RegMed Investors’ (RMi) pre-open: the phoenix rises from the shares as do share pricings after being burned to a crisp

March 14, 2022 7:45am

Time to say, HELLO clearer skies (i.e., upside) to a few cell and gene therapy sector equities

Pre-open indications: 2 SELLs and 6 BUYs indications and 1 pimp/pump/promote

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.

Just the facts … I ask questions and note the indications of what could or might happen …

Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.

Dow futures are UP +0.82% (+280 points), S&P futures are UP +0.56% (+24 points) and NASDAQ futures are UP +0.01% (+2 points)

Stock futures are in-line for a positive open on Monday,

European stocks moved higher ahead of further talks between Russian and Ukrainian negotiators,

Asia-Pacific stocks were mixed as investors monitored a Covid wave in China.

Henry’omics:

Last week, the Dow retreated -2%, the S&P 500 index slumped -2.9% and the Nasdaq tumbled -3.5% while the small-cap Russell 2000 gave up 1%.

The Dow is down nearly 11% from its record high, while the S&P 500 has fallen almost -13% from its all-time high and the Nasdaq has fallen more than -20% from its record high in November.

This week, the Fed is expected to raise its target fed funds rate by a quarter percentage point from zero at the end of its two-day meeting Wednesday.

This week, look for some sparking in the market!

RegMed Investors’ (RMi) closing bell: “escalated depreciation in the cell and gene therapy sector. Ends a “red” week with a volatile session without any trust in going long over weekend.” … https://www.regmedinvestors.com/articles/12338

Ebb and flow –

·         March – 6 negative and 3 positive closes

·         February stats: 11 negative, 8 positive closes and 1 holiday

·         January stats: 1 holiday, 1 neutral, 13 negative and 6 positive closes

Research Notes:

RegMed/Cell and Gene Therapy Earnings Scorecard Q4/21 and FY21 Results … https://www.regmedinvestors.com/articles/11628 ...  24 total to date

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

BUY:

Beam Therapeutics (BEAM) closed down -$4.81 to $60.91 after Thursday’s +$0.61 Wednesday’s +$2.64 and Tuesday’s -$0.34) with a positive +$0.04 or +0.07% pre-open indication

Caribou Therapeutics (CRBU) closed down -$0.33 after Thursday’s-$0.24 with a positive +$0.31 or +3.37% with a pre-open indication.

Cellectis SA (CLLS) closed up +$0.20 to $4.40 after Thursday’s +$0.06 with a positive +$0.21 or +4.77% pre-open indication

Editas Medicine (EDIT) closed down -$1.17 to $15.06 after Thursday’s -$0.40) with a positive +$0.18 or +1.20% pre-open indication.

Intellia Therapeutics (NTLA) closed down again -$4.62 to $61.29 after Thursday’s -$0.08 with a positive +$0.71 or +1.16% pre-open indication.

Sage Therapeutics (SAGE) closed down -$1.08 to $31.07 after Thursday’s +$0.61 Wednesday’s +$2.64 and Tuesday’s -$0.34) with a positive +$1.43 or +4.60% pre-open indication.

SELL:

CRISPR Therapeutics (CRSP) closed down -$1.01 after Thursday’s +$0.01 with a negative -$0.67 or -1.09% pre-open indication.

Vericel (VCEL) closed down -$2.40 to $33.99 after Thursday’s -$1.41, Wednesday’s +$1.23, Tuesday’s -$1.11 and last Monday’s -$1.76) with a negative -$0.23 or -0.68% pre-open indication.

Pimp/Pump and Promote:

Biostage (OTCQB: BSTG) closed up +$0.39 to $4.30 on Friday with 1,602 shares traded after Thursday’s -$0.63 with 488 shares traded after Wednesday’s -$0.26 with 1,225 shares traded, Tuesday’s flat (having been up +$0.14) with 1,142 shares traded and last Monday’s +$0.29 with 399 shares traded …

• WHO is BUYING these shares of a company with a 3-year-old IND, NO clinical trial initiation, a terminal death lawsuit overhang and a dwindling cash position?
• Also, by use of the pump/promote process; is BSTG preparing to register the outstanding private placement (PP) shares for a reverse to initiate an offering …
• BSTG is NOT going ANYWHERE without a cash infusion.

The BOTTOM LINE: The time to ramp-up a few select sector BUYS; it’s kind of there. But right now, the cell and gene therapy has felt in a depreciation outage.

The short-term risk/reward is close to positive if for no other reason than two (2) down sessions that followed two (2) positive sessions after three (3) negative sessions.

Negative news is the bane of these days of March with everything that has been written and shown on the TV.

The major indexes have been below their 21-day and 50-day moving averages for weeks. The 21-day exponential moving average has been well below the 50-day line for a long time, with both falling sharply.

Do I detect a soon-to-be short-bottom reflecting the recent and extended market and sector weaknesses, despite some brief advances?

Fed policymakers meet this week (3/15-16) on St. Patrick’s Day (to drive the snakes into not, out of interest rates) … the Fed will almost certainly raise rates by a quarter point on Wednesday afternoon, and signal several more Fed rate hikes.

I believe many of the oversold show buy signals but, have usually reverse lower. Thus, a shaky sector set-up within the market might beget a correction hopefully not like January and February’s movement.

There is no clear trend, and no reason to make any BUYS -however, the better way of saying but … short-term pops are (to me) clearly evident.

If you want to make or break positions, consider taking partial or full profits at 10% or even 5%.

At some point, a clear market uptrend will take hold.  I am NOT waiting for a reversal it’s going to continue.

As I have stated yesterday, “bounce back, baby, bounce”.

Earnings’ reporting on the horizon:

·         Athersys (ATHX), Tuesday, 3/15

·         Cellectis SA (CLLS) Thursday, 3/22

·         Brainstorm Cell Therapeutics (BCLI), Monday, 3/28

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

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 securities referred to in this publication.