January 25, 2022 5:22pm
Bouncing after sector and session lows, the roller coaster trading continues as the Fed's policy-setting meeting amid worries over fast-approaching rate hikes and the coming start to earnings season
Pre-open Indication results: 2 HITs and 4 MISS – a couple by pennies
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 -66.77 points (-0.19%); the S&P closed DOWN -53.68 points (-1.22%) while the Nasdaq closed DOWN -315.83 points (-2.28%)
U.S. stocks gyrated in afternoon trading to close lower with interest rate sensitive tech stocks weighing most heavily as uncertainties surrounding an increasingly hawkish Federal Reserve and rising geopolitical tensions contributed to the market's churn.
In a pattern similar to Monday, U.S. stocks whipsawed between steep losses and modest gains.
Geopolitical tensions are adding to investor uncertainty, with NATO putting forces on standby and the United States putting troops on heightened alert in response to a buildup of Russian forces along Ukraine border. <Reuters>
All three major indexes shed -0.19%, 1% and 2% or more at the close, reversing steep losses. At 10 a.m., I saw the down -602., the S&P -98.50 and the Nasdaq -389.
The CBOE volatility index, or VIX, closed Monday at about 29.90 after crossing above 37 in intraday trading, its highest level since November 2020 with today’s 31.16 (+1.26 or +4.21%).
Economic Data Docket: The two-day Fed meeting started today and the policy statement is due tomorrow, Wednesday at 2 p.m. ET.
RegMed Investors’ (RMi) pre-open: “wait, one dramatic and wild session with recovery does not make a sustainable sector. Investors should stay cautiously on the sidelines after Monday’s tug-of-war between panic and fear.” … https://www.regmedinvestors.com/articles/12270
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Tuesday opened negative at 1 up/33 downs and 1 acquired, stayed negative at the mid-day at 6/28 and 1 acquired, ending with a negative close of 14/17, 3 flats and 1 acquired;
- Monday opened negative at 4 up/30 downs and 1 acquired, stayed negative at the mid-day at 0/34 and 1 acquired, ending with a positive close of 24/10 and 1 acquired;
Pre-open indication results: 2 Hit < Global Blood Therapeutics (GBT -$0.83), Intellia Therapeutics (NTLA -$3.44)> 4 Miss < Biostage (OTCQB: BSTG +$0.31), bluebird bio (BLUE +$0.05), CRISPR Therapeutics (CRSP +$2.28), Ionis Pharmaceuticals (IONS +$0.08)>
The Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works with the shares appreciating +$0.31 with 2,794 shares traded after Monday’s -$1.15 with 1405 shares traded, Friday’s +$0.25 with 4,500 shares traded, Thursday’s +$0.20 with 3,941 shares traded, Wednesday’s +$0.25 1,516 shares traded and last Tuesday’s -$0.00 with 8,288 shares trading.
- WHO is BUYING these shares of a company with a 2-year-old IND and NO clinical trial initiation?
- Just another example of a game of “fake it because they can’t make it?
- Overhang of non-registered PPM shares is also a factor before ANY offering to be proposed?
- Today’s news re terminal death suit: The Court granted BSTG's motion for preliminary injunction and held that Medmarc breached its duty to defend the Company when it unilaterally stopped paying for the defense. The Court expressly stated that Medmarc engaged in "unlawful conduct" by unilaterally terminating the defense. Although the coverage dispute remains pending between the parties, the Court held that "Medmarc will mostly likely lose its claim" seeking to terminate the payment of the defense, and therefore, it must continue to pay the defense until the coverage dispute is resolved.”
- It’s NOT over, the suit still HANGS over the company.
- Tuesday - Sector volume was USUAL with 5 of the 14-upside having higher than the 3-month average volume with USUAL volume of 7 of 17-downside having higher than the 3-month average volume;
- Monday - Sector volume was HIGH with 19 of the 24-upside having higher than the 3-month average volume with HIGH volume of 7 of 10-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 down -1.75% and XBI closed down -0.79%
- Monday the IBB closed up +0.92% and XBI closed up +2.31%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Tuesday was up +1.26 points or +4.21% at 31.16
- Monday was up +1.05 points or +3.64% at 29.90
Jumping with share pricing momentum (10 of 14):
- CRISPR Therapeutics (CRSP +$2.28 after Monday’s -$2.35),
- Ultragenyx (RARE +$1.11 after Monday’s +$0.79),
- Fate Therapeutics (FATE +$0.35 after Monday’s +$2.37),
- Biostage (BSTG +$0.31 after Monday’s -$1.15),
- Verastem (VSTM +$0.13),
- Precigen (PGEN +$0.10),
- Applied Genetic Technologies (AGTC (AGTC +$0.09),
- Chinook Therapeutics (KDNY +$0.09 after Monday’s -$0.37),
- Ions Pharmaceuticals (IONS +$0.08 after Monday’s +$1.52),
- bluebird bio (BLUE +$0.05 after Monday’s +$0.47),
Hammered in today’s market (10 of 17):
- Alnylam Pharmaceuticals (ALNY -$5.59 after Monday’s -$1.90),
- Intellia Therapeutics (NTLA -$3.44 after Monday’s +$6.69),
- ReNeuron (RENE.L -$2.75 after Monday’s -$3.50),
- BioLife Solutions (BLFS -$1.11 after Monday’s +$0.47),
- Global Blood Therapeutics (GBT -$0.83 after Monday’s +$1.12),
- AxoGen (AXGN -$0.55),
- Sage therapeutics (SAGE -$0.35),
- Vericel (VCEL -$0.33 after Monday’s +$1.10),
- uniQure NV (QURE -$0.27),
- Editas Medicine (EDIT -$0.25),
- 3 – Voyager Therapeutics (VYGR), Homology Medicine (FIXX), Brainstorm Cell Therapeutics (BCLI) and 1 -Stemline Therapeutics (STML) – acquired
- Tuesday closed negative with 14 incliners, 17 decliners, 3 flats and 1 acquired
- Monday (1/24) closed positive with 24 incliners, 10 decliners and 1 acquired
The BOTTOM LINE: Uncertainty behind the morning deep dive to reverse and close positive.
Drama and volatility with algorithmic “rules’ drive the sector.
Q4 and end-of-year earnings are about to be made aware of” more than even I thought.
- Alnylam Pharmaceuticals (ALNY) reports Q4 and FY21 on Thursday, 2/10
Algorithms, hedge funds and traders continue to punish and then push the cell and gene therapy stocks as valuations “creep” up.
- Early January 2022 has delivered fewer gains but also generate algorithmic based losses.
Reiterating from the end of 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.