March 21, 2022 7:36am

Although higher volume moves the needle, I’m still advocating selling highs and building cash positions

Pre-open indications: 7 Hits and 6 MISS (rings negative although money was made)

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.

The multiple metrics and Bottom Line say it all succinctly … just the facts

The week in review …

Who else is tracking a broad grouping of cell and gene therapy equities – can you afford to not read the facts supported by real numbers?

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

 

The Dow closed UP +274.17 points (+0.80%); the S&P closed UP +51.45 points (+1.17%) while the Nasdaq closed UP +279.06 points (+2.05%)

 

Henry’omics:

Indexes are coming off a massive fourth (4th) session surge continuing to digest the news from the Fed earlier this week, as well as the ongoing war between Russia and Ukraine and a rise in Covid cases in Europe.

The major equity indexes also headed for weekly advances as traders took favorably the Fed's measured first move on raising interest rates.

Note: Covered equities dropped – Athersys (ATHX), Caladrius Biosciences (CLBS), - both below $1.00; CEO left - ReNeuron (RENE.L), Stemline Therapeutics (STML) - acquired; added: Agenus (AGEN), AVROBIO (AVRO), Beam Therapeutics (BEAM) and Caribou Biosciences (CRBU). Back to 35 …

 

This a.m.’s post, RegMed Investors’ (RMi) pre-open: “Key word, anticipate. The probable - it’s market’s optimism versus sector’s pessimism. I am not comfortable in non-news or fundamental and electronic sector moves, there are always issues lurking that could erase share appreciations; it pays to be an early event orienteered.” … https://www.regmedinvestors.com/articles/12347

 

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

  • Friday opened positive at 29 up/4 downs, 2 flats, stayed positive at the mid-day at 27/6 and 2 flats, ending with a positive close of 28/5 and 2 flats;
  • Thursday opened positive at 32 up/3 downs, 2 flats, stayed positive at the mid-day at 33/2, ending with a positive close of 32/3;
  • Wednesday opened positive at 26 up/7 downs, 2 flats, stayed positive at the mid-day at 33/2, ending with a positive close of 32/3;
  • Tuesday opened positive at 26 up/9 downs, 2 flats, stayed positive at the mid-day at 20/14 and 2 flats, ending with a positive close of 28/6 and 1 flat;
  • Monday opened negative at 15 up/22 downs, 1 flat, stayed negative at the mid-day at 4/31 and 2 flats, ending with a negative close of 4/30 and 1 flat;

 

Pre-open Indications: 7 Hits < Biostage (BSTG +$0.00); SELL into Strength:  Alnylam Pharmaceuticals (ALNY +$2.17), Editas Medicine (EDIT +$1.09), Sage Therapeutics (SAGE +$0.79); BUY:  AxoGen (AXGN +$0.13), Blood Therapeutics (GBT +$1.40), Ionis Pharmaceuticals (IONS +$0.49)> 6 Miss < CRISPR Therapeutics (CRSP +$0.42), Intellia Therapeutics (NTLA +$3.28), Fate Therapeutics (FATE +$1.68), BioLife Solutions (BLFS +$1.68), uniQure NV (QURE +$0.86); SELL from BUY:  Beam Therapeutics (BEAM +$0.82)>

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q4/21 and FY21 Results … https://www.regmedinvestors.com/articles/11628  … 28 to date

 

The Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works closing flat ($0.00) Friday with 26 shares traded after Thursday’s jumping +$0.50, then +$0.30 then +$0.47 with 1,737 shares traded, Wednesday closed flat with 765 shares traded, Tuesday expressed decline of -$0.30 with 380 shares traded, Monday’s flat with 28 shares traded and last Friday’s 1,602 shares trading up +$0.39

  • 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?
  • A “zombie” company funded by non-U.S. Beijing, China entities
  • 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 inflow.

 

Key Metrics:

  • Friday - Sector volume INCREASED dramatically with 22 of the 28-upside having higher than the 3-month average volume with HIGH volume of 4 of 5-downside having higher than the 3-month average volume;
  • Thursday - Sector volume INCREASED with 15 of the 32-upside having higher than the 3-month average volume with LOW volume of 2 of 3-downside having higher than the 3-month average volume;
  • Wednesday - Sector volume was LOW with 0 of the 0-upside having higher than the 3-month average volume with volume of 13 of 34-downside having higher than the 3-month average volume;
  • Tuesday - Sector volume was LOW with 4 of the 29-upside having higher than the 3-month average volume with LOW volume of 3 of 6-downside having higher than the 3-month average volume;
  • Monday - Sector volume was LOW with 1 of the 4-upside having higher than the 3-month average volume with LOW volume of 9 of 30-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 was up +1.84% and the XBI was up +2.90%
  • Thursday, the IBB was up +2.10% and the XBI was up +3.91%
  • Wednesday, the IBB was up +% and the XBI was up +%
  • Tuesday, the IBB was up +1.28% and the XBI was up +1.47%
  • Monday, the IBB was down -0.87% and the XBI was down -4.18%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -1.80 points or -7.01% at 23.87
  • Thursday was down -1 points or -3.75% at 25.67
  • Wednesday was down - points or -% at 3
  • Tuesday was down -1.73 points or -5.45% at 33.04
  • Monday was up +1.02 points or +3.32% at 31.77

 

Jumping with share pricing momentum (15 of 28):

  • Fate Therapeutics (FATE +$1.68 after Thursday’s +$2.02, Wednesday’s +$2.74, Tuesday’s +$1.64 and Monday’s -$3.88)
  • Alnylam Pharmaceuticals (ALNY +$2.17 after Thursday’s +$4.11, Wednesday’s +$6.05, Tuesday’s +$1.12 and Monday’s -$3.16),
  • Intellia Therapeutics (NTLA +$3.28 after Thursday’s +$4.13, Wednesday’s +$7.65, Tuesday’s -$0.53 and Monday’s -$2.49),
  • BioLife Solutions (BLFS +$1.68 after Thursday’s +$1.43),
  • Global Blood Therapeutics (GBT +$1.40 after Thursday’s +$1.06 and Wednesday’s +$1.28),
  • Chinook Therapeutics (KDNY +$1.15),
  • Editas Medicine (EDIT +$1.09 after Thursday’s +$1.11, Wednesday’s +$1.25, Tuesday’s +$0.83 and Monday’s -$0.98),
  • Ultragenyx (RARE +$0.92 after Thursday’s +$1.10, Wednesday’s +$4.07, Tuesday’s +$1.49 and Monday’s -$3.21),
  • uniQure NV (QURE +$0.86 after Thursday’s +$1.21 and Wednesday’s +$0.82),
  • Beam Therapeutics (BEAM +$0.82 after Thursday’s +$2.45, Wednesday’s +$4.60, Tuesday’s +$1.51 and Monday’s -$7.18),
  • Sage Therapeutics (SAGE +$0.79 after Thursday’s +$0.44, Wednesday’s +$2.09 and Tuesday’s +$0.66),
  • Voyager Therapeutics (VYGR +$0.71 after Thursday’s -$0.26 and Wednesday’s +$0.79),
  • Regenxbio (RGNX +$0.61 after Thursday’s +$0.48, Wednesday’s +$1.17, Tuesday’s +$1.00 and Monday’s -$2.05),
  • Ionis Pharmaceuticals (IONS +$0.49 after Thursday’s +$0.78 and Wednesday’s +$1.28),
  • CRISPR Therapeutics (CRSP =$0.43 after Thursday’s +$1.92, Wednesday’s +$5.50, Tuesday’s +$1.98 and Monday’s -$3.36),

 

Hammered in today’s market (5 of 5):

  • Cellectis SA (CLLS -$0.60),
  • Homology Medicine (FIXX -$0.13 after Thursday’s+$0.35),
  • MiMedx (MDXG -$0.02),
  • bluebird bio (BLUE -$0.01),
  • Verastem (VSTN -$0.01),

 

Closing Flat:

  • Biostage (BSTG) & Mesoblast (MESO)

 

March, Q1/2022:

  • Friday closed positive with 28 incliners and 5 decliners and 2 flats
  • Thursday closed positive with 32 incliners and 3 decliners
  • Wednesday closed positive with 34 incliners, 3 decliners
  • Tuesday closed positive with 28 incliners, 6 decliners and 1 flat
  • Monday closed negative with 5 incliners, 30 decliners and 1 flat

 

The BOTTOM LINE: The Cell and gene therapy sector held firm again without wavering and held gains in its four (4)-day rally.

How long will the highs last?

Investors should be assessing their own risk appetite within their portfolios. Despite the week’s big gains, they didn’t come without their share of volatility.

I would continue SELLING into STRENGTH. this market is full of headline formed landmines.

Friday was another “follow-through” session with the Nasdaq continuing to “pop”.

Percentage gains ranged for + 0.32% to +10.08% while the losses ranged from -0.20% to -12.88%.

Reiterating, “investors should remain cautious on adding extra risk in this time of conflict uncertainty.

One can NOT depend on algorithmic “rules” …  with the cell and gene therapy sector’s volume remained LOW.

Remember the adage, “It takes two to make a market"; that’s sellers and buyers.

I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”; risk to growth now takes center stage for how long separation of sentiment lasts and how deep the oversold dive.

Q4 and end-of-year earnings are still “gamy” than even I thought.

Earnings’ reporting coming:

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

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.

WHY do I keep reporting on Biostage (BSTG): I WAS there to experience what occurred and saw the decay of transparency and more; it defines purpose that takes courage, resolve and patience to stay the course of asking the questions without response!