May 16, 2023 8:02am
Dropping coverage of Avrobio (AVRO $0.619) – 31 sessions under $1.00 and Verastem (VSTM $0.419) – 204 sessions under $1.00 Nasdaq minimum
Pre-open indications: 2 Positive and 3 Negative indications
My interpretation of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today, not tomorrow or yesterday.
Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors! Join me … in the NO spin zone.
8:00 a.m. edition
Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session. My interpretation of the morning’s numbers is written to be informative; it’s built on what will happen behind the headlines today, not tomorrow or yesterday
Dow futures are DOWN -0.24% or (-79 points), S&P futures are DOWN -0.11% or (-4 point) and NASDAQ futures are DOWN -0.06% or (-7 points) early in the pre-open – so far
Stock futures slipped on Tuesday, May 16, 2023,
European markets were basically flat,
Asia Pacific markets trading were mixed
Henry’omics:
We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes cruised to a positive close as the Dow closed UP +47.98 points (+0.14%), the S&P closed UP +12.20 points (+0.30%) while the Nasdaq closed UP +80.47 points (+0.66%)
“Investors are anxiously awaiting progress on a deal to raise the debt ceiling before June 1, which is the earliest date the Treasury Department has said the U.S. could default on its debt obligations. Treasury Secretary Janet Yellen said last week that a lack of a deal could spur an “economic catastrophe.” <CNBC>
Economic Data Docket: April’s retail sales are due at 8:30 a.m. Economists are anticipating an increase of 0.8%.
Monday (5/15) … RegMed Investors’ (RMi) closing bell: “a waiting game. Investors focus should be on debt ceiling talks, which were postponed to this week from Friday. Each day that goes by, and each postponement, each day there’s not a development … I think it will grow more and more difficult for the markets to really get any traction.” … https://www.regmedinvestors.com/articles/12960
Ebb and flow:
Q2/23 – May – 4 negative and 7 positive closes
· April ended - 1 holiday, 8 positive close and 11 negative closes
Q1/23 –
· March – ended with 10 positive and 13 negative closes
· February – 1 holiday, 2 vacation, 7 negative and 8 positive closes
· January – 2 holidays, 11 positive and 9 negative closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Negative Indications:
Monday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Chinook Therapeutics (KDNY) closed up +$0.01 with a negative -$0.44 or -1.88% pre-open indication.
Ionis therapeutics (IONS) closed up +$0.73 with a negative -$1.16 or -3.20% aftermarket indication.
Regenxbio (RGNX) closed up +$2.38 after Friday’s +$0.13 with a negative -$0.65 or -2.99% pre-open indication.
Positive Indications:
Monday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
bluebird bio (BLUE) closed down -$0.22 with a positive +$0.01 or +0.24% pre-open indication.
Fate Therapeutics (FATE) closed up +$0.36 with a positive +$0.03 or +0.56% aftermarket indication.
The BOTTOM LINE: I try to keep it simple and short!
I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
“Sideways action is far more dangerous than a bear market because it lures investors in. The stock market rally showed mixed action last week. Also, not many stocks have been offering buy signals, and some of those have quickly wobbled. A choppy market rally is dangerous for investors. It's still a time to be mostly in cash.” <IBD>
What changes, certainly nothing as “sector divergence, weak breadth and many equities falling remain an issue.”
As I stated, I wouldn’t buy into ANY rally during earnings reporting season, I’d be selling.
This week’s special, sector earnings continue rolling out … just one (1) NET INCOME to date yet, 33 net losses.
The cell and gene therapy sector could experience yet another the “flight of Icarus” … since “our” universe have oscillated between gains and losses since the first of 2023!
Reiterating, “More frequently right than consequentially wrong … “The rubber is hitting the road, so those companies have to do quite well to justify it.” What is the “it” – as LPS (loss-per-share) numbers facilitate downslides.”
Investors should STILL be hesitant to add to positions re concerns of electronic trading i.e., algorithms seem to be the only ones leading any upside – go with flow.
I also hate to be so negative or contrarian but, this is a NO spin zone and truth is its product; I can always be WRONG but, I am mostly EARLY!
At ANY time, this week, be ready to take partial profits and exit losers.
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.
