June 24, 2021 7:34am

Reduce risk by selling partial positions into highs

News: Applied Genetic Technologies (AGTC pre-open indication of +0.48) has news of 12-month data from its ongoing achromatopsia (ACHM) P1/2 clinical trials, including data from all adult patients and low-dose pediatric patients. Alnylam Pharmaceuticals (ALNY pre-open indication +$2.22) the FDA has accepted their New Drug Application (NDA) for vutrisiran, an investigational RNAi therapeutic for the treatment of the polyneuropathy of hereditary transthyretin-mediated (hATTR) amyloidosis in adults.

Pre-open indications: 2 BUYs: AGTC ALNY; 3 SELLs into strength: EDIT, NTLA, CRSP; 2 Maintain SELL: BSTG, CLLS

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 UP +0.51% (+171 points), S&P futures are UP +0.47% (+20 point) and NASDAQ futures are UP +0.55% (+79 points)

 

Stock futures are jumping on Thursday after a Wednesday’s hiccup,

European stocks climbed by late morning,

Asia-Pacific stocks struggled for direction

 

Henry’omics:

Gene and cell therapy sector was up two (2) positive closes to one (1) negative close … after last week’s three (3) negative closes and two (2) positive closes.

The S&P 500 snapped a two-day winning streak Wednesday, closing the regular session 0.1% lower. The Dow also shed 71.34 points, or 0.2% while the Nasdaq gained 0.1% to squeeze out another record closing high.

Despite Wednesday’s pause for breath, after the Fed heightened inflation expectations and forecast rate hikes as soon as 2023. <CNBC>

Same old mantra, with new highs I say BYE and partition positions!

 

Data Docket: Initial jobless claims totaled 411,000 for the week ended June 19, a decline from the 418,000 in the previous period but worse than the 380,000 estimates. Continuing claims decreased to 3.39 million. Durable goods orders rose 2.3%, below the estimate, while the final reading on first-quarter GDP came in at 6.4%, in line with expectations.

 

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

 

Wednesday’s evening’s recap: “frothy as cell and gene therapy sector splits positive” … https://www.regmedinvestors.com/articles/11969

  • The Nasdaq closed UP +18.47 points (+0.13%);
  • The IBB closed down -0.25% and XBI closed up +0.47%
  • Sector volume was LOW with 4 of the 25-upside having higher than the 3-month average volume with HIGH volume of 6 of 9-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was down -0.34 points or -2.04% at 16.32
  • Wednesday’s percentage (%) of the 25-upside were +0.14% (AXGN) to +6.11% (VCEL) while the 9-downside ranges from -0.47% (VSTM) to -3.85% (BSTG);

Q2/21:

June: 11 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 down -$0.05 to $1.25 with 11,915 shares traded after Tuesday’s  +$0.09 to $1.30 with 4,779 shares traded, Monday’s flat at $1.21 with 572 shares traded, Friday with 333 shares traded and last Thursday’s -$0.09 to $1.21 with 735 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:

BUY:

Applied Genetic Technologies (AGTC pre-open indication of +0.48) has news of 12-month data from its ongoing achromatopsia (ACHM) P1/2 clinical trials, including data from all adult patients and low-dose pediatric patients.

Alnylam Pharmaceuticals (ALNY) closed up +$1.68 to $174.63 and has announced the U.S. FDA has accepted the New Drug Application (NDA) for vutrisiran, an investigational RNAi therapeutic for the treatment of the polyneuropathy of hereditary transthyretin-mediated (hATTR) amyloidosis in adults; pre-open indication +$2.22.

 

SELL into Strength:

Editas Medicine (EDIT) closed up +$0.1.41 to $37.82 after Tuesday’s -$0.45 to $36.41 after Tuesday’s +$0.98 to $36.86 and has a positive +0.18 or +0.48% pre-market indication.

Intellia Therapeutics (NTLA) closed up +$4.68 to $83.59 after Tuesday’s -$0.31 to $78.91 after Tuesday’s +$3.30 to $79.22 and has a positive +$1.40 or +1.67% pre-market indication.

CRISPR Therapeutics (CRSP) closed up +$1.48 to $130.48 and has a positive +$1.16 or +0.89% pre-market indication after the previous two (2) sessions floundered $0.42 of difference.

 

Maintaining SELL:

Cellectis SA (CLLS) closed up +$0.19 to $14.80 after Tuesday’s +$0.10 to $14.61 after Tuesday’s -$0.34 to $14.51 and has a negative -$0.18 or -1.22% 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 also 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.