February 17, 2021 6:07pm
Sentiment, fundamentals and earnings’ season are not in sink – result a froth
Pre-open indication results: 8 HITs and 1 MISS
News: Caladrius Biosciences (CLBS -$0.07) closed its RDO
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The Dow closed UP +90.27 points (+0.29%); the S&P closed DOWN -1.26 points (-0.03%) while the Nasdaq closed DOWN -82 points (-0.58%)
Henry’omics - more than a snapshot of today’s sector movements:
Indexes swung in volatile trading on Wednesday as investors weighed improving economic data with rising inflation expectations.
Also, on (Ash) Wednesday – (praying to hopefully atone for our sins), the Cboe Volatility Index – a fear gauge, jumped 1.6 points above 23. The VIX had closed below 20 on Friday in the first significant breach of the threshold since February 2020.
The S&P 500 pared losses after the minutes of the last Federal Reserve meeting signaled that easy monetary policy will be in place for longer as the economy is nowhere close to pre-pandemic levels.
The Cboe Volatility Index, also known as a fear gauge, rose above 21. The VIX had closed below 20 on Friday in the first significant breach of the threshold since February 2020.
Data Docket: Signs of a pickup in pricing pressures already emerged as the economy rebounds from the pandemic-induced recession amid historic fiscal and monetary stimulus. The Labor Department said Wednesday the producer price index, a measure of the price’s businesses receives for their goods and services, rose 1.3% in January, the biggest jump since the index began in December 2009. <CNBC>
Who and what’s hot today:
Caladrius Biosciences (CLBS -$0.07) has closed its RDO (registered direct offering) for an aggregate of 24,906,134 shares of its common stock and warrants to purchase up to an aggregate of 12,453,067 shares of common stock at a purchase price of $2.45 per share of common stock and associated warrant in a registered direct offering priced at-the-market under Nasdaq rules. The warrants have an exercise price of $2.90 per share, are immediately exercisable, and will expire five years from the issuance date. After a PPP and an RDO in a month’s time, a lot of shares are “hitting” the float.
Ultragenyx Pharmaceutical (RARE -$1.23) Health Canada has approved Dojolvi™ (triheptanoin) as a source of calories and fatty acids for the treatment of adult and pediatric patients with long-chain fatty acid oxidation disorders (LC-FAOD). Long-chain fatty acid oxidation disorders (LC-FAOD) are a group of rare, genetic, life-threatening disorders caused by defects in the enzymes needed to produce energy from fatty acids. Dojolvi is a highly purified, synthetic, 7-carbon fatty acid triglyceride specifically designed to provide medium-chain, odd-carbon fatty acids as an energy source and metabolite replacement for people with LC-FAOD. An approval gets them “nada”.
RegMed Investors’ (RMi) pre-open: “prudence can be an action, a virtue or a burden as I usually maintain caution or circumspection as to risk.” … https://www.regmedinvestors.com/articles/11772
Pre-open indication results: 8 HITs < SELL: Biostage (BSTG -$0.12 with 4,656 shares “pumped”); BUY: Fate Therapeutics (FATE +$1.78), Mesoblast (MESO +$0.24), Verastem Oncology (VSTM +$0.24); SELL into Strength: Applied Genetic Technologies (AGTC +$0.12), Caladrius Biosciences (CLBS -$0.07), CRISPR Therapeutics (CRSP -$5.29), Vericel (VCEL -$0.02) and 1 MISS < bluebird bio (BLUE -$0.42)>
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Wednesday opened negative at 7/26 and 2 flats, stayed negative at the mid-day to 5/28 and 2 flats, closing negative at 11/23 and 1 acquired;
There are clear winners — and losers ...
Jumping with share pricing momentum:
- Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS), Fate Therapeutics (FATE), Chinook Therapeutics (KDNY), Verastem Oncology (VSTM) to name 5 of the 11 inclining of the 35 covered
Hammered in today’s market:
- CRISPR Therapeutics (CRSP - earnings’ miss), Ultragenyx (RARE- earnings’ miss), Sage Therapeutics (SAGE), Cellectis SA (CLLS), uniQure NV (QURE) to name 5 of the 23 declining of the 35 covered
Key metrics:
- Sector volume was LOW with 3 of the 11-upside having higher than the 3-month average volume with the increased volume of 11 of 23-downside having higher than the 3-month average volume;
- Wednesday’s percentage (%) of the 11-upside were +0.11% (EDIT) to +13.74% (VSTM) while the 23-downside ranges from -0.04% (VCEL) to -6.66% (CLLS);
Wednesday’s (11 of 11) incliners, keep your “profiting” eyes on some of these upsides:
- Alnylam Pharmaceuticals (ALNY +$2.72 after Tuesday’s -$4.11);
- Ionis Pharmaceuticals (IONS +$2.10 after Tuesday’s -$0.86);
- Fate Therapeutics (FATE +$1.78);
- Chinook Therapeutics (KDNY +$0.82 after Tuesday’s +$0.52);
- Intellia Therapeutics (+$0.65);
- Verastem (VSTM +$0.34 after Tuesday’s +$0.11);
- Mesoblast (MESO +$0.24 after news and Tuesday’s -$0.42);
- AxoGen (AXGN +$0.21 after Tuesday’s +$0.15);
- Applied Genetic Technologies (AGTC +$0.12 after Tuesday’s +$1.89);
- Editas Medicine (EDIT +$0.06 after Tuesday’s -$1.49);
- MiMedx (MDXG +$0.05);
Wednesday’s (10 of 23) decliners:
- CRISPR Therapeutics (CRSP -$5.29 after Tuesday’s -$5.73);
- BioLife Solutions (BLFS -$2.84);
- Sage Therapeutics (SAGE -$1.90 after Tuesday’s -$2.05);
- Cellectis SA (CLLS -$1.82 after Tuesday’s +$0.16);
- uniQure NV (QURE -$1.61 after Tuesday’s -$0.71);
- Regenxbio (RGNX -$1.53);
- ReNeuron (RENE.L -$1.53 after Tuesday’s +$1.50);
- Ultragenyx (RARE -$1.23 after Tuesday’s -$5.92);
- Global Blood Therapeutics (GBT -$0.97 after Tuesday’s +$1.64);
- Bellicum Pharmaceuticals (BLCM -$0.44 after Tuesday’s +$0.38);
Closing 1 - Stemline Therapeutics (STML – acquired)
Sentiment and COVID-19 infections:
- A real issue is the numbers of vaccinations by some states and their “BROKEN” logistical systems i.e., Massachusetts for seniors!
Infection cases <Million>: never to forget …
- Wednesday 27.75 M cases,
- Wednesday’s death rate totaled 488,295 <Johns Hopkins University>
Stats:
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB closed up +0.31% and XBI closed up +0.35%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was up +0.04points or +0.19% at 21.50
Upside volume: low
- Wednesday: 3 out of the 11-upside had higher than the 3-month average volume;
Downside volume: low
- Wednesday: 11 out of the 23-downside had higher than the 3-month average volume;
Percentage (%) movement/range statistics: % and pricing drop
- Wednesday’s percentage (%) of the 11-upside were +0.11% (EDIT) to +13.74% (VSTM) while the 23-downside ranges from -0.04% (VCEL) to -6.66% (CLLS);
February, the 2nd month of Q1 … a visual review identifies the range of sector volatility
Wednesday closed negative with 11 advancers, 23 decliners and 1 acquired
The Bottom Line: I had felt a “risk-on” signal … was in the cards for today.
Markets over the past month have priced in the likelihood that additional, significant fiscal stimulus will help propel the economic recovery … however, timing is of an essence.
Forewarned … earnings LPS (loss-per-share) season is coming quickly – my advice, trim and skim!!
I still continue to espouse that the sector is ripe for picking or profiteering as the market is also ripe for a pullback.
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.
