April 29, 2022 7:12am
Why am I a sceptic, the sector’s rally began mid-day and then picked up momentum to close positive; today will be the last trading day of the April – scary.
Pre-open indications: 1 Upside Indication, 3 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 DOWN -0.50% (-168 points), S&P futures are DOWN -0.89% (-38 points) and NASDAQ futures are DOWN -1.15% (-155 points) early in the pre-open – so far,
U.S. stock futures fell pointing to a lower open early Friday following Tech earnings that exhibited pressure as some disappointed,
European markets moved higher as global stocks received a boost from strong corporate earnings, but remain on course for a negative month.
Asia-Pacific markets rose with Chinese stocks leading gains regionally. Markets in Japan were closed on Friday for a holiday.
The Nasdaq Composite rose by 3.1% in its best day since March 16.
Despite Thursday’s gains, stocks still have a way to go to finish green for the month. The Nasdaq is on pace for its worst month since March 2020, down 9.5%. <CNBC>
“Volatility has resurged in recent weeks amid concerns over whether tighter monetary policies from the Federal Reserve might derail the economy. And these fears compounded with lingering jitters over persistent inflation, geopolitical turmoil and an ongoing COVID outbreak in China.” <Yahoo Finance>
Economic Data Docket: data on personal consumption expenditures (PCE). Core PCE is the Federal Reserve’s primary inflation gauge. The University of Michigan’s consumer sentiment index is also due out at 10 a.m. ET.
RegMed Investors’ (RMi) closing bell: “gravity was overcome for the cell and gene therapy sector” … https://www.regmedinvestors.com/articles/12413
Ebb and flow –
Q2/22 - 1 holiday, 6 positive and 13 negative closes
· 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 of downtrodden markets, some companies deserve a lift … Upside indications:
Fate Therapeutics (FATE) closed down -$.0.22 to $31.65 after Wednesday’s -$0.57 to $31.87, Tuesday’s -$3.01 <52-week low of $29.40 to a high of $97.43> with a positive +$0.60 or +1.90% pre-open indication
Maintaining Downside Indication:
BioLife Solutions (BLFS) closed up +$0.28 to $13.01 <52-weeklow of $12.13 and a high of $60.67> with aa negative -$1.01 or-7.76% pre-open indication.
Global Blood Therapeutics (GBT) closed down -$0.31 to $32.03 <a 52-week low of $24.61 and a high of $42.47> with a negative -$0.47 or -1.47% pre-open indication.
Intellia Therapeutics (NTLA) closed up +$0.95 to $50.29 after Wednesday’s -$0.51 <52-week low of $48.07 to a high of $202.73> with a negative -$1.51or -3% pre-open indication
Pimp/Pump and Promote:
Biostage (BSTG) closed flat at $5.90 with 1,905 shares traded following Wednesday’s -$0.30 with 1,150 shares traded, Tuesday’s -$0.30 with 25,325 shares traded, Monday’s +$0.05 with 1,227 shares trading, and last Friday’s +$0.05 with 3,233 shares traded.
WARNING: A terminal death lawsuit that just got settled (4/28) for $6 M by a “broke” company?
- A “ZOMBIE” company, WHY BUY this equity with a 3-year-old IND, NO clinical trial initiation, 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: month’s end and I am NOT trusting the last session of the month.
“Thursday's market action doesn't matter. What matters is what comes next. If the major indexes soon charge to new lows, then Thursday is just a blip in an ongoing correction or bear market. If the major indexes continue higher and confirm a new market rally, that is meaningful.” <IBD>
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
Reiterating, “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.” The earnings are coming, the earnings are coming; flash the signal light of loss per share - I maintain a warning to investors to reduce exposure.
I try to keep it simple … and short!
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”; as we are about to enter the earnings’ zone!
Two (2) sector earnings (ALNY and SLDB) from my covered list and they are BOTH charging their equity pricing into the ground.
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), Global Blood Therapeutics (GBT), Ionis Pharmaceuticals (IONS), MiMedx (MDXG), Editas Medicine (EDIT) and Vericel (VCEL) on 5/4; Sangamo Therapeutics (SGMO) and Ultragenyx Pharmaceuticals (RARE) on 5/5 and Agenus (AGEN) on 5/10 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.