February 19, 2020 8:23am

Pre-open indications: 8 BUYs and 6 SELLs

News: Cellectis (CLLS) (Paris: ALCLS) (Euronext Growth: ALCLS) and Servier, executed a binding term sheet to enter into an amendment to the agreement initially signed between the two companies in 2014. Applied Genetic Technologies Corporation (AGTC) has completed enrollment in the two (2) highest dose groups of its P1/2 clinical trial evaluating the safety and efficacy of sub-retinal injection of AGTC-501 for the treatment of X-linked retinitis pigmentosa (XLRP) caused by mutations in the RPGR gene.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

 

Dow future are UP +0.30% (+87 points), S&P futures are UP +0.29% (+10 points) and NASDAQ futures are UP +0.48% (+46 points)

 

US futures point to a higher open;

European stocks jumped as investors reviewed economic data and a weaker euro with the pan-European Stoxx 600 was up +0.5% by mid-morning;

Asia Pacific markets bounced back as Japan released its trade data for January, showing that its exports fell 2.6% year-on-year, less than the 6.9% drop expected. China’s return to work after its extended shutdown will be closely tracked. China state media reported (on Tuesday) that more than 80% of its central state-owned enterprises’ roughly 20,000 manufacturing subsidiaries have resumed work. But some analysts doubt the actual progress. MSCI’s broadest index of Asia-Pacific shares outside Japan was up +0.47%.

 

Data Docket: The Labor Department will publish its producer price index (PPI) for January at 8 a.m. ET, with housing starts for January, building permits for January, and a business leaders survey for February all due at the same time.

 

Henry’omics:

As I mentioned last night, “categorize the market and sector’s undercurrents” - the major one, China’s National Health Commission reported an additional 1,749 cases of the coronavirus nationwide, with 136 deaths while the World Health Organization (WHO) declared the outbreak a global health emergency.

Investors appear relatively confident in the ability of policy makers to contain fallout from the deadly coronavirus – should they be?

A highlight, European shares were bolstered slightly by a weaker euro, though the common currency edged up 0.1% to trade at around $1.0802 on Wednesday morning.

 

As James Baldwin once put it, “the most dangerous creation of any society is the man who has nothing to lose.”

 

Tuesday night’s post’s title was: “today is a call for investors to categorize the market and sector’s undercurrents.”

  • the NASDAQ closed UP +1.57 points (+0.02%);
  • the IBB closed up +0.05% and XBI closed up +0.52%;
  • the close was positive with an A/D line of 18/16, 1 flat of 35 covered;
  • the range of the 18-upside was +0.16% (FATE) to +22.67% (BCLI) while the -16-downside ranged from -0.02% (ALNY) to -3.35% (MESO); 
  • 5 out of the 18-upside had higher than the 3-month average volume;
  • 4 out of the 16-downside had higher than the 3-month average volume;

 

Q1:

February registered 4 negative, 7 positive closes and 1 holiday – so far.

January registered 9 negative, 10 positive closes and 2 holidays.

Q4:

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

 

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

Pre-open indications:  Maintaining SELL – PSTI, MDXG, FATE and ADVM,

New SELL: BLUE (aftermarket indication -$1.42 or -$1.61) -look at the per share difference in Q4 and FY19 versus Q4 and FY18) as expects a slower completion of its US application to market the beta-thalassemia treatment in the US only by the second half of the year, versus its previous estimate of the first half of 2020. AXGN is a profit taking target was up +$0.66 after Friday’s +$0.56)

Maintaining BUY – ALNY, CRSP, GBT, NTLA and RGNX

New BUY: AGTC and CLLS

 

 

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.