January 6, 2022 8:02am

Be prepared for any upside spikes in the cell and gene therapy sector stocks

Pre-open indications: 6 BUYs and 6 SELLs

News: Alnylam Pharmaceuticals (ALNY) announced a collaboration with Novartis to leverage Alnylam’s proven, proprietary siRNA technology to inhibit a target discovered at the Novartis Institutes for BioMedical Research, potentially leading to development of a treatment designed to promote the regrowth of functional liver cells and to provide an alternative to transplantation for patients with liver failure.

What I provide is an intelligence daily. RMi outlines a daily bell weather of “indications” about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session.

Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.

S&P futures are DOWN -0.04% (-2 points) and NASDAQ futures are DOWN -0.48% (-76 points), Dow futures are UP +0.24% (+88 points), 

 

Futures are vacillating in the pre-open on Thursday,

European stocks trade lower with the pan-European Stoxx 600 index down -1% by mid-morning,

Asia-Pacific were also lower with the MSCI’s broadest index of Asia-Pacific shares outside Japan slipped -1.04%.

 

Economic Data Docket: the weekly jobless claims report

 

Henry’omics:

The stock market rally started with the major indexes diverging again, but they all went south after the 2 p.m. ET Fed minutes release and closed at their worst levels of the day.

Yesterday, treasury yields drove the market action. The 10-year Treasury topped 1.7% for the first time in nine months following the release of the December Fed meeting minutes

The Nasdaq, after paring losses that held its 50-day line on Tuesday, tumbled below that key level yesterday.

 

If you didn’t remember what happen Wednesday night and the last session of 2021’s close, you won’t be prepared for today’s session:

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Probabilities versus aftermarket/pre-open share pricing indication moves:

BUY:

Homology Medicine (FIXX) closed down -$0.22 or -5.74% to $3.61 with a positive +$0.06 or +1.66% pre-open indication.

Global Blood Therapeutics (GBT) closed down -$1.66 or -5.66% to $27.67 after Tuesday’s $29.33 and Monday’s $30.46 with a positive +$0.88 or +3.20% pre-open indication

Sage Therapeutics (SAGE) closed down -$2.76 or -6.54% to $39.45 after Tuesday’s -$1.38 and Monday’s +$1.05 with a positive +0.48 or +1.22% pre-open indication

uniQure NV (QURE) closed down -$1.19 or -5.75% to $19.52 after Tuesday’s $20.71 and Monday’s $21.50 with a positive +$0.48 or +2.46% pre-open indication.

 

SELL:

Ultragenyx (RARE) closed up +$0.37 to $83.56 with a negative -$0.33 or -0.39% pre-open indication.

Alnylam Pharmaceuticals (ALNY) closed down -$10.14 or -6.14% to $155.09 after Tuesday’s -$8.68 or -4.99% to $165.23 with a -$5.13 or -3.31% pre-open indication.

 

Maintaining SELL:

AxoGen (AXGN) closed down -$0.30 to $10.14 after Tuesday’s +$0.46 to $10.44 and Monday’s +$0.61 or +6.51% to $9.98 with a negative -$0.14 or -1.38% pre-market indication,

Biostage (OTCQB: BSTG) closed up +$0.01 with 262 shares traded after Tuesday’s +$0.02 with 1626 shares traded, Monday’s flat with 20 shares traded, Friday’s down -$0.05 with 1,001 shares traded and last Thursday’s +$0.05 with 600 shares traded. Notice how the shares traded with and without the manipulated share pricing by volume stimulation; just a “House of Cards”?

Editas medicine (EDIT) closed down -$1.80 or -6.82% to $24.60 after Tuesday’s -$1.23 to $26.40 and Monday’s +$1.08 to $27.63 with a negative -$0.20 or -0.81% pre-open indication

Ionis Pharmaceuticals (IONS) closed down -$0.91 to $30.45 with a negative -$0.19 or -0.62% pre-open indication.

 

BUY from SELL:

bluebird bio (BLUE) closed down -$0.37 or -3.60% to $9.91 after Tuesday’s -$0.32 to $10.28 and Monday’s +$0.61 or +6.11% to $10.60 with a positive +$0.07 or +0.71% pre-market indication,

 

Maintaining BUY:

Intellia Therapeutics (NTLA) closed down -$10.19 or -8.97% to $103.35 after Tuesday’s -$5.45 or -4.58% to $113.54 and Monday’s -$3.00 to $118.24 with a positive +$0.15 or +0.15% premarket indication,

 

 

The BOTTOM LINE: Readers need to recite the black on white treatise as to how many times I am right to believe it.

The “BUY” zone is still questionable but, there’s room for oversold movement

I am NOT changing my position, “Brace for more choppiness heading into the start of the year.”

I used to think negativity was a state of mind. Now, having watched for long enough, I have come to realize that negativity can be a character trait

The volatile nature of cell, gene and biotech stocks is a double-edged sword; these stocks can produce gains but, sustainability or lack thereof, has been a factor through 2021 that I believe will continue into 2022.

Boom or bust as many missed end-points incurring weighty losses if a drug trial fails to perform or comes to market without any following.

Risks are also due to the possibility that many products under development may never make it to market. Share pricings were NOT maintained in 2021, begetting the collapse of many a company’s pricings as months wore on.

Early January 2022 can deliver some gains but also generate algorithmic based losses.

I say today what others won't, so you can do what others can't whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors

I still have a hang-up with investment bank rankings, they don’t take the daily, monthly, or even quarterly share pricing effects into consideration. Buy-side analysts work for funds that purchase or actively trade the securities they cover and even they have their lapses.

I have “lived” on both sides and “find’ that “big spikes are common in these markets but, they are usually short in duration.”

During 2021, the sector responded only with fluctuating sessions that were driven by algorithms.

So, my bottom of the Bottom Line, Investors should be extremely cautious about adding any new exposure.

The cell and gene therapy sector has a downside bias and is a dangerous “spot”; to play in. It's an environment that lures investors in, only to sell off sharply again.

If you want to buy, focus only on stocks showing the potential of sustainability.

RMi’s daily report is a primer that may say little or a lot; yet it serves as insurance that all indications are being examined and evaluated.

WHY do I keep reporting on 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.

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.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.