June 20, 2018 8:06am

I’d be halving or turning a profit from some positions

 

A short-term outlook won’t go away. It’s about being responsive to the “happenings” of our sector, hope for a cure is a reason to invest but, not a financial metric

 

Corporate seats: Alnylam Pharmaceuticals (ALNY) appointed two new executives, Masako Nakamura as Senior Vice President, Head of Asia, and Jing L. Marantz, M.D., Ph.D., as Senior Vice President, Head of Medical Affairs.

Pre-open indications: 4 SELLs and 1 BUY

 

When RMi is right more than many times about “our” sector pricing and first in news; it just confirms why one should subscribe to understand how today’s pre-open indications shed light on share pricing!

 

U.S. stock index futures rose ahead of Wednesday's open

Dow futures are UP +0.39% (+97 points) and NASDAQ futures are UP +0.23% (+17 points)

 

US stock futures bounce back

European markets were higher, but the modest rebound was not enough to offset the previous session's losses as elevated fears of a full-blown Sino-U.S. trade war linger.

Asian shares rise as markets rebound from recent declines, but trade fears linger

 

Henry’omics:

The moves in premarket trade came after indexes posted heavy losses during Tuesday's session. U.S. stocks sank yesterday as trade tensions intensified, causing the Dow to close down almost 300 points, having erased all of its gains for the year during the session. The NASDAQ and S&P also closed lower.

The upside of a few will be taken-down while some oversold will see some daylight!

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a +0.52% upside in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a +0.48% upside in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a +0.49% upside in Wednesday’s pre-open

 

From Tuesday’s night’s newsletter: “pick a move, the path is clear … Hold, buy or sell – I recommend profiting in an uncertain and tentative market.”

I also stated, “As the week progresses you've got to wonder how many equities are going to react to the current trend … as news helped the some of the largest upsides.  It may all just be a game of bid’em up to the ultimate sell the overbought. However, "with investor is fickle and most traders are NOT optimism while too many investors are non-compos mentis – in regard to the risk boundaries of miscalculation! Those real risks tend to be NOT measureable or can be calculated as to timing.”

MY short-term focus always has its issues but, we can NOT be dependent on the “whims” of measurements analytics NOT used.  Operation metrics i.e. spending, G&A and R&D and the exposure of warrant coverage alongside ATM usage are more than important!

These are just “a few of my favorite things” – there are just TOO MANY Pygmalion’s actor types! They might TRY to dress-up or mostly down the “numbers” but, the disparities will be noticed by other quarterly line items!

“No one is forcing us to favor companies that meet or exceed their quarterly earnings guidance, but its human nature to do so <MarketWatch>.

 

Wednesday’s theme for the session: There are still some overbought that could be taken down.

 

Post Tuesday’s session, the iShares NASDAQ Biotechnology (IBB) was up +1.46% after Monday’s  -0.75% after Friday’s -0.11%, Thursday’s+0.81% and last Wednesday’s-0.38% - I am still anticipating a dip!

Re-capping Tuesday’s session:

  • Of the 45 covered the 19 downside equities finished in a range of -$0.01 to -$1.61 with biggest bottoms of -$ and $ and $ while the 24 upside equities oscillated from +$0.04 to $1.78 with toppers of $13.62, $6.19, $4.00 and $3.55 with 2 flat closes;
  • Tuesday’s decliners ranged from -1.52% <ALNY -$1.61 > to -0.23% <BCLI -$0.01 > in 19 equities;
  • Tuesday’s gainers ranged from +0.04% <BMRN +$0.04 > to +46.36% <SLDB +$13.62 > in 24 equities;

 

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

Caladrius Biosciences (CLBS) closed up +$2.66 or +67.34% to $6.61 with 3.91 M shares traded <e 3 month average = 28.3 K shares>. The aftermarket indication is an upside of +$1.58 or +23.9%. I wouldn’t be surprised if CLBS didn’t roll-out an offering since it has only 9.4 M shares outstanding? I will be watching for weaknesses but, enjoy the ride while it lasts and it will – BUY;

CRSPR Therapeutics (CRSP) closed down -$0.57 to $62.06 with 1.3 m shares traded <3 month average = 1.6 M> and is down in the aftermarket another -$0.56 or -0.90%. June opened at $67.13; saw a high of $68.15 and a low of $59.06. An”Icarus” candidate – SELL;

Verastem Oncology (VSTM) closed up +$0.09 to $8.67 after Monday’s +$2.05 to $8.58 with an aftermarket decline of -$0.02 or -0.23%. The “drama” of the incline also begets an “Icarus” effect – Maintaining SELL;

uniQure N.V. (QURE) closed up +$0.60 to $38.22 after Monday’s +$1.82 to $37.62. June 1st, QURE was $35.29, seeing a high of $37.62 and a low of $33.72. Also the chart looks “peaky” – an appropriate target especially with no news to sustain – Maintaining SELL;

Solid Bioscience (SLDB) closed up +$13.62 to $43.00 after Monday’s +$2.88 to $29.39 (+10.87%) on news of the clinical hold being lifted by the FDA. The aftermarket indication is a downside -$0.20 or -0.47% as June started off at $21.70, saw a high of $29.38 through twelve (12) sessions – that’s $21.30 or a +49.53% premium on the table – Maintaining SELL;

 

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.