August 8, 2019 8:34am
Too much value has disappeared from macro headlines, volatility and low volumes
It’s simple, clinical initiatives need to be driven by trial data results - it's been weak!
I am tired of what the yuan is priced; it should not reflect the pricing of “our” universe!
Framing the week’s headlines, geo-political disruption and earnings!
The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether expectation of August and quarter’s (Q2) reporting initiate tumultuous value propositions.
Dow futures are UP +0.23% (+59 points), S&P futures are UP +0.32% (+9 points) and NASDAQ futures are UP +0.49% (+37 points)
U.S. stock index futures were slightly higher and fluctuating after better-than-expected Chinese data;
European stocks traded higher as investors swing back toward risk assets and digest a range of corporate earnings as the pan-European Stoxx 600 jumped +0.09%;
Asia Pacific stocks mostly gained as Chinese customs data showed a surprise jump in the country’s July exports despite a protracted trade war with the US;
Data docket: jobless claims at 08:30 a.m. ET and wholesale trade numbers due at 10:00 a.m. ET.
Henry’omics:
I am tired of what the yuan is priced; it should not reflect the pricing of “our” universe!
Yet, markets are focused on China reporting trade data that was better-than-expected despite mounting economic pressure from elevated U.S. tariffs.
Need I say more this a.m.!
There is also too much scripting to earnings calls, guidance needs to projected on clinical data dates as well as spending on R&D and the growing G&A – of which I have questions concerning operating expense and more of the diversity of its disease platform categories.
And then there are the real issues of “runways”!
Free association on an earnings’ conference call will get one in trouble but, when a CEO just reads the script and it comes off as “crap”! How many times have we heard “posers” – too many!
Look at what they do, versus what they say and what are they being paid … for what a title!
Revenue from partnerships and collaborations is a value denominator as is separation from dependence on capital market access
A bottom line influence, in how many sessions do we reflect on just … exits after disappointing results, good news being sold into and the flights of up and down weeks of value depreciation?
What is the angina value of holding on to some equities; bottoms have not totally realized?
I’d be dipping my toe in a number of equities that have … reported quarterly results – only!
From Wednesday’s evening post, “the share pricing merry-go-round keeps spinning. Where are the headlines of clinical initiatives and data results? Q2 earnings season is not doing investors any favors.”
• The NASDAQ was up +29.56 or +0.38% to 7,862.83;
• The IBB closed up +0.27% and the XBI closed up +0.30%
• The close was negative with an A/D Line of 19/21 and 3 flats and 2 acquired;
• The range of the 19 upside was +0.14% (BCLI) to +8.23% (ALNY) while the 21 downside ranged from -0.22% (BLUE) to -29.24% (AXGN);
• 5 out of the 19 upside had higher than the 3 month average volume;
• 10 out of the 21 downside had higher than the 3 month average volume;
August has 2 POSITIVE and 3 NEGATIVE closes, so far
Companies in my headlights – It’s your decision; I provide an idea and context:
*** Of those of “our” universe who have reported, I’d be buying the depreciated ***
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.
