May 18, 2022 7:32am
There's a battle in the cell and gene therapy sector between which or what breaks first: share pricing resilience or tumbling into yet another downturn
Fear remains beneath the strength of positive closes
News: AVROBIO (AVRO +$0.036 with an aftermarket of +$0.04) reported new interim data from the P1/2 gene therapy trial of AVR-RD-04 for cystinosis and reported new interim data from the gene therapy trial of AVR-RD-04 for cystinosis. Applied Genetic Technologies’ (AGTC +$0.089 with an aftermarket of -$0.02) vision Loss gene therapy shows encouraging safety, efficacy at three (3) months
Pre-open indications: 3 Positive Indications, 3 Negative Indications 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 DOWN -0.54% (-177 points), S&P futures are DOWN -0.69% (-28 points) and NASDAQ futures are DOWN -0.98% (-124 points) early in the pre-open – so far,
U.S. stock futures are falling in Wednesday’s pre-open,
European stocks were mixed,
Asia-Pacific stocks were mixed.
From last night, Indexes were higher on Tuesday as the market bounced from a volatile and penalized market for the Nasdaq.
Some indexes have declined for seven straight weeks, but stocks have stabilized over the last three trading sessions. <CNBC>
Small caps impressed the most with the Russell 2000 surging +3.1%.
Economic Data Docket: Weekly mortgage demand from homebuyers tumbles 12%, as higher interest rates take their toll. Applications to refinance a home loan continued their landslide, falling another 10% week to week.
RegMed Investors’ (RMi) closing bell: “enjoying the cell and gene therapy sector high and I didn’t even inhale. To alleviate 52-week lows, follow RMI portfolio sector positioning after April/May slips. I STILL believe “we are renting the upside” keep the lows in your minds-eye; the algorithmic “Pac-men” are always lurking! Stay “frosty” … one session does NOT make a market; fear DOES forecast a sub-surface reality regarding sustainability” … https://www.regmedinvestors.com/articles/12440
Ebb and flow –
May - 6 positive and 5 negative closes
· April - 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
RegMed Investors (RMi) - Q1/22 Cell and Gene Therapy Earnings Scorecard Results … https://www.regmedinvestors.com/articles/11628 -- added Brainstorm Cell Therapeutics (BCLI), Homology Medicine FIXX) and Biostage (BSTG)
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Positive Upside Indication: low hanging fruit…
Avrobio (AVRO) closed up +$0.035 to $0.82 <52-week low of $0.75> with a news oriented positive +$0.04 or +5.35% pre-open indication,
Homology Medicine (FIXX) closed up +$0.07 to $1.51 <52-week low of $1.39> with a positive +$0.04 or +2.65% - the ONLY RegMed company in my 35 covered list to have a Q1/22 net income.
Sangamo Therapeutics (SGMO) closed up +$0.07 to $3.95 <52-week low of $3.48> with a positive +$0.10 or +2.53% pre-open indication,
Negative Downside Indication: picking to sell …
Applied Genetic Technologies (AGTC) closed up +$0.089 to $0.837 <52-week low of $0.58> with a negative -$0.02 or -2.10% pre-open indication,
Fate Therapeutics (FATE) closed up +$1.09 to $23.73 <52-week low of $20.49> with a negative -$0.73 or -3.08% pre-open indications,
Global Blood Therapeutics (GBT) closed up +$0.96 to $28.62 <52-week low of $22.67> with a negative -$0.12 or -0.42% pre-open indication
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$0.89 after Monday’s flat and earnings report post Friday’s flat (it was down -$0.89) with 1,811 shares traded, Thursday’s and last Wednesday’s 0 shares traded.
- WARNING: Earnings reported a VERY SAD picture of a company’s status without U.S investors and reliance on non-U.S. Chinese investors. Another PPM -private placement – this one for $5.1 M without a price per share notification. Also, the terminal death lawsuit just got settled (4/28) for $6 M with a PPM – a preferred convertible debt financing. is it the ONLY avenue to finance utilizing non-U.S. Chinese investors?
The BOTTOM LINE: The sector could (but, it doesn’t feel or look like it) be attempting a follow-through session after a Tuesday comeback.
Q1/22 earnings season is more than completed (31 of 35 reported) having reported LPS (loss-per-share) results so far MISSING estimates and revenues.
A show of expression – one (1) net income reported – Homology Medicine (FIXX) reported on Monday
I am NOT discarding my statement that, “I STILL believe “we are renting the upside” keep the lows in your minds-eye; the algorithmic “Pac-men” are always lurking! Stay “frosty” … one session does NOT make a market; fear DOES forecast a sub-surface reality regarding sustainability.”
I try to keep it simple … and short!
I caution investors that the severe share pricing’s – technical and fundamental damage has been suffered these past several months which will take longer than a few good sessions to repair.
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.