May 5, 2021 5:40pm

As the cell and gene therapy sector closed negative for the third (3rd) session in the first (1st) week of May

Biostage (BSTG) Chronicles: Why the continuous “promote or pump” to <read more>

Pre-open indication performance: 3 HITs and 1 MISS

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The Dow closed UP +97.31 points (+0.29%); the S&P closed UP +2.93 points (+0.07%) while the Nasdaq closed DOWN -51.08 points (-0.37%)

 

Henry’omics:

Indexes rebounded without the Nasdaq (which closed down) on Wednesday as the cell and gene therapy sector followed after a few more LPS (loss-per-share) earnings’ results and market optimism as the trading day moved to the close.

The Dow ended at an all-time high and the Nasdaq posted its longest losing streak since mid-October, amid concerns about rising inflation and the eventual pull back of flush monetary policy as the economy reopens in the wake of the pandemic. <MarketWatch>

Investors across markets were also trying to position ahead of Friday's U.S. monthly jobs report. <Reuters>

 

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

 

Data docket: Private payrolls rose by 742,000 jobs in April, according to ADP. This result was below expectations of 800,000 jobs from economists surveyed. ADP did revise its March report upward by 48,000 jobs.

  • Also, The IHS Markit U.S. services purchasing managers index came in at 64.7 for April, ahead of the projected reading of 63.3, according to economists surveyed by Dow Jones. The ISM non-manufacturing index came in slightly under expectations at 62.7, however. PMIs are calculated such that readings above 50 represent expansion in an economic sector.

 

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

  • Wednesday opened positive at 21/11, 2 flats and 1 acquired, stayed positive at the mid-day to 20/14, 1 flat and 1 acquired, closing negative at 12/23 and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “slim upside sector pickings” … https://www.regmedinvestors.com/articles/11896

 

Pre-open indication results:  3 HITs < Biostage (BSTG -$0.01 at $1.11 with 3,032 shares traded – the “pump and promote” didn’t move the share pricing up; BUY: ReNeuron (RENE.L +$2.00), Intellia Therapeutics (NTLA -$0.64)> and 1 MISS < CRISPR Therapeutics (CRSP -$1.83)>

 

Biostage (BSTG) Chronicles: Why the continuous “promote or pump” to the volume as the share price drops during multiple session – which also went nowhere but, down today?

  • With all the issues of transparency, is the biggest fear – being delisted?
  • Protecting the share price is ONLY a temporary factor compared to the inflated pricing of the private placements that jeopardizes ANY sort of future financing?

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Ultragenyx (RARE), BioLife Solutions (BLFS), ReNeuron (RENE.L), Alnylam Pharmaceuticals (ALNY) Global Blood therapeutics (GBT) to name 5 of the 12 inclining of the 35 covered

Hammered in today’s market:

  • Vericel (VCEL), Ionis Pharmaceuticals (IONS), Fate Therapeutics (FATE), CRISPR Therapeutics (CRSP), Sangamo therapeutics (SGMO), to name 5 of the 23 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 5 of the 12-upside having higher than the 3-month average volume with the volume of 4 of 23-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 12-upside were +0.14% (MESO) to +9.12% (BLFS) while the 23-downside ranges from -0.28% (KDNY) to -8.54% (SGMO);

 

Wednesday’s (12 of 12) incline

  • Ultragenyx (RARE +$4.16 after Tuesday’s -$4.66 and Monday’s -$5.13);
  • BioLife Solutions (BLFS +$2.69 after Tuesday’s -$5.56 and Monday’s +$0.17 post acquisition being completed);
  • ReNeuron (RENE.L +$2.00 after Tuesday’s +$7.00 after Friday’s -$5.00)
  • Global Blood therapeutics (GBT +$0.85);
  • Alnylam Pharmaceuticals (ALNY +$1.10 after Tuesday’s -$3.77 and Monday’s -$5.30);
  • AxoGen (AXGN +$0.42);
  • MiMedx (MDXG +$0.20);
  • Editas Medicine (EDIT +$0.06);
  • Adverum Biotechnologies (ADVM +$0.05);
  • Brainstorm Cell Therapeutics (BCLI +$0.04);
  • Verastem (VSTM +$0.025);
  • Mesoblast (MESO +$0.01);

Wednesday’s (10 of 23) decliners:

  • Vericel (VCEL -$2.56 after Tuesday’s -$2.91);
  • Ionis Pharmaceuticals (IONS -$2.09);
  • Fate Therapeutics (FATE -$2.00 after Tuesday’s -$5.38 and Monday’s -$2.28);
  • CRISPR Therapeutics (CRSP -$1.83 after Tuesday’s -$7.08 and Monday’s -$8.46);
  • Sangamo Therapeutics (SGMO -$0.97);
  • bluebird bio (BLUE -$0.69 after Tuesday’s +0.30);
  • Intellia Therapeutics (NTLA -$0.64 after Tuesday’s -$1.80 after Monday’s -$2.97);
  • Regenxbio (RGNX -$0.62);
  • uniQure NV (QURE -$0.47 after Tuesday’s -$2.31);
  • Precigen (PGEN -$0.45);

Closing: 1- Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

  • Nearly 45% of Americans have received at least one dose of a vaccine, and 32% are fully vaccinated.

Monday’s COVID Data Tracker <Million>:

  • Cases: 33.28 M
  • Death rate totaled 592,630 <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:

  • Wednesday, the IBB closed down -0.89% and XBI closed down -1.69%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.33 point or -1.69% at 19.15

Upside volume: low

  • Wednesday: 5 out of the 12-upside had higher than the 3-month average volume;

Downside volume: low

  • Wednesday: 4 out of the 23-downside had higher than the 3-month average volume;

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

  • Wednesday’s percentage (%) of the 12-upside were +0.14% (MESO) to +9.12% (BLFS) while the 23-downside ranges from -0.28% (KDNY) to -8.54% (SGMO);

 

May, second month of Q2/21:

Wednesday closed negative with 12 advancers, 23 decliners and 1 acquired

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: Yesterday I stated, I’d be digging into a couple of sector bottoms and my morning title “slim upside sector pickings” kind of but, did estimate the response to electronic buying versus investors.

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.