RegMed Investors’ (RMi) closing bell: take a pew for news of share pricing exhibiting a risk on/off status

June 10, 2019 5:48pm

News versus share pricing: Spark therapeutics (ONCE -$9.14) falls on Roche Holdings (RHHBY) acquisition delay; CRISPR Therapeutics (CRSP +$1.50) up on collaboration extension; Adverum Biotechnology (ADVM +$0.11) doses first patient in second cohort for the treatment of wet age-related macular degeneration (wet AMD): while Homology Medicine (FIXX -$0.61) initiates P1/2 for gene therapy candidate for adults with PKU

Pre-open indications: 5 HITs and 2 MISS

The sector is what it is, until it isn’t and even then it doesn’t seem to be … think caution!

Defining the metrics and market fluctuations for investors; I’d be reading (if a subscriber) to see which equity has stepped to the upside or slipped due to flailing sentiment or complacency.

Markets and indexes:

• The Dow closed up +131.23 points or +0.51% to 26,115.17
• The S&P closed up +13.39 points or +0.47+% at 2,886.73
• The NASDAQ was up +81.07 points or +1.05% to 7,823.17

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Henry’omics:

Sector equities and markets rose on Monday, extending Thursday and Friday’s gains, after the U.S. reached an agreement with Mexico on tariffs, easing some of the trade concerns which have weighed on the market since early May.

Monday’s advance/decline line scenario of 45 covered companies:  

• The open was positive with the A/DL at 30/11, 1 flat and 2 acquired (AST & OSIR);
• The mid-day was positive with an A/DL of 24/18 and 1 flat and 2 acquired;
• The close was neutral with an A/DL of 21/21 and 1 flat and 2 acquired;

Pre-open post: “June’s sector’s exercise is up/downs. What’s bothering, is not the movements but, low volume and percentage change of the up and downside direction (think, standing push-ups).”

I also stated, “Beyond of trade war and tariff issues, investors continue to remain worried about share pricing sustainability!”

The Mexico trade news cheered investors, leaving the S&P 500 about 2% from its early May record high. But they noted indexes ended the session well off the day's highs and feared investors may be trading more on hope than on reality. But the U.S.-China trade war is still brewing, and investors may have become too optimistic that the Federal Reserve will come to the rescue with an interest rate cut <Reuters>.

The sector’s Advance/Decline (A/D) line opened higher, dropping (the advancers) at the mid-day to close neutral of the 45 covered companies – profit taking is back on the rise!

I’m back to pushing … CAUTION as the morning’s rally “petered-out” although the indexes were rolling upward; notice that volume edged mildly higher on both the Nasdaq and my covered companies.

Pre-open indications: 5 HIT and 2 MISS

• Applied Genetic Technologies (AGTC) closed up +$0.21 – hit;
• bluebird bio (BLUE) closed -$6.12 – miss;
• CRISPR Therapeutics (CRSP) closed up +$1.50 – miss;
• Editas Medicine (EDIT) closed down -$0.36 – hit;
• Intellia Therapeutics (NTLA) closed down -$0.70 – hit;
• uniQure NA (QURE) closed down -$0.57 –hit;
• ReNeuron (RENE.L) closed down-$25.00 – hit;

What’s happening in the share pricing casino?

Worst-performers (bottom 5) were:

• Monday: RENE.L (-$25.00), ONCE (-$9.14), BLUE (-$8.12), SAGE (-$3.20) and GBT (-$2.71);
• Friday: RENE.L (-$7.50), AXGN (-$0.50), ALNY (-$0.40), KOOL (-$0.06, after reverse) and MESO (-$0.06);
• Last Monday:  RENE.L (-$5.00), SAGE (-$2.72), GBT (-$2.32), ADRO (-$1.31) and VYGR (-$2.12);

Posting gains (top 5) were:

• Monday: CRSP (+$1.50), RARE (+$0.57), BMRN (+$0.470, BLCM (+$0.47) and ALNY (+$0.32);
• Friday: CRSP (+$5.63), BLUE (+$4.42), QURE (+$3.55), RGNX (+$2.61) and BOLD (+$2.48);
• Last Monday: QURE (+$5.33), $BLUE (+$2.50), RGNX (+$1.90), RARE (+$1.21) and MDXG (+$0.84);

Upside volume stats: 

• Monday: 6 out of the 21 upside had higher than the 3 month average volume;

• Friday: 6 out of the 31 upside had higher than the 3 month average volume;
• Last Monday: 4 out of the 25 upside had higher than the 3 month average volume;

Downside volume stats:

• Monday: 9 out of the 21 downside had higher than the 3 month average volume;

• Friday: 2 out of the 10 downside had higher than the 3 month average volume;
• Last Monday: 7 out of the 17 downside had higher than the 3 month average volume;

The week’s percentage (%) indicators: 

• Monday’s range of the 21 upside was +0.35% (IONS) to +25.06% (ONVO +$0.11) while the 21 downside ranged from -0.63% (VYGR) to -9.80% (RENE.L);

• Friday’s range of the 31 upside was +0.19% (BMRN) to +15.11% (CRSP) while the 10 downside ranged from -0.27% (BLFS) to -5.48% (CUR);
• Monday’s range of the 25 upside was +0.01% (ONCE) to +18.46% (MDXG) while the 17 downside ranged from -0.21% (BMRN) to -40.31% (ADRO);

1 flat – ATHX with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

The iShares NASDAQ Biotechnology (IBB) indicator:

• Monday closed down -0.60%
• Friday closed up +1.62%;
• Thursday closed down -0.98%;
• Wednesday closed up +0.17%;
• Tuesday closed up +1.93%;
• Last Monday closed up +1.08%;

June’s sessions:

Monday closed NEUTRAL with 21 decliners, 21 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 10 decliners, 31 advancers, 2 flats and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 37 decliners, 5 advancers, 1 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 24 decliners, 17 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 17 decliners, 25 advancers, 1 flat and 2 acquired (AST & OSIR);

Q2/19 so far:

• In May, there were 14 negative, 1 holiday and 8 positive closes;
• In April, there has been 10 positive and 11 negative closes;

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.