October 29, 2021 5:18pm

Churning and burning the sector while navigating earnings season

Pre-open indication results: 7 HITs and 1 MISS

My version of the session’s “indications” is about what you need to know; it’s what did happen after the opening, mid-day and to the close

An objective, fact and numbers-based narrative – check the numbers!

The week in review … 

The Dow closed UP points +89.08 (+0.25%); the S&P closed UP +8.96 points (+0.19%) while the Nasdaq closed UP +50.27 points (+0.33%)

 

Henry’omics:

The U.S. stock set another round of record highs on Friday …

Month to date, the S&P 500 and Nasdaq are up more than 6%, while the Dow is up more than 5%.

 

Note: Biostage (BSTG) was flat again $0.00 to $3.10 with 162 shares traded after Thursday’s 95 shares traded after Wednesday’s move from -$0.40 with 216 shares traded until the “pump” was turned-on with 1,676 shares traded to close +$0.10 – where is the SEC?

 

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

  • Friday opened negative at 14/16, 4 flats and 1 acquired, stayed negative at the mid-day at 11/19, 4 flats and 1 acquired, ending with a negative close of 13/19, 2 flats and 1 acquired;
  • Thursday opened positive at 18/13, 3 flats and 1 acquired, stayed positive at the mid-day at 23/10, 1 flat and 1 acquired, ending with a positive close of 23/9, 2 flats and 1 acquired;
  • Wednesday opened negative at 13/17, 4 flats and 1 acquired, stayed negative at the mid-day at 13/20, 1 flat and 1 acquired, ending with a negative close of 10/23, 1 flat and 1 acquired;
  • Tuesday opened negative at 9/23, 2 flats and 1 acquired, stayed negative at the mid-day at 10/23, 1 flat and 1 acquired, ending with a negative close of 9/24, 1 flat and 1 acquired;
  • Monday opened negative at 9/24, 1 flat and 1 acquired, strayed neutral at the mid-day at 16/16, 2 flats and 1 acquired, ending with a negative close of 15/17, 2 flats and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “after a market record high and sharp and quick sector inclines. As I stated, “Are we to be ready for a goodbye Friday to come back next week?” Response, maybe? … https://www.regmedinvestors.com/articles/12160

 

Pre-open indication results: 7 Hit: < Biostage (BSTG $0.00); SELL into Strength: CRISPR Therapeutics (CRSP -$2.69), Global Blood Therapeutics (GBT +$0.19), uniQure NV (QURE -$0.18), BioLife Solutions (BLFS +$2.40), Intellia Therapeutics (NTLA -$3.13), Editas Medicine (EDIT -$1.43)> and 1 MISS < Alnylam Pharmaceuticals (ALNY -$2.58)>   

 

Key Metric - volume:

Sector volume increased with 9 of the 13-upside having higher than the 3-month average volume with LOW volume of 3 of 19-downside having higher than the 3-month average volume;

Downside volume leaders:

  • Alnylam Pharmaceuticals (ALNY) -$2.56 with 1.461 m shares traded,

Upside volume leaders:

  • Adverum Biotechnologies (ADVM) +$0.13 with 4.668 m shares traded,

 

There are clear winners and losers

Jumping with share pricing momentum (13 of 13):

  • BioLife Solutions (BLFS +$2.40 after Thursday’s +$2.25, Wednesday’s +$1.23, Tuesday’s +$1.99 and Monday’s +$2.28),
  • Ionis Pharmaceuticals (IONS +$0.67 after Thursday’s -$1.39),
  • bluebird bio (BLUE +$0.48),
  • Global Blood Therapeutics (GBT +$0.19 after Thursday’s +$3.55, Wednesday’s +$2.79, Tuesday’s -$0.86 and Monday’s -$0.71),
  • Adverum Biotechnologies (ADVM +$0.175),
  • Solid Biosciences (SLDB +$0.17 after Thursday’s -$3.00),
  • Homology Medicine (FIXX +$0.09),
  • AxoGen (AXGN +$0.06),
  • Mesoblast (MESO +$0.04),
  • Caladrius Biosciences (CLBS +$0.04),
  • Athersys (ATHX +$0.04 after Thursday’s -$0.02),
  • Brainstorm Cell Therapeutics (BCLI +$0.025 after Thursday’s -$0.06),
  • MiMedx (MDXG +$0.02),

Hammered in today’s market (10 of 19):

  • Vericel (VCEL -$5.05),
  • Intellia Therapeutics (NTLA -$3.13 after Thursday’s +$6.51, Wednesday’s -$2.40, Tuesday’s -$1.55 and Monday’s +$1.97),
  • CRISPR Therapeutics (CRSP -$2.69 after Thursday’s +$1.22, Wednesday’s -$2.28, Tuesday’s -$1.64 and Monday’s +$1.14),
  • Alnylam Pharmaceuticals (ALNY -$2.58 after Thursday’s -$28.97, Wednesday’s -$6.55, Tuesday’s -$1.96 and Monday’s +$1.06),
  • Fate Therapeutics (FATE -$2.18 after Thursday’s +$1.14, Wednesday’s -$4.47, Tuesday’s +$1.15 and Monday’s -$0.84),
  • Editas Medicine (EDIT -$1.43 after Thursday’s +$1.35, Wednesday’s -$1.10, Tuesday’s -$0.31 and Monday’s +$0.39),
  • Regenxbio (RGNX -$1.09 after Thursday’s +$1.31, Wednesday’s -$0.76, Tuesday’s -$0.57 and Monday’s +$0.41),
  • Ultragenyx (RARE -$0.85 after Thursday’s +$3.12, Wednesday’s +$1.15, Tuesday’s +$0.81 and Monday’s +$1.47),
  • Sage Therapeutics (SAGE -$0.80),
  • Cellectis SA (CLLS -$0.22),

Closing Flat:

  • 2 –Biostage (BSTG), ReNeuron (RENE.L) and 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Friday, the IBB closed down -0.37% and XBI closed down -1.08%
  • Thursday, the IBB closed up +1.68% and XBI closed up +3.23%
  • Wednesday, the IBB closed down -1.56% and XBI closed down -1.44%
  • Tuesday, the IBB closed down -0.12% and XBI closed down -0.23%
  • Monday, the IBB closed up +1.14% and XBI closed up +0.17%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0,27 points or -1.63% at 16.26
  • Thursday was down -0.45 points or -2.65% at 16.53
  • Wednesday was up +1 points or +6.26% at 16.98
  • Tuesday was up +0.74 points or +4.86% at 15.98
  • Monday was down -0.19 points or -1.23% at 15.24

 

October, the first month of Q3/21:

Friday closed negative with 13 advancers, 19 decliners, 2 flats and 1 acquired

Thursday closed positive with 23 advancers, 9 decliners, 2 flats and 1 acquired

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

Tuesday closed negative with 9 advancers, 24 decliners, 1 flat and 1 acquired

Monday (10/25) closed negative with 15 advancers, 17 decliners, 2 flat and 1 acquired

Friday closed negative with 9 advancers, 26 decliners, 1 flat and 1 acquired

Thursday closed negative with 15 advancers, 17 decliners, 2 flats and 1 acquired

Wednesday closed negative with 12 advancers, 21 decliners, 1 flat and 1 acquired

Tuesday closed positive with 26 advancers, 6 decliners, 2 flats and 1 acquired

Monday (10/18) closed negative with 13 advancers, 21 decliners and 1 acquired

Friday closed negative with 7 advancers, 25 decliners, 2 flats and 1 acquired

Thursday closed positive with 22 advancers, 10 decliners, 2 flats and 1 acquired

Wednesday closed positive with 19 advancers, 14 decliners, 1 flat and 1 acquired

Tuesday closed positive with 21 advancers, 14 decliners, 2 flats and 1 acquired

Monday (10/11) closed positive with 19 advancers, 14 decliners, 1 flat and 1 acquired

Friday closed negative with 7 advancers, 24 decliners, 3 flats and 1 acquired

Thursday closed positive with 22 advancers, 12 decliners and 1 acquired

Wednesday closed negative with 9 advancers, 23 decliners, 2 flats and 1 acquired

Tuesday closed positive with 17 advancers, 16 decliners, 1 flat and 1 acquired

Monday (10/4) closed negative with 5 advancers, 28 decliners, 1 flat and 1 acquired

Friday (10/1) closed negative with 4 advancers, 28 decliners, 2 flats and 1 acquired

 

 

The BOTTOM LINE:  As I stated this a.m., I’ve been circling the portfolio for days as earnings and market fluctuations pronounce a “hurt” to sector equities.

Reiterating, “Don't let earnings week take advantage of you” … because it will!

We are seeing a to date, as two net losses <uniQure (QURE) and Alnylam Pharmaceuticals (ALNY)> earning’s releases that initiated Q3 earnings reporting season and beginning the tug-of-war between share pricing that is softer than usual and the usual LPS (loss-per-share) to be less than estimates and expectations.

What I wrote, still is relevant … “Don't let earnings week take advantage of you. Be ready to act on up-coming earnings news, good or bad, but don't be too hasty.”

I had said … take ANY profit if one can … to have “powder” after the pricing “drops” …

We'll be seeing the results these couples of weeks with Intellia Therapeutics (NTLA) on 11/4, followed by Sage Therapeutics (SAGE) and Ultragenyx Pharmaceuticals (RARE) on 11/2, Fate therapeutics (FATE) on 11/4, Vericel (VCEL on 11/9 and Athersys (ATHX) on 11/15 – so far.

Reiterating, “the stem, cell and gene therapy sector is still seen as vulnerable to extreme low volume moves in either direction, as share pricing risk stimulates their susceptibility!”

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!

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations?  What I provide is a trusted source of share pricing intelligence – it’s more than opinion, I deal in the facts and numbers that back them up.

 

The week in review …

Monday

RegMed Investors’ (RMi) pre-open: after weakness comes selectivity … https://www.regmedinvestors.com/articles/12152

RegMed Investors’ (RMi) closing bell: stalking the downside … https://www.regmedinvestors.com/articles/12153

 

Tuesday

RegMed Investors’ (RMi) pre-open: which way is up – a circuitous route … https://www.regmedinvestors.com/articles/12154

RegMed Investors’ (RMi) closing bell: taking profits as sector equities descend the down sliding sector … https://www.regmedinvestors.com/articles/12155

 

Wednesday

RegMed Investors’ (RMi) pre-open: get out the dice, take some risk on selling more of the oversold and buying some of the underbought … https://www.regmedinvestors.com/articles/12156

RegMed Investors’ (RMi) closing bell: the market and sector symbolize a game of “chutes and ladders” of ups and downs … https://www.regmedinvestors.com/articles/12157

 

Thursday

RegMed Investors’ (RMi) pre-open: ya’ think sentiment is slipping, let’s, see? … https://www.regmedinvestors.com/articles/12158

RegMed Investors’ (RMi) closing bell: a good session to sell into strength … https://www.regmedinvestors.com/articles/12159

 

Friday

RegMed Investors’ (RMi) pre-open: after a market record high and sharp and quick sector inclines … https://www.regmedinvestors.com/articles/12160

 

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.