RegMed Investors’ (RMi) closing bell: sector’s share pricing easy comes and just as easy goes

August 11, 2020 5:46pm

As markets get hammered as stimulus negotiations get more uncertain

Pre-open indication results: 6 HIT and 3 MISS

Financing: Adverum Biotechnologies (ADVM) proposes $200 million offering

An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector.  I say today what others won't, so you can do what others can't; I put into context what is relevant for investors

Subscription is coming, my gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times!

The Dow closed DOWN -104.53 points (-0.38%), the S&P closed DOWN -26.78 points (-0.80%) while the NASDAQ closed DOWN -185.53 points (-1.69%)

Pre-open indication results: 6 HIT < Athersys (ATHX -$0.33), bluebird bio (BLUE -$3.28), Biostage (BSTG -$0.02), Mesoblast (MESO -$6.09), Precigen (PGEN -$0.52), BioLife Solutions (BLFS -$2.75)  and 3 MISS < Pluristem (PSTI -$0.48), Adverum Biotechnologies (ADVM-$3.11), Global Blood Therapeutics (GBT -$0.44),

Henry’omics:

Indexes flirted with a new all-time high before a late-day sell-off.

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: RegMed Investors’ (RMi) pre-open: skepticism of Russian vaccine news … https://www.regmedinvestors.com/articles/11495

Offering from title: ADVM has commenced an underwritten public offering of $200 million of its common stock. The usual, ADVM intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock offered in the public offering.

• Goldman Sachs & Co. LLC, Cowen and Company, LLC, SVB Leerink LLC and Piper Sandler & Co. are acting as joint book-running managers for the proposed offering.

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

• Tuesday opened negative at 8/25 and 2 flats, stayed negative at the mid-day at 5/28 and 2 flats, closing negative at 3/32 and 1 flat;
• Monday opened positive at 24/10 and 1 flat, stayed positive at the mid-day at 25/9 and 1 flat, closing positive at 25/8 and 2 flats;
• Friday opened positive at 17/15 and 3 flats, stayed positive at the mid-day at 28/4 and 3 flats, closing positive at 21/11 and 3 flats;

Key metrics:

• Sector volume was LOW with 1 of the 3-upside having higher than the 3-month average volume and the 9 of 32-downside having higher than the 3-month average volume;

• Tuesday’s percentage (%) of the 3-upside were +0.18% (VYGR) to +0.88% (RENE.L) while the 32-downside ranges from -$0.69 (BSTG) to -34.96% (MESO); 

Hammered in today’s market:

• Mesoblast (MESO), BioLife Solutions (BLFS), Adverum Biotechnologies (ADVM), bluebird bio (BLUE), Homology Medicine (FIXX) to name 5 of the 32 declining of the 35 covered

Jumping with share pricing momentum:

• ReNeuron (RENE.L), Vericel (VCEL), Voyager Therapeutics (VYGR) to name 3 of the 3 trading up of 35 covered

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

• Tuesday, the IBB closed down -2.22% and XBI also closed down -3.98%
• Monday, the IBB closed down -1% and XBI also closed down -0.01%
• Friday, the IBB closed down -0.39% and XBI also closed up +0.10%

Tuesday’s (3 of 3) incliners:

• ReNeuron (RENE.L +$1.00 after Monday’s -$2.50);
• Vericel (VCEL +$0.13);
• Voyager Therapeutics (VYGR +$0.02 after Monday’s -$0.01);

Tuesday’s (10 of 32) decliners:

• Mesoblast (MESO -$6.09 after Monday’s +$1.38);
• bluebird bio (BLUE -$3.28 after Monday’s +$2.29);
• Adverum Biotechnologies (ADVM -$3.11);
• BioLife Solutions (BLFS -$2.75 after Monday’s +$1.55);
• Ultragenyx (RARE -$2.29);
• Alnylam Pharmaceuticals (ALNY -$1.96 after Monday’s -$4.96);
• Sage Therapeutics (SAGE -$1.94 after Monday’s +$2.61);
• Homology Medicine (FIXX -$1.55);
• CRISPR Therapeutics (CRSP -$1.32 after Monday’s +$0.96);
• Editas Medicine (EDIT -$1.32 after Monday’s +$0.80);

Closing flat: 1 - Stemline Therapeutics (STML – acquired)

Percentage (%) movement/range statistics: comparisons

• Tuesday’s percentage (%) of the 3-upside were +0.18% (VYGR) to +0.88% (RENE.L) while the 32-downside ranges from -$0.69 (BSTG) to -34.96% (MESO);  
• Monday’s percentage (%) of the 25-upside were +0.06% (CLLS) to +8.60% (MESO) while the 8-downside ranges from -$0.09 (VYGR) to -4.50% (GBT); 
• Friday’s percentage (%) of the 21-upside were +0.17% (MDXG) to +8% (BSTG) while the 11-downside ranged -0.34% (GBT) to -5.78% (EDIT); 

Sentiment and a few daily indicators:

While there was skepticism about whether Russia had developed a safe vaccine so quickly, the news triggered optimism from investors about the race for an inoculation and perhaps that the market isn’t pricing in how quickly a valid one could be ready. <CNBC>

• Tuesday 5.09 cases,
• Monday 5.05 cases,
• Friday 4.88 cases,
• Last Monday 4.66 cases,

Tuesday’s death rate totaled 163,400 after Monday’s 162,950 and Friday’s 160,111 <Johns Hopkins University>

Stats:

Upside volume: 

• Tuesday: 1 out of the 3-upside had higher than the 3-month average volume;
• Monday: 3 out of the 25-upside had higher than the 3-month average volume;
• Friday: 1 out of the 21-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

• Tuesday was up +1.90 points or 8.59% at 24.03
• Monday was down -0.08 points or -0.35% at 22.13
• Friday was down -0.44 points or -1.94% at 22.21

Downside volume:

• Tuesday: 9 out of the 32-downside had higher than the 3-month average volume;
• Monday: 2 out of the 8-downside had higher than the 3-month average volume;
• Friday: 2 out of the 11-downside had higher than the 3-month average volume;

August, the second month of Q3 …

Tuesday closed negative with 3 advancers, 32 declines and 1 flat

Monday (8/10) closed positive with 25 advancers, 8 declines and 2 flats

Friday closed positive with 21 advancers, 11 declines and 3 flats

Thursday closed negative with 11 advancers, 23 decline and 1 flat

Wednesday closed positive with 19 advancers, 15 declines and 1 flat

Tuesday closed negative with 13 advancers, 20 declines and 2 flats

Monday (8/3) closed positive with 31 advancers, 1 decline and 3 flats

The Bottom line:  The sector and overall stock market tends to consistently rise and fall over the short-term with alternating volatility and involuntary momentum contraction.

On vacation …

Reiterating, spare the sell call, ruin the portfolio!

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.