June 14, 2022 4:53pm

Be patient, lows will beget BUYs even as pessimism magnifies; not today, tomorrow or the next – it’s coming

However, net shorts are in vogue in a wait-and-see session on Tuesday

News: Alnylam Pharmaceuticals (ALNY +$5.82) the FDA approved AMVUTTRA™ (vutrisiran), an RNAi therapeutic administered via subcutaneous injection once every three months (quarterly) for the treatment of the polyneuropathy of hereditary transthyretin-mediated (hATTR) amyloidosis in adults. hATTR amyloidosis is a rare, inherited, rapidly progressive, and fatal disease with debilitating polyneuropathy manifestations, for which there are few treatment options.

Pre-open indications: 4 HITs, 2 MISS and 1 PUFF/Pump/Promote

WHY and HOW is this market affecting the cell and gene therapy sector … “The Bottom Line” underlines the framework of share pricing actions.  Who else is tracking a broad grouping of cell and gene therapy equities – can you afford to not read facts supported by real numbers?

It’s a quick read to understand the ebb and flow of the session in one site

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 -151.91 points (-0.50%); the S&P closed DOWN -14.15 points (-0.38%) while the Nasdaq closed UP +19.12 points (+0.18%)

 

Henry’omics:

Indexes fell even deeper on Tuesday, as the market struggled to rebound and the cell and gene therapy sector was in the same position after Monday’s steep declines as traders (I believe real investors are sitting-on-the-sidelines bracing for a key monetary policy announcement from the Fed.

Another right-on quote, ““If the rates aren’t done going up then the stock market’s not done going down,” said Jim Paulsen, chief investment strategist at The Leuthold Group.

Consider this … “CNBC’s Steve Liesman reported Monday that the Fed will “likely” consider a 75-basis-point increase, which is greater than the 50-basis-point hike many traders had come to expect”. The Wall Street Journal reported the story first.

While, traders and investors digested another important inflation reading of May’s producer price index on Tuesday.

·         It showed that wholesale prices rose 10.8% and hovered near a record pace.

News Continued: Alnylam Pharmaceuticals (ALNY) …The FDA approval is based on positive 9-month results from the HELIOS-A P3 study, where AMVUTTRA significantly improved the signs and symptoms of polyneuropathy, with more than 50% of patients experiencing halting or reversal of their disease manifestations.

 

RegMed Investors’ (RMi) pre-open: “the cell and gene therapy sector inch its way back up. What do you do in this sector, pick your targets, de-risk, de-gross, hide the portfolio in draw, or just stay in the game – there is STILL value out-there but, appreciation will not be acclaimed in one (1) session!” … https://www.regmedinvestors.com/articles/12472

 

RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …

  • Tuesday opened negative at 16 up/ 17 downs and 2 flats, stayed negative at the mid-day to 9/26, ending with a negative close of 11/22 and 2 flats.

 

Pre-open Indications: < 4 HITs <Caribou Biosciences (CRBU +$0.03), Beam Therapeutics (BEAM +$0.97), CRISPR Therapeutics (CRSP +$2.84), Fate Therapeutics (FATE +$0.85)> 2 MISS < Sage Therapeutics (SAGE -$0.13), Intellia Therapeutics (NTLA -$0.47)> 1 Puff/Pump/Promote < Biostage (BSTG -$0.40 with 100 shares traded)>

 

52-weeek low: there is more …

  • Avrobio (AVRO) at $0.93
  • Mesoblast (MESO) at $2.40
  • Cellectis SA (CLLS) at $2.37,
  • Editas Medicine (EDIT) at $9.60
  • Verve Therapeutics (VERV) at $11.17
  • Caribou Biosciences (CRBU) at $4.95
  • Sangamo Therapeutics (SGMO) at $3.23
  • Intellia Therapeutics (NTLA) at $38.48

 

Key Metrics: review the disparities between daily sessions …

  • Tuesday - Sector volume was HIGH with 6 of the 11-upside having higher than the 3-month average volume with HIGHER volume of 5 of 22-downside having higher than the 3-month average volume;

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Tuesday, the IBB was up +0.25 % and the XBI was up +0.16%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was down -1.60 points or -4.70% at 32.42

 

 

Jumping with share pricing momentum (11 of 11):

  • Alnylam Pharmaceuticals (ALNY +$5.82 after Monday’s -$4.41),
  • CRISPR Therapeutics (CRSP +$2.84 after Monday’s -$8.49),
  • Beam Therapeutics (BEAM +$0.97 after Monday’s -$3.22)
  • Fate Therapeutics (FATE +$0.85 after Monday’s -$2.03),
  • Chinook Therapeutics (KDNY +$0.39 after Monday’s -$1.54),
  • Bellicum Pharmaceuticals (BLCM +$0.13),
  • MiMedx (MDXG +$0.09),
  • Caribou Biosciences (CRBU +$0.03 after Monday’s -$1.84),
  • Sangamo Therapeutics (SGMO +$0.02),
  • Ionis Pharmaceuticals (IONS +$0.01),

Closing down (10 of 22):

  • bluebird bio (BLUE -$0.69 after Monday’s +$0.54),
  • Vericel (VCEL -$0.52),
  • Intellia Therapeutics (NTLA -$0.47 after Monday’s -$3.49),
  • Biostage (BSTG -$0.40 after Monday's +$0.15, Friday’s +$0.06, Thursday’s $0.00, Wednesday’s $0.00 and last Tuesday’s $0.00),
  • Ultragenyx (RARE -$0.27 after Monday’s -$2.20),
  • Global Blood Therapeutics (GBT -$0.24),
  • Mesoblast (MESO -$0.14),
  • Verve Therapeutics (VERV -$0.13),
  • Sage Therapeutics (SAGE -$0.13 after Monday’s -$2.58),
  • AxoGen (AXGN -$0.11),

Flat:

  • Editas Medicine (EDIT), Precigen (PGEN)

 

June, Q2/2022:

  • Tuesday closed negative with 11 incliner, 22 decliners and 2 flats
  • Monday closed negative with 2 incliner and 33 decliners

 

The BOTTOM LINE:  I talked about “net shorts” in the title … “A net short situation in finance is when an investor has more in a short position then he or she has in a long position. Figuring out what net short means requires knowing about how today’s investors use financial instruments to invest in markets. A net short value is the amount that an investor gets by subtracting the value of his or her long positions from the total value of their short positions”. <Smart capital Mind>

Another session for an algorithm session for our universe as buyers DISAPPEAR and marginally appear.

A “short squeeze” is definitely upon us … and I am praying for a gap-up by algorithms (how I have fallen)!

Monday and Tuesday’s “downward moves” came after the major averages last week posted their biggest weekly declines since late January as investors grew increasingly concerned rising inflation will tip the economy into a recession.

The cell and gene therapy sector’s trading was back to exhibiting violent swings as investors are left holding “the bag” hoping for a re-calibration and praying for algorithms to help this “situation”.

Amid the sell-off, continue to maintain a “defensive posture” – in other words – HOLD on tight.

We always need a villain – Inflation affects the market and conversely the sector with downslides has remained a dominant issue for investors.

I KEEP REPEATING SO NO ONE FORGETS THE NUMBERS, The consumer price index inflation “numbers” as to the CPI accelerating 8.6% year-over-year (YOY) following April's 8.3% rise. That marked the biggest jump since late 1981, and took out the prior 41-year high set in the March CPI, which rose 8.5%.

Which investors will be BUYING equities if we can barely afford gas and food!

I try to keep it simple and short … because there’s so much worry that people use any piece of good news as a chance to sell – it has become a process of developing ROI (return of investment).”

Reiterating, I believe there will be opportunity in cell and gene therapy equities but, the summer doldrums are still a roadblock. This period of volatility will likely last into the second half of the year.

What changes … NOTHING …  it’s a CONSTANT tug-of-war!

However, the continuing state of volatility confirms fears that I have been expressing these daily and weekly posts.

I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”.

 

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.