June 24, 2022 4:53pm

As investors exit upcoming and present risks

Pre-open indications: 6 HITs

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

The week in review - what happened and to whom, the root metrics

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 +826.35 points (+2.69%); the S&P closed UP +116.42 points (+3.07%) while the Nasdaq closed UP +375.43 points (+3.34%)

 

Henry’omics:

Indexes continued higher on Friday, on track for strong weekly gains led by the Nasdaq.

As the indexes traded choppily this week, but ultimately trended higher as investors consider whether the Fed's moves will bring down rising prices.

·         The S&P 500 is up 5% for the week, while the Nasdaq is up 6% and the Dow is 4% higher.

Economic Data Docket: a 10.7% rise month-over-month. Sales of new single-family houses in May 2022 were at a seasonally adjusted annual rate of 696,000. The May increase serves as a surprising trend reversal in light of current market conditions like rapidly rising mortgage rates.

·         Also, an economic report showed a record low in consumer confidence levels. The University of Michigan's Surveys of Consumers consumer sentiment index was revised lower to 50.0 in the final June survey.

 

RegMed Investor’s (RMi) Pre-Open: “Sell the risk, earnings are coming. No answers anytime soon for the questions on when will inflation peak, how soon will we see a recession, and how high will the Fed raise rates?” … https://www.regmedinvestors.com/articles/12487

 

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

  • Friday opened positive at 27 up/ 7 downs and 1 flat, flipped negative at the mid-day to 7/26 and 2 flats, ending with a negative close of 13/18 and 4 flats.
  • Thursday opened positive at 21 up/ 13 downs and 1 flat, stayed positive at the mid-day to 17/16 and 2 flats, ending 3with a positive close of 32/3.
  • Wednesday opened positive at 23 up/ 11 downs and 1 flat, stayed positive at the mid-day to 27/5 and 3 flats, ending with a positive close of 27/7 and 1 flat.
  • Tuesday opened positive at 31 up/ 3 downs and 1 flat, stayed positive at the mid-day to 28/6 and 1 flat, ending with a positive close of 26/7 and 2 flats.
  • Monday was a market holiday

 

Pre-open Indications: 6 HITs < SELL into Strength:  Intellia Therapeutics (NTLA +$2.65), Verve Therapeutics (VERV +$0.72), Beam Therapeutics (BEAM +$0.94), Alnylam Pharmaceuticals (ALNY +$1.20), Fate Therapeutics (FATE +$1.19), Biostage (BSTG $0.00 with 0 shares traded);

 

Key Metrics: review the volume disparities between daily sessions …

  • Friday - Sector volume was HIGHER with 13 of the 13-upside having higher than the 3-month average volume with MODERATE volume of 13 of 18-downside having higher than the 3-month average volume;
  • Thursday - Sector volume was HIGHER with 16 of the 32-upside having higher than the 3-month average volume with LOW volume of 2 of 3-downside having higher than the 3-month average volume;
  • Wednesday - Sector volume was HIGHER with 17 of the 27-upside having higher than the 3-month average volume with HIGHER volume of 3 of 7-downside having higher than the 3-month average volume;
  • Tuesday - Sector volume was LOW with 3 of the 7-upside having higher than the 3-month average volume with HIGHER volume of 17 of 26-downside having higher than the 3-month average volume;
  • Monday was market holiday

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

  • Friday, the IBB was up +1.72% and the XBI was up +1.09%
  • Thursday, the IBB was up +4.20% and the XBI was up +6.18%
  • Thursday, the IBB was up +4.20% and the XBI was up +6.18%
  • Wednesday, the IBB was up +1.23% and the XBI was up +2.51%
  • Tuesday, the IBB was up +2.11% and the XBI was up +3.59%
  • Monday was market holiday

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -1.68 points or -5.78% at 27.37
  • Thursday was up +0.04 points or +0.14% at 28.99
  • Wednesday was down -1.24 points or -4.11% at 28.95
  • Tuesday was down -0.84 points or -2.71% at 30.19
  • Monday was market holiday

 

Jumping with share pricing momentum (13 of 13):

  • Intellia Therapeutics (NTLA +$2.65 after Thursday’s +$5.22, Wednesday’s +$1.06 and Tuesday’s +$1.50),
  • CRISPR Therapeutics (CRSP +$1.81 after Thursday’s +$5.21, Wednesday’s -$4.73 and Tuesday’s -$5.33),
  • Alnylam Pharmaceuticals (ALNY +$1.20 after Thursday’s +$4.74, Wednesday’s +$2.54 and Tuesday’s +$1.93),
  • Fate Therapeutics (FATE +$1.19 after Thursday’s +$2.00, Wednesday’s +$11.38 and Tuesday’s +$1.19),
  • Beam Therapeutics (BEAM +$0.94 after Thursday’s +$2.44, Wednesday’s +$1.08 and Tuesday’s +$2.28)
  • Global Blood Therapeutics (GBT+$0.86).
  • Verve Therapeutics (VERV +$0.72 after Thursday’s +$2.08 and Wednesday’s +$1.07),
  • Ultragenyx (RARE +$0.58 after Thursday’s +$3.87),
  • Ionis Pharmaceuticals (IONS +$0.23 after Thursday’s +$1.78 and Wednesday’s -$0.17),
  • Mesoblast (MESO +$0.13 after Thursday’s -$0.03 and Tuesday’s -$0.01),
  • bluebird bio (BLUE +$0.12 after Thursday’s -$0.18),
  • Regenxbio (RGNX +$0.03 after Thursday’s +$2.58, Wednesday’s +$1.89 and Tuesday’s +$0.91),
  • Verastem (VSTM +$0.02),

Closing down (10 of 18):

  • Sage Therapeutics (SAGE -$1.83),
  • Chinook Therapeutics (KDNY -$0.61),
  • uniQure NV (QURE -$0.43 after Thursday’s +$4.14),
  • MiMedx (MDXG -$0.25),
  • Homology Medicine (FIXX -$0.22),
  • Applied Genetic Technologies (AGTC -$0.2071),
  • Brainstorm Cell Therapeutics (BCLI -$0.18),
  • Agenus (AGEN -$0.08),
  • Voyager Therapeutics (VYGR -$0.08),
  • Cellectis SA (CLLS -$0.07),
  • Sangamo Therapeutics (SGMO -$0.06),

FLAT:

  • Biostage (BSTG), BioLife Solutions (BLFS), Precigen (PGEN) and Vericel (VCEL)

 

June, Q2/2022:

  • Friday closed negative with 13 incliner, 18 decliners and 4 flats
  • Thursday closed positive with 32 incliner and 3 decliners
  • Wednesday closed positive with 27 incliner, 7 decliners and 1 flat
  • Tuesday closed positive with 26 incliner, 7 decliners and 2 flats
  • Monday was market holiday

 

The BOTTOM LINE: it was in the “cards” for the cell and gene therapy sector to take a DIVE after three (3) positive closes.

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

It was also time for the “Pac Man” algorithms to take their bite.

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.

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.