January 28, 2022 7:50am

I see (and hope for) a little daylight for the oversold even on a Friday

Pre-open indications: 3 BUYs 2 SELLs and 1 PUMP/PROMOTE

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 DOWN -1.04% (-354 points), S&P futures are DOWN -0.96% (-42 points) and NASDAQ futures are DOWN -0.80% (-112 points)

 

Stock futures were slipping and fluctuating down early Friday,

European markets retreated to end wild week of volatility with the Stoxx 600 down 1.5%,

Asia-Pacific markets were mixed and continued to be volatile as China bound indexes fell as others advanced – Japan, Australia and South Korea

 

Henry’omics

The stock market opened yesterday, Thursday solidly higher, but the major indexes reversed to close lower.

The cell and gene therapy sector has experienced extra-wide intraday swings each day this week as investors contemplated the end of January which is Monday.

The Fear gauge Cboe Volatility Index shot up to its highest level since October 2020 earlier this week and has traded at 30.49.

The S&P 500 is down -10.2% and the Nasdaq is down -17.6% below their respective record highs.

 

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

RegMed Investors’ (RMi) closing bell: “the costs of the roller-coaster sector rides. Volatility erases investor expectation and anticipation as I predicted this a.m., “Volatile with wild intraday swings” … https://www.regmedinvestors.com/articles/12275

Ebb and flow – January and Q1 to date:

  • 1 holiday, 1 neutral, 13 negative and 4 positive closes

 

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

Probabilities/ Potentials pre-open share pricing indication moves:

BUY:

CRISPR Therapeutics (CRSP) closed down -$3.08 to $58.76 after Wednesday’s $61.84, Tuesday’s $62.54, Monday’s $60.26 and last Friday’s $62.61 with a positive +$0.34 or +0.58% pre-open indication.

Intellia Therapeutics (NTLA) closed down -$2.82 to $82.40 after Wednesday’s $85.22, Tuesday’s $84.77 Monday’s $88.21 and last Friday’s $81.52 with a positive +$1.20 or +1.46% pre-open indication.

Vericel (VCEL) closed down -$1.28 to $31.69 after Wednesday’s $32.97, Tuesday’s $33.60 Monday’s $33.93 and last Friday’s $32.83 with a positive +$0.61 or +1.93% pre-open indication.

 

SELL:

Chinook Therapeutics (KDNY) closed down -$0.36 to $12.07 after Wednesday’s $12.43, Tuesday’s $12.44, Monday’s $12.35 and last Friday’s $12.72 with a negative -$1.07 or -8.86% pre-open indication.

uniQure NV (QURE) closed down -$0.77 to $16.63 after Wednesday’s $17.40, Tuesday’s $17.83, Monday’s $18.10 and last Friday’s $18.03 with a negative -$0.33 or -1.98% pre-open indication.

 

Pump and Promote:

Biostage (OTCQB: BSTG) closed up +$0.24 to $3.85 with 10,073 shares traded after Wednesday’s -$0.00 with 7,796 shares traded after Tuesday’s +$0.31 with 2,794 shares traded, Monday’s -$1.15 with 14.5 shares traded, and last Friday’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 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 a 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.

 

The BOTTOM LINE:  Our universe of cell and gene therapy equities isn't dead, but needs a transfusion to keep it on life support until stabilization.

The Nasdaq advance-decline line continues to plunge. Despite Thursday's negative reversal, the CBOE Volatility Index fell modestly, suggesting market fear hasn't abated. 

This week is the last full one of January,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

Could there be a rally attempt which could match Monday's high – even on a Friday after a week of strong opens and weak closes.

As I have stated, the sector has shown its “butt” losing value due to algorithmic movements.

Thus, there could be yet another attempt to relegate the oversold to being appreciative?

Still WAITING for a follow-through day, which is when a major index posts strong gains in volume –heavier than the prior – Thursday’s volume was extremely weak).

The cell and gene therapy has been oversold for most of the month of January and as February starts so don’t earnings – thus more declines.

Investors should focus on forward-looking guidance, last year’s operating losses i.e., spending and cash positions or runways!

It won't be surprising to see the sector drifts lower, although there are maybe some/few moves to the upside.

Reiterating, “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.”

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 expresses their moral compass; 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 their 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.