Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) pre-open: hammer time, volatility rules as pre-election nerves and COVID infection rates set the “play”

October 30, 2020 7:52am

Last session of October as Q4 progresses from and towards a rocky week

Pre-open indications: 1 BUY and 12 SELLs

What I provide is an “intelligence daily” 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

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Dow futures are DOWN -0.63% (-166 points), S&P futures are DOWN -0.64% (-121 points) and NASDAQ futures are DOWN -% (-114 points)

U.S. stock futures declined early Friday after indexes came under pressure following Q3 reporting, pre-election nervousness and increasing COVID-19 cases;

Nasdaq 100 contracts fell as much as 2.7% after Apple Inc.’s iPhone sales and Twitter Inc.’s user growth both missed estimates.

European markets were mixed over tightening coronavirus restrictions across the continent weighed on sentiment with the pan-European Stoxx 600 hovered just above the flatline;

Asia-Pacific markets were lower, as shares of Apple suppliers in the region declined after the Cupertino-based tech giant announced its Q4 earnings as the MSCI’s index of regional shares outside Japan fell -1.15%.

Henry’omics:

Reported earnings from tech companies and elevating volatility cast a pall over the morning moves fueled a decline U.S. equity-index future on Friday;

US indexes are on pace to post their worst weekly performance in months.

While the Dow and the S&P 500 are also set to post their second straight month of losses wrapping-up a turbulent October.

This month, the Dow is down 4%, and the S&P 500 -1.5% as the Nasdaq outperformed, rising +0.2%.

Some good news …

Moderna (MRNA) is prepping for the global launch of its potential coronavirus vaccine, already taking in $1.1 billion in deposits from governments awaiting the potentially lifesaving drug, the biotech firm said Thursday in its third-quarter earnings report. MRNA was in ongoing talks with the World Health Organization-backed COVAX initiative on a tiered pricing proposal for its potential vaccine, which it’s tentatively calling mRNA-1273. It already has supply agreements in North America, the Middle East and in other regions of the world.

Thursday night’s post: RegMed Investors’ (RMi) closing bell: “Assumptions are driving this market, never assume, it makes a buyer out of some and makes me a seller”

The Nasdaq closed UP +180.73 points (+1.64%);
The IBB closed up +0.53% and XBI closed up +0.88%;
Sector volume was the usual LOW with 3 of the 21-upside having higher than the 3-month average volume with the increased volume of 5 of 10-downside having higher than the 3-month average volume;
The CBOE Volatility Index (VVIX: INDEX) was down -2.69 points or -6.68% at 37.59;
Thursday’s percentage (%) of the 21-upside were +0.07% (PSTI) to +9.82% (ATHX) while the 10-downside ranges from -0.66% (CLBS) to -8.25% (KDNY);

Q4’s October, so far: 1 neutral, 11 positive and 9 negative closes

Q3: July through September: 1 neutral, 28 positive and 34 negative closes with 2 holidays

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

Maintaining Sell:

Biostage (BSTG) closed flat at $1.35 (after being up +$0.14 with pricing erosion with 16,972 shares traded – 3-month average = 5058 shares) after Wednesday’s -$0.04 to $1.36 with 261 shares traded, Tuesday’s flat at $1.40, Monday’s +$0.04 to $1.40 with 217 shares traded after last Friday’s -$0.07 to $1.36 with 200 shares traded.

Question#1: WHY is BSTG a “zombie’ trading company with an approved IND and NO clinical trial initiation?
Question#2; WHY hasn’t Mrs. bin Zhao, the major shareholder (of Weston, Mass) corrected the behaviors of the current management (after appointing her neighbor Hong Yu as president); has she and Jason Chen, the chairman of the board (located in Beijing, China forgotten U.S. shareholders have rights?
Question#3: WHO or WHICH firm is buying and trading these shares daily – possible MANIPULATION?
Question#4: WHERE and WHY isn’t the SEC and Mass Secretary of State, Department of Enforcement looking into these issues articulated over months?

SELL from BUY:

bluebird bio (BLUE) closed up +$0.40 to $52.89 after Wednesday’s -$1.24 to $52.49, Tuesday’s $53.73, Monday’s $53.52 and last Friday’s $55.53 with a NEGATIVE -$0.69 or -1.30% aftermarket indication;

CRISPR Therapeutics (CRSP) closed up +$1.64 to $96.35 after Wednesday’s -$3.41 to $94.71, Tuesday’s +$3.99 to $98.12 and Monday’s +$1.48 to $94.13 with a NEGATIVE -$1.35 or -1.40% aftermarket indication;

SELL into Strength:

Athersys (ATHX) closed up +$0.16 to $1.79 after Wednesday’s $1.63, Tuesday’s $1.62 and Monday’s $1.69 with a NEAGTIVE -$0.05 or -2.79% aftermarket indication;

BioLife Solutions (BLFS) closed up +$1.64 to $30.72 after Wednesday’s $29.08, Tuesday’s $30.24, Monday’s $28.71 and last Friday’s $29.02 with NO aftermarket indication;

Brainstorm Cell Therapeutics (BCLI) closed up +$0.67 to $10.75 after Wednesday’s $10.08, Tuesday’s $10.56, Monday’s $10.21 and last Friday’s $10.75 with NO aftermarket indication;

Homology Medicine (FIXX) closed up +$0.49 to $11.10 after Wednesday’s $10.61, Tuesday’s $11.18, Monday’s $11.00 and last Friday’s $11.23 with a POSITIVE +$0.10 or +0.90% aftermarket indication;

Ionis Pharmaceuticals (IONS) closed up +$1.03 to $ after Wednesday’s $45.82, Tuesday’s $46.98, Monday’s $47.01 and last Friday’s $47.34 with a POSITIVE +$0.15 or +0.32% aftermarket indication;

Sage Therapeutics (SAGE) closed up +$2.06 to $73.91 after Wednesday’s $71.85, Tuesday’s $70.85, Monday’s $68.50 and last Friday’s $71.51 with NO aftermarket indication but, a very “peaky” chart;

Voyager Therapeutics (VYGR) closed up +$0.25 to $10.96 with a NEGATIVE -$0.03 or -0.27% aftermarket indication;

Maintaining BUY:

Alnylam Pharmaceuticals (ALNY) closed down again -$1.56 to $123.32 after Wednesday’s -$1.94 to $124.88, Tuesday’s -$1.85 to $126.82, Monday’s -$3.12 to $128.67 and last Friday’s -$2.46 to $131.84 with NO aftermarket indication. Oversold as October 1^st began at $143.74 and seeing a high of $147.00;

SELL:

Bellicum Pharmaceuticals (BLCM) closed down -$0.50 to $5.90 on news of a $25 M offering with a NEGATIVE -$1.94 or -32.88% aftermarket indication;

Verastem (VSTM) closed up +$0.09 to $1.24 after Wednesday’s $1.15, Tuesday’s $1.24, Monday’s $1.22 and last Friday’s $1.22 with a NEGATIVE -$0.02 or -1.61% aftermarket indication;

The BOTTOM LINE: Short-term risk and sentiment continue to weigh on investors, there are certainly fleeting patterns.

The capricious risky asset pricing from a weakening epidemic and economic outlook could continue; which is diminishing trust in any circumstances, especially given all the uncertainty regarding the U.S.

Expect volatility to remain elevated for the next week or even two (2).

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.