January 31, 2022 5:08pm

The algorithms will be lurking; why this a.m., I wrote to “sell into strength” to take profits

Pre-open Indications: 10 Hits

News: Pfizer (PFE) backed out of a deal to co-develop Ionis Pharmaceuticals’ (IONS) heart-disease vupanorsen drug. PFE noted the drug led to increases in liver fat. Higher doses were tied to elevations in liver enzymes. IONS stock reversed earlier losses and gained a fraction at the close. <see below>

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.

Who else is tracking a broad grouping of cell and gene therapy equities – with facts supported by real numbers?

 

The Dow closed UP +406.19 points (+1.17%); the S&P closed UP +83.68 points (+1.89%) while the Nasdaq closed UP +469.31 points (+3.41%)

 

Henry’omics:

Cell and gene therapy sector stocks bounced for a second session (Friday and Monday) as investors wrapped up a lumpy January by snapping equities that have been battered all month.

The Nasdaq rose another 3.48% Monday to add to its 3% comeback on Friday; the index is still down 9% for January, also its worst month since March 2020.

 

Note from news (above): IONS’ Vupanorsen works by blocking angiopoietin-like 3, a factor responsible for releasing fats into the blood. In P2 testing, Ionis' drug lowered triglycerides and "bad" cholesterol. It also reduced the level of angiopoietin-like 3 in the blood.  PFE said the magnitude of triglycerides and cholesterol reductions weren't big enough to support continued development of vupanorsen. Pfizer also noted the drug led to increases in liver fat. Higher doses were tied to elevations in liver enzymes.

  • IONS stock initially toppled as much as 10.8%, but pared those losses and closed up a fraction at 31.80. Shares of Pfizer tumbled 3% to close at 52.69.

 

RegMed Investors’ (RMi) pre-open: “wipe the slate clean, SELL into Strength after closing with strong gains Friday. Last session “standing” for January as algorithms wait in reserve to “rule” a downslide in fear of upcoming earnings’ reporting” … https://www.regmedinvestors.com/articles/12278

 

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

  • Monday opened positive at 28 up/3 downs, 2 flats and 1 acquired, stayed positive at the mid-day at 31/2, 1 flat and 1 acquired, ending with a positive close of 32/1, 1 flat and 1 acquired;
  • 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;

 

Pre-open indications: 10 Hits <Sell into Strength:  Applied Genetic Technologies (AGTC +$0.05), Biostage BSTG +$0.00), Intellia Therapeutics (NTLA +$3.62), CRISPR Therapeutics (CRSP +$0.22), Vericel (VCEL +$0.05), CRISPR Therapeutics (CRSP +$4.75), Editas Medicine (EDIT +$1.61), Intellia Therapeutics (NTLA +$8.55), Vericel (VCEL +$2.30); BUY: Sage Therapeutics (SAGE +$0.60)> 0 MISS

 

The Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works with the shares flat with 11 shares traded after Friday’s +$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.

 

Key Metrics:

  • Monday - Sector volume was HIGH with 15 of the 32-upside having higher than the 3-month average volume with NADA volume of 1 of 1-downside having higher than the 3-month average volume;
  • 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

 

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Monday   the IBB closed up +3.04% and XBI closed up +5.58%
  • Friday the IBB closed up +3.47% and XBI closed up +3.75%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -2.95 points or -10.67% at 24.71
  • Friday was down -3.06 points or -9.81% at 27.50

 

Jumping with share pricing momentum (10 of 32) – NOTICE the appreciation since Friday:

  • Intellia Therapeutics (NTLA +$8.55 after Friday’s +$3.62),
  • Alnylam Pharmaceuticals (ALNY +$5.51 after Friday’s +$4.91),
  • Fate Therapeutics (FATE +$4.88 after Friday’s +$0.85),
  • CRISPR Therapeutics (CRSP +$4.75),
  • Ultragenyx (RARE +$3.93 after Friday’s +$1.67),
  • BioLife Solutions (BLFS +$2.34 after Friday’s +$1.51)
  • Vericel (VCEL +$2.30 after Friday’s +$1.59),
  • Editas Medicine (EDIT +$1.61),
  • Global Blood Therapeutics (GBT +$1.43 after Friday’s +$1.74),
  • uniQure NV (QURE +$1.07),

Hammered in today’s market (1 of 1):

  • ReNeuron (RENE.L -$0.50 after Friday’s -$0.50),

Closing Flat:

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

 

January, Q1/2022:

  • Monday (1/31) closed positive with 32 incliners, 1 decliner, 1 flat and 1 acquired
  • 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
  • Friday closed negative with 4 incliners, 30 decliners and 1 acquired
  • Thursday closed negative with 9 incliners, 25 decliners, 1 flat and 1 acquired
  • Wednesday closed negative with 9 incliners, 25 decliners and 1 acquired
  • Tuesday closed negative with 2 incliners, 31 decliners, 1 flat and 1 acquired
  • Monday (1/17) was a holiday
  • Friday closed positive with 28 incliners, 4 decliners, 2 flats and 1 acquired
  • Thursday closed negative with 6 incliners, 27 decliners, 1 flat, 1 flat and 1 acquired
  • Wednesday closed negative with 6 incliners, 28 decliners and 1 acquired
  • Tuesday closed positive with 22 incliners, 11 decliners, 1 flat and 1 acquired
  • Monday (1/10) closed neutral with 16 incliners, 16 decliners, 2 flats and 1 acquired
  • Friday closed negative with 7 incliners, 26 decliners, 1 flat and 1 acquired
  • Thursday closed negative with 8 incliners, 22 decliners, 4 flats and 1 acquired
  • Wednesday closed negative with 4 incliners, 30 decliners and 1 acquired
  • Tuesday closed negative with 5 incliners, 29 decliners and 1 acquired
  • Monday (1/3) closed positive with 32 incliners, 0 decliners and 1 acquired

 

The BOTTOM LINE: Let’s see if I am right about the dramatic and volatile price increases?

The cell and gene therapy sector has been volatile since the start of the year, although “our” universe seems to have found a footing for two (2) sessions.

The cell and gene therapy sector had erased gains and closed higher – but and a big but – dramatic volatility and pricing increases I believe will be poison for sustainability.

No waiting as algorithms and electronic trading are “ruling” to pounce the upside.

Despite Monday and 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.

WHY do I keep analyzing Biostage (BSTG): I WAS there to experience and saw the decay of transparency and more; 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.