November 16, 2020 7:52am

The number of coronavirus transmission are still rising, threatening the prospects of economic recovery.

Pre-open indications: 1 BUY and 4 SELLs

News:  Moderna’s (MRNA) potential 94% effectiveness should clear a path through the current uncertainty which just might indirectly control volatility

What I provide is an “intelligence daily” to ensure that shareholders are kept apprised based on a 24-hour surveillance of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  My gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times

Dow futures are UP +1.64% (+483 points), S&P futures are UP +1% (+36 points) and NASDAQ futures are DOWN -0.31% (-37 points)

 

U.S. stock futures rose early Monday …

European markets advanced with the pan-European Stoxx 600 climbed 0.7% in early trade;

Asia Pacific markets jumped after 15 economies in the region signed a deal that formed the world’s largest trade alliance with tech and auto stocks soaring.

 

Henry’omics:

The U.S. election result remains a key concern for investors as the Moderna (MRNA) news stifles the harangue.

Friday, the S&P 500 recorded a closing high attaining a one-week gain of +2.2%; while the Dow rallied +4% last week as the Nasdaq dived -0.6%.

 

Friday night’s recap: RegMed Investors’ (RMi) closing bell: “closing the sector’s week positivity after all the sour sentiment”

  • The Nasdaq closed UP +119.70 points (+1.02%);
  • The IBB closed up +1.10% and XBI closed up +1.06%
  • Sector volume was the usual LOW with 4 of the 22-upside having higher than the 3-month average volume with the increased volume of 6 of 11-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -2.25 points or -8.88% at 23.10;
  • Friday’s percentage (%) of the 22-upside were +0.40% (FIXX) to +11.85% (NTLA) while the 11-downside ranges from -0.31% (SLDB) to -6.91% (ATHX);

Q4’s: November, so far: 8 positive and 2 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 up +$0.045 with 1,010 shares traded to $1.47 after Thursday’s -$0.075 with 800 shares traded, Wednesday’s flat at $1.50 with 55 shares traded after Tuesday’s +$0.15 to $1.50 with 200 shares traded and last Monday’s -$0.25 to $1.35 with 2.235 shares traded).

  • Question#1: BSTG stated in its Q3 earnings’ 8-K, “Following the approval of Biostage’s Investigational New Drug Application from U.S. Food and Drug Administration (FDA) in March of this year, Biostage continued its efforts during the third quarter for clinical planning, including engaging with clinical research organizations as well as other contract research organizations in advance of the start of the clinical trial for the Company’s CEI product candidate.” With ONLY $2 million in cash and a PPP debt of $421 K; HOW are they going to AFFORD a trial?
  • Question#2:  WHY can’t BSTG jump into the pediatric market; they MUST COMPLETE 3-5 adult patient trial before they can even file for a NEW pediatric IND; isn’t that fact TRUE?

Global Blood Therapeutics (GBT) closed up +$2.88 to $43.11 after Thursday’s +$2.58 to $40.23, after Wednesday’s $37.65, Tuesday’s $37.80 and Monday’s $38.35, with a NEGATIVE -$0.25 or -0.58% aftermarket (Friday) indication

 

SELL into Strength:

Intellia Therapeutics (NTLA) closed up +$3.52 to $33.23 after Thursday’s $29.17, Wednesday’s $29.63, Tuesday’s $29.51 and last Monday’s $28.73 with NO (Friday) aftermarket indication. A 52-weeek change of +144.34, a short percentage (%) of float of 30.45% after blowing by a 52-week high of $31.46;

Ionis Pharmaceuticals (IONS) closed up +$2.32 to $51.57 after Thursday’s $49.25, Wednesday’s $49.21, Tuesday’s $50.18, and last Monday’s $50.10 with a POSITIVE +$0.43 or +0.835 aftermarket (Friday) indication;

 

BUY:

Applied Genetic Technologies (AGTC) closed down -$0.19 to $4.96 after Thursday’s $5.15, Wednesday’s $5.19, Tuesday’s $5.65 and last Monday’s $5.41 with NO (Friday) aftermarket indication;

 

The BOTTOM LINE:  A vaccine is on the horizon however; timing of a release is still indeterminate. The biggest question is WHO are the next buyers of our equity universe? Is it the same old players rolling in and … out?

In this COVID-19 environment – a new brand of outreach is needed to outlive the rotations.

We need EYES on PUR universe not, just trading/hedge or quant funds

 

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.