July 13, 2021 4:53pm

With sentiment continually draining from the sector with low volume

Pre-open indications: 2 HITs and 4 MISS

My comments try to distinguish the temporary from real pricing digression or progress.

It takes courage to not be discouraged by sector volatility!

The Dow closed DOWN -107.39 points (-0.31%); the S&P closed DOWN -15.42 points (-0.35%) while the Nasdaq closed DOWN – 55.59 points (-0.39)

 

Henry’omics:

Indexes slipped from any highs on Tuesday as a scorching-than-expected inflation report decimated the session.

Interesting quotes, “CNBC’s Jim Cramer rendered stock futures to be a worthless tool to gauge the temperature of the market after stock indexes finished at records on Monday. “The pattern’s been with us for months now and each time it fools people. I am urging you not to be misled by the downward pull of the futures,” he said. “If you have the courage of your bullish convictions, these dips are a gift.””

Same goes for Tuesday, as I surmised a ricochet – Henry!

 

Data Docket: Inflation rose at its fastest pace in nearly 13 years, the Labor Department reported Tuesday. The consumer price index increased 5.4% in June from a year ago; economists surveyed expected a 5% gain. Core CPI, excluding food and energy, jumped 4.5%, the sharpest move for that measure since September 1991 and well above the estimate of 3.8%.

 

RegMed Investors’ (RMi) pre-open: “ricochet as sector struggles? Inflation data is expected today and to climb” … https://www.regmedinvestors.com/articles/11995

 

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

  • Tuesday opened negative at 0/32, 2 flats and 1 acquired, stayed negative at the mid-day to 6/27, 1 flat and 1 acquired, closing negative 2/31, 1 flat and 1 acquired;
  • Monday opened negative at 5/27, 2 flats and 1 acquired, stayed negative at the mid-day to 6/27, 2 flats and 1 acquired, closing negative 11/19, 4 flats and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump” is STILL promoting on Tuesday with 1,125 shares traded, up +$0.14 to $1.64 after Monday with 2,628 shares traded with a NEGATIVE -$0.00 upside, Friday as 1060 shares traded with the share price closing FLAT, Thursday with 210 shares traded and last Wednesday with 15,903 shares traded to “push/promote” the exercise of warrants to add more unregistered shares to the “outstanding” … WHO and WHOM are trading – as if we didn’t know?

 

Pre-open Indications: 2 HITs <SELL: Alnylam Pharmaceuticals (ALNY -$0.33), Global Blood Therapeutics (GBT -$0.57) and 4 MISS < Maintaining SELL: Biostage (BSTG +$0.10); BUY: bluebird bio (BLUE) -$0.58), Editas Medicine (EDIT -$1.63), Ionis Pharmaceuticals (IONS -$1.65)   

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q2/21 LPS Results: 1st Athersys (ATHX) - 8/9

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Biostage (BSTG) – pumped, Precigen (PGEN) to name 2 of the 2 inclining of the 35

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP) - again, Intellia Therapeutics (NTLA) - again, Fate Therapeutics (FATE) - again, Ultragenyx (RARE), Editas Medicine (EDIT) - again to name 5 of the 31 declining of the 35 covered

 

Key Metrics:

  • Sector volume was NADA with 0 of the 2-upside having higher than the 3-month average volume with NADA volume of 0 of 31-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 2-upside were +1% (PGEN) to +9.99% (BSTG) while the 31-downside ranges from -0.27% (PSTI) to -9.04% (BLCM);

 

Tuesday’s (2 of 2) incliners:

  • Biostage (BSTG +$0.14 after Monday’s -$0.00);
  • Precigen (PGEN +$0.06);

Tuesday’s (10 of 31) decliners:

  • CRISPR Therapeutics (CRSP -$5.09 after Monday’s -$3.58);
  • Intellia Therapeutics (NTLA -$4.78 after <Monday’s -$4.97);
  • Fate Therapeutics (FATE -$4.48 after Monday’s -$4.53);
  • Ultragenyx (RARE -$3.44 after Monday’s +$0.04);
  • Editas Medicine (EDIT -$2.27 after Monday’s -$2.50);
  • Alnylam Pharmaceuticals (ALNY -$1.40 after Monday’s +$0.29);
  • BioLife Solutions (BLFS -$1.27 after Monday’s +$0.67);
  • Sage Therapeutics (SAGE -$1.14 after Monday’s -$1.00);
  • bluebird bio (BLUE -$0.93 after Monday’s -$0.78);
  • Ionis Pharmaceuticals (IONS -$0.93 after Monday’s -$1.58);

Closing - 1 –ReNeuron (RENE.L) and 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Tuesday, the IBB closed down -0.98% and XBI closed down -1.67%
  • Monday, the IBB closed down -0.37% and XBI closed down -1.47%

 

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +1.06 points or +6.25% at 17.18
  • Monday was down -0.01 points or -0.06% at 16.17

 

Upside volume:

  • Tuesday: 0 out of the 2-upside had higher than the 3-month average volume;
  • Monday: 2 out of the 11-upside had higher than the 3-month average volume;

 

Downside volume:

  • Tuesday: 0 out of the 31-downside had higher than the 3-month average volume;
  • Monday: 0 out of the19-downside had higher than the 3-month average volume;

 

Percentage (%) movement/range statistics: price versus percentage …

  • Tuesday’s percentage (%) of the 2-upside were +1% (PGEN) to +9.99% (BSTG) while the 31-downside ranges from -0.27% (PSTI) to -9.04% (BLCM);
  • Monday’s percentage (%) of the 11-upside were +0.04% (RARE) to +11.28% (BLCM) while the 19-downside ranges from -0.64% (MESO) to -5.15% (EDIT);

 

July, first month of Q3/21:

Tuesday closed negative with 2 advancers, 31 decliners, 1 flat and 1 acquired

Monday closed negative with 11 advancers, 19 decliners, 4 flat and 1 acquired

 

The BOTTOM LINE:  it' was scary today ...

We never got off the roller-coaster … the pace of growth for the 2nd half/21 will be hamstrung LPS (loss-per-share) without the usual insignificant company guidance however, keep an eye on “runways”.

I expect smaller and choppier gains, brace for more volatility.

Next few months – unless, news of clinical results or an M&A after a choppy and marginal performance in the first half.

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!”

July starts with five (5) negative closes and three (3) positive notes; be careful of a volatile summer.

 

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.

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.