July 27, 2020 8:20pm
Don’t drink the Kool-Aid, time to eat the olive, sip a real drink and close the tab
Pre-open indications: 6 HITs and 2 MISS
Q2 Earnings: CRISPR Therapeutics (CRSP) reported a Q2 loss of $79.7 million, or $1.30 a share, compared with a loss of $53.7 million, or $1.01 a share, in Q2/19.
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The Dow closed UP +114.88 points (+0.43%), the S&P closed UP +23.78 points (+0.74%) while the NASDAQ closed UP +173.09 points (+1.67%)
Pre-open indication results: 6 HITs <Biostage (BSTG -$0.00), Solid Biosciences (SLDB -$0.30), Brainstorm Cell Therapeutics (BCLI -$0.09), Mesoblast (MESO +$1.25), Editas Medicine (EDIT +$1.82), Homology Medicine (FIXX +$0.26) and 2 MISS <Adverum Biotechnologies (ADVM +$0.43), ), CRISPR Therapeutics (CRSP +1.77 with a -$2.41 aftermarket indication post earnings release).
Henry’omics:
U.S. stocks rose on Monday with the Nasdaq outperforming as RegMed/cell and gene therapy investors brace for earnings and lawmakers continue coronavirus stimulus negotiations.
Market sentiment was also boosted after the U.S. government allocated an additional $472 million towards Moderna’s (MRNA) coronavirus vaccine research with the stock jumping +$6.80 or 9.15% to $79.91.
The VIX — widely considered to be the best gauge of fear in the market — dipped to trade below 25.
RegMed/Cell and Gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Monday opened positive at 25/7 and 3 flats, stayed positive at the mid-day at 21/12 and 2 flats, closing positive at 22/11 and 2 flats;
- Friday opened negative at 7/27 and 1 flat, stayed negative at the mid-day at 6/29 and 1 flat, closing negative at 7/27 and 1 flat;
Key metrics:
- Sector volume was LOW with 3 of the 22-upside having higher than the 3-month average volume and 3 out of the 11-downside having higher than the 3-month average volume;
- Monday’s percentage (%) of the 22-upside were +1.64% (RGNX) to +10.01% (MESO) while the 11-downside ranged from -0.58% (BCLI) to -10.53% (SLDB);
Hammered in today’s market:
- ReNeuron (RENE.L), Global Blood Therapeutics (GBT), Solid Biosciences (SLDB), AxoGen (AXGN), Caladrius Biosciences (CLBS) to name 5 of the 11 declining of the 35 covered
Jumping with share pricing momentum:
- Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE), Editas Medicine (EDIT), CRISPR Therapeutics (CRSP), bluebird bio (BLUE) to name 5 of the 22 trading up of 35 covered
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday, the IBB closed up +2.67% and XBI also closed up +2.59%
- Friday, the IBB closed down -2.19% and XBI also closed down -2.34%
Monday’s (10 of22) incliners:
- Alnylam Pharmaceuticals (ALNY +$4.41 after Friday’s -$1.51);
- Ultragenyx (RARE +$3.65 after Friday’s -$1.16);
- Editas Medicine (EDIT +$1.82);
- CRISPR Therapeutics (CRSP +$1.77)
- bluebird bio (BLUE +$1.73 after Friday’s -$1.02);
- uniQure NV (QURE +$1.54 after Friday’s -$1.25);
- Fate Therapeutics (FATE +$1.35 after Friday’s -$0.62);
- Ionis Pharmaceuticals (IONS +$1.34 after Friday’s -$0.75);
- Mesoblast (MESO +$1.25 after Friday’s +$0.17);
- Sage Therapeutics (SAGE +$0.98 after Friday’s +$0.36);
Monday’s (11 of 11) decliners:
- ReNeuron (RENE.L -$9.00 after Friday’s -$3.50);
- Global Blood Therapeutics (GBT -$1.00);
- Solid Biosciences (SLDB -$0.300;
- AxoGen (AGN -$0.150;
- Caladrius Biosciences (CLBS -$0.11);
- Brainstorm Cell therapeutics (BCLI -$0.09);
- Pluristem (PSTI -$0.09);
- Athersys (ATHX -$0.07);
- Applied Genetic Technologies (AGTC -$0.06 after Friday’s +$0.03);
- Verastem (VSTM -$0.04 after Friday’s +$0.08);
- MiMedx (OTC Pink sheets: MDXG -$0.04 after Friday’s +$0.08);
Closing flat: 2 – Biostage (BSTG) and Stemline Therapeutics (STML – acquired)
Percentage (%) movement/range statistics: look closely … notice percentage (%) movements are declining
- Monday’s percentage (%) of the 22-upside were +1.64% (RGNX) to +10.01% (MESO) while the 11-downside ranged from -0.58% (BCLI) to -10.53% (SLDB);
- Friday’s percentage (%) of the 7-upside were +0.11% (RGNX) to +5.80% (VSTM) while the 28-downside ranged from -0.35% (ADVM) to -15.03% (BSTG);
Sentiment and a few daily indicators:
Traders are keeping their eyes peeled on Washington as lawmakers tried to push forward on another coronavirus stimulus package.
- Monday 4.26 million cases
- Friday 4.07 million cases
Monday’s death rate totaled 147,143 after Friday’s 144,780 and last Monday’s 140,563 <Johns Hopkins University>
Upside volume stats:
- Monday: 3 out of the 22-upside had higher than the 3-month average volume;
- Friday: 0 out of the 7-upside had higher than the 3-month average volume;
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was down -1.10 points or -4.26% at 24.74
- Friday was down -0.24 points or +-0.92% at 25.84
Downside volume stats:
- Monday: 3 out of the 11-downside had higher than the 3-month average volume;
- Friday: 3 out of the 28-downside had higher than the 3-month average volume;
July
Monday (7/27) closed positive with 22 advancers, 11 decliners and 2 flats
Friday closed negative with 7 advancers, 27 decliners and 1 flat
Thursday closed negative with 4 advancers, 29 decliners and 2 flats
Wednesday closed negative with 12 advancers, 22 decliners and 1 flat
Tuesday closed negative with 10 advancers, 24 decliners and 1 flat
Monday (7/20) closed positive with 24 advancers, 10 decliners and 1 flat
Friday closed positive with 24 advancers, 9 decliners and 2 flats
Thursday closed negative with 7 advancers, 25 decliners and 3 flats
Wednesday closed positive with 30 advancers, 4 decliners and 1 flat
Tuesday closed positive with 25 advancers, 8 decliners and 2 flats
Monday (7/13) closed negative with 4 advancers, 29 decliners and 2 flats
Friday closed negative with 9 advancers, 22 decliners and 4 flats
Thursday closed negative with 10 advancers, 24 decliners and 1 flat
Wednesday closed positive with 28 advancers, 5 decliners and 2 flats
Tuesday closed positive with 18 advancers, 12 decliners and 5 flats
Monday (7/6) closed positive with 19 advancers, 15 decliners and 1 flat
Friday was a market holiday;
Thursday closed positive with 18 advancers, 14 decliners and 3 flats
Wednesday (7/1) closed positive with 24 advancers, 7 decliners and 4 flats
The Bottom line: CRISPR Therapeutics AG (CRSP) reported a Q2 loss of $79.7 million, or $1.30 a share, compared with a loss of $53.7 million, or $1.01 a share, in Q2/19. Revenue declined to $44 million from $318 million in Q2/19.
- CRSP shares declined after the gene-editing company reported a wider-than-expected loss. CRSP shares declined after hours, following a 1.96% rise in the regular session to close at $92.12.
- Analysts surveyed (by FactSet) had forecast a loss of $0.95 cents a share on revenue of $18.1 million.
As I have stated, the LPS (loss-per-share) period is upon us as the coronavirus preyed upon “our’ universe.
Miss on expectation and forecast with -$3.75 or -4.07% aftermarket indication.
Volatility sketches a contradictory picture of the short-term. When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started
Same theme, different session: Skim if you can trim, buy if it will fly and sell if compelled!
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.
