February 7, 2022 7:57am
Gains and pains, a one letter difference in each
Pre-open indications: 4 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 … I ask questions and note the probabilities
Dow futures are UP +0.01% (+4 points), S&P futures are UP +0.08% (+4 points) and NASDAQ futures are UP +0.16% (+22 points)
U.S. stock index futures are positive after looking for direction in early morning trading on Monday,
European stocks were mixed considering last week’s stronger than expected U.S. jobs report and EU central bank decisions,
Asia-Pacific stocks were mixed, with mainland China markets rising as they reopened following the Lunar New Year holidays last week.
Henry’omics:
The market and the cell and gene therapy sector rallied rose last week between a few bumps (Thursday and Wednesday).
The Nasdaq advanced on Friday for its fifth positive session in the last six, and the indices also posted their best week since December.
If you didn’t remember what happen at Friday’s close, you won’t be prepared for today’s session:
RegMed Investors’ (RMi) closing bell: “Volatility fell, volume was lower in a positive cell and gene therapy sector close. Showing strength after a tumbling seek with a stronger Friday” … https://www.regmedinvestors.com/articles/12287
Ebb and flow –
- February stats: 2 negative and 2 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:
Alnylam Pharmaceuticals (ALNY) closed up +$2.91 to $145.42 after Thursday’s $142.51, Wednesday’s $145.26, Tuesday’s $144.29 and last Monday’s $137.60 with a positive +0.28 or +0.19% pre-open indication.
Editas Medicine (EDIT) closed up +$0.76 to $18.73 after Thursday’s $17.97, Wednesday’s $18.22, Tuesday’s $19.69 and last Monday’s $19.04 with a positive +$0.52 or +22.78% pre-open indication
Ionis Pharmaceuticals (IONS) closed up +$0.43 to $31.50 after Thursday’s $31.07, Wednesday’s $31.50, Tuesday’s $31.51 and last Monday’s $31.80 with a positive +$0.63 or +2% pre-open indication
Intellia therapeutics (NTLA) closed up +$1.43 to $95.96 after Thursday’s $94.53, Wednesday’s $95.39, Tuesday’s $99.80 and last Monday’s $94.57 with a positive +$2.36 or +2.46% pre-open
SELL:
Global Blood Therapeutics (GBT) closed up +$0.32 to $27.59 after Thursday’s $27.27, Wednesday’s $28.10, Tuesday’s $29.33 and last Monday’s $28.85 with a negative -$0.29 or -1.05% pre-open indication
Sage therapeutics (SAGE) closed up +$1.43 to $42.02 after Thursday’s $40.59, Wednesday’s $40.22, Tuesday’s $40.69 and last Monday’s $39.42 with a negative -$0.19 or -0.45% pre-open
PIMP/PUMP and Promote:
Biostage (OTCQB: BSTG) closed up +$0.22 with 305 shares traded after Thursday’s flat (-$0.00) with 3 shares traded after Wednesday’s -$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 are so beaten down and bruised, that relative valuation metrics suggest some stocks could more than double but, wait earnings are about to hit and hard.
“Our” universe had a whipsaw week and it could continue uncomfortable as earnings’ season begins for our universe.
Earnings drove a lot of the market moves last week; will it drive us?
It wouldn't be terrible if the cell and gene therapy traded backward and even sideways, but I doubt after the ranges of Monday’s advance/decline line of 26/7 and Friday’s 30/4
Wednesday's intraday lows and Thursday’s lows; that could offer more time for sector stocks to repair share pricing, rather than try to race back to new highs. Stronger stocks could flex relative strength as they moved into position.
Investors have to recognize what kind of market we are in – VOLATILE with LOW VOLUME. Which gives us reasons to be cautious.
It's not a great time to be adding exposure i.e., risk, until earnings offer a better signal. Beaten-down stocks will have rebounds but, what is sustainable, while sector stocks are flashing buy signals.
Pay attention to volatility, most times the effect of dramatic upside moves after multiple downsides weekly “plays” could end-up being BUYs – in my view.
Earnings’ reporting:
- Ultragenyx Pharmaceuticals (RARE) – 2/10, Thursday
- 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.
