May 11, 2022 5:08pm
Technicals, fundamentals and many 52-week lows are being ignored while gene editors are feeling the biggest share pricing pain
Risk equities are under-pressure as investors lose patience but, cannot ignore the headline of inflation number coming in higher as algorithms stripped the upsiders
Pre-open indications: 2 HITs and 7 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 DOWN -326.37 points (-1.01%); the S&P closed DOWN -65.80 points (-1.64%) while the Nasdaq closed DOWN -373.43 points (-3.18%)
Cell and gene therapy sector equities dived Wednesday, as investors tried but, could NOT look past U.S. inflation data tempering gains on the Nasdaq.
Indexes have been weakening since about 11:30 a.m. ET. As the session progressed to the close, the Nasdaq fell -3.18%, the S&P 500 was down -1.64% and the Dow dipped -1.01%. The small-cap Russell 2000 lost 1.5%.
“April’s consumer price index showed an 8.3% jump, higher than the 8.1% increase expected by economists.
The price surge remained near the 40-year high pace of 8.5% seen in March. Core CPI, which does not include food and energy prices, gained 6.2% compared to expectations of 6%.
On a monthly basis, headline CPI rose by 0.3% and core rose 0.6%.”
52-week and all-time lows:
- XBI at 63.15,
- Fate Therapeutics (FATE) at $21.30,
- uniQure NV (QURE) at $13.21,
- Intellia Therapeutics (NTLA) at $39.45,
- Ultragenyx (RARE) at $50.39,
- Mesoblast (MESO) at $3.29,
- Sangamo Therapeutics (SGMO) at $3.57,
- Adverum Biotechnologies (ADVM) at $0.99,
- bluebird bio (BLUE) at $3.27,
- Editas medicine (EDIT) at $10.25,
- Global Blood Therapeutics (GBT) at -$22.77,
- Regenxbio (RGNX) at $19.28,
- Beam therapeutics (BEAM) at $31.50,
- Caribou Biosciences (CRBU) at $6.96,
- Verastem Oncology (VSTM) at $1.02,
- Precigen (PGEN) at $1.25,
- AVROBIO (AVRO) at $0.76,
- Cellectis SA (CLLS) at $2.95,
- Solid Biosciences (SLDB) at $0.47,
- Applied Genetic Technologies (AGTC) at $0.62,
RegMed Investors’ (RMi) pre-open: “the cell and gene therapy sector is due for a further uplift; however, fear of volatility and an inflation report are a bit uncertain. 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?” … https://www.regmedinvestors.com/articles/12431
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Wednesday opened positive at 18 up/16 downs and 1 flat, flipped dramatically negative at the mid-day at 1/32 and 2 flats, ending with a negative close of 0/34 and 1 flat
Pre-open Indications: 2 HITs < Biostage (BSTG -$0.00), Beam Therapeutics (BEAM -$5.82). 7 MISS < Agenus (AGEN -$0.15), BioLife Solutions (BLFS +$1.21), Caribou Biosciences (CRBU -$0.66, CRISPR Therapeutics (CRSP -$3.64), Editas Medicine (EDIT-$1.23), Intellia Therapeutics (NTLA -$4.46), Chinook Therapeutics (KDNY -$0.60)
Key Metrics: review the disparities between daily sessions
- Wednesday - Sector volume was FLAT with 0 of the 0-upside having higher than the 3-month average volume with HIGH volume of 24 of 34-downside having higher than the 3-month average volume;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB was down -3.34% and the XBI was down -7.22%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -0.43 points or -1.30% at 32.56
Jumping with share pricing momentum (0 of 0):
Hammered in today’s market (7 of 7): the worst
- Alnylam Pharmaceuticals (ALNY -$7.76 after Tuesday’s +$5.66 and Monday’s -$12.23),
- Beam Therapeutics (BEAM -$582 after Tuesday’s +$2.49 and Monday’s -$2.39),
- Intellia Therapeutics (NTLA -$4.46 after Tuesday’s +$2.95 and Monday’s -$6.12),
- CRISPR Therapeutics (CRSP -$3.64 after Tuesday’s +$4.08 and Monday’s -$4.78),
- Ultragenyx (RARE -$2.68 after Tuesday’s +$1.76 and Monday’s -$5.74),
- Fate Therapeutics (FATE -$2.31 after Tuesday’s +$1.40 and Monday’s -$1.81),
- Regenxbio (RGNX -$1.66 after Tuesday’s +$1.13 and Monday’s -$2.22),
- Biostage (BSTG),
- Wednesday closed negative with 0 incliner, 34 decliners and 1 flat
The BOTTOM LINE: Talk about the oversold accelerating to the downside, it’s a panic or race to escape the devastation.
The 52-week lows are becoming OVERWHELMING!
As Investors failed (I say ignored) to find convincing evidence of easing inflation pressures in the April CPI reading, with stocks now resuming their recent volatile trading
The CBOE's VIX index, also known as Wall Street's 'fear gauge', eased 2.6% from the highest levels since early March, but was still notably elevated at 32.14 points. <TheStreet>
"We're going to see more volatility. This is not going to be an easy path forward as we still have a lot of unknowns," Omar Aguilar, Schwab asset management CEO and chief investment officer, told Yahoo Finance Live on Tuesday. "There's still a lot of uncertainty in many parts, not just in the macroeconomic and the economic structure, but also just geopolitically, things that haven't been resolved, like the war in Ukraine as well as just the COVID situation in China." <Yahoo! finance>
Weakness has also been driven by earnings’ reporting, the lack of sentiment, conviction and confidence enhanced by volatility.
As I continue, “State the obvious, investors are NOT in control of daily market driven sector appreciation or downward dives.”
Q1/22 earnings season is half completed (24 of 35 reported) having reported LPS (loss-per-share) results so far MISSING estimates and revenues.
I have yet to see one (1) net income!
Earnings’ season is upon us with: Brainstorm Cell Therapeutics (BCLI) on 5/16 and Cellectis SA (CLLS) on 5/13, and Biostage (BSTG) with a release on 5/16.
Keep watching and reading focused on stem, cell and gene therapy equities that are barely showing relative strength.
In this market correction, watchlists can be like sand castles, crumbling under fresh waves of selling. But keep working on those sand castles. When the sector turns, you'll be ready to take advantage.
I maintain MY concerns of a contrarian view and a right-on actuality of “our” universe” as represented by an outlook of anxiety, striking a more cautious tone on cell and gene therapy stocks for the short and near-term.
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.
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.