July 26, 2022 7:56am
Don’t crowd the exits in a volatile stock market despite recent signs of strength
Pre-open indications: 1 positive Indications, 4 Negative Indication and 1 Puff/Pump/Promote
Earnings this week: Alnylam Pharmaceuticals (ALNY) on Thursday 7/28
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 overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.
Dow futures are DOWN -0.38% or (-123 points), S&P futures are DOWN -0.36% (-14 points) and NASDAQ futures are DOWN -0.45% (-55 points) early in the pre-open – so far,
U.S. stock futures are falling on Tuesday morning anticipating a negative open
European markets were muted,
Asia-Pacific markets were mostly higher as South Korea’s gross domestic product beat estimates.
Monday, the Dow popped, the S&P stuttered while the Nasdaq lagged on Monday as investors braced for a Fed meeting during the week and earnings from some non-sector companies, while grappling with the impact of a strong dollar and soaring inflation.
The Dow closed UP +90.71 points (+0.28%); the S&P closed UP +5.09 points (+0.13%) while the Nasdaq closed DOWN -51.45 points (-0.43%)
An appropriate quote, “I think that there’s going to be a bifurcated market,” VantageRock Capital’s Avery Sheffield said during CNBC’s “Closing Bell: Overtime.” “I think the bottom might be in certain stocks, but nowhere in others. So, this actually could be one of the most dynamic earnings seasons we’ve seen in a long time.”
Economic Data Docket: the latest reading of the Case-Shiller Home Price Index at 9 a.m. ET. The consumer confidence report and new home sales data are due out at 10 a.m. ET.
RegMed Investors’ (RMi) closing bell: “beaten down, a butt- kicking yet still some equities walked forward as July slides into closing the month, this week.” … https://www.regmedinvestors.com/articles/12532
Ebb and flow –
Q3/22 – 1 holiday, 7 negative and 9 positive closes
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
· 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
Voyager Therapeutics (VYGR) closed up +$0.24 to $6.48 with a positive +$0.27 or +4.17% pre-open indication
Beam Therapeutics (BEAM) closed up +$1.09 to $63.97 after Friday’s -$5.60, Thursday’s +$0.54, Wednesday’s +$3.30 to $67.91 and last Tuesday’s +$6.60 with a negative -$2.55 or -3.99% pre-open indication.
Editas Medicine (EDIT) closed up +0.40 to $16.35 after Friday’s -$1.10 <52-week low of $9.59> after Thursday’s -$0.36 with a negative -$0.26 or -1.59% pre-open indication,
Verve Therapeutics (VEVR) closed down -$0.83 to $29.78 with a negative -$0.71 or -2.38%
Sangamo Therapeutics (SGMO) closed down -$0.04 to $4.46 after Friday’s -$0.21 to $4.50 with a negative -$0.11 to -2.47% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$0.45 to $4.95 with 974 shares traded after Friday’s +$0.30 to $5.40 with 998 shares traded, Thursday’s +$0.09 with 1,018 shares traded, Wednesday’s flat with 21 shares traded and last Tuesday’s +$0.01 with 300 shares traded <3 mo. Average = 1,368 shares>
· 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!
Sector equity pricing are trending in a roller coaster fashion, currently being at the mercy of electronic trading, inflation, interest rates and earnings.
Sector expectations are really low as earnings season begins this week – ALNY on Thursday; remember, a little bit of good news can go a long way when you have low expectations.
When a cell and gene therapy sector equity sells-off to or below a buy point, investors face a tough decision: hold tight, exit or trim the position. There's not necessarily a "right" answer. Sometimes the stock will bounce right back, others will keep falling — perhaps after briefly bouncing. A more-cautious approach may make more sense in the current volatile market.
We are up, down, up and down – it gets tiring! Portfolios are wailing, not crying.
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”.
Upcoming earnings announcements: earnings as Alnylam Pharmaceuticals (ALNY) Q2 announcement on Thursday 7/28, Sage Therapeutics (SAGE) on Tuesday, 8/2 and AxoGen (AXGN), Vericel (VCEL) and MiMedx (MDXG) on Wednesday, 8/3.
Investors are going to need to prepare for another reporting cycle to confirm whether or not a bottom is even close to happening.
There is VALUE out there however, it’s about playing or betting the timing of the sector.
So be extra cautious for the next few days. If you do make new purchases, look for early buying opportunities and try to buy as close to those entries as possible. <IBD>
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.