June 27, 2022 5:29pm

Re-balancing and preparing for month and quarter’s end as earnings season returns – ug!

Pre-open indications: 3 HITs and 2 MISS

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?

The speed bump in the cell and gene therapy sector, too late to sell and too early to buy!

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 -62.42 points (-0.20%); the S&P closed DOWN -11.63 points (-0.30%) while the Nasdaq closed DOWN -87.15 points (-0.75%)

 

Henry’omics:

Indexes fell on Monday following last week’s rebound as the month and quarter ends wrapping-up the worst 1H (first half) for stocks in decades.

Today’s moves follow a sharp rebound Friday that saw 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%)

Still, the benchmark index is on pace for its worst opening six months since 1970.

 

Some good news, “BioNTech (BNTX +$9.67%) shares also advanced by about 7.21% after its Omicron-based Covid-19 booster generates an improved immune response against that variant.”

 

Economic Data Docket: The National Association of Realtors’ (NAR) Pending Home Sales Index, based on signed contracts, rose 0.7% last month to 99.9, rebounding from a two-year low in April. Pending home sales increased in the Northeast and the densely populated South, but fell in the West and Midwest. Pending home sales plunged 13.6% in May on a year-on-year basis.

 

RegMed Investor’s (RMi) Pre-Open: “RegMed Investors’ (RMi) pre-open: “Don’t fire until you see the whites of their eyes!” or as I say don’t buy into the upside until the green of the dollar becomes evident. As quarter-end rebalancing could lead to a buying spree in equities. Have we found a true bottom, not yet?” … https://www.regmedinvestors.com/articles/12489

 

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

  • Monday opened negative at 7 up/ 27 downs and 1 flat, stayed negative at the mid-day to 15/18 and 2 flats, ending with a negative close of 11/22 and 2 flats.
  • 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.

 

Pre-open Indications: 3 HITs < Biostage (BSTG $0.00), Beam Therapeutics (BEAM +$0.58), Verve Therapeutics (VERV -$0.58)> 2 MISS < CRISPR Therapeutics (CRSP -$0.06), Alnylam Pharmaceuticals (ALNY -$1.01)>

 

Key Metrics: review the volume disparities between daily sessions …

  • Monday - Sector volume was LOW with 1 of the11-upside having higher than the 3-month average volume with HIGHER volume of 11 of 22-downside having higher than the 3-month average volume;
  • 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;

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

  • Monday, the IBB was up +0.08% and the XBI was down -0.34%
  • Friday, the IBB was up +1.72% and the XBI was up +1.09%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -0.26 points or -1.03% at 26.95
  • Friday was down -1.68 points or -5.78% at 27.37

 

Jumping with share pricing momentum (11 of 11):

  • Sage Therapeutics (SAGE +$1.28 after Friday’s -$1.83),
  • Chinook Therapeutics (KDNY +$0.67 after Friday’s -$0.61),
  • Ultragenyx (RARE +$0.61 after Friday’s +$0.58),
  • Beam Therapeutics (BEAM +$0.58 after Friday’s +$0.94),
  • Voyager Therapeutics (VYGR +$0.18 after Friday’s -$0.08),
  • Applied Genetic Technologies (AGTC +$0.118 after Friday’s -$0.2071),
  • Ionis Pharmaceuticals (IONS +$0.09 after Friday’s +$0.23),
  • Cellectis SA (CLLS +$0.09 after Friday’s -$0.07),
  • Brainstorm Cell Therapeutics (BCLI +$0.05 after Friday’s -$0.18),
  • Avrobio (AVRO +$0.018),
  • Solid Biosciences (SLDB +$0.0123),

Closing down (10 of 22):

  • Global Blood Therapeutics (GBT -$2.04 after Friday’s +$0.86).
  • Alnylam Pharmaceuticals (ALNY -$1.01 after Friday’s +$1.20),
  • BioLife Solutions (BLFS -$0.80 after Friday’s $0.00),
  • Regenxbio (RGNX -$0.65 after Friday’s +$0.03),
  • Fate Therapeutics (FATE -$0.55 after Friday’s +$1.19),
  • Verve Therapeutics (VERV -$0.54 after Friday’s +$0.72),
  • uniQure NV (QURE -$0.44 after Friday’s -$0.43),
  • Editas Medicine (EDIT -$0.43),
  • MiMedx (MDXG -$0.22 after Friday’s -$0.25),
  • Mesoblast (MESO -$0.17 after Friday’s +$0.13),

FLAT:

  • Biostage (BSTG), Adverum Biotechnologies (ADVM)

 

June, Q2/2022:

  • Monday (6/27) closed negative with 11 incliner, 22 decliners and 2 flats

 

The BOTTOM LINE: my favorite term … “What’s Changed” … the ups versus the downs?

Share pricing was based on rebalance as the month, 1H and quarter comes to a close.

Something I disdain and infrequently write about are … Price Targets … they have gotten so bad and inflated yet have NOT been reset.

Also, many i.e., most cell and gene therapy companies have NOT reset their internal stock award plans – so another disenfranchised investor (and employees) have their ire elevated as loyalty drains their capacity to be loyal and waiting for the next headhunter call.

We always need a villain and they are multiplying.

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.