February 3, 2022 7:54am
The cell and gene therapy sectors earnings season has yet to start; also, an indication is not always a prescription to sell but, to signal the potential of performance
Pre-open indications: 2 BUYs, 7 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 … I ask questions and note the obvious
Dow futures are DOWN -0.24% (-84 points), S&P futures are DOWN -1.03% (-47 points) and NASDAQ futures are DOWN -2.12% (-320 points)
U.S. stock futures fell early Thursday, as traders pored through the latest batch of tech/social media corporate earnings,
European markets were lower focused on the outcome of the European Central Bank’s next policy meeting,
Asia-Pacific markets traded mixed amid some lingering concerns about global growth and ongoing geopolitical tensions. A number of major markets, including those on the Chinese mainland and in Hong Kong, remain shut for the Lunar New Year holidays.
Economic Data Docket: the latest weekly U.S. jobless claims numbers at 8:30 a.m. Economists expect initial claims to have fallen to 245,000 from 260,000.
- following the release of surprisingly downbeat private payrolls data. ADP that U.S. private payrolls dropped by 301,000 in January, while economists had forecast a gain of 200,000.
- Also, this a.m., productivity at 8:30 a.m. and the ISM services index released at 10 a.m.
Henry’omics:
The tug-of-war continues between volatility, earnings and risk as applied to share pricing.
Wednesday night’s futures decline came after the major averages notched a four-day winning streak during the regular session.
The Nasdaq added 0.5%. Last month, the index fell as much as 19% from its all-time high in November as investors dumped highly valued growth stocks on prospects of faster-than-expected rate hikes.
52-week’s low:
- Precigen (PGEN) closed down at $2.32
If you didn’t remember what happen at Wednesday’s close, you won’t be prepared for today’s session:
RegMed Investors’ (RMi) closing bell: “the cell and gene therapy sector got hammered as predicted, when is it wrong to be so right and often? As I had stated this a.m., “a foreshadowing of a storm of algorithms – wait, wait for the “rules” that weaken” … https://www.regmedinvestors.com/articles/12283
Ebb and flow –
February stats: 1 negative and 1 positive closes
January stats: 1 holiday, 1 neutral, 13 negative and 6 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:
Homology Medicine (FIXX) closed down -$0.16 to $3.74 after Tuesday’s $3.90, Monday’s $3.72, Friday’s $3.14 and last Thursday’s $3.03 with a positive +$0.26 or +6.95% pre-open indication
Fate Therapeutics (FATE) – a positive +$0.41 or +1.045 pre-open indication
I don’t set any expectation to SELL into WEAKNESS but, to express the conditions of the sector’s expectation … Maintaining SELL into Strength:
Alnylam Pharmaceuticals (ALNY) – NO indication
Applied Genetic Technologies (AGTC) a -$0.05 or -2.48% indication
BioLife Solutions (BLFS) – NO indication
Voyager Therapeutics (VYGR) -$0.14 or -4.78% indication
SELL from BUY:
CRISPR Therapeutics (CRSP) closed down -$3.41 to $62.12 after Tuesday’s +$1.78 to $65.53, Monday’s +$4.75 to $63.75, Friday’s +$0.24 to $59.00 and last Thursday’s -$3.08 to $58.76 with a negative -$0.77 or -1.24% pre-open indication.
Editas Medicine (EDIT) closed down -$1.47 to $18.22 after Tuesday’s +$0.65 to $19.69, Monday’s +$1.61 to $19.04, Friday’s +$0.01 to $17.43 and last Thursday’s $17.41 with a negative -$0.38 or -2.09% pre-open indication.
Intellia Therapeutics (NTLA) closed down -$4.41 to $95.39 after Tuesday’s +$5.23 to $99.80, Monday’s +$8.55 to $94.57, Friday’s +$3.62 to $86.02 and last Thursday’s -$2.82 to $82.40 with a negative -$1.45 or -1.52% pre-open indication.
Pump and Promote:
Biostage (OTCQB: BSTG) closed down -$0.53 with 502 shares traded after Tuesday’s +$0.40 with 1,088 shares traded, Monday’s flat with 11 shares traded, Friday’s +$0.05 to $3.90 with 3,362 shares traded and last Thursday’s +$0.24 to $3.85 with 10,073 shares traded. WHO is BUYING these shares of a company with a 2-year-old IND and NO clinical trial initiation?
The BOTTOM LINE: The cell and gene therapy sector rallied into Tuesday and sank in Wednesday’s session to one of the lowest advance/declines (A/D) line sessions in months.
Reiterating, “Investors should remain cautious, but also prepare for new selling opportunities” after a dramatic and volatile Friday, Monday and Tuesday.
I believe more “hits” will be forthcoming… as risk is enhanced by the volatility of pricing.
As I have stated, “I learned very early (in the military), if you weren’t 5 minutes early for a meeting, you were 10 minutes late – be early in portfolio deliberations.”
MY real question is which stock’s share pricing is sustainable – weren’t any on Wednesday?
Pay attention to volatility, most times the effect of dramatic upside moves after multiple downsides weekly “plays” could end-up being sold into strength – in my view.
Earnings’ reporting:
- Alnylam Pharmaceuticals (ALNY) – 2/10, Thursday
- AxoGen AXGN) – 2/22, Tuesday
Investors should focus on forward-looking guidance, last year’s operating losses i.e., spending and cash positions or runways!
I am NOT changing my position, “Brace for more choppiness as we move further into the month and the beginning of Q1/22 waiting for 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): I WAS there to experience what occurred and saw the decay of transparency and more; 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.
