July 12, 2022 4:41pm

Sector sentiment seesawed with trading support

Pre-open indications: 3 MISS, 0 HiTs and 1 Puff/Pump/Promote

Financing: Applied Genetic Technologies (AGTC) proposes an underwritten public offering closing at down -$0.011 to $0.847 with an aftermarket of -$0.26 or -30.38% to $0.59 - what a JOKE, actually a travesty for investors! Underwriter – HC Wainwright & Co.

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?

No tunnel vision here, I get into the weeds of share pricing 

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 -188.82 points (-0.61%); the S&P closed DOWN -35.29 points (-0.92%) while the Nasdaq closed DOWN -107.87 points (-0.95%)

 

Henry’omics:

Indexes seesawed on Tuesday closing negative as worries over investor appetite for risk assets as a potential difficult earnings season.

The Nasdaq struggled for direction as worries that Fed’s policy tightening could trigger a “further” recession hurting sentiment ahead of the start of earnings season,

Focus is now on inflation data on Wednesday …

 

RegMed Investor’s (RMi) Pre-Open: “Never forget the road to value is a long and drawn-out journey, so slow as you go. A lean and anxious market followed by a panicky sector as risk-off sentiment straddled Monday’s session.” …  https://www.regmedinvestors.com/articles/12511

 

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

  • Tuesday advance/decline line opened negative at 5 up/ 29 down and 1 flat, popped positive with 24 up/10 and 1 flat at the mid-day, ending with a positive close of 25/10.
  • Monday advance/decline line opened negative at 0 up/ 34 down and 1 flat, stayed negative with 5 up/30 at the mid-day, ending with a negative close of 1/33 and 1 flat.

 

Pre-open Indications: 0 HITs and 3 MISS < Chinook Therapeutics (KDNY -$0.02), UniQure NV (QURE +$0.15), CRISPR Therapeutics (CRSP +$5.02)> 1 Puff/Pump/Promote <Biostage (BSTG +$0.039 with 100 shares traded>

 

Key Metrics:

  • Tuesday - Sector volume was LOW with 6 of the 25-upside having higher than the 3-month average volume with LOW volume of 4 of 10-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 down -0.50% and the XBI was up +1.76%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +1.53 points or +5.85% at 27.70

 

Jumping with share pricing momentum (10 of 25):

  • CRISPR Therapeutics (CRSP +$5.34 after Monday’s -$2.99)
  • Intellia Therapeutics (NTLA +$2.67 after Monday’s -$3.09),
  • Beam Therapeutics (BEAM +$2.43 after Monday’s -$1.56),
  • Verve Therapeutics (VERV +$1.72),
  • Regenxbio (RGNX +$1.65),
  • Global Blood Therapeutics (GBT +$1.13 after Monday’s -$1.14),
  • Editas Medicine (EDIT +$0.57 after Monday’s -$1.18),
  • Voyager Therapeutics (VYGR +$0.56),
  • uniQure NV (QURE +$0.55),
  • Ionis Pharmaceuticals (IONS +$0.46),

Closing down (10 of 10):

  • Alnylam Pharmaceuticals (ALNY -$5.06 after Monday’s -$1.58),
  • BioLife Solutions (BLFS -$1.87),
  • Cellectis SA (CLLS -$0.18),
  • Brainstorm Cell therapeutics (BCLI -$0.16),
  • Avrobio (AVRO -$0.07),
  • Bellicum Pharmaceuticals (BLCM -$0.07),
  • Mesoblast (MESO) -$0.03),
  • Chinook therapeutics (KDNY-$0.02),
  • Applied Genetic Technologies (AGTC -$0.0115),
  • Ultragenyx (RARE -$0.01),

 

July, Q3/2022:

  • Tuesday closed positive with 25 incliner and 10 decliners
  • Monday closed negative with 1 incliner, 33 decliners and 1 flat

 

The BOTTOM LINE: I try to keep it simple … and short!

The cell and gene therapy sector whether we see or know it is getting squeezed in valuations.

A good day or session on Tuesday, the sector responded to algorithms and electronic trading of being yet again – oversold.

AS I WROTE THIS A.M, “I remain cautious, after last week’s “love” fest of spiraling share pricing after a sell-off on Monday.

Reiterating, “A few bad days would turn recent buys into clear losses, with the sector heading toward lows once again”.

As I have been writing” There is VALUE out there however, it’s about playing or betting the timing of the sector. We are left with choosing to hang on to “our” portfolio position as it is a given that the sector shifts from fierce, sudden sell-offs to gaining altitude or ascending not to its value but, better than it was.

We always need a villain and they are multiplying – the CPI on Wednesday with earnings season on its way.

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.

Earnings’ season is coming, investors NEED to focus on LPS (loss-per-share), collaboration revenues and cash positions i.e., “runways”.

BUILD CASH POSITIONS, the upward spiral will be STRIPPED, maybe NOT all today but, it’s coming.

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.