April 19, 2022 4:50pm
Love the upside with a revolving door to the upside, how soon will we be flirting with bottoms again?
Pre-open indications: 5 HITs, 0 MISS and 1 Pimp/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.
Who else is tracking a broad grouping of cell and gene therapy equities – can you afford to not read 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 +499.51 points (+1.45%); the S&P closed UP +70.52 points (+1.61%) while the Nasdaq closed UP +287.30 points (+2.15%)
Indexes popped on Tuesday as corporate earnings season began while also watching for the latest moves in interest rates.
The Nasdaq extended gains to 2.2% after settling at a one-month low on Monday
Cell and gene therapy sector equities have been under pressure until today as algorithms did us a “solid” to our “risk assets” on Tuesday; helping was the small and mid-cap heavy Russell 2000 rose 2.3%.
In the Economic Data Docket: housing starts and building permits in March came in above expectations, according to estimates from Dow Jones.
Earnings Note: Johnson & Johnson (JNJ +$5.42 to $183.08) reported earnings, which propelled the stock +3.05% with a new 52-week high. The stock rose in strong volume and became extended from a $173.72 BUY point of a double-bottom base. The stock had been trading in the buy zone for several weeks. The company reported EPS of $2.67 on revenue of $23.4 billion.
- Adverum Biotechnologies (ADVM) at $1.11
- Precigen (PGEN) at $1.62
Unusual volume spike:
- Verastem Oncology (VSTM) -$0.17 with 2.66 M shares traded after Monday’s +$0.06 with 5.505 M shares after Thursday’s +$0.24 to $1.77 with 30 M shares traded
RegMed Investors’ (RMi) pre-open: “after eight (8) negative closes out of twelve (12) April sessions. We can only hope for algorithmic for some oversold recognition; however, investors steer clear until sentiment turns hopefully after earnings’ cycle which begins 4/28 with Alnylam Pharmaceuticals (ALNY)” … https://www.regmedinvestors.com/articles/12394
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Tuesday opened negative at 15 up/18 downs and 2 flats, flipped positive at the mid-day at 31/3 and 1 flat, ending with a positive close of 27/6 and 2 flats,
- Monday opened negative at 3 up/30 downs and 2 flats, stayed negative at the mid-day at 4/30 and 1 flat, ending with a negative close of 4/31,
Pre-open Indications: 5 HITs: < Alnylam Pharmaceuticals (ALNY +$4.52), Beam Therapeutics (BEAM +$0.72), uniQure NV (QURE +$0.21), CRISPR Therapeutics (CRSP +$0.22), Vericel (VCEL +$2.19); 0 MISS and 1 Pimp/Pump/Promote: Biostage (BSTG +$0.48 with 1,168 shares traded
Tuesday - Sector volume was LOW with 3 of the 27-upside having higher than the 3-month average volume with LOW volume of 2 of 6-downside having higher than the 3-month average volume;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Tuesday, the IBB was up +0.96% and the XBI was up +1.24%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Tuesday was down -0.80 points or -3.61% at 21.37
Jumping with share pricing momentum (10 of 27):
- Alnylam Pharmaceuticals (ALNY +$4.52 after Monday’s -$10.66),
- Vericel (VCEL +$2.19),
- Fate Therapeutics (FATE +$1.29 after Monday’s -$2.29),
- Regenxbio (RGNX +$0.78),
- Beam Therapeutics (BEAM +$0.72 after Monday’s -$2.42),
- Global Blood Therapeutics (GBT +$0.67 after Monday’s -$1.42),
- Sage Therapeutics (SAGE +$0.63 after Monday’s -$1.43),
- Chinook Therapeutics (KDNY +$0.63),
- Voyager Therapeutics (VYGR +$0.53 after Monday’s +$0.09),
- Biostage (BSTG +$0.48 - promoted)
Hammered in today’s market (6 of 6):
- Ultragenyx (RARE -$0.34 after Monday’s -$9.96),
- Verastem (VSTM -$0.17 after Monday’s +$0.06),
- Cellectis SA (CLLS -$0.12),
- Mesoblast (MESO -$0.08),
- Ionis Pharmaceuticals (IONS -$0.05 after Monday’s +$0.04),
- Precigen (PGEN -$0.01),
- Homology Medicine (FIXX) and Adverum Biotechnologies (ADVM)
- Tuesday closed positive with 27 incliners, 6 decliners and 2 flats
- Monday closed negative with 4 incliner and 31 decliners
- Friday was a holiday
The BOTTOM LINE: There are no strikes called in investing.
Investors are losing confidence and it shows up in the ever rotating roller-coaster of share pricing.
State the obvious, investors are NOT in control of daily market driven sector appreciation or downward dives.
The number one takeaway for investors should be to watch how your stock reacts daily more than before and after news and earnings specifically.
Cell and gene therapy equities DON’T always rally on good news but, seriously dive on bad news.
I try to keep it simple …
We are getting close to Q2 reporting season … yet, I can’t write away my misgivings about the daily sessions.
Earnings’ season is upon us as Alnylam Pharmaceuticals (ALNY) reports Thursday,4/28 followed by Sage therapeutics (SAGE) on 5/3 and AxoGen (AXGN) on 5/4 so far.
Volume again was also barely there … as earnings might get even more ugly.
I am more than worried about investment bank pricey analyst valuations that (in my mind’s eye) have NO basis.
I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”.
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.