January 20, 2022 5:35pm
Punitive algorithmic trading/selling in the final hours of trading sent the sector in a spiral
Pre-open Indication results: 2 HITs, 9 MISS
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 DOWN -313.26 points (-0.89%); the S&P closed DOWN -50.03 points (-1.10%) while the Nasdaq closed DOWN -86.23 points (1.30%)
Indexes moved lower on Thursday, having given-up gains from earlier in the session in a rising interest rate environment.
“At the close, the Dow Jones industrials traded down 0.9%, gutting gains of over 1%. The Nasdaq composite and the S&P 500 fell 1.3% and 1.1%, respectively. Meanwhile, the Russell 2000 small-cap index sank 1.8%. Early data showed volume was running higher on the Nasdaq and lower on the NYSE versus the close on Wednesday.” <IBD>
Another appropriate quote, “Investors need to be aware that 2022 probably will be a much rougher ride,” said Ryan Detrick of LPL Financial. “With rate hikes coming and the historically volatile midterm year on the horizon, more violent ups and downs could be in store for investors this year.”
Unemployment data signaled the surge in omicron could be hurting the recovery.
- Jobless claims for the week ended Jan. 15 totaled 286,000 for the week, their highest level since October; a substantial gain from the previous week’s 231,000.
The S&P 500 is headed for their third straight week of losses. For the week, the Dow is down 3.3%. The S&P 500 has lost 3.9% since Monday. The Nasdaq is the biggest loser, down 5% this week. <CNBC>
RegMed Investors’ (RMi) pre-open: “a brutal start to the year; spreading or bending the SELL to BUY guidelines. 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?” … https://www.regmedinvestors.com/articles/12264
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Thursday opened positive at 27 up/6 downs, 1 flat and 1 acquired, stayed positive at the mid-day at 31/23, 2 flats and 1 acquired, ending with a negative close of 9/24, 1 flat and 1 acquired;
Pre-open indication results: 2 Hits < CRISPR Therapeutics (CRSP +$0.17), Editas Medicine (EDIT -$1.14)> 9 Miss < bluebird bio (BLUE -$0.62), Alnylam Pharmaceuticals (ALNY -$0.31), Editas Medicine (EDIT -$0.14), Biostage (OTCQB: BSTG +$0.20), Fate Therapeutics (FATE -$1.01), Global Blood Therapeutics (GBT -$1.05), Sage Therapeutics (SAGE -$0.62), Verastem Oncology (VSTM -$0.06), Intellia Therapeutics (NTLA -$1.05)
The Biostage (BSTG) Chronicles: the “pimp/pump and promote” in full swing again with the shares appreciating +$0.20 with 3,941 shares traded after Wednesday’s +$0.25 1,516 shares traded, Tuesday’s -$0.00 with 8,288 shares trading.
- Just another example of a “House of Cards” – just a game of “fake it because they can’t make it? Overhang of non-registered PPM shares is also a factor beyond the terminal and wrongful death suit which their insurance company refused to cover or reimburse which hinders indemnification of a partner and management’s personal liabilities?
52-week lows experienced today:
- Applied Genetic Technologies (AGTC) hit a 52-week low of $1.63
- Verastem (VSTM) hit a 52-week low of $1.56
- Precigen (PGEN) hit a 52-week low of $2.96
- Regenxbio (RGNX) hit a 52-week low of $25.54
- uniQure NV (QURE) hit a 52-week low of $18.33
- Fate Therapeutics (FATE) hit a 52-week low of $38.50
- Editas Medicine (EDIT) hit a 52-week low of $19.42
- XBI hit a 52-week low of 92.42
- IBB hit a 52-week low of 130.45
- Thursday - Sector volume was LOW with 2 of the 9-upside having higher than the 3-month average volume with LOW volume of 10 of 24-downside having higher than the 3-month average volume;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Thursday the IBB closed down -0.90% and XBI closed down -1.64%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was up +1.74 points or +7.30% at 25.59
Jumping with share pricing momentum (9 of 9):
- Ultragenyx (RARE +$2.22 after Wednesday’s -$0.92 and Tuesday’s -$4.38 post Monday’s holiday),
- ReNeuron (RENE.L +$2.00 after Wednesday’s -$3.50 andTuesday’s -$34.00),
- Biostage (BSTG +$0.20 after Wednesday’s +$0.25 – “pumped and pimped”),
- CRISPR Therapeutics (CRSP +$0.117 after Wednesday’s -$0.86 and Tuesday’s -$2.72),
- Bellicum Pharmaceuticals (BLCM +$0.06 after Wednesday’s +$0.04),
- Cellectis SA (CLLS +$0.03),
- Homology Medicine (FIXX +$0.03 after Wednesday’s +$0.01),
- Athersys (ATHX +$0.01 after Wednesday’s +$0.0025 – will it be delisted, under $1.00),
- BioLife Solutions (BLFS +$0.01),
Hammered in today’s market (10 of 24):
- Editas Medicine (EDIT -$1.14),
- Global Blood Therapeutics (GBT -$1.05 after Wednesday’s +$0.41),
- Intellia Therapeutics (NTLA -$1.05 after Wednesday’s -$2.13 and Tuesday’s -$5.57),
- Fate Therapeutics (FATE -$1.01 after Wednesday’s -$1.31 and Tuesday’s -$2.66),
- Regenxbio (RGNX -$0.76),
- Chinook Therapeutics (KDNY -$0.65),
- bluebird bio (BLUE -$0.62 after Wednesday’s -$0.36),
- Sage Therapeutics (SAGE -$0.62 after Wednesday’s -$0.64 and Tuesday’s -$2.85),
- uniQure NV (QURE -$0.36 after Wednesday’s -$0.34),
- Ionis Pharmaceuticals (IONS -$0.31 after Wednesday’s +$0.20 and Tuesday’s -$2.96),
- 1- MiMedx (MDXG and 1 -Stemline Therapeutics (STML) – acquired
- Thursday closed negative with 9 incliners, 254 decliners, 1 flat and 1 acquired
- 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
The BOTTOM LINE: I have kept writing to BUY the 52-week lows and they have gone lower; thus, I am stuck however I am sitting on a royal flush and I just have to stay in the big casino game to get a payoff.
The indexes attempted to rebound on Thursday after this week's sell-off with <as above> a weakened market close. Wednesday's session pushed the Nasdaq composite down more than 10% off its highs. A drop of this size generally qualifies as an intermediate-term correction.
Watch the cell and gene therapy sector for signs of support and accumulation – it’s coming either Friday (maybe) but, certainly next week.
I will admit that “Trust, conviction is lacking as Q4 and end-of-year earnings are about to be made aware of” more than even I thought.
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.