January 20, 2022 7:44am

The cell and gene therapy sector has been among the hardest hit over the past several weeks of opening strong and closing weak; should investors look for a follow-through session?

Pre-open indications: 8 BUYs and 3 SELL

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.

Only the facts …

Dow futures are UP +UP +0.43% (+150 points), S&P futures are UP +0.46% (+21 points) and NASDAQ futures are UP +0.76% (+115 points)

 

Henry’omics:

The Dow lost nearly 1%, the S&P 500 retreated 1%, the Nasdaq fell 1.15% in Wednesday's trading even after being up more than 1% soon after the open.

The small-cap Russell 2000 slumped 1.6% and fell to its lowest level in more than a year continuing a long consolidation.

 

Economic Data Docket: jobless claims and existing home sales; the Philadelphia Fed also will be reporting its monthly manufacturing survey for January.

 

If you didn’t remember what happen in Wednesday’s close, you won’t be prepared for today’s session:

RegMed Investors’ (RMi) closing bell: “a tightening cycle. Key word:  exposure - describes the risk and reward potential for an investor given the holdings within an investment portfolio.” …  https://www.regmedinvestors.com/articles/12263

Ebb and flow – January and Q1 to date:

  • 1 holiday, 1 neutral, 8 negative and 3 positive closes

 

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

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

SELL
Editas Medicine (EDIT) closed down -$0.03 to $19.93 after Tuesday’s -$2.14 to $19.96 after Friday’s +$0.23 to $22.10 and last Thursday’s -$1.63 to $21.87 with a negative -$0.20 or -1% pre-open indication

Intellia Therapeutics (NTLA) closed down -$2.13 to $83.67 with a negative -$0.08 or -0.10% pre-open indication

 

Maintaining BUY:

bluebird bio (BLUE) closed down again -$0.36 to $7.55 after Tuesday’s -$0.82 to $7.91 and last Friday’s +$0.21 to $8.73 and has a positive +$0.22 or +2.91% pre-open indication

CRISPR Therapeutics (CRSP) closed down again -$0.86 to $64.19 after Tuesday’s -$2.72 to $65.06 after Friday’s +$1.37 to $67.77, Thursday’s -$2.85 to $69.86 with a positive +$0.91 or +1.42% pre-open indication.

 

BUY:

Alnylam Pharmaceuticals (ALNY) closed down -$0.57 to $138.62 after Tuesday’s $139.19 and Friday’s $148.50 with a positive +$3.84 or +2.77% pre-open indication,

Editas Medicine (EDIT) closed down -$0.03 to $19.93 after Tuesday’s $19.96 and last Friday’s $22.10 with a positive +$0.33 or +1.66% pre-open indication,

Fate Therapeutics (FATE) closed down -$1.31 to $39,31 after Tuesday’s $40.62 and Friday’s $43.28 with a positive +$0.75 or +1.91% pre-open indication.

Global Blood Therapeutics (GBT) closed up +$0.41 to $27.84 after Tuesday’s $27.43 and Friday’s $28.99 with a positive +$3.63 or +13.04% pre-open indication

Sage Therapeutics (SAGE) closed down -$0.64 to $39.44 after Tuesday’s $40.08 and last Friday’s $42.93 with a positive +$0.43 or =1.09% pre-open indication.

Verastem Oncology (VSTM) closed down -$0.06 to $1.59 after Tuesday’s $1.65 and last Friday’s $1.80 with a positive +$0.03 or +1.89% pre-open indication.

 

Maintaining SELL:

Biostage (OTCQB: BSTG) closed up +$0.25 to $4.00 with 1,516 shares traded after Tuesday’s -$0.85 to $3.75, Friday’s flat at $4.60 and last Thursday’s +$0.63 to $4.60.

  • Is there a reason for the “pump and promote”; are they trying to reverse or convert the non-registered shares from the multiple overpriced private placement (without any valuation models) to register shares to “facilitate” an “equity raise” to protect/satisfy tired non-U.S. investors?

 

 

The BOTTOM LINE: It wasn't surprising to see the market try to bounce.

Sector leadership is struggling but, continue looking for tomorrow and Friday’s winners amongst Wednesday’s 52-week lows: will they move-up today?

  • Verastem Oncology (VSTM) hit a 52-week low of $1.604
  • bluebird bio (BLUE) hit a 52-week low of $7.77
  • Fate therapeutics (FATE) hit a 52-week low of $39.91
  • Editas Medicine (EDIT) hit a 52-week low of $19.68
  • Ultragenyx Pharmaceuticals (RARE) hit a 52-week low of $66.92

The stock market suffered another punishing loss Wednesday, although not as bad as Tuesday’s bottom dive easily wiping out Friday's rebound from that week’s lows.

  • Wednesday closed negative with 9 incliners, 25 decliners and 1 acquired
  • Tuesday closed negative with 2 incliners, 31 decliners, 1 flat and 1 acquired
  • Monday (1/17) was a holiday
  • Friday closed positive with 28 incliners, 4 decliners, 2 flats and 1 acquired
  • Thursday closed negative with 6 incliners, 27 decliners, 1 flat and 1 acquired
  • Wednesday closed negative with 6 incliners, 28 decliners and 1 acquired
  • 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

Could the market bounce on Thursday? Sure, the market has had plenty of bounces in either direction, few lasting a day, some over two (2) in the past few weeks; but they haven't lasted.

Patience is key. Don't jump the gun, but don't walk away. As I have stated, the oversold usually “pop” after steady declines so, stay “pat”, buying a few decliners or staying in cash.

Sector equities remained under pressure as earnings season is right around the corner.

I am NOT changing my position, “Brace for more choppiness as we move further into the month and the beginning of Q4/21 Q4 and end-of-year numbers”.

  • 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

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

  • 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 FATE, CRS, securities referred to in this publication.