August 10, 2022 7:54am
July CPI inflation report is on tap before Wednesdays open.
Pre-open indications: 1 Sell into Strength, 3 Positive Indications, 4 Negative Indications 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.
I DEVOTE a HUGE amount of time to “reckoning” the geography of my coverage group - 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 UP +0.27% or (+92 points), S&P futures are UP +0.35% (+14 points) and NASDAQ futures are UP +0.45% (+58 points) early in the pre-open – so far,
Stock futures were slightly higher early on Wednesday,
European markets were mixed,
Asia-Pacific markets fell as China’s producer price index for July rose +4.2%
The Dow closed DOWN -56.29 points (-0.17%); the S&P closed DOWN -17.41 points (-0.42%) while the Nasdaq closed DOWN -150.53 points (-1.19%)
Indexes fell on Tuesday as investors navigated a batch of disappointing sector earnings’ reports ahead of a key inflation reading. It’s been a tough week for the cell and gene therapy sector earnings – I have only seen LPS (loss-per-share) earnings with many revenue and estimate misses. Earnings remain a drag on the sector. (Me from last night’s post)
Economic Data Docket: July CPI inflation report
· Investors are watching the CPI for clues to how much the Fed might raise interest rates at its September meeting.
RegMed Investors’ (RMi) closing bell: “something had to give, just too many earnings’ losses and missed revenue estimates. As the cell and gene therapy sector’s share pricing dumps after a solid run; algos had a need to devourer after I stated, “Sometimes I feel like Jeremiah, a doomsayer; as I believe there’s a green light to increase resistance” and I wasn’t wrong.” … https://www.regmedinvestors.com/articles/12555
Ebb and flow –
Q3/22 – August – 5 positive and 2 negative close
July -1 holiday, 10 negative and 10 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
AxoGen (AXGN) closed down -$0.95 to $9.44 with a positive +$0.10 or +1.06% pre-open indication,
CRISPR Therapeutics (CRSP) closed down -$6.26 to $75.13 with a positive +$0.67 or +0.89% pre-open indication,
Beam Therapeutics (BEAM) closed down -$2.73 to $60.96 after Monday’s +$0.26 with a positive +$2.04 or +3.35% pre-open indication,
Sell into Strength:
Verve Therapeutics (VERV) closed up +$1.17 to $28.34 after Monday’s +$0.50 with a positive +$0.18 or +0.64% pre-open indication,
Alnylam Pharmaceuticals (ALNY) closed down -$7.37 to $223.37 after Monday’s +$12.16 with a negative -$6.96 or -3.12% pre-open indication,
BioLife Solutions (BLFS) closed down -$0.91 to $20.35 with a negative -$0.43 or -2.11% pre-open indication.
Vericel (VCEL) closed down -$3.08 to $27.43 after Monday’s -$0.93 with a negative -$0.63 or -2.30% pre-open indication
Intellia Therapeutics (NTLA) closed down -$3.08 to $60.41 after Monday’s +$0.17 with a negative -$1.20 or -1.99% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$0.45 to $4.55 after being flat on Monday with 92 shares traded after Friday’s flat, Thursday’s down -$0.40 to $5.00 with 208 shares traded and last Wednesday’s flat, <3 mo. Average = 1,054 shares>
· Its BOD approved on 7/28 amending and restating their Certificate of Incorporation to affect a reverse split of the issued and outstanding common stock at a ratio of not less than 1-for-1.25 and not greater than 1-for-5. What about all those PPM (private placements) as an offering follows?
· BSTG seems to have the ONLY avenue to finance to utilize non-U.S. Chinese investors? Are we in favor of Beijing funding and continue to control BSTG in our own country? Another question, makes one wonder, Newbridge Securities?
· 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!
The sector dive was brought-on hitting the downward resistance wall. This could be temporary stop or the start of a bigger retreat. Either way, investors may want to pare exposure and take some partial profits. If it's just a pause, new buying opportunities will soon present themselves.
Most reporting sector companies … to date have reported net losses, lagging revenue estimates although AGEN, AXGN, BEAM, BLFS, CRBU, FATE, RGNX and NTLA beat on revenues generating forward motion while ATM use is up.
This earnings continuum was overshadowed by Alnylam Pharmaceuticals (ALNY) clinical news and the possibility of Global Blood Therapeutics (GBT) became an acquisition while many public companies are facing conflicting signs of growth.
Sector equity pricing are trending in a roller coaster fashion. Also, consensus expectations are low.
We always need a … villain and they are multiplying – low volume as “Earnings’ season is here and now, investors NEED to focus on LPS (loss-per-share), trial status, product revenues, collaboration revenues and cash positions i.e., runways”.
This week: Brainstorm Cell Therapeutics on 8/15, Monday … to date.
As I have written, “It’s STILL nice to be RIGHT” about the direction of the sector having “DEVOTED a HUGE amount of time to “reckoning” the geography of my coverage group.”
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.