July 18, 2022 7:52am
The cell and gene therapy sector remains under pressure, rangebound and highly volatile
Pre-open indications: 2 Positive Indications, 4 Sell into Strength 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.
What I provide is a trusted source of share pricing intelligence – it’s more than opinion, I deal in the facts and numbers that back them up.
The 8:00 A.M., ET edition
Remember that pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.
Dow futures are +1.05% or (+328 points), S&P futures are UP +0.99% (+38 points) and NASDAQ futures are UP +1.20% (+144 points) early in the pre-open – so far,
U.S. stock index futures are on the rise Monday,
European stocks advanced and building on gains,
Asia Pacific markets were mostly high as Japan’s market was closed for a Monday holiday.
Henry’omics:
Friday, the Dow closed UP +658.02 points (+2.15%); the S&P closed UP +72.78 points (+1.92%) while the Nasdaq closed UP +201.24 points (+1.79%)
Friday’s sector advance/decline line opened negative at 8 up/ 26 down and 1 flat, popped positive with 20 up/14 and 1 flat at the mid-day, ending with a BARELY positive close of 17/16 and 2 flats.
RegMed Investors’ (RMi) closing bell: “ending the week with a sigh, it’s over as the sector closed positive” … https://www.regmedinvestors.com/articles/12519
Ebb and flow –
Q3/22 – 1 holiday, 3 negative and 7 positive closes
Q2/22 –
June – 1 holiday, 9 positive and 11 negative closes
· May - 11 positive and 10 negative closes
· April - 1 holiday, 6 positive and 13 negative closes
Q1/22:
· 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
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Positive indications:
Caribou Therapeutics (CRBU) closed down -$0.22 to $7.16 <52-week low of $4.89> with a positive +$0.35 or +4.89% pre-open indication
uniQure NV (QURE) closed up +$0.98 to $23.67 after Thursday’s -$0.98 <52-week low of $12.52> with a positive +$0.71 or +3% pre-open indication,
SELL into Strength:
Beam Therapeutics (BEAM) closed up +$1.50 to $57.62 after Thursday’s +$0.53, Wednesday’s +$2.71, Tuesday’s +$2.43 and Monday’s -$1.56 with a negative -$0.12 or -0.21% pre-open indication,
Global Blood Therapeutics (GBT) closed up +$1.26 to $35.99 after Thursday’s -$0.60 with a negative -$0.34 or -0.94% pre-open indication,
Regenxbio (RGNX) closed up +$1.18 to $31.59 after Thursday’s +$0.47, Wednesday’s +$0.67 and Tuesday’s +$1.65 with a positive +$0.15 or +0.47% pre-open indication,
Ionis Pharmaceuticals (IONS) closed up +$2.20 to $39.31 after Thursday’s -$0.54, Wednesday’s +$0.65 and Tuesday’s +$0.46 with a positive +$1.02 or +2.59% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$1.00 to $5.00 with 10.658 shares traded after Thursday’s +$0.12 to $6.00 <52-week low of $1.21>, Wednesday’s +$1.33 to $5.88 with 376 shares traded <3 mo. Average = 1,721 shares>, Tuesday’s +$0.03 to $4.55 with 175 shares traded and last Monday’s -$1.189 with 5,387 shares traded.
· BSTG seems to have the ONLY avenue to finance to utilize non-U.S. Chinese investors?
· How much lipstick is a lot on this pig with an almost 4-year-old IND and NO clinical trial initiation?
· WATCH and be ready for a BIG reverse of shares to enable offering from multiple private placements as it tries to facilitate an offering with Newbridge Securities
The BOTTOM LINE: I try to keep it simple … and short!
We are up, down, up and down – it gets tiring! Portfolios are wailing, not crying.
Volume was lower on the Nasdaq as the sector followed as well.
Resilience in the last few sessions as the sector ended the week barely on an up note with a week of three (3) positive and two negative (2) closes.
· Friday, the IBB was up +1.47% and the XBI was up +1.29%
· Thursday, the IBB was down -1.68% and the XBI was down -2.28%
· Wednesday, the IBB was up +0.04% and the XBI was up +1.64%
· Tuesday, the IBB was down -0.50% and the XBI was up +1.76%
· Monday, the IBB was down -1.86% and the XBI was down -4.42%
AS I wrote Friday A.M, “reversing some of the algo downslide curse. In these markets, we are always waiting for data from multiple sources.”
“The rapidly changing consensus is viewing bad June numbers as "peak pain" ahead of steady improvement.” <IBD>
As I have been writing, “The cell and gene therapy sector whether we see or know it is getting squeezed in valuations.” Also, “We are up, down, up and down – it gets tiring! Portfolios are wailing, not crying yet, there is hope for some depressed equities.”
Volume is still low for and during the week. The CBOE Volatility Index (VVIX: INDEX) tracked:
· Friday was down -2.16 points or -8.18% at 24.24
· Thursday was down -0.44 points or -1.64% at 26.38
· Wednesday was down -0.70 points or – 2.57% at 26.59
· Tuesday was up +1.53 points or +5.85% at 27.70
· Monday was up +1.51 points or +6.13% at 26.15
We always need a … villain and they are multiplying – low volume as “Earnings’ season is coming, investors NEED to focus on LPS (loss-per-share), collaboration revenues and cash positions i.e., runways”.
Be prepared, earnings or LPS (loss-per-share) sessions are on their way and many companies will be just as glad to get them out as fast-as-possible to re-set ANY trajectory in August for September.”
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 while 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.
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.
