January 27, 2022 5:00pm

Volatility erases investor expectation and anticipation as I predicted this a.m., “Volatile with wild intraday swings”

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?

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  

The Dow closed DOWN -7.31 points (-0.02%); the S&P closed DOWN -23.42 points (-0.54%) while the Nasdaq closed DOWN -189.34 points (-1.40%)

 

Henry’omics:

Indexes dived as the cell and gene therapy sector fell through the cracks of algorithmic “rules” in the market.

Stocks are coming off three-straight roller-coaster sessions with indexes seeing big swings each day this week. Despite wild intraday movement, the Dow is down just 0.3% on the week, while the S&P 500 is off by 1.6% and the Nasdaq is 3% lower. <CNBC>

 

Economic Data Docket: Q4 GDP (gross domestic product) jumped 6.9% from the year prior, the Commerce Department reported the economy grew at a 5.5% annualized pace in the final three (3) months of 2021.

 

RegMed Investors’ (RMi) pre-open: “The week’s volatility continued on Wednesday, but Thursday? Volatile with wild intraday swings” … https://www.regmedinvestors.com/articles/12274

 

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

  • Thursday opened positive at 20 up/13 downs, 1 flat and 1 acquired, dived negative at the mid-day at 9/25 and 1 acquired, ending with a negative close of 2/32 and 1 acquired;

 

52-weeek lows:

  • Homology Medicine (FIXX) dropped to $3.10
  • Precigen (PGEN) dropped to $2.56
  • uniQure NV (QURE) dropped to $16.66
  • Solid Biosciences (SLDB) dropped to $1.16

 

The Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works with the shares uplifting +$0.24 with 10,073 - double the mornings 5,030  shares traded after Wednesday’s 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 and last Thursday’s +$0.20 with 3,941 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 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:

  • Thursday - Sector volume was LOW with 1 of the 2-upside having higher than the 3-month average volume with LOW volume of 6 of 32-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 -2.01% and XBI closed down -4.55%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -1.33 points or -4.16% at 30.63

 

Jumping with share pricing momentum (2 of 2):

  • Biostage (BSTG +$0.24 – pumped price and promoted volume” after Wednesday’s flat),
  • Bellicum Pharmaceuticals (BLCM +$0.04 after Wednesday’s +$0.0005)

Hammered in today’s market (10 of 32):

  • Ultragenyx (RARE -$3.78 after Wednesday’s -$0.96, Tuesday’s +$1.11 and Monday’s +$0.79),
  • Fate Therapeutics (FATE -$3.49 after Wednesday’s -$0.60 after Tuesday’s +$0.35 and Monday’s +$2.37),
  • CRISPR Therapeutics (CRSP -$3.08 after Wednesday’s -$0.70, Tuesday’s +$2.28 and Monday’s -$2.35),
  • Alnylam Pharmaceuticals (ALNY -$2.94 after Wednesday’s -$0.82, Tuesday’s -$5.59 and Monday’s -$1.90),
  • Intellia Therapeutics (NTLA -$2.82 after Wednesday’s +$0.45, Tuesday’s -$3.44 and Monday’s +$6.69),
  • BioLife Solutions (BLFS -$1.69 after Wednesday’s -$0.32, Tuesday’s -$1.11 and Monday’s +$0.47)
  • Ionis Pharmaceuticals (IONS -$1.30),
  • Vericel (VCEL -$1.28 after Wednesday’s -$0.63, Tuesday’s -$0.33 and Monday’s +$1.10),
  • Regenxbio (RGNX -$1.02),
  • Global Blood Therapeutics (GBT-$0.83 after Wednesday’s -$0.32, Tuesday’s -$0.83 and Monday’s +$1.12),

Closing Flat:

  • 1 - Stemline Therapeutics (STML) – acquired

 

January, Q1/2022:

  • Thursday closed negative with 2 incliners, 32 decliners and 1 acquired
  • 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:  What more can I write, the sector got screwed today ...

The cell and gene therapy sector opened with a positive advance/decline line (20/13); but gains were pared quickly to 9/25 at 11:30 a.m. as algorithms and electronic trading “raided” the upside to a deadly downslide.

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.