June 23, 2021 7:46am

As the cell and gene therapy sector struggles for direction

Pre-open indications: 2 BUYs: EDIT, NTLA; 2 SELLs: CLLS, VSTM; 1 Maintain SELL: BSTG

My version of the morning’s “indications” is about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session

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Dow futures are DOWN -0.07% (-25 points), S&P futures are DOWN -0.12% (-4 point) and NASDAQ futures are DOWN -0.11% (-15 points)

 

U.S. stock index futures are weakening after diving in Wednesday’s pre-open,

European stocks pulled back slightly,

Asia-Pacific stocks were mostly higher.

 

Henry’omics:

Wednesday presents a conundrum after the Nasdaq hit an all-time high and the S&P 500 closed just shy of one. Tuesday, the Dow rose 163 points after falling more than 120 points.

For June the S&P 500 jumped +1% and Nasdaq landed on the green +3.6%. The Dow, however, is in the red for the month.

New record highs scare me with mixed futures as I usually say BYE for a session!

 

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

 

Tuesday’s evening’s recap: “the sell-off wasn’t over with heightened pricing sensitivity as sentiment is out-of-control as even news didn’t help the sector.” … https://www.regmedinvestors.com/articles/11966

  • The Nasdaq closed UP +111.79 points (+0.79%);
  • The IBB closed up +0.44% and XBI closed down -0.82%;
  • Sector volume was MODERATE with 2 of the 9-upside having higher than the 3-month average volume with the volume of 7 of 25-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -1.23 points or -6.88% at 16.66;
  • Tuesday’s percentage (%) of the 9-upside were +0.48% (PGEN) to +7.44% (BSTG) while the 25-downside ranges from -0.24% (AGTC) to -11.75% (VSTM);

Q2/21:

June: 10 positive and 6 negative closes

May:  8 positive, 12 negative closes and 1 holiday

April: 11 negative and 10 positive closes

Q1/21:

  • March: 10 positive, 12 negative and 1 neutral closes
  • February: 9 positive, 10 negative closes and 1 holiday
  • January: 10 positive, 9 negative closes and 1 holiday

 

Companies in my headlights – It’s your decision; I provide an idea and context:

The Biostage (BSTG) - Maintaining Sell – It’s about saying WHAT NEEDS to be written …

Biostage (BSTG) closed up +$0.09 to $1.30 with 4,779 shares traded after Monday’s flat at $1.21 with 572 shares traded, Friday with 333 shares traded, Thursday’s -$0.09 to $1.21 with 735 shares traded and last Wednesday’s +$0.089 to $1.30 with 205 shares traded. Is BSTG just building the share price for the annual meeting and WHAT role is DST Capital “playing” in these on-going pricing “moves”?

Question#1: Will the annual meeting result in ANY news to/about the future of the company on Thursday, 6/24/21?

Question#2: The REAL question to be ANSWERED is WHO is advising them in ALL of these endeavors and was has been the effect and did/has affected conditions within the company and past issues that STILL remain UNRESOLVED?

MINORITY PUBLIC shareholders are waiting for the specific time, watching and weighing responses to MAINTAIN their RIGHTS.

 

The morning’s indications:

Maintaining BUY:

Editas Medicine (EDIT) closed down -$0.45 to $36.41 after Tuesday’s +$0.98 to $36.86 and has a positive +0.19 or +0.52% pre-market indication.

Intellia Therapeutics (NTLA) closed down -$0.31 to $78.91 after Tuesday’s +$3.30 to $79.22 and has a positive +$2.09 or +2.65% pre-market indication.

 

Maintaining SELL:

Cellectis SA (CLLS) closed up +$0.10 to $14.61 after Tuesday’s -$0.34 to $14.51 and has a negative -$0.24 or -1.64% pre-market indication.

Verastem (VSTM)closed down -$0.57 to 4.28 and has a negative -$0.18 or -4.21% pre-market indication

 

The BOTTOM LINE: Maintaining my thesis …

Cell and gene therapy sector equities are still flying into headwinds and investors should use rallies to book profits.

I continue to MAINTAIN, this is a confused sector as sentiment rages and fades, momentum is usurped, fundamentals are being ignored.

When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started

Although, “I would consider new highs … to be SOLD into …complacency is in store as many investors actually get out to vacations (one indicator).”

A true contrarian thought …

My focus has always been “warning analysis” … my advice, trim and skim any new highs if one can!” I also see a number of lows that could be in the “pick-up” stock game.

My motto, never leave an investor uninformed about what I know!

 

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.