May 2, 2022 5:04pm
A wild session, with a neutral mid-day and a sudden positive close following as I stated this a.m.,” Don’t be fooled, May will empty pockets and further damage cell and gene therapy sector portfolios.”
The Biostage (BSTG) Chronicles: The terminal death law suit that has hung over the company for years has been settled (4/28) for $6 M. For a company with extremely limited cash position, it will issue yet another Convertible Preferred Debt <called a Preferred Issuance Agreement (PIA)>. Just another DEBT “Shenanigan” of a BROKE company. Today, BSTG’s FLAT ($0.00) runs down with 3,925 shares traded as a “zombie” company funded by non-U.S. Beijing, China entities?
Pre-open indications: 6 HITs and 3 MISS
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 +84.29 points (+0.26%); the S&P closed UP+23.45 points (+0.57%) while the Nasdaq closed UP+201.38 points (+1.63%)
Henry’omics:
The stock market opened the month of May with a comeback and positive close following narrow losses and April's sharp declines as more earnings reports flood in.
Cell and gene therapy sector equities moved into positive territory ahead of another busy week of earnings as investors look for relief.
The Nasdaq sold off 13.3% in April in the largest monthly decline since October 2008, it's four-week losing streak is now the worst since April, 2020.
In economic news, the seasonally adjusted S&P Global U.S. Manufacturing Purchasing Managers' Index climbed to 59.2 in April from 58.8 in March. It was lower than initial estimates of 59.7, indicating that the pace of manufacturing activity may be slowing. Still, the rate of overall growth accelerated for the third month in a row, and was the sharpest gain since September. <IBD>
52-week lows: increasing …
- Solid Biosciences (SLDB) at $0.55,
- Fate Therapeutics (FATE) at $28.16,
- Caribou Biosciences (CRBU) at $7.40,
- Applied Genetic Technologies (AGTC) at $0.91,
- AVROBIO (AVRO) at $0.90,
- Homology Medicine (FIXX) at $1.68,
RegMed Investors’ (RMi) pre-open: “Don’t be fooled, May will empty pockets and further damage cell and gene therapy sector portfolios. Q1/22 Earnings, churnings with a sentiment burn bag of (LPS) loss-per-share pricing – a NO support month unless clinical progress NEWS and throw-in of a relevant M&A” … https://www.regmedinvestors.com/articles/12416
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Monday opened positive at 34 up/0 downs and 1 flat, slipped neutral at the mid-day at 17/17 and 1 flat, ending with a positive close of 30/3 and 2 flats,
Pre-open Indications: 6 HITs < Biostage (BSTG $0.00), Caribou Biosciences (CRBU +$0.53), CRISPR Therapeutics (CRSP +2.36), Beam Therapeutics (BEAM +$3.25), Editas Medicine (EDIT +$1.03), Intellia Therapeutics (NTLA +$2.58), 3 MISS < BioLife Solutions (BLFS +$0.51), Global Blood Therapeutics (GBT +$1.39), Ultragenyx (RARE +$1.60)>
Key Metrics:
- Monday - Sector volume was HIGHER with 14 of the 30-upside having higher than the 3-month average volume with HIGH volume of 2 of 3-downside having higher than the 3-month average volume;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday, the IBB was up +1.47% and the XBI was up +4%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was down -1.06 points or -3.17% at 32.34
Jumping with share pricing momentum (10 of 30):
- Alnylam Pharmaceuticals (ALNY +$5.62 after Friday’s -$9.73),
- Beam Therapeutics (BEAM +$3.25 after Friday’s -$2.04),
- Intellia Therapeutics (NTLA +$2.58 after Friday’s -$1.26),
- CRISPR Therapeutics (CRSP +$2.36 after Friday’s -$2.00),
- Ionis Pharmaceuticals (IONS +$1.61 after Friday’s -$2.79),
- Ultragenyx (RARE +$1.60),
- Vericel (VCEL +$1.46 after Friday’s -$2.91),
- Global Blood Therapeutics (GBT +$1.39 after Friday’s -$1.33),
- Fate Therapeutics (FATE +$1.21 after Friday’s -$3.09),
- Sage Therapeutics (SAGE +$1.08 after Friday’s -$0.90),
Hammered in today’s market (3 of 3):
- Bellicum Pharmaceuticals (BLCM -$0.08),
- Brainstorm Cell Therapeutics (BCLI -$0.05),
- Solid Biosciences (SLDB -$0.01),
May, Q2/2022:
- Monday closed positive with 30 incliners, 3 decliners and 2 flats
The BOTTOM LINE: State the obvious, investors are NOT in control of daily market driven sector appreciation or downward dives.
Sentiment is negative, we need to see anything but algorithm bursts to the upside and some real support from other than market forces.
Three (3) sector earnings (QURE, ALNY and SLDB) from my covered list and they are BOTH charging their equity pricing into the ground.
I try to keep it simple … I don't think we've seen the bottom yet. We haven't had that big sell off yet where we have huge volumes.
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 Sage Therapeutics (SAGE) will report on 5/3; AxoGen (AXGN), Ionis Pharmaceuticals (IONS), MiMedx (MDXG) and Vericel (VCEL), and Fate Therapeutics (FATE), Regenxbio (RGNX), Editas Medicine (EDIT), Global Blood Therapeutics (GBT) on 5/4 and Ultragenyx Pharmaceuticals (RARE) and Intellia Therapeutics (NTLA) on 4/5.
Volume again was also barely there … as earnings might get even more ugly.
Don’t hold your breath after a few up sessions, algorithms are lurking under the surface of minimal sentiment
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.
