September 14, 2021 4:51pm
Stem, cell and gene therapy stocks crashed; markets showed the depths of the downside with the sector following as yesterday’s gains are today’s pain
Pre-open indications: 2 HITs and 3 MISS
My comments try to distinguish the temporary from real pricing digression or progress with a 360-degree view.
I used to think negativity was a state of mind. Now, having watched for long enough, I come to realize negativity can be a character trait
The Dow closed DOWN -292.06 points (-0.84%); the S&P closed DOWN -25.68 points (-0.57%) while the Nasdaq closed DOWN -67.82 points (-0.45%)
What more can I write, the stem, cell and gene therapy sector followed the market down the chipmunk hole …?
U.S. stock indexes closed lower Tuesday, giving up gains earlier in the session after a better-than-feared inflation reading and falling back into their September doldrums. <CNBC>
Stocks have also been under pressure since August’s jobs report, released by the Labor Department on Sept. 3, missed expectations.
For the past two days, stocks rolled over from intraday highs earlier in the session.
The major averages are all down at least 1% for September.
Moderna (MRNA) rallied (+$7.99 or +1.90% to $427.71) to recover most of Monday's 6.6% loss. MRNA makers took a hit Monday ($419.72), after a bevy of scientists argued against Covid booster shots; the stock is up from a $184.66 share on June 1st.
An on-target quote, I think the market is starting to come to grips with the idea there is going to be a tax hike and the next round of stimulus is actually a tightening of fiscal policy, not stimulus, not through the lens of an equity investor,” said Barry Knapp, Ironsides Macroeconomics managing partner.
Data Docket: The August consumer price index, while still showing a significant jump in inflation, came in less than feared. August CPI jumped 0.3% month-to-month, or 5.3% from a year earlier, below the 0.4% increase and 5.4% annual gain expected.
- The less volatile core reading excluding food and energy costs showed just a slight gain, up 0.1% and below the 0.3% consensus increase expected by economists.
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines:
- Tuesday opened positive at 25/7, 2 flats and 1 acquired, flipped negative at the mid-day to 9/23, 2 flats and 1 acquired, closing negative 5/29 and 1 acquired;
- Monday opened negative at 10/22, 2 flats and 1 acquired, tripped positive at the mid-day at 19/15 and 1 acquired, ending with a negative close of 15/19 and 1 acquired;
RegMed Investors’ (RMi) pre-open: “the remaining Q3 cycle, treading water. The oversold are twinkling; shining with a gleam that changes from bright to faint.” … https://www.regmedinvestors.com/articles/12093
Pre-open results: 2 Hits - <SELL/SKIM: Regenxbio (RGNX +$2.28), Maintaining SELL: Biostage (BSTG -$0.27)> 3 Miss < BUY: Intellia Therapeutics (NTLA -$0.35), CRISPR Therapeutics (CRSP -$1.70), Editas Medicine (EDIT -$2.17)>
The Biostage (BSTG) Chronicles: “The Biostage (BSTG) Chronicles - Maintaining Sell - Is this another Theranos – faking it to not make it?” … https://www.regmedinvestors.com/articles/12087
Q2/21 Earnings releases … https://www.regmedinvestors.com/articles/11542 … to date:
- Net Income: 3 and Net losses: 23
Key Metric - volume:
- Sector volume was LOW with 3 of the 5-upside having higher than the 3-month average volume with very LOW volume of 6 of 29-downside having higher than the 3-month average volume;
The Biostage (BSTG) Chronicles: The usual “pump/promote”, Tuesday closed down -$0.27 to $3.56 with 6,551 shares traded following Monday’s +$0.04 to $3.83 with 26,150 shares traded, Fridays closed down -$0.19 to $3.79 with 22,124 shares traded after Thursday traded up +$0.66 to $3.98 with 6,0622 shares traded, Wednesday traded +$0.57 with 7,833 shares traded after last Tuesday closing down -$0.75 to $2.75 with 6,705 shares traded.
- Today is just another fact, how the share trades with the “push/promote” - another typical example,
- WHAT is BSTG’s value proposition, after all the share price “pumping”?
- Is management responding to U.S./non-U.S./ Chinese investors complaints after the last (listed pricing) private placement of $4.71?
- Where are these buying monies coming from?
There are clear winners and losers
Jumping with share pricing momentum:
- ReNeuron (RENE), Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX) - again, uniQure NV (QURE), Verastem (VSTM) to name 5 of the 5 inclining of the 35 covered
Hammered in today’s market:
- Ultragenyx (RARE), Editas Medicine (EDIT) - again, Vericel (VCEL), Sage Therapeutics (SAGE), CRISPR Therapeutics (CRSP) to name 5 of the 29 declining of the 35 covered
Closing: 1 - Stemline Therapeutics (STML) – acquired
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Tuesday, the IBB closed down -0.23% and XBI closed down -1.59%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Tuesday was up +0.10 points or +0.52% at 19.47
September, the third month of Q3/21:
Tuesday closed negative with 5 advancers, 29 decliners and 1 acquired
Monday (9/13) closed negative with 15 advancers, 19 decliners and 1 acquired
The BOTTOM LINE: The stem, cell and gene therapy sector that just couldn’t hold on to any gains.
Maintaining my position, I haven’t had long to wait for a bumpy September-October timeframe.
Just before noon, the sector fell Tuesday, similar to what happened on Monday. Today, the sector and all three indexes had been higher at the market open.
When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started.
Slippage began about 11 a.m. …
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!”
WHY do I keep analyzing Biostage (BSTG): When one sees an inextricable wrong and morally repulsive scenario; it takes courage, resolve and patience to stay the course of asking the questions without response!
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.