January 28, 2022 5:24pm

Stocks are on track to close out the trading month on Monday

Pre-open Indications: 3 Hits and 3 Miss

If I have learned one thing as a former research analyst, venture and public fund investor then a journalist; it is that your life and your bank account are largely tied to your questioning of price movements and targets.

News: MiMedx (MDXG +$0.31) a federal court in Georgia has denied a motion to reconsider the dismissal of Carpenters Pension Fund of Illinois’ (“CPFI”) putative class action lawsuit claiming that the Company violated the federal securities laws.

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Week in review …

The Dow closed UP +565.15 points (+1.65%); the S&P closed UP +105.36 points (+2.43%) while the Nasdaq closed UP +417.79 points (+3.13%)

 

Henry’omics:

The market is set to wrap up a roller-coaster week with the cell and gene therapy sector returning to the upside.

The huge intraday movements are indicative of the challenge that our universe has and will face as we hear into Q4 and FY21 earnings.

The Nasdaq sits about 15% from its high. The Russell 2000, the small-cap benchmark, is in a bear market, finishing Thursday down 21% from its record close.

With January ending Monday, the S&P 500 is on pace for its weakest month since March 2020. The Dow could see its worst month since March 2020 and worst January since 2009. The tech-heavy Nasdaq is headed for its worst month since October 2008 and worst first month of the year of all time. <CNBC>

 

Economic Data Docket: December’s core personal consumption expenditures price index, the Fed’s preferred inflation gauge, jumped 4.9% from the year prior, the Commerce Department reported Friday. The PCE jump is higher than economists expected and the hottest reading since September 1983. Along with the inflation numbers, personal income rose 0.3% for the month, a touch lower than the 0.4% estimate.

 

RegMed Investors’ (RMi) pre-open: “wrapping-up a rough week for beaten down cell and gene therapy equities. I see (and hope for) a little daylight for the oversold even on a Friday” …  https://www.regmedinvestors.com/articles/12276

 

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

  • Friday opened negative at 2 up/30 downs, 2 flats and 1 acquired, flipped neutral at the mid-day at 16/16, 3 flats and 1 acquired, ending with a positive close of 30/4 and 1 acquired;
  • 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;
  • 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 indications: 3 Hits < Intellia Therapeutics (NTLA +$3.62), CRISPR Therapeutics (CRSP +$0.22), Vericel (VCEL +$0.50)> 3 MISS <Biostage BSTG +$0.0.05), Chinook Therapeutics (KDNY +$0.21), uniQure NV (QURE +$0.35>

 

52-weeek lows:

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

 

The Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works with the shares uplifting +$0.05 with 3,225 shares traded after Thursday’s +$0.24 with 10,073 - double the mornings 5,030  shares traded, 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), Tuesday’s +$0.31 with 2,794 shares traded after Monday’s -$1.15 with 1405 shares traded and last Friday’s +$0.25 with 4,500 shares traded.

 

Key Metrics:

  • Friday - Sector volume was LOW with 9 of the 30-upside having higher than the 3-month average volume with LOW volume of 1 of 4-downside having higher than the 3-month average volume
  • 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
  • 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:

  • Friday the IBB closed up +3.47% and XBI closed up +3.75%
  • Thursday the IBB closed down -2.01% and XBI closed down -4.55%
  • 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:

  • Friday was down -3.06 points or -9.81% at 27.50
  • Thursday was down -1.33 points or -4.16% at 30.63
  • 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 (10 of 30):

  • Alnylam Pharmaceuticals (ALNY +$4.91 after Thursday’s -$2.94, Wednesday’s -$0.82, Tuesday’s -$5.59 and Monday’s -$1.90),
  • Intellia Therapeutics (NTLA +$3.62 after Thursday’s -$2.82, Wednesday’s +$0.45, Tuesday’s -$3.44 and Monday’s +$6.69),
  • Sage Therapeutics (SAGE +$1.87),
  • Global Blood Therapeutics (GBT +$1.74 after Thursday’s -$0.83, Wednesday’s -$0.32, Tuesday’s -$0.83 and Monday’s +$1.12),
  • Ultragenyx (RARE +$1.67 after Thursday’s -$3.78, Wednesday’s -$0.96, Tuesday’s +$1.11 and Monday’s +$0.79),
  • Vericel (VCEL +$1.59 after Thursday’s -$1.28, Wednesday’s -$0.63, Tuesday’s -$0.33 and Monday’s +$1.10),
  • Ionis Pharmaceuticals (IONS +$1.54 after Thursday’s -$1.30),
  • BioLife Solutions (BLFS +$1.51 after Thursday’s -$1.69, Wednesday’s -$0.32, Tuesday’s -$1.11 and Monday’s +$0.47)
  • Fate Therapeutics (FATE +$0.85 after Thursday’s -$3.49, Wednesday’s -$0.60 after Tuesday’s +$0.35 and Monday’s +$2.37),
  • Regenxbio (RGNX +$0.85 after Thursday’s -$1.02),

Hammered in today’s market (4 of 4):

  • ReNeuron (RENE.L -$0.50),
  • Cellectis SA (CLLS -$0.12),
  • Mesoblast (MESO -$0.11),
  • Bellicum Pharmaceuticals (BLCM -$0.04),

Closing:

  • 1 - Stemline Therapeutics (STML) – acquired

 

January, Q1/2022:

  • Friday closed positive with 30 incliners, 4 decliners and 1 acquired
  • 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: The cell and gene therapy sector had erased gains and closed near session lows for most of the month of January. However, in today's trading, the cell and gene therapy sector erased early losses and pushed higher post the mid-day.

The opposite of Thursday, the cell and gene therapy sector opened with a negative advance/decline line (2/30); but gains were propelled to an advance/decline line of 25/9 as algorithms and electronic trading “ruled” the upside.

Despite Friday's encouraging intraday action, the cell and gene therapy sector has had its weakest month while the Nasdaq could see its worst month since October 2008.

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): I express MY 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.