May 10, 2021 5:30pm

A weakening quarter associated with quarterly earnings

Pre-open indication performance: 4 HITs and 3 MISS

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The Dow closed DOWN -34.94 points (-0.10%); the S&P closed DOWN -44.17 points (-1.04%) while the Nasdaq closed DOWN -350.38 points (-2.55%)

 

Henry’omics:

The Dow, S&P and Nasdaq dived to a record high on Monday.

Indexes came off a mixed week with the Dow advancing +2.7% and the S&P 500 advancing +1.2%. Despite a +0.9% rally on last week’s final session, the Nasdaq shed -1.5% over the week.

 

RegMed Investors’ (RMi) pre-open: “the sector transitory or has a short-lived tenure. Earnings have been a drain on share pricing.” …  https://www.regmedinvestors.com/articles/11902

 

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

  • Monday opened negative at 1/32, 3 flat and 1 acquired, stayed negative at the mid-day to 6/28, and 1 acquired, closing negative at 3/30, 1 flat and 1 acquired;

 

Pre-open indication results:  4 HITs <AxoGen (AXGN -$1.73, ReNeuron (RENE.L -$0.50); Applied Genetic Technologies (AGTC -$0.10), Cellectis SA (CLLS -$1.48) > and 3 MISS < Editas Medicine (EDIT -$2.65), Biostage (BSTG +$0.05 at $1.20 with 1,888 shares traded – a share “pump and promote” move), Homology Medicine (FIXX -$0.14)>

 

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

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Mesoblast (MESO), Sage Therapeutics (SAGE), Biostage (BSTG) to name 3 of the 3 inclining of the 35 covered

Hammered in today’s market:

  • Intellia Therapeutics (NTLA), CRISPR Therapeutics (CRSP), Ultragenyx (RARE), Vericel (VCEL), Editas Medicine (EDIT) to name 5 of the 30 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with x of the 3-upside having higher than the 3-month average volume with the volume of 9 of 30-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 3-upside were +1.72% (MESO) to +4.35% (BSTG) while the 30-downside ranges from -0.24% (SAGE) to -9.91% (NTLA);

 

Monday’s (3 of 3) incliners:

  • Mesoblast (MESO +$0.12);
  • Verastem (VSTM +$0.10);
  • Biostage (BSTG +$0.05);

Monday’s (10 of 30) decliners:

  • Intellia Therapeutics (NTLA -$6.71);
  • CRISPR Therapeutics (CRSP -$6.24);
  • Ultragenyx (RARE -$5.28);
  • Vericel (VCEL -$2.92);
  • Editas Medicine (EDIT -$2.820;
  • Alnylam Pharmaceuticals (ALNY -$2.67);
  • bluebird bio (BLUE -$2.08);
  • AxoGen (AXGN -$1.72);
  • Cellectis SA (CLLS -$1.30);
  • Global Blood Therapeutics (GBT -$1.15);

Closing: 1 – Athersys (ATHX) and 1 - Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

  • The rate of average daily new Covid cases in the U.S. fell to below 41,000 over the weekend, down 30% from two weeks ago and the lowest level since September.  CDC data shows that the country is averaging 2 million vaccinations per day over the past week, down from the peak level of 3.4 million daily shots on April 13. <CNBC>

Monday’s COVID Data Tracker <Million>:

  • Cases: 32,54 M
  • Death rate totaled 578,945 <Johns Hopkins University>
  • Vaccinations:  262 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:

  • Monday, the IBB closed down -1.79% and XBI closed down -3.64%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +2.97 points or +17.80% at 19.66

Upside volume: low

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

Downside volume: low

  • Monday: 9 out of the 30-downside had higher than the 3-month average volume;

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

  • Monday’s percentage (%) of the 3-upside were +1.72% (MESO) to +4.35% (BSTG) while the 30-downside ranges from -0.24% (SAGE) to -9.91% (NTLA);

May, second month of Q2/21:

Monday (5/10) closed negative with 3 advancers, 30 decliners, 1 flat and 1 acquired

Friday closed positive with 18 advancers, 14 decliners and 1 acquired

 

The BOTTOM LINE: Another session of “slim pickings” in the upside-down sector.

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.