April 22, 2020 5:19pm

News: Athersys (ATHX) secured a $1.3 million loan through the Treasury’s Paycheck Protection Program (PPP) and during the same period executed a fund raising for $60 million – GIVE IT BACK - lousy PR and BAD optics, SHAME on this CEO

Pre-open indications: 9 Hits < Alnylam Pharmaceuticals (ALNY +$2.26), CRISPER Therapeutics (CRSP +$1.50), bluebird bio (BLUE +$0.78), Pluristem (PSTI -$0.20), BioLife Solutions (BLFS +$0.71) <Sangamo Therapeutics (SGMO +$0.23); Sold into strength - Verastem (VSTM +$0.39), Athersys (ATHX +$0.10), Ultragenyx (RARE +$2.41) > and 0 MISS

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The Dow closed UP +456.94 points (+1.99%), the S&P closed UP +62.75 points (+2.29%) while the NASDAQ closed UP +232.15 points (+2.81%)

 

Henry’omics:

Sector equities rose on Wednesday after Tuesday’s dive and Monday’s positive close as crude prices tried to stabilize after a record plunge. The short-term story is oil …

  • The West Texas Intermediate contract for June was up 21%, trading at $14.02 per barrel, after an earlier decline. Brent futures, meanwhile, were up 9.3% at $21.19 per barrel, recovering from a sharp overnight drop.;
  • That move higher comes after the May contract, which expired on Tuesday, traded at a negative price for the first time ever.

Watching the sector, Verastem (VSTM) hit a 52-week high of $4.20.                       

Thankful that the sector’s oversold were recognized

 

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB closed up +0.95% and XBI also closed up +1.91%
  • Tuesday, the IBB closed down -3.03% and XBI also closed down -3.04%
  • Monday, the IBB closed up +1.29% and XBI also closed up +3.72%

 

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -3.40 points or -7.49% at 42.01,
  • Tuesday was up +1.58 points or +3.60% at 45.41,
  • Monday was up +5.21 points or +13.79% at 43.41,

 

RegMed/Cell and gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Wednesday opened positive at 30/10, stayed positive at the mid-day at 30/5 and closed positive at 30/5;
  • Tuesday opened negative at 4/30 and 1 flat, stayed negative at the mid-day at 3/32 and closed negative at 3/32;
  • Monday opened negative at 15/18 and 2 flats, strayed positive at the mid-day at 29/6 and closed positive at 30/10;

 

Wednesday’s (top 10) incliners:

  • Ultragenyx Pharmaceuticals (RARE +$2.41 after Tuesday’s -$0.98, Monday’s +$4.53, Friday’s +$1.91, Thursday’s +$0.55 and last Wednesday’s -$1.28);
  • Alnylam Pharmaceuticals (ALNY +$2.26 after Tuesday’s -$7.02, Monday’s +$6.39, Friday’s $10.76, Thursday’s +$6.22 and last Wednesday’s +$1.06);
  • Regenxbio (RGNX +$1.80);
  • CRISPR Therapeutics (CRSP +$1.50 after Tuesday’s -$2.56, Monday’s +$2.04 after Friday’s +$1.91, Thursday’s +$1.12 and last Wednesday’s +$1.38);
  • Sage Therapeutics (SAGE +$1.36);
  • Ionis Pharmaceuticals (IONS +$1.29 after Tuesday’s -$2.16);
  • ReNeuron (RENE.L +$1.00 after Tuesday’s -$7.00, Monday’s -$10.50, Friday’s +$6.50, Thursday’s -$2.50 and last Wednesday’s -$15.00);
  • Intellia Therapeutics (NTLA +$0.83 after Tuesday’s -$1.07);
  • Bellicum Pharmaceuticals (BLCM +$0.80);
  • AxoGen (AXGN +$0.79);

Wednesday’s (only 6) decliners:

  • uniQure NV (QURE -$0.67);
  • Global Blood Therapeutics (GBT -$0.37);
  • Pluristem (PSTI -$0.20 after Tuesday’s +$0.50 and Monday’s +$0.25);
  • Solid Biosciences (SLDB -$0.07);
  • Fate Therapeutics (FATE -$0.03);
  • Caladrius Biosciences (CLBS -$0.02);

 

Today’s stand-outs: a few to mention, not all …

  • Green upside equities were lit up: RARE, CRSP, BLUE, IONS, NTLA and EDIT to mention a few …
  • The rotation jumped from 32 downside equities to 29 equities stepping-up in share pricing;
  • Hop-scotching – Biostage (BSTG) closed up after Tuesday’s down after Monday’s up with low volume after Friday closing down post twice (2x) being flat following closing positive 3 times versus 7 negative closes in the last sixteen (16) sessions since April 1st;
  • Slipping to the downside board in Pluristem (PSTI) – expect a financing (?);

 

Volumes versus 3-month averages: low volume is moving the needle

  • Wednesday’s volume was THIN as 6 of the 29-upside had higher than the 3-month average volume and 2 of the 6-downside had higher than the 3-month average volume;

 

Percentage (%) movement/range statistics: look closely …

  • Wednesday’s % of the 29-upside were +0.34% (ADRO) to +16.67% (BSTG) while the 6-downside ranged from -0.10% (FATE) to -3.02% (SLDB); 
  • Tuesday’s % of the 3-upside were +0.76% (BLFS) to +5.75% (PSTI) while the 32-downside ranged from -0.38% (GBT) to -14.29% (BSTG); 
  • Monday’s % of the 30-upside were +0.32% to +22.01% (VSTM) while the 10-downside ranged from -1.23% (AGTC) to -7.05% (RENE.L); 

 

Sentiment and its indicators: never forgetting the “virus” …

  • Auto retail sales are beginning to recover from a massive slump in March yet are stabilized during the first two weeks of April and are now showing signs of recovery;
  • Also helping sentiment on Wednesday, Senate Republicans and Democrats on Tuesday passed a $484 billion coronavirus relief package that focused on small businesses, hospitals, and testing. The House could approve the bill as early as Thursday;
  • Better-than-expected earnings enhanced market sentiment.

Defining pandemic disruption: The number of confirmed U.S. coronavirus cases:

  • Wednesday’s 830,700;
  • Tuesday’s 788,900,
  • Monday’s 766,600,
  • Friday’s 683,700

Wednesday’s death rate escalated to 45,638 after Tuesday’s 42,485, Monday’s 40,931 and Friday’s 34,575 <John Hopkins University>

 

Upside volume stats: 

  • Wednesday: 6 out of the 29-upside had higher than the 3-month average volume;
  • Tuesday: 1 out of the 3-upside had higher than the 3-month average volume;
  • Monday: 16 out of the 30-upside had higher than the 3-month average volume;

Downside volume stats:

  • Wednesday: 2 out of the 6-downside had higher than the 3-month average volume;
  • Tuesday: 11 out of the 32-downside had higher than the 3-month average volume;
  • Monday: 3 out of the 10-downside had higher than the 3-month average volume;

 

April

Wednesday closed positive with 6 decliners, 29 advancer and 0 flat

Tuesday closed negative with 32 decliners, 3 advancer and 0 flat

Monday closed positive with 10 decliners, 30 advancer and 0 flat

Friday closed positive with 6 decliners, 29 advancer and 0 flat

Thursday closed negative with 20 decliners, 14 advancer and 1 flat

Wednesday closed negative with 29 decliners, 6 advancer and 0 flats

Tuesday closed positive with 4 decliners, 31 advancer and 0 flats

Monday closed negative with 19 decliners, 16 advancer and 0 flats

Friday was a market holiday

Thursday closed positive with 7 decliners, 28 advancer and 0 flat

Wednesday closed positive with 4 decliners, 30 advancer and 1 flat

Tuesday closed negative with 18 decliners, 17 advancer and 0 flats

Monday closed positive with 2 decliners, 33 advancer and 0 flats

Friday closed negative with 23 decliners, 12 advancer and 0 flats

Thursday closed positive with 10 decliners, 23 advancer and 2 flats

Wednesday (4/1) closed negative with 31 decliners, 4 advancer and 0 flat

 

The BOTTOM LINE:  After the past five (5) sessions, many investors realize that the pandemic MIGHT get better and the negative impacts of an economy which is essentially shut down; so what's expanding at a frightening rate - the unknowns.

I’m into indications, intel, G-2, information and unfiltered data to screen the effects of the sector’s pricing movement which are missed by many investors of all kinds especially the PR mavens or “slickers” who sign-off and don’t push-back on any action their clients propose!

News of Athersys (ATHX) filing and receiving PPP dollars is NAUSEATING!

Starting on May 5th are Vericel (VCEL) Q1 earnings, on 5/6 AxoGen (AXGN) followed by Ions Pharmaceuticals (IONS) and on 5/7 Sage Therapeutics (SAGE) – so be ready for further volatility.

So, WHEN do we return to ANY semblance of normality?

 

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.