May 4, 2021 5:30pm

It wasn’t a cough but, more than reflux from newest market highs

Pre-open indication performance: 7 HITs and 1 MISS

Biostage (BSTG) Chronicles: What is the operating “runway”? <read more>

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The Dow closed UP +19.80 points (+0.06%); the S&P closed DOWN -28.00 points (-0.67%) while the Nasdaq closed DOWN -261.61 points (-1.88%)

 

Henry’omics:

Indexes fell (the S&P and Nasdaq) while the Dow tipped slightly higher on Tuesday after being down -300 points. The cell and gene therapy sector fell again after Monday’s weak start to May, with stocks experienced even MORE selling pressure – earnings’ season as LPS (loss-per-share) figures cause acid reflux.

  • The Dow turned slightly positive by market close. The Nasdaq underperformed, dropping 1.9% in its worst session since March

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … to date: https://www.regmedinvestors.com/articles/11628

 

Data docket: U.S. equities hit their lows of the day following Treasury Secretary Yellen’s comments that interest rates may have to rise somewhat to keep economy from overheating. <CNBC>

  • That’s after Fed Chairman Powell said last Wednesday that the economy appears a “long way” from its goals of maximum employment and inflation “moderately” overshooting its 2% target.

 

RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines:

  • Tuesday opened negative at 12/32, 1 flat and 1 acquired, stayed negative at the mid-day to 1/32, 1 flat and 1 acquired, closing negative at 2/32 and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “who’s buying and selling our sector, investors or algorithmic electronic trading?” … https://www.regmedinvestors.com/articles/11894

 

Pre-open indication results:  7 HITs < Biostage (BSTG -$0.14 at $1.12 with 249 shares traded; SELL into Strength: AxoGen (AXGN -$0.13), Chinook Therapeutics (KDNY -$1.29), Sage Therapeutics (SAGE -$7.82), CRISPR Therapeutics (CRSP -$7.08), Intellia Therapeutics (NTLA -$1.80), Applied Genetic Technologies (AGTC -$0.24), and 1 MISS < bluebird bio (BLUE +$0.30)>  

 

Biostage (BSTG) Chronicles: Why are companies with ‘going concerns”, measured by continual losses, development failures, filed INDs with NO clinical trial initiated and continuous inflated financings – still viable?

  • A message to Biostage (BSTG) investors … Isn’t it a broken company, with a “spent” cash position in a recent Q4/20 - having reported LATE with yet another part-time financial officer the fourth (4th)?
  • Yet another question, does it speak to the facts of inexcusable CURRENT management incompetence needing to be “extinguished” with investors uniting to push-out the exploiters continue on the griddle of “going concern”!
  • With only $1 million left in the “till” WHAT is the runway with a “spend” and “net cash in operations of $4.0 million during the year ended 12/ 31/20”. Don’t forget the PPP loan remaining as DEBT ($0.4 million).
  • As BSTG closes down -$0.14 to $1.12 with 249 shares traded

 

There are clear winners and losers

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), bluebird bio (BLUE) to name 2 of the 2 inclining of the 35 covered

Hammered in today’s market:

  • Sage Therapeutics (SAGE), CRISPR Therapeutics (CRSP), BioLife Solutions (BLFS), Fate Therapeutics (FATE), Ultragenyx (RARE) to name 5 of the 32 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 1 of the 2-upside having higher than the 3-month average volume with the volume of 11 of 32-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 2-upside were +1.01% (BLUE) to +5.05% (RENE.L) while the 32-downside ranges from -0.67% (AXGN) to -15.85% (BLFS);

 

Tuesday’s (2 of 2) incline

  • ReNeuron (RENE.L +$7.00 after Monday’s -$5.00)
  • Bluebird bio (BLUE +$0.30);

Tuesday’s (10 of 32) decliners:

  • Sage Therapeutics (SAGE -$7.82 after Monday’s +$0.20);
  • CRISPR Therapeutics (CRSP -$7.08 after Monday’s -$8.46);
  • BioLife Solutions (BLFS -$5.56 after Monday’s +$0.;17 post acquisition being completed);
  • Fate Therapeutics (FATE -$5.38 after Monday’s -$2.28);
  • Ultragenyx (RARE -$4.66 after Monday’s -$5.13);
  • Alnylam Pharmaceuticals (ALNY -$3.77 after Monday’s -$5.30);
  • Vericel (VCEL -$2.91);
  • uniQure NV (QURE -$2.31);
  • Intellia Therapeutics (NTLA -$1.80 after Monday’s -$2.97);
  • Chinook Therapeutics (KDNY -$1.23 after Monday’s +$1.03);

Closing: 1- Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

  • The Covid-19 pandemic has roiled the U.S. economy, as nationwide lockdowns have passed the one-year mark. But many states are relaxing restrictions, and cases are plateauing or declining in some states as vaccinations roll out. <IBD>

Monday’s COVID Data Tracker <Million>:

  • Cases: 33.26 M
  • Death rate totaled 592,181 <Johns Hopkins University>
  • Vaccinations:  247 M <About 2 in 5 American adults are now fully vaccinated>

 

Stats:

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

  • Tuesday, the IBB closed down -2.84% and XBI closed down -3.84%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +1.17 points or +6.39% at 19.48

Upside volume: low

  • Tuesday: 1 out of the 2-upside had higher than the 3-month average volume;

Downside volume: low

  • Tuesday: 11 out of the 32-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: LOW % with limited pricing drops as upside maintains

  • Tuesday’s percentage (%) of the 2-upside were +1.01% (BLUE) to +5.05% (RENE.L) while the 32-downside ranges from -0.67% (AXGN) to -15.85% (BLFS);

 

May, second month of Q2/21:

Tuesday closed negative with 2 advancers, 32 decliners and 1 acquired

Monday (5/3) closed negative with 9 advancers, 23 decliners, 2 flats and 1 acquired

 

The BOTTOM LINE: NO tailwinds today, it was headwinds all the way through the session; wait until most sector companies have reported to near-term buy although after a deep dive a tailwind suddenly appears!

I’d be digging into a couple of sector bottoms.

As I stated yesterday, “New month, an even newer share pricing “battle” due to earnings’ season reporting.”

I have been expecting weakness in the sector’s new month share pricing given the old “sell in May and go away” maxim. This mantra calls for taking off risk from May to October, a period where the market is more prone to sell-offs historically.

See earnings review: https://www.regmedinvestors.com/articles/11628

Sector momentum remains TOO “fluid” and any pricing more uncertain as earnings’ season LPS (loss-per-share) declines induce more downside risks but, hopefully a few rebounds.

I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim any new highs if one can!”

My time frame of measurement is Friday to Friday and been proved right again, don’t get complacent …

 

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.