January 11, 2022 5:38pm
The oversold were recognized and mostly bought while a couple of new highs were sold and profited
Pre-open Indication results: 5 HITs, 1 MISS and 1 “pumped and promoted”
JPMorgan News Flow: Illumina (ILUM) Applied Genetic Technologies (AGTC), Barron’s gene editing article, Verastem Oncology (VSTM) and bluebird bio (BLUE)
The Biostage Chronicles: new press release, dispose and disregard, fit for the barrel, https://www.regmedinvestors.com/articles/12252 7,089 shares traded (3-month average = 1979 shares) to “pimp and promote” the share prices +37.34%
If I have learned one thing as a former research analyst, venture and public markets investor then a journalist; it is that your life and your bank account are largely tied to your questioning of price movements and targets.
Who else is tracking a broad representative of cell and gene therapy equities – with facts supported by real numbers?
The Dow closed UP +183.15 points (+0.51%); the S&P closed UP +42.78 points (+0.92%) while the Nasdaq closed UP +210.62 points (+1.41%)
Henry’omics:
Indexes rose again on Tuesday as stocks appeared to find their footing after a rocky start since the New Year.
The stock market rally on Tuesday extended the rebound from Monday's intraday lows, when the Nasdaq undercut its 200-day line for the first time since April 2020. <IBD>
The stem, cell and gene therapy sector was due for some positive action, after looking oversold and I couldn’t have been more right in my prognostications.
U.S. government bond yields (^FVX, ^TNX, ^TYX) are surging the most to start the year since 2003, which is having spillover effects in the equities.
However, stocks and bonds both moved higher during Powell’s testimony as he did not announce an accelerated change in policy from what the central bank had already signaled. <CNBC>
Biggest “tankers” were ReNeuron (RENE.L), - again, while yesterday’s “uppers” Fate Therapeutics (FATE), Alnylam Pharmaceuticals (ALNY), and Global Blood Therapeutics (GBT) fell; while increasing “poppers” were CRISPR Therapeutics (CRSP), Ionis Pharmaceuticals (IONS), Sage Therapeutics (SAGE).
“Pumping and promoting” up, up and away as Biostage (BSTG) jumped +$0.87 to $3.20 with 7,089 shares traded (3-month average = 1979 shares) after Monday’s dropping -$0.03 with 2,076 shares traded sliding to $2.33.
Tuesday’s market moves follow a sharp rally on Monday afternoon, which saw the Nasdaq erase a 2.7% loss to finish slightly higher and snap a four-day losing streak. The Nasdaq is now down about 3.1% since the start of 2022 and more than 5% from its record closing high in November.
Economic data Docket: Fed Chair Powell testified before a Senate committee today as part of his re-confirmation process. Powell said that he expected a normalized supply chain to help ease inflation pressures in 2022 but said the Fed would not be afraid to hike rates further than projected if inflation remains high
- Fed Chair Powell said the central bank can cool inflation without damaging the labor market. We know that high inflation exacts a toll," Powell said, pledging to use the Fed's full suite of policy tools "to prevent higher inflation from becoming entrenched".
RegMed Investors’ (RMi) pre-open: “sector leadership, the few and the far between. A very weak aftermarket doesn’t say much for Tuesday” … https://www.regmedinvestors.com/articles/12251
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Tuesday opened negative at 9 up/22 downs, 3 flats and 1 acquired, flipped positive at the mid-day at 25/8, 1 flat and 1 acquired, ending with a positive close of 22/11, 1 flat, and 1 acquired;
- Monday opened negative at 2 up/31 downs, 1 flat and 1 acquired, stayed negative at the mid-day at 8/25, 1 flat and 1 acquired, ending with a neutral close of 16/16, 2 flats, and 1 acquired;
Pre-open indication results: 5 Hits <Cellectis SA (CLLS +$0.09), CRISPR Therapeutics (CRSP +$3.62), Editas Medicine (EDIT +$0.07), Global Blood Therapeutics (GBT +$1.06), Ionis Pharmaceuticals (IONS +$0.84)> 2 MISS < Vericel (VCEL -$0.36), Biostage (OTCQB: BSTG +$0.87)>
Key Metrics:
- Monday - Sector volume was LOW with 5 of the 22-upside having higher than the 3-month average volume with LOW volume of 3 of 7-downside having higher than the 3-month average volume;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Tuesday the IBB closed up +0.96% and XBI closed up +0.73%
- Monday the IBB closed up +1.15% and XBI closed up +0.20%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Tuesday was down -0.99 points or -5.10% at 18.41
- Monday was up +0.61 points or +3.25% at 19.37
Jumping with share pricing momentum (10 of 22):
- CRISPR Therapeutics (CRSP +$3.62 after Monday’s +$1.43),
- Sage Therapeutics (SAGE +$1.39),
- Global Blood Therapeutics (GBT +$1.06 after Monday’s +$0.54),
- Intellia Therapeutics (NTLA +$1.01 after Monday’s -$1.51),
- Ionis Pharmaceuticals (IONS +$0.84),
- Biostage (BSTG +$0.87 – the “pump” was in),
- Ionis Pharmaceuticals (IONS +$0.84),
- Regenxbio (RGNX +$0.43 after Monday’s -$0.93),
- AxoGen (AXGN -$0.34),
- Chinook Therapeutics (KDNY +$0.25 after Monday’s -$0.26),
Hammered in today’s market (11 of 11):
- ReNeuron (RENE.L -$2.30 after Monday’s -$2.00),
- Alnylam Pharmaceuticals (ALNY -$2.113 after Monday’s +$2.03),
- Fate Therapeutics (FATE -$1.77 after Monday’s +$1.00),
- BioLife Solutions (BLFS -$0.49 after Monday’s +$1.27),
- Vericel (VCEL -$0.36 after Monday’s +$2.46),
- Ultragenyx (RARE -$0.13 after Monday’s -$0.69),
- Pluristem (PSTI -$0.13 after Monday’s +$0.36),
- uniQure NV (QURE -$0.13),
- Brainstorm Cell Therapeutics (BCKI -$0.06),
- Caladrius Biosciences (CLBS -0.0519),
- Adverum Biotechnologies (ADVM -$0.01),
Closing:
- 1- Homology Medicine (FIXX) and 1 - Stemline Therapeutics (STML) – acquired
January, Q1/2022:
- Tuesday closed positive with 22 incliners, 11 decliners, 1 flat and 1 acquired
- Monday (1/10) closed neutral with 16 incliners, 16 decliners, 2 flats and 1 acquired
- Friday closed negative with 7 incliners, 26 decliners, 1 flat and 1 acquired
- Thursday closed negative with 8 incliners, 22 decliners, 4 flats and 1 acquired
- Wednesday closed negative with 4 incliners, 30 decliners and 1 acquired
- Tuesday closed negative with 5 incliners, 29 decliners and 1 acquired
- Monday (1/3) closed positive with 32 incliners, 0 decliners and 1 acquired
JPMorgan Healthcare Conference News Flow:
Barron’s …
Biotech stocks have lost luster in the last six months, as panic over Covid-19 subsided, at least in the stock market.
Illumina’s (ILMN) systems are the dominant products used to read the sequence of letters in the genomic code of our DNA, and demand for gene sequencing is hot. At the annual healthcare conference hosted virtually by JPMorgan Chase yesterday, ILMN said sales grew 39% in 2021 and that analysts’ forecasts for 2022 revenue were too low.
Particularly hard hit were start-up firms developing treatments to correct defective genes. But at J.P. Morgan’s virtual healthcare conference this week, gene-editing companies like Intellia Therapeutics (ticker: NTLA) and Editas Medicine (EDIT) are saying that this year will bring exciting developments.
Big pharma senses a buying opportunity.
The week began with Germany’s Bayer (BAYN.Germany) saying on Sunday that it will pay $40 million, and potentially $1 billion more, to work with Mammoth BioSciences, a privately held venture co-founded by Jennifer Doudna—who won a Nobel Prize with Emmanuelle Charpentier for discovering the Crispr-Cas gene-editing technology. Monday, Pfizer unveiled a $1.3 billion partnership with the gene-editing firm Beam Therapeutics (BEAM).
Applied Genetic technologies (AGTC) - Exceeds Enrollment Target in SKYLINE Trial of AGTC-501 for the Treatment of X-linked Retinitis Pigmentosa (XLRP) –
Verastem Oncology
bluebird bio (BLUE) – ahead of
The BOTTOM LINE: Sector is chugging to the upside as the oversold are feeling the sunshine above water after all but drowning in red ink.
A few 52-week lows were bought today – maybe, I was a “hair” early on some but, it reinforces my probabilities to facilitate my predictive processes.
Algorithms, hedge funds and traders continue to punish the cell and gene therapy stocks as valuations “creeped” up.
- Early January 2022 can deliver some gains but also generate algorithmic based losses.
Reiterating from last year, 2021, “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!”
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.
