a positive +$0.15 or +0.22% pre-market

ReNeuron (RENE.L) has a positive +$2.00 indication pre-U.S. open after Tuesday’s +$2.50 indication.

Verastem (VSTM) closed flat at $3.95 after Tuesday’s +$0.08 to $3.95 with a positive +$0.04 or +1.01% pre-market indication.

 

Maintaining SELL:

Applied Genetic Technologies (AGTC) closed down -$0.12 to $4.09 after Tuesday’s +$0.20 to $4.21 with a negative -$0.08 or -1.96% in the pre-market.

 

The BOTTOM LINE: This is a confused sector as sentiment fades, momentum is usurped, fundamentals are being ignored – or is it a test of our staying power in certain equities.

I am STILL sticking with, “highs are in store” in the new month as constraints come-off many states and some companies re-open their doors to employees.

Although, “I would consider new highs … to be SOLD into …complacency is in store as many investors actually get out to vacations (one indicator).”

A true contrarian thought …

My focus has always been “warning analysis” … my advice, trim and skim any new highs if one can!” I also see a number of lows that could be in the “pick-up” stock game.

My motto, never leave an investor uninformed about what I know!

 

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.