December 14, 2021 5:00pm
Sector equites are the can kicked down the sustainability road
Pre-open indication results: 6 HITs, 3 MISS
Who else is tracking a broad representative of cell and gene therapy equities – with facts supported by real numbers?
If I have learned one thing as a former research analyst, venture and public markets investor to a journalist; it is that your life and your bank account are largely tied to your questioning of price movements and targets.
The Dow closed DOWN -195.26 points (-0.30%); the S&P closed DOWN -34.69 points (-0.74%) while the Nasdaq closed DOWN -175.64 points (-1.14%)
Indexes fell on Tuesday as the stem, cell and gene therapy sector moved lower and new inflation data continued to show a sharp rise in prices.
The Dow is 2.5% below its record, the S&P is down from its November 22all-time high while the Nasdaq is about 5% under its high-water mark. The Russell 2000 index is down (today -0.08%) 11.3% since its Nov. 8 high.
Economic data Docket: The producer price index soared 9.6% in November from the prior year and increased +0.8% from the prior month, according to the Bureau of Labor Statistics. Both gauges came in higher than estimates for a 9.2% year-over-year jump and a 0.5% month-over-month increase.
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what’s happening …
- Tuesday opened negative at 7 ups/26 downs, 1 flat and 1 acquired, stayed negative at the mid-day at 9/24, 1 flat and 1 acquired, ending with a negative close of 7 up/27 downs and 1 acquired;
- Monday opened positive at 21 ups/12 downs, 1 flat and 1 acquired, flipped negative at 11 a.m. at 10/22, 2 flats and 1 acquired, the mid-day was negative at 11/22, 1 flat and 1 acquired, ending with a positive close of 16/15, 3 flats, and 1 acquired;
RegMed Investors’ (RMi) pre-open: “the lack of pressure for sustainability. The sector was selling-off as the session progressed, although the close was a positive” … https://www.regmedinvestors.com/articles/12224
Pre-open indication results: 6 HITs: < Alnylam Pharmaceuticals (ALNY -$0.69), Biostage (BSTG -$0.38), Mesoblast (MESO -$1.59), Brainstorm Cell Therapeutics (BCLI -$0.56), Ionis Pharmaceuticals (IONS +$0.08), Global Blood Therapeutics (GBT -$4.16)> and 3 MISS: Editas Medicine (EDIT -$0.64), Precigen (PGEN -$0.17), Intellia Therapeutics (NTLA +1.02) >
Key Metric - volume
Sector volume INCREASED with 5 of the 7-upside having higher than the 3-month average volume with INCREASED volume of 13 of 27-downside having higher than the 3-month average volume;
New 52-week lows:
- Sangamo Therapeutics (SGMO) at $7.18
- Fate Therapeutics (FATE) at $44.34
- Pluristem (PSTI) at $2.15
- Mesoblast (MESO) at $4.76
Jumping with share pricing momentum (7 of 7):
- Ultragenyx (RARE +$2.12 after Monday’s +$1.73),
- CRISPR Therapeutics (CRSP +$1.59 after Monday’s -$0.63),
- Fate Therapeutics (FATE +$1.19 after Monday’s -$0.18),
- Intellia Therapeutics (NTLA +$1.02),
- Sangamo Therapeutics (SGMO =$0.10 after Monday’s -$0.44),
- Ionis Pharmaceuticals (IONS +$0.08 after Monday’s +$0.70),
- Athersys (ATHX +$0.0429)
Hammered in today’s market (10 of 27):
- ReNeuron (RENE.L -$5.50 after Monday’s -$1.50),
- Global Blood Therapeutics (GBT -$4.16 after Monday’s +$1.47),
- Mesoblast (MESO -$1.59 after Monday’s -$0.40),
- BioLife Solutions (BLFS -$1.49),
- Vericel (VCEL -$1.05 after Monday’s -$1.07),
- Chinook Therapeutics (KDNY -$0.80 after Monday’s -$0.35),
- Alnylam Pharmaceuticals (ALNY -$0.69 after Monday’s +$12.77),
- Editas Medicine (EDIT -$0.64 after Monday’s +$0.25),
- uniQure NV (QURE -$0.59 after Monday’s +$0.46),
- Regenxbio (RGNX -$0.58 after Monday’s +$0.69),
- 1 - Stemline Therapeutics (STML) – acquired
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Tuesday, the IBB closed down -0.50% and XBI closed down -1.83%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Friday was up +1.58 points or +7.78% at 21.89
December, the second month of Q4/21:
Tuesday closed negative with 7 incliners, 27 decliners and 1 acquired
Monday (12/13) closed positive with 16 incliner, 15 decliners, 3 flats and 1 acquired
The BOTTOM LINE: sector stocks sold off Tuesday, as the Nasdaq breached a key support line.
Small caps tracked by the Russell 2000 were down 0.8%. Volume was higher in the sector versus Monday.
Despite gains for the sector last week, direction is still unclear. But historically, December has been a strong month for the stock market.
In any case, I have continued to write … don’t ramp exposure at the current levels.
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.
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.