May 26, 2021 5:22pm

As I stated this a.m., “the sector will feel the effects of being oversold and recognized by the return of some value!”

Pre-open indication performance: 2 HIT and 0 MISS

If you’re looking for sector intel, ideas and facts or numbers (which don’t lie) in a volatile climate, RMi defines the rigors of share pricing! My comments distinguish the temporary from real pricing digression or progress.

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The Dow closed UP +10.59 points (+0.03%); the S&P closed UP +7.86 points (+0.19%) while the Nasdaq closed UP + 80.82 points (+0.59%)

 

Henry’omics:

Indexes rose, although modestly on Wednesday as cell and gene therapy sector shares were supported by being oversold as their valuations were uplifted!

  • Recent comments from Federal Reserve officials helped tamp down concerns about runaway inflation and kept bond yields in check. Fed vice chair for supervision Randal Quarles said he was prepared to open talks on reducing the central bank's emergency support measures, only to also stress the need to remain patient.

 

RegMed Investors’ (RMi) pre-open: “back in the game, nibbling on some positions. Although, I believe that the sector will feel the effects of being oversold and recognized by the return of some value!” … https://www.regmedinvestors.com/articles/11928

 

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

  • Wednesday opened positive at 27/5, 2 flat and 1 acquired, stayed positive before to the mid-day at 26/5, 3 flats and 1 acquired, closing positive at 27/6, 1 flat and 1 acquired;

 

Pre-open indication results:  2 HITs <Maintain SELL: Biostage (BSTG -$0.00 at $1.30 with 45 shares traded), Pluristem (PSTI +$0.04) > and 0 MISS

 

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:

  • Intellia Therapeutics (NTLA), Editas Medicine (EDIT), CRISPR Therapeutics (CRSP), Fate Therapeutics (FATE), BioLife Solutions (BLFS) to name 5 of the 27 inclining of the 35 covered

Hammered in today’s market:

  • ReNeuron (RENE.L), Ultragenyx (RARE), Alnylam Pharmaceuticals (ALNY), Chinook Therapeutics (KDNY), AxoGen (AXGN), solid biosciences (SLDB) to name 6 of the 6 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 3 of the 27-upside having higher than the 3-month average volume with the volume of 0 of 5-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 27-upside were +0.67% (CLBS) to +10.86% (BLCM) while the 5-downside ranges from -0.43% (ALNY) to -4.42% (KDNY);

 

Wednesday’s (10 of 27) incliners:

  • Intellia Therapeutics (NTLA +$3.16 after Tuesday’s +$2.06 and Monday’s +$3.52);
  • Editas Medicine (EDIT +$2.43 after Tuesday’s -$0.25);
  • CRISPR Therapeutics (CRSP +$2.10 after Tuesday’s +$0.71 and Monday’s +$0.03);
  • Fate Therapeutics (FATE +$1.55 after Tuesday’s +$0.71 and Monday’s +$0.22);
  • Vericel (VCEL +$1.08 after Tuesday’s +$0.12 and Monday’s +$0.11);
  • Global Blood Therapeutics (GBT +$1.07 after Tuesday’s +$0.89);
  • BioLife Solutions (BLFS +$0.90 after Tuesday’s -$0.32 and Monday’s -$1.14);
  • Sage Therapeutics (SAGE +$0.88 after Tuesday’s -$2.83 after Monday’s -$3.00);
  • Regenxbio (RGNX +$0.57 after Tuesday’s -$0.78);
  • Cellectis SA (CLLS +$0.55);

Wednesday’s (6 of 6) decliners:

  • ReNeuron (RENE.L -$3.00 after Tuesday’s +$3.00);
  • Ultragenyx (RARE -$0.85 after Tuesday’s -$1.76);
  • Alnylam Pharmaceuticals (ALNY -$0.84 after Tuesday’s +$1.12);
  • AxoGen (AXGN -$0.80 after Tuesday’s -$0.47 and Monday’s +$0.27);
  • Chinook Therapeutics (KDNY -$0.75 after Tuesday’s -$0.36 and Monday’s +$0.04);
  • Solid Biosciences (SLDB -$0.02);

Closing 1 – Biostage (BSTG) and 1 - Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

  • The seven-day average of daily Covid cases in the U.S. is below 25,000 for the first time since June 19, 2020, as the pace of new infections continues a downward trend.

Tuesday’s COVID Data Tracker <Million>:

  • Cases: 32.99 M
  • Death rate totaled 588,421 - dipping <Johns Hopkins University>
  • Vaccinations (at least one):  61.8%

 

Stats:

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

  • Wednesday, the IBB closed up +0.60% and XBI closed up +2.17%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -1.48 points or -7.86% at 17.36

Upside volume: low

  • Wednesday: 3 out of the 28-upside had higher than the 3-month average volume;

Downside volume: low

  • Wednesday: 0 out of the 5-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 27-upside were +0.67% (CLBS) to +10.86% (BLCM) while the 5-downside ranges from -0.43% (ALNY) to -4.42% (KDNY);

 

May, second month of Q2/21:

Wednesday closed positive with 27 advancers, 6 decliners, 1 flat and 1 acquired

Tuesday closed negative with 10 advancers, 23 decliners, 1 flat and 1 acquired

Monday (5/24) closed negative with 9 advancers, 23 decliners, 2 flat and 1 acquired

 

The BOTTOM LINE: As I had stated “Expect the sector rotation trades to continue to play out.”

And it did again on Monday and Tuesday and the sector experienced another roll-over to the upside … however, more sell-off scares along the way.

Q1 earnings season is wrapping up and my reaction to earnings LPS (loss-per-share) results reveals more than some skepticism that Q1 losses provide a reason for additional forward-looking less than optimistic and more pessimism through the mid-year.”

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 remains Friday to Friday and has 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.