April 27, 2022 7:33am
After a high volatility and in a low volume sector = a coming behavioral response although caution
News: Cellectis SA (CLLS) received a $20 million convertible note in payment of the upfront collaboration consideration provided for pursuant to the research collaboration and non-exclusive license agreement entered between Cellectis and Cytovia in February 2021
Pre-open indications: 5 Upside indications, 2 Downside 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 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 +0.93% (+310 points), S&P futures are UP +0.69% (+29 points) and NASDAQ futures are UP +0.56% (+72 points) early in the pre-open
U.S. stock futures are higher early Wednesday morning after the major averages continued their April sell-off amid concerns of an economic slowdown and macro non-sector earnings,
European markets traded around the flatline as global markets remain mixed,
Asia-Pacific markets were mixed as investors reacted to the losses by Tuesday’s’ U.S. indexes
Henry’omics:
Yesterday, the Nasdaq lost -3.95%, its lowest level since December 2020 while hitting a fresh 52-week low and now sitting roughly 23% off its high.
In April, the Nasdaq lost 12.2%
In the “Economic Data Docket” - investors will be watching for the latest data on weekly mortgage applications, international trade and pending home sales.
RegMed Investors’ (RMi) closing bell: “slipping into another bottom, as 35 of 35 covered companies are drowning in the red as sentiment deserted the sector” … https://www.regmedinvestors.com/articles/12406
Last night’s RegMed Investors’ (RMi) closing bell post: “
Ebb and flow –
Q2/22 - 1 holiday, 5 positive and 12 negative close
Q1/22:
· March – 13 negative and 10 positive closes
· February stats: 11 negative, 8 positive closes and 1 holiday
· January stats: 2 holidays, 1 neutral, 13 negative and 6 positive closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Reversing the curse … Upside indications:
Alnylam Pharmaceuticals (ALNY) closed down -$7.07 to $155.00 <52-week low of $125.oo to a high of $212.00> with a positive +$0.63 or +0.41% pre-open
Caribou Biosciences (CRBU) closed down -$0.39 to $7.54 after Monday’s +$0.14 (52-week low of $7.51 to a high of $32.65) with a positive +$0.37 or +4.91% pre-open indication
Editas Medicine (EDIT) closed down -$1.03 to $13.96 after Monday’s +$0.40 to $14.99 and Friday’s +$0.22 <52-week low of $13.25 to a high of $73.03> with a positive +$0.77 or +5.52% pre-open indication.
Fate Therapeutics (FATE) closed down -$3.01 to $32.44 <52-week low of $29.40 to a high of $97.43> with a positive +$1,25 or +3.85% pre-open indication
Ultragenyx (RARE) closed down -$4.92 to $70.74 <52-week low of $61.21 to a high of $119.54> with a positive +$0.45 or +0.64% pre-open indication
Flipping to the downside:
Global Blood Therapeutics (GBT) closed down -$2.09 to $32.75 <52-week low of $24.61 to a high of $43.98> with a negative -$0.25 or -0.76% pre-open indication
Ionis Pharmaceuticals (IONS) closed down -$2.22 to $40.12 <52-week low of $25.04 to a high of $44.42> with a negative -$0.47%or -1.17% pre-open indication
Pimp/Pump and Promote:
Biostage (BSTG) closed down -$0.30 with 25,325 shares traded after Monday’s +$0.05 with 1,227 shares trading, Friday’s +$0.05 with 3,233 shares traded, Thursday’s +$0,90 with 771 shares traded, and last Wednesday’s -$0.48 to $5.50 with 1,131 shares traded.
- WARNING: WHY BUY this equity with a 3-year-old IND, NO clinical trial initiation, a terminal death lawsuit overhang and a precarious financial position dependent on a possible cash infusion? Also, WHY the pump of the volume to gain share appreciation – they have to reverse the multiple private placements (the priciest was $4.71) for a potential/proposed stock offering.
- Last question: Has BSTG filed their FDA annual report on their IND – it needs to explain why it has not gone forward to date and their plan to go forward?
The BOTTOM LINE: The wall of worry has been building, as it relates to upcoming earnings as well as Fed worries.
In this environment, it's impossible to call the bottom …
So, brace for more choppiness in the near-term as we enter… the earnings “black hole beginning this week
A rotten tomatoes’ Tuesday followed by an upside driven Monday followed by as the sector bounded to the downside as the algorithms “ruled”!
I am NOT a sector optimist in light of current macro earnings and the coming “swarm” of cell and gene therapy sector in our very own “loss-per-share” companies reporting season
Repeating from last nights’ post,” “This week may easily be a fork in the road of equities. … Bottom-up drivers will either confirm or reject what the challenging macro backdrop has given us over the last three weeks,” MKM’s JC O’Hara said in a note.
I maintain a warning to investors to reduce exposure.
I try to keep it simple … and short!
To expect a payday; volatility and low volume are part of the equation which could set-up BUY/SELL opportunities.
Investors should consider taking at least partial profits quickly on winners to avoid round-tripping moves.
I am still, in the here and now, the cell and gene therapy sector will continue to “flutter”; we are about to enter the earnings’ zone!
Earnings’ season is upon us as Alnylam Pharmaceuticals (ALNY) reports Thursday, 4/28 followed so far by Sage Therapeutics (SAGE) on 5/3 and AxoGen (AXGN), Fate Therapeutics (FATE), Ionis Pharmaceuticals (IONS), MiMedx (MDXG) and Vericel (VCEL) on 5/4 so far.
Whether information or intelligence is good, bad or somewhere in between; 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.
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.
All investments are subject to risks. Investors should consider 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.
