May 11, 2022 7:47am

Investors should be cautious; the downside curse is still lurking. what evidence is there for the correction to continue in today’s market - upside futures?

Pre-open indications: 6 Upside Indications, 2 Downside Indication and 1 Puff/Pump/Promote

RMi outlines a daily bell ringing 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 +0.90% (290 points), S&P futures are UP +1.50% (+46 points) and NASDAQ futures are UP +1.52% (+187 points) early in the pre-open – so far,

 

Stock futures were higher in early morning trading Wednesday ahead of a key U.S. inflation report – surprising,

European stocks advanced after choppy trading sessions in the region,

Asia-Pacific stocks were mixed as investors watched for market reaction to the release of higher-than-expected Chinese inflation data for April.

 

Henry’omics:

Indexes got a big bounce at Tuesday's open, reversed lower, rebounded again before fading to close mixed. The Nasdaq rose solidly, while the S&P 500 edged higher and the Dow fell slightly.

Economic Data Docket: Key report on the state of inflation …

·         The Labor Department will release the April consumer price index at 8:30 a.m. ET. Economists expect the CPI to show a 0.2% increase vs. March. Core CPI, which excludes food and energy, should climb 0.4%.

·         Year over year, consumer prices should surge 8.1%, down from March's 40-year high of 8.5%. Core inflation should ease to 6% from March's 6.5%. Year-over-year comparisons are getting tougher. <IBD>

·         China is due to report consumer and wholesale inflation data Tuesday night. That comes amid severe Covid lockdowns that have slashed production and demand.

 

RegMed Investors’ (RMi) closing bell: “a bounce to the upside. Still not convinced the “bottom” is in. Hold-on (to the railing) as our portfolios weather these volatile sessions as an ordinary practice” … https://www.regmedinvestors.com/articles/12430

Ebb and flow –

Q2/22 –

May - 4 positive and 3 negative closes

·         April - 1 holiday, 6 positive and 13 negative closes

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

RegMed Investors (RMi) - Q1/22 Cell and Gene Therapy Earnings Scorecard Results … https://www.regmedinvestors.com/articles/11628

 

Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS

Upside Indications and some WHYs:

Agenus (AGEN) closed up +$0.14 to $1.66 <52-week low of $1.50> with a positive +$0.06 or +3.61% pre-open upside indication. Positive news from earnings’ report - Gilead (GLD) has an exclusive option to license AGEN2373, while AGEN can opt-in for a 50:50 profit share and US co-commercialization rights and can also received $5M milestone payment with up to $570 million in future potential option fees and milestones. Garo Armen, PhD, Chairman and CEO stated “Needless to say, we are also taking decisive steps to contain costs across the board despite our reasonable cash position.” Smart move in this environment.

BioLife Solutions (BLFS) closed up +$0.85 to $11.75 <a52-week low of $10.74> with a positive +$0.52 or +4.43% pre-open upside indication, BLFS affirms 2022 revenue guidance of $159.5 million to $171.0 million, reflecting year-over-year growth of 34% to 44% and organic growth of 28% to 39%. BLFS’ shares have lost about 67.2% since the beginning of the year versus the S&P 500's decline of -13.5%.

Caribou Biosciences (CRBU) closed up+$0.62 to $7.29 after Monday’s -$0.66 <52-week low of $6.54> after Friday’s $7.33, Thursday’s $7.78 and last Wednesday’s $8.34 with a positive +$0.36 or +4.94% upside pre-open indication,

CRISPR Therapeutics (CRSP) closed up +$4.08 to $47.31 after Monday’s -$4.78 <52-week low of $43.05> after Friday’s $48.01, Thursday’s $51.34 and last Wednesday’s $55.62 with a positive +$1.19 or +2.52% downside pre-open indication.  CRSP reported Q1/22 net loss per share of $2.32, wider than the Zacks Consensus Estimate of a loss of $1.91; also, revenues substantially missed. Shares of CRSP have plunged 43% so far 2022 compared with the industry’s 25% decline.

Editas Medicine (EDIT) closed up +$0.15 to $11.26 <52-week low of $10.37> after Monday’s -$2.55 to $11.11 after Friday’s $13.66, Thursday’s $14.56 and last Wednesday’s $15.81 with a positive +$0.56 or +4.97% pre-open upside indication. EDIT incurred a loss of -$0.74 per share in Q1/22, narrower than the Zacks Consensus Estimate of a loss of -$0.81. EDIT shares have plunged -46.6% in 2022 compared with the industry’s decrease of -21.4%.

Intellia Therapeutics (NTLA) closed up +$2.95 to $44.40 <52-week low of $40.06> after Monday’s -$6.12 after Friday’s -$2.46 <52-week low of $41.12> after Thursday’s -$5.67 and last Wednesday’s $3.92 with a positive +$2.10 or +4.73% pre-open indication. NTLA incurred a loss of $1.96 per share for Q1/22, wider than the year-ago loss of -$0.69 cents as well as the Zacks Consensus Estimate of a loss of -$1.11. Shares of NTLA have plunged 57.7% in the year so far compared with the industry’s 22.7% decline.

 

Downside Indications:

Beam Therapeutics (BEAM) closed up +$2.49 to $35.78<52-week low of $32.57> with a negative -$0.40 or -1.12%. BEAM shares have lost about 55.2% since the beginning of the year versus the S&P 500's decline of -13.5%. BEAM has a Q1 positive earnings surprise of $1.01 versus estimate -$1.10 and posted revenues of $8.43 million for Q1/22, missing the Zacks Consensus Estimate by -89.89%. market forces have NOT been good for gene editors. Cash position was $1.2 B, with a net loss of -$69.2 M for Q1/22, or $1.01 per share,

Chinook Therapeutics (KDNY) closed up +$1.28 to $13.87 <52-week low of $10.48> with a negative -$0.69 or -4.97% downside pre-open indication. NO earnings date yet.

 

Puff/Pump and Promote: Maintaining SELL

Biostage (OTCQB: BSTG) closed flat with 1,845 shares traded <52-week low of $1.11> after Monday’s -$0.39 with 6,422 shares traded, Friday’s flat at $6.00, Thursday’s +$0.49 to $6.00 with 628 shares traded and last Wednesday’s -$0.36 with 5,171 shares traded.

WARNING:  A terminal death lawsuit that just got settled (4/28) for $6 M by a “broke” company with yet another preferred convertible debt financing?

  • 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.

One positive, Chairman and interim CEO Green shifted the burden of the death suit from management’s responsibility to shareholders with this new settlement with a debt financing.

  • Question: Didn’t Chairman and then CEO invite Paola Macchiarini, the individual responsible for the terminal death (to Harvard Apparatus, now Biostage) who is just going on trial in Sweden for similar but, aggravated assault reasons against patients?

Last question: Has BSTG filed their FDA annual report on their IND to the FDA – which defines its capacity and capability why it can go forward to a clinical trial and their CRO plan forward?

 

The BOTTOM LINE: More pain; the question will be how bad a trounce or a better ounce of a bounce?

There has been pain associated with earnings’ going forward as market forces helped build the sector’s upside as LPS (loss-per-share) is painful but, more than important the on-going clinical trials outcomes, cash positions and “runway’s”.

Reiterating, I am STILL NOT trusting the month of May – too many earning releasees.

Market/sector breadth is anemic, with losers outpacing winners and new lows trouncing new highs.

So, brace for more choppiness in the near-term as we continue… the earnings “black hole next week

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!

Earnings’ season is upon us with: Brainstorm Cell Therapeutics (BCLI) on 5/16 and Cellectis SA (CLLS) on 5/13, 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.