September 13, 2021 7:52am

Future uncertainty suggests volatility continuity and some temporary lasting upside

News: Regenxbio (RGNX +$6.02 or +18.20% pre-open): AbbVie and RGNX entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, which would give the latter an upfront payment of $370 million.

Pre-open indications: BUY: 4; Maintain SELL: 1

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

Framing the main takeaway … pricing, volume and trading creates volatility and liquidity!

Dow futures are UP +0.54% (+186 points), S&P futures are UP +0.51% (+23 point) and NASDAQ futures are UP +0.45% (+70 point)

 

U.S. stock index futures pointed to a market rebound on Monday as the S&P 500 comes off its longest daily losing streak since February, <CNBC>

European stocks advanced with investors continuing to weigh up the European Central Bank’s latest policy decision and inflation data,

Asia-Pacific markets slipped with stocks in Hong Kong leading losses while Japan, South Korea and Australia all edged higher

 

Henry’omics:

Last week, the Dow was down -2.2% in its second negative week in a row; the S&P 500 -1.7% while the Nasdaq was 1.6% lower.

Traders this week will be focused on new data on inflation and spending. Each are likely to have moderated last month after initial reopening surges in demand and price increases earlier this year.

Inflation fears have contributed to the market’s recent losses while valuations have been under pressure since August’s jobs report, released by the Labor Department on September 3, missed expectations.

Despite last week’s losses, the Dow is 2.87% from its all-time high, while the S&P is 1.92% below its high-water mark. The Nasdaq has slid 1.87% from its record.

 

News (continued); Regenxbio (RGNX) may potentially receive up to $1.38 billion in milestone payments, the pharmaceutical companies ...

  • RGX-314 is currently in a pivotal trial for the treatment of wet age-related macular degeneration (AMD), an eye disorder causing blurred vision or a blind spot in the visual field. The trial is testing RGX-314 delivered under the retina.
  • It is also being studied in patients with wet AMD and diabetic retinopathy in two separate mid-stage clinical trials using a different type of delivery.
  • RGNX will be responsible for the completion of the ongoing studies of RGX-314. Both companies will share the costs of additional trials of RGX-314, they said.
  • AbbVie will lead the clinical development and commercialization of RGX-314 globally. <Reuters>

 

Data Docket: Monthly budget statement, August (-$302.1 billion during prior month). The Labor Department's August Consumer Price Index (CPI) is set for release on Tuesday.

 

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

 

  • The Nasdaq closed DOWN -132.76 points (-0.87%);
  • The IBB closed down -0.37% and XBI closed down -0.83%;
  • Sector volume was LOW with 1 of the 7-upside having higher than the 3-month average volume with very LOW volume of 3 of 26-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +2.15 points or +11.44% at 20.95;
  • Friday’s percentage (%) of the 7-upside were +0.44% (RARE) to +2.56% (EDIT) while the 26-downside -0.03% (ALNY) to -6.67% (GBT);

 

Q3/21:  

  • September, 1 holiday, 3 positive and 4 negative close
  • August - 12 positive and 10 negative close
  • July: 6 positives, 1 holiday and 15 negative closes

Q2/21 Earnings releases … https://www.regmedinvestors.com/articles/11542  … to date:

 

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

The Biostage (BSTG) Chronicles - Maintaining Sell – notice how the shares trade with the “pump/promote”?

Biostage (BSTG) closed down Friday -$0.19 to $3.79 with 22,124 shares traded after Thursday’s +$0.66 to $3.98 with 6,062 shares traded after Wednesday’s +$0.57 to $3.32 with 7,833 shares traded after Tuesday’s -$0.75 to $2.75 with 6,705 shares traded following last Monday’s Holiday

Question#1: Being able to trade a stock doesn't mean it is worth the share price; an equity that has WHAT is BSTG’s value proposition, after all the share price pumping – NO clinical trial after a 1.5-year-old IND?

Questiob#2: WHAT is the end game of “pumping” the share price as the float is MINIMAL compared to the ever-OUTSTANDING shares? 

MINORITY PUBLIC shareholders are waiting for the specific time, watching and weighing responses to MAINTAIN their RIGHTS.

 

Pre-open Indications:  who and what’s lookin’ which way …

BUY:

Regenxbio (RGNX) closed down -$0.56 and is up on news (above) +$6.02 or +18.20 in the pre-market,

Intellia Therapeutics (NTLA) closed down -$0.14 on Friday after Thursday’s +$0.02, Wednesday’s -$3.36 after being down Tuesday -$13.53 to $163.25 and last Friday’s up again +$2.77 to $176.78 with a positive +$2.23 or +1.39% pre-market indication,

CRISPR Therapeutics (CRSP) closed down on Friday -$0.72 after Thursday’s +$2.20 after Wednesday’s -$1.25 after being down Tuesday-$1.45 to $120.51 following last Friday’s -$5.11 to $121.96 and has a positive +$1.76 or +1.46% pre-market indication,

Editas Medicine (EDIT) closed up again +$1.65 after Thursday’s +$0.13, Wednesday’s -$2.41, Tuesday’s -$1.52 to $66.73 and last Friday’s -$4.69 and has a positive +$0.30 or +0.45% pre-market indication,

 

The BOTTOM LINE: The recent stem, cell and gene therapy sector action i.e., negativity suggests investors should be a bit more defensive, limiting new buys and perhaps curtailing overexposure.

Or it could say buying opportunities are here today and maybe tomorrow but  G O N E soon!

September, the third month of Q3/21:

  • Friday closed negative with 7 advancers, 26 decliners, 1 flat and 1 acquired
  • Thursday closed positive with 20 advancers, 13 decliners, 1 flat and 1 acquired
  • Wednesday closed negative with 7 advancers, 27 decliners and 1 acquired
  • Tuesday closed negative with 10 advancers, 22 decliners, 2 flats and 1 acquired
  • Monday (9/6) was a holiday
  • Friday closed negative with 8 advancers, 26 decliners and 1 acquired
  • Thursday closed positive with 27 advancers, 5 decliners, 2 flat and 1 acquired
  • Wednesday (9/1) closed positive with 20 advancers, 13 decliners, 1 flat and 1 acquired

Investors should take short-term profits to cash-up for coming drifts!

Some earnings’ Reports Outstanding:

  • Applied Genetic Technologies (AGTC), Mesoblast (MESO) – still trying to access, Pluristem (PSTI) and ReNeuron (RENE.L)

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.