August 31, 2022 7:48am
After the major indexes undercut Tuesday’s key support levels
Indications: I am abstaining as sector direction is compromised yet sticking by the Pump/Promote by Biostage (BSTG)
RMi outlines a daily bell ringing of “indications” about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session.
More frequently right than consequentially wrong; there is VALUE out there. What I provide is an intelligence daily.
The 8:00 A.M., ET edition
Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.
Dow futures are UP +0.06% or (+19 points), S&P futures are UP +0.20% (+8 points) and NASDAQ futures are UP +0.56% (+68 points) early in the pre-open – so far,
Stock futures were slightly higher Wednesday,
European markets were jittery giving back opening gains,
Asia Pacific markets were mixed as China indexes drop as factory activity shrinks.
Henry’omics:
Tuesday, the Dow slid -1%, the Nasdaq dropped 1.1%, and the S&P 500 slumped 1.1%,
“A surprising jump in job openings raised expectations for big Fed rate hikes, triggering Tuesday's market retreat.” <IBD>
Economic Data Docket: more Fed speeches. Chicago PMI and ADP employment data are also due out in the morning. and Friday’s August job’s report.
· Mortgage demand falls even further, as rates shoot back up to July highs. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.80% last week from 5.65% the previous week.
RegMed Investors’ (RMi) closing bell: “approaching August’s end with more sector declines. Fear and expectation of September inhibits this market.” … https://www.regmedinvestors.com/articles/12586
Ebb and flow –
Q3/22 – August – 11 positive and 11 negative closes
· July - 1 holiday, 10 negative and 10 positive closes
Q2/22 –
· June – 1 holiday, 9 positive and 11 negative closes
· May - 11 positive and 10 negative closes
· April - 1 holiday, 6 positive and 13 negative closes
Q1/22:
· March – 13 negative and 10 positive closes
· February stats: 11 negative, 8 positive closes and 1 holiday
· January stats: 2 holidays, 1 neutral, 13 negative and 6 positive closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Basically, I am abstaining … let the market drive the sector
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$1.05 with 675 shares traded after Monday’s -$1.75 with 17,027 shares traded after Friday’s +$0.15, Thursday’s -$0.40 (was -$2.20) trading 7,913 shares <3-month average = 1,343>, Wednesday’s +$2.20 with 13,882 shares traded and last Tuesday’s +$0.45 with 1,249 shares traded following the previous Monday’s flat,
· How much lipstick is a lot on this pig with an almost 4-year-old IND and NO clinical trial initiation?
· WATCH and be ready for a BIG reverse of shares to enable offering from multiple private placements as it tries to facilitate an offering with Newbridge Securities?
The BOTTOM LINE: I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
I try to keep it simple … and short!
How many companies are LOSING the investment high ground?
TOO MANY …!!!
In August, the cell and gene therapy sector was not acting well.
Sector’s fundamentals have NOT improved since the beginning of the year – they roll up, down and round.
Investors need to come to terms of the cell and gene therapy sector’s state of affairs and health as individual company’s actions cast doubts upon sentiment as reflected by two (2) negative sessions, followed by three (3) positive sessions and five (5) negative sessions
Companies NEED transparency and advantage of good practices in relation to outreach to investors which means … NOT to enrich themselves at shareholder’s expense!
CEO salaries, spending the G&A are totally OUT-OF-WHACK; these are companies are in the development stage and will be for years without products in most cases not like the tech companies, who CEOs and management teams think they should be compared to for bi-weekly cash and “beanies”!
When it comes time to invest or even hold onto an investment; I’d say … focus on what percentage ownership of stock … NOT options CEOs and management teams own versus their salary and bonus.
Also, investors can’t afford the outsized valuation price targets by I-Banks research and believe that CEOs are “accomplices” to over-estimating expectation and guidance in regard to valuation
The only thing investors are able to hang to at that point is HOPE – which is not a technical or fundamental indicator. Keep your eyes on historical pricings that, haven’t responded to I-Bank research price targets.
As I have written, “I devote a lot of time to the direction of the sector to reckon the geography of my coverage group.”
As I continually question, “As I have further questioned, “The real question that should be asked is how many companies are at the end of sentiments leash? Start by looking at cell and gene therapy companies trading below cash!”
That doesn't mean you should flee entirely to cash, but investors make sure gains don't evaporate thus … be quick to drop losing positions.
Whether information or intelligence is good, bad or somewhere in between; 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.
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 securities referred to in this publication.
