November 27, 2020 8:02am

Never forget gravity as a force with a laundry list included …

Pre-open indications: 6 BUYs and 9 SELLs

News: Biogen (BIIB) and Sage Therapeutics (SAGE) enter into an agreement to jointly develop and commercialize zuranolone and SAGE-324 in the U.S.

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Dow futures are UP +0.20% (+60 points), S&P futures are UP +0.21% (+8 points) and NASDAQ futures are UP +0.36% (44 points)

 

U.S. stock futures started higher yet, skittish; as U.S. equity markets are due to close at 1 p.m. ET;

European markets edged lower with the pan-European Euro Stoxx 600 index -0.2% lower;

Asia-Pacific markets pushed higher on Friday as investors reacted to data on China’s industrial profits for October.

 

Henry’omics:

Stocks have been pulling-back from the past rally beginning earlier tin his week.

I expect a continuation, as I continue to bet on baskets and a laundry list, it is a BLALK Friday which could have a double meaning.

 

News: Biogen (BIIB)and Sage Therapeutics (SAGE) enter into an agreement to jointly develop and commercialize zuranolone and SAGE-324 in the U.S.

  • BIIB to receive exclusive license to develop and commercialize zuranolone and SAGE-324 outside of the U.S., excluding rights to zuranolone in Japan, Taiwan and South Korea.
  • SAGE is to receive $1.525 billion in cash comprised of an upfront payment of $875 million and a $650 million equity investment as well as potential milestone payments, profit sharing and royalties
  • Through this collaboration, SAGE and BIIB have the potential to build something greater together than either could have done alone. S/B will leverage each other’s existing expertise while continuing to build new capabilities in our efforts to create paradigm shifts in the treatment of depression, PPD and essential tremor -- disorders that have gone too long with few treatment innovations. Additionally, the cash from the collaboration is expected to enable Sage to accelerate and expand value potential for its pipeline and will enhance Sage’s strategic, financial and operational flexibility as well as strengthening our multi-franchise approach.

 

An Update: RegMed/Cell and Gene Therapy Earnings Scorecard Q3/20 LPS Results https://www.regmedinvestors.com/articles/11628     

 

Wednesday’s day night’s recap: RegMed Investors’ (RMi) closing bell: “some momentum equities acceded to the falling knife’s theory. Trim portfolio positions before they come back to earth” … https://www.regmedinvestors.com/articles/11651

  • The Nasdaq closed UP +57.08 points (+0.47%);
  • The IBB closed up 0.51% and XBI closed UP +0.60%
  • Sector volume was the usual LOW with 7 of the 21-upside having higher than the 3-month average volume with the increased volume of 1 of 10-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.39 points or -1.80% at 21.25
  • Wednesday’s percentage (%) of the 21-upside were +0.01% (CRSP) to +23.03% (PGEN) while the 10-downside ranges from -0.17% (ALNY) to -8.72% (MESO);

Q4’s: November, so far: 15 positive and 3 negative closes

  • Q4’s October: 1 neutral, 11 positives with 1 negative closes
  • Q3: July through September: 1 neutral, 28 positive and 34 negative closes with 2 holidays

 

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

Maintaining Sell:

Biostage (BSTG) closed flat again at $1.40 with 685 shares traded after Tuesday’s 854 shares traded, Friday’s 900 shares traded, Monday’s 2,100 shares traded and last Friday’s 1,704 shares traded – 7 trading days at $1.40.

  • Question#1: WHY is BSTG a considered ZOMBIE company; Hong Yu’s president, Shunfu Hu’s head of operations and business development and NOTHING is in clinical trials in nine (9) months, so WHERE are they going with this scientific platform? Wonder WHY?

 

SELL into Strength:

Fate Therapeutics (FATE) closed up again +$1.86 to $57.13 after Tuesday’s +$0.98 to $55.27, Monday’s+$1.64 to $54.29 and last Friday’s +$2.94 to $52.65 99 with a NO aftermarket indication. A 52-week change of +265.75% and a short percentage (%) of float of -23%, There’s “room” to profit;

 

SELL: a laundry list

Athersys (ATHX)

BrainStorm Cell Therapeutics (BCLI)

bluebird bio (BLUE)

Global Blood Therapeutics (GBT)

Ionis Pharmaceuticals (IONS)

Precigen (PGEN)

Verastem (VSTM)

 

BUY: the basket

Alnylam Pharmaceuticals (ALNY)

Applied Genetic Technologies (AGTC)

BioLife Solutions (BLFS)

Intellia Therapeutics (NTLA)

Editas Medicine (EDIT)

Sage Therapeutics (SAGE)

 

The BOTTOM LINE: some reckoning is coming, whether today or next week – I’d be lowering my portfolio’s share pricing risk profile.

Algorithms are circling …

 

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.