January 26, 2022 5:26pm

It had smelled of trading enthusiasm, but forgot the existential threats about investing

Pre-open Indication results: 2 HITs and 2 MISS

The Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works with the shares diving to -$0.00 with 7,796 shares trading after appreciating +$0.35 (after dropping mid-day -$0.07 – such sarcasm of after miraculous jump)

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 grouping of cell and gene therapy equities – with facts supported by real numbers?

 


The Dow closed DOWN -130.89 points (-0.38%); the S&P closed DOWN -6.67 points (-0.15%) while the Nasdaq closed UP +2.82 points (+0.02%)

 

Henry’omics:

U.S. stocks dived as the cell and gene therapy sector also tanked Wednesday even after the Fed pointed to an interest rate hike to the short-term future but, would begin shrinking its balance sheet after hiking rates, a further tightening action that many traders may have hoped the central bank would hold off doing right away.

All three major indexes are decidedly negative in January; in particular the Nasdaq is down -13% for the month.

 

Economic data Docket: "With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate," the Federal Open Market Committee said in a statement. The Fed said that a rise in the 0%-0.25% benchmark rate is in the cards.

 

RegMed Investors’ (RMi) pre-open: “another rock & roll trip anticipated to the upside as investors expect the “tone” of the Fed’s interest rate meeting” … https://www.regmedinvestors.com/articles/12272

 

RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …

  • Wednesday opened positive at 20 up/12 downs, 2 flats and 1 acquired, stayed positive at the mid-day at 29/5 and 1 acquired, ending with a negative close of 4/29, 1 flat and 1 acquired;
  • 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 < Biostage (OTCQB: BSTG -$0.00), Intellia Therapeutics (NTLA +$0.45), 2 Miss < < Global Blood Therapeutics (GBT -$0.32), CRISPR Therapeutics (CRSP -$0.70)>

 

The Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works with the shares diving to -$0.00 with 7,796 shares trading after appreciating +$0.35 (after dropping mid-day -$0.07 – such sarcasm after miraculous jump) after Tuesday’s +$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 and last Wednesday’s +$0.25 1,516 shares traded.

  • WHO is BUYING these shares of a company with a 2-year-old IND and NO clinical trial initiation?
  • 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 before ANY offering to be proposed?
  • Yesterday’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 law suit still HANGS over the company.

 

 

Key Metrics:

  • Wednesday - Sector volume was LOW with 2 of the 4-upside having higher than the 3-month average volume with LOW volume of 6 of 29-downside having higher than the 3-month average volume
  • 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:

  • Wednesday the IBB closed down -1.07% and XBI closed down -1.96%
  • 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:

  • Wednesday was up +0.80 points or +2.57% at 31.96
  • 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 (4 of 4):

  • ReNeuron (RENE.L +$2.75 after Tuesday’s -$2.75 and Monday’s -$3.50),
  • Intellia Therapeutics (NTLA +$0.45 after Tuesday’s -$3.44 and Monday’s +$6.69),
  • Athersys (ATHX +$0.0049) – closer to delisting?
  • Bellicum Pharmaceuticals (BLCM +$0.0005)

Hammered in today’s market (10 of 29):

  • Sage therapeutics (SAGE -$1.56 after Tuesday’s -$0.35),
  • Ultragenyx (RARE -$0.96 after Tuesday’s +$1.11 and Monday’s +$0.79),
  • Alnylam Pharmaceuticals (ALNY -$0.82 after Tuesday’s -$5.59 and Monday’s -$1.90),
  • CRISPR Therapeutics (CRSP -$0.70 after Tuesday’s +$2.28 and Monday’s -$2.35),
  • Vericel (VCEL -$0.63 after Tuesday’s -$0.33 and Monday’s +$1.10),
  • Fate Therapeutics (FATE -$0.60 after Tuesday’s +$0.35 and Monday’s +$2.37),
  • uniQure NV (QURE -$0.43 after Tuesday’s -$0.27),
  • Editas Medicine (EDIT -$0.42),
  • BioLife Solutions (BLFS -$0.32 after Tuesday’s -$1.11 and Monday’s +$0.47),
  • Global Blood Therapeutics (GBT -$0.32 after Tuesday’s -$0.83 and Monday’s +$1.12),

Closing Flat:

  • 1 – Biostage (BSTG) and 1 - Stemline Therapeutics (STML) – acquired

 

January, Q1/2022:

  • Wednesday closed negative with 4 incliners, 29 decliners, 1 flat and 1 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: Aligning a quote from the movie “Apocalypse Now” took a little thought after all we have been through the trip to get here after the sector was “burned” into weak and weekly bottoms – seemed appropriate.

Drama, the Fed pronouncements and volatility with algorithmic “rules” drove the sector to some new heights of a positive sector without the percentage of appreciation – in only a few of the comparables.

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 generated 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 expresses their moral compass; 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.