April 24, 2020 7:24am

“I won't be your fool no more” <Little Richard>, these markets have been tricking investors too much lately as we slide into a weekend

News: Mesoblast (MESO) 83% survival in ventilator-dependent COVID-19 patients (10/12) with moderate/severe acute respiratory distress syndrome (ARDS) treated with two infusions of MESO’s allogeneic cell therapy remestemcel-L (BUY)

Financing: Pluristem Therapeutics (PSTI) announced today that the European Investment Bank (EIB) has approved a €50 (US$53.94) million non-dilutive financing. (BUY)

Pre-open indications: 5 BUYs and 3 SELLs

What I provide is an “intelligence daily” to ensure that shareholders are kept apprised of “our” universe, the RegMed/cell and gene therapy sector and its surrounding market. Check the BOTTOM LINE <read more>

Dow future are UP +0.81% (+189 points), S&P futures are UP +0.85% (+24 points) and NASDAQ futures are UP +0.66% (+57 points)

 

U.S. stock futures were up as investors continued to weigh the prospects of a potential coronavirus treatment;

European stocks opened lower as traders looked ahead to fresh economic data and digested a report that raised doubts over a possible coronavirus treatment as the pan-European Stoxx 600 declined -1%;

Asia Pacific stocks declined as al three Chinese indexes dropped, South Korea and Japan fell as Australia closed higher with the MSCI Asia ex-Japan index dipping 0.63%.

 

Henry’omics:

At the crossroads ...

Yesterday, news of remdesivir knocked the major averages from their session highs, but another sharp rebound in oil prices capped the decline in equities.

Today, Friday - let the upside roll-on ... TGIF!

 

Thursday night’s title: “low volume volatility prevails”

  • The NASDAQ closed DOWN -0.63 points (-0.01%);
  • The IBB closed down -0.31% and XBI also closed down -0.05%;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.60 points or -1.43%;
  • Thursday opened positive and closed negative at 15/19;
  • 5 out of the 16-upside had higher than the 3-month average volume;
  • 4 out of the 19-downside had higher than the 3-month average volume;

Q2:

  • April registered 8 negative, 8 positive closes and 1 holiday.

Q1:

  • March registered 11 negative, 10 positive closes and 1 neutral close.
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

 

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

SELL on principle and into strength:

  • AxoGen (AXGN) and Athersys (ATHX) for taking PPP monies cheating the needy (in The Bottom Line)
  • Caladrius Bioscience (CLBS) closed down -$0.09 on words of a registered direct at-the-market offering and has a positive +$0.08 or +3.70% aftermarket indication and 3.24 million new shares are a lot to digest on top of the 10.4 million outstanding (8.14 million float);

BUY:

  • bluebird bio (BLUE) closed down -$1.76 but, had a positive +$2.00 or +3.715 aftermarket indication;
  • Mesoblast (MESO) closed down -$0.01 to $6.45 and has a positive +$2.14 or +33.18% pre-market indication on news (treated with two infusions of MESO’s allogeneic cell therapy remestemcel-L within the first five days under emergency compassionate use at New York City’s Mt Sinai hospital during the period March-April 2020;
  • Pluristem (PSTI) closed up +$1.37 and had a positive +$1.94 or +18.73% aftermarket indication with a 52-week change of 52.72% with a US$53.94 million offering (The financing will be deployed in three (3) tranches, subject to the achievement of certain clinical, regulatory and scaling up milestones, with the first tranche consisting of €20 million. The expected signing date of the financing agreement is 4/30/2020);
  • uniQure NV (QURE) closed up +$0.57 and had a positive +$0.90 or +1.60% aftermarket indication;
  • Regenxbio (RGNX closed up +$0.88 and had a positive +$0.24 or +0.62% aftermarket indication;

 

The BOTTOM LINE:

What really bothers me is that some companies are STEALING from the mouths of those most in need by manipulating the government PPP system – AxoGen (AXGN) and Athersys (ATHX) in particular.

From last night’s (Thursday) another public shaming due: AxoGen (AXGN +$0.09) after receiving $7.8 million from the Paycheck Protection Program (PPP) as Q1 revenues popped to $24.3 million, an increase of approximately 4% over Q1/19 and $96.51 million in cash (Q4’s numbers); called an emergency need,  just because you RIF’ed – 10% of employees - GIVE IT BACK - lousy PR and BAD optics, SHAME on this CEO joining Athersys’ (ATHX) rip-off of Americans … https://www.regmedinvestors.com/articles/11328

 

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.