October 19, 2021 7:44am

There must be some oversold gems

News: bluebird bio (BLUE) announced that October 19, 2021 has been set as the record date for the dividend of shares of common stock of 2seventy to be distributed to bluebird stockholders in order to affect the separation of bluebird bio and 2seventy bio, Inc. into two independent, publicly traded companies. <read more>

Pre-open indications: 2 SELLs, and 4 BUYs with 1 Pump (or No Promote)

What I provide is an intelligence daily. RMi outlines the prelude to the daily dose of facts and objectivity! 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.

Remember that overnight and pre-open actions in futures doesn't necessarily translate into actual trading in the coming day’s session.

Dow futures are UP +0.57% (+201 points), S&P futures are UP +0.56% (+25 point) and NASDAQ futures are UP +0.46% (+71 point)

 

U.S. stock futures are rising in Tuesday’s pre-market,

European stocks were cautiously higher,

Asia-Pacific stocks closed higher while Australia closed flat

 

Henry’omics:

On Monday, the S&P 500 rose +0.34% and Nasdaq +0.84% while the Dow dived -0.10%.

 

Interesting note: Johnson & Johnson (JNJ) shares gained in the premarket after the drugmaker’s Q3 earnings beats expectations. JNJ reported $2.60 in adjusted earnings per share for Q3, topping the consensus estimate from Refinitiv by $0.25 cents. Johnson & Johnson also raised its forecast for the year.

 

If you didn’t remember what happen at Monday night’s close and the quarter’s “number’s” impact, you won’t be prepared for today’s session:

Q4: October, 6 positive and 6 negative closes

Q3/21:

  • September, 1 holiday, 10 positive and 10 negative close
  • August - 12 positive and 10 negative close
  • July: 6 positives, 1 holiday and 15 negative closes

 

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

SELL with a Pump or no promote:

Biostage (BSTG) closed down again -$0.065 with 4,041 shares traded following Friday’s -$0.035 with 528 shares traded after Thursday’s flat at $3.13 with 22 shares traded after Wednesday’s +$0.09 with 3,492 shares traded – WOW after last Tuesday’s -$0.20 to $3.01 with 614 shares traded.

  • For a company with NO clinical trial, an a one (1) and a half year approved IND, four (4) employees and NO CRO <clinical research organization> initiation. What’s there to invest in – the “Sword of Damocles” hanging over its recent insurance company rejection of legal expense/costs of a terminal death suit against the company?

 

BUY from SELL: there’s life after split

bluebird bio (BLUE) closed up +$0.13 to $21.03 following Friday’s +$0.78 to $20.90 and is free-floating up with a +$0.07 or +0.33% pre-open indication.

  • BLUE announced that October 19, 2021 has been set as the record date for the dividend of shares of common stock of 2seventy to be distributed to bluebird stockholders in order to affect the separation of bluebird bio and 2seventy bio, Inc. into two independent, publicly traded companies.
  • Each bluebird bio stockholder of record as of the close of business on October 19, 2021 will receive, on the distribution date, one share of 2seventy common stock for every three shares of bluebird common stock held. The share dividend is expected to be distributed to bluebird stockholders on or about November 4, 2021. Following the separation, bluebird stockholders will also receive cash in lieu of any fractional shares of 2seventy common stock that those holders would have received after application of the 3:1 distribution ratio. No action is required by bluebird stockholders in order to receive the shares of 2seventy common stock in the dividend distribution.
  • "When-issued" <Form 10> trading for 2seventy common stock and "ex-distribution" trading for bluebird common stock is expected to commence on October 18, 2021 under the stock ticker symbols "TSVTV" and "BLUEV", respectively.

 

Maintaining BUY:

CRISPR Therapeutics (CRSP) closed down -$0.79 to $96.21 following Friday’s +$0.23 to $97.00, Thursday’s +$1.93 to $98.70, Wednesday’s -$5.82 and last Tuesday’s +$1.94 with a positive +$1.49 or +1.55% pre-market indication.

Intellia Therapeutics (NTLA) closed up +$0.34 to $130.83 fallowing Friday -$1.28 to $130.49 and has a positive +$0.17 or +0.13% pre-open indication.

Mesoblast (MESO) closed up +$0.05 to $5.73 with a positive +$0.07 or +1.22% pre-open indication

 

SELL the probabilities …

Ionis Pharmaceuticals (IONS)

Vericel (VCEL) into Monday’s strength of $1.26:

 

The BOTTOM LINE: “Stay frosty” … alert and ready for action, without letting one's fear or other emotions get in the way. The stem, cell and gene therapy earnings will be beginning 10/28 Thursday with Alnylam Pharmaceuticals leading the releases with Athersys ATHX) coming 11/15 (to date).

Theme is too much uncertainty I between, what’s more likely to me is skepticism …

Sector stocks have traded choppily over the past several weeks as investors contemplated the implications of ongoing price increases (i.e., inflation) against a backdrop of decelerating economic growth.

RMi’s daily report is a primer that may say little or a lot; yet it serves as insurance that all indications are being examined and evaluated.

 

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.

Regulation Analyst Certification (Reg AC): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

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