May 1, 2019 5:22pm

Another “earnings” beat expectation and dives – a sign of the Q1 times?

Q1/19 results: Alnylam Pharmaceuticals (ALNY -$6.31) reported a loss of $181.9 M or $1.73. Losses, adjusted for stock option expense, were $1.42 per share. The results topped “street” expectations of $1.84 per share. ALNY posted revenue of $33.3 M also topping “street” forecast of $22 M. ALNY ended Q1 with $1.29 B in cash having sold 5 M shares at a price of $77.50 per share. As a result of the offering, ALNY received net proceeds of $382 M.

Pre-open indications: 5 HITs and 1 MISS (VSTM, again)

Sentiment empties a glass half-full or half-empty?

 

Markets and indexes:

  • The Dow closed down -29.28 points or -0.11% to 26,563.63
  • The S&P closed down -22.10 points or -0.75% at 2,923.73
  • The NASDAQ was down -45.75 points or -0.57% to 8,049.64

 

Henry’omics:

The sector took a hammering again as sentiment is aligned with LPS (loss-per-share) earnings.

Any expectation should ffollow the lisring of soon-to-be eqrnings releases5/2 – NTLA, SAGE; 5/6 – RARE; 5/7 – AGTC, RGNX, BOLD, FATE, EDIT and VCEL; 5/8 – AXGN, ATHX followed by 5/9 - IONS ... so far.

 

My fear is that Q1 numbers aren't going to look much better than the Q4/18 numbers.

 

Markets fell on Wednesday after the top-ranking Fed official hinted that lower rates may not be in the cards.

  • Fed Chairman Jerome Powell said in a news conference that recently low inflationary pressures may only be “transitory,” dashing speculation the central bank was at least entertaining the idea of a rate cut because of tame inflation <CNBC>.

On the data front, ADP and Moody’s Analytics said private payrolls increased by 275,000 in April, easily blowing by a Dow Jones estimate of 177,000. The strong gain was led by an increase of 223,000 in payrolls within the services sector.

  • The report is the latest piece of economic data to top expectations. Last week, the Commerce Department said the U.S. economy grew at an annualized rate of 3.2% in Q1, easily surpassing expectations.

The report by ADP and Moody’s is largely considered to be a preview for the U.S. government monthly jobs report. Other data released Wednesday include the ISM manufacturing PMI for April, which fell to its lowest level since October 2016.

 

The NASDAQ … purged after Tuesday’s retreat taking “our’ universe down with it … again!

The uncertainty of share pricing sustainability has become more evident by today’s moves!

 

Pre-open post, “first trading day of the month of May; NO dances, singing or cake, the usually part of today’s festivities; just give investors a good “shot” of an UP day.”

 

The advance/decline line scenario of 45 covered companies:  

  • The open was negative with the A/DL at 16/22, 5 flats and 2 acquired (AST & OSIR);
  • The mid-day was negative with an A/DL of 15/27 and  flat and 2 acquired;
  • The close was negative with an A/DL of 12/30 and 0 flat and 2 acquired;

 

My pre-open indications:  5 HITs and 1 MISS

  • Athersys (ATHX) closed down -$0.04 – hit;
  • CRISPR Therapeutics (CRSP) closed down -$1.37 – hit;
  • Editas Medicine (EDIT) closed down -$1.53 – hit;
  • Intellia Therapeutics (NTLA) closed down -$0.92 – hit;
  • ReNeuron holdings (RENE.L) closed down -$30.00 – hit;
  • Verastem Oncology (VSTM) closed down -$0.04 – miss;

 

Cell and gene therapy company’s worst-performers were:

  • RENE.L (-$30.00), ALNY (-$6.31), BLUE (-$2.21), GBT (-$1.96) and RARE (-$1.84)
  • RENE.L (-$15.00), SAGE (-$2.16), EDIT (-$1.52), RARE (-$1.47) and RGNX (-$1.09);
  • Monday: BLUE (-$2.00), BOLD (-$1.54), EDIT (-$1.49), GBT (-$1.17) and RGNX (-$1.15);

Sector equities posting gains were:

  • QURE (-$0.91), AXGN (-$0.47), BLFS (+$0.44), SLDB (+$0.43), ADRO (+$0.12);
  • AXGN (+$1.73), BLUE (+$0.83), ALNY (+$0.81), BSTG (+$0.50) and ADRO (+$0.19);
  • Monday: RENE.L (+$15.00), SAGE (+$1.70), ALNY (+$1.47), BMRN (+$0.64) and BLFS (+$0.45);

 

Tonight’s percentage (%) indicators: 

  • Range of the 12 upside was +0.13% (STML) to +4.74% (SLDB) while the 30 downside ranged from -0.46% (FIXX) to -9.68% (RENE.L)

Upside volume stats:  review the numbers, there is a message …

  • Wednesday: 2 out of the 12 upside had higher than the 3 month average volume;
  • Tuesday: 5 out of the 8 upside had higher than the 3 month average volume;
  • Monday: 8 out of the 22 upside had higher than the 3 month average volume;

Downside volume stats:

  • Wednesday: 8 out of the 30 downside had higher than the 3 month average volume;
  • Tuesday: 5 out of the 8 downside had higher than the 3 month average volume;
  • Monday: 2 out of the 20 downside had higher than the 3 month average volume

1 flat – BSTG - with 2 acquired (AST & OSIR)

 

The iShares NASDAQ Biotechnology (IBB) indicator:

  • Wednesday closed down -0.81%
  • Tuesday closed down -0.83%
  • Monday closed down -0.08%
  • Friday closed up +0.65%
  • Thursday closed up +1.01%
  • Last Wednesday closed down -1.09%;

 

May’s first week’s sessions:

Wednesday (5/1) closed NEGATIVE with 30 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR);

Tuesday (4/30) closed NEGATIVE with 35 decliners, 8 advancers, 0 flat and 2 acquired (AST & OSIR);

Monday (4/29) closed POSITIVE with 20 decliners, 22 advancers, 1 flat and 2 acquired (AST & OSIR);

 

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.