October 24, 2019 8:32am

“Our” universe of cell and gene therapy companies are in earnings’ limbo period yet, should feel some enrichment from being oversold

Blink-of-an-eye” momentum and share pricing will be driven by clinical results – so, where are they, I’m getting long in the tooth waiting

News: Adverum Biotechnologies (ADVM) first patient was dosed in the third cohort (n=9) of the ongoing OPTIC P1 clinical trial for ADVM-022 for the treatment of neovascular or “wet” age-related macular degeneration (wet AMD).

Quarterly earnings: add another to the LPS (loss-per-share) scrum, Intellia Therapeutics (NTLA) on 10/31

When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started …

 

My version of the morning’s numbers is written to be informative than just about changes to fundamentals; it’s what happened or will beyond the headline and what could happen to the future

 

Dow futures are UP +0.18% (+47 points), S&P futures are UP +0.19% (+6 points) and NASDAQ futures are UP +0.59% (+46 points)

 

U.S. stock index futures were higher yet “our” universe of cell and gene therapy companies are in earnings’ period limbo and should feel uplift from being oversold;

European stocks traded higher as traders remain in limbo over an expected delay to the U.K.’s departure from the European Union, while corporate earnings season gathers pace and the pan-European Stoxx 600 climbed 0.5% by mid-morning;

Asia Pacific shares mostly rose in the afternoon, as latest figures showed that South Korea’s economy continued to slow;

 

Data docket: weekly jobless claims and September durable goods orders numbers at 8:30 a.m. ET. New home sales data are out at 10 a.m.

 

Henry’omics:

Share pricing is understanding the value, balancing and forecasting the risk/reward value of a cell and gene therapy company while …

... Share pricing is measured by clinical progress meeting  timelines and is many times underscored by set-backs of comparable and similar companies.

However, “blink-of-an-eye” momentum will be driven by clinical results – so, where are they, I’m getting long in the tooth waiting …

... It’s still about the value of trusting a management team to meet time lined development platforms?

 

Are you as an investor … sleeping comfortable with some equities in your portfolio?

I’m NOT …

 

Wednesday night’s newsletter heading: “the ceiling hasn’t fallen yet, the leaks are increasing.”

  • The NASDAQ closed UP +15.50 points +0.19%);
  • The IBB closed up +0.34% while the XBI closed down -0.31%;

Wednesday the IBB closed up +0.34% while the XBI closed down -0.31%, Tuesday the IBB closed up +1.72% while the XBI closed up +0.65% and Monday the IBB closed up +1.31% while the XBI closed up +1.44% - Three (3) up IBB closes +3.37% while the XBI got grounded a bit at +1.78% - expect which - blow back, upside or down slide.

The close was negative with an A/D line of 16/26, 0 flats, 1 reversed merged (HSGX) and 2 acquired followed by Tuesday closing negative with an A/D line of 16/23, 3 flats, 1 reversed merged (HSGX) and 2 acquired while Monday closed positive with an A/D line of 28/13, 1 flats, 1 reversed merged (HSGX) and 2 acquired – not inspiring.

  • The range of the 16 upside was +0.33% (AGTC) to +19.47% (VSTM) while the 26 downside ranged from -0.13% (RGNX) to -5.79% (KOOL);

Low volume shackles momentum and upside movement: 3 out of the 16 upside had higher than the 3 month average volume while 2 out of the 26 downside had higher than the 3 month average volume; earnings season and its anticipation is kicking pricing down the road.

 

  • October registered 7 positive, 1 neutral and 10 negative close, so far …
  • September, there were 1 holiday, 11 negative, 7 positive and 2 non reported sessions;

 

Companies in my headlights – It’s your decision; I provide an idea and context:

*** I haven’t changed …  follow the trading herd but … mindful of upcoming quarterly results  and their effect upon share pricing … BUY and get trampled in the coming sessions or SELL into strength or just HOLD and wait to resolve relieve the anxiety until value returns.

 

 

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.