August 25, 2022 5:08pm

Questions arise as CEOs do LESS to assure their investors while forgetting shareholders are co-owners?

The Biostage (BSTG) Chronicles: they’re BACK PUMPING the volume and pricing but, today paying the tab <-$0.40 <was -1.20> with 7,913 shares traded after Wednesday’s +$2.20 (+44% - out of nowhere) with 13,882 shares traded after Tuesday’s +$0.45 with 1,249 shares traded>. Is the stock reverse of past PPMs begun? Question, should we say thank you to DST from its funder in Beijing, China for “buying-in to appropriate U.S. science”? Question, Joseph Damasio, CFO do you approve; where is the SEC, is this FRAUD; current investors would like an answer before the coming stock reverse to be followed by a public offering?

Pre-open indications: 4 HITs and 3 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?

No tunnel vision here, this analyst/journalist gets into the weeds of daily share pricing and root causes 

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 UP +322.55 points (+0.98%); the S&P closed UP +58.35 points (+1.41%) while the Nasdaq closed UP +207.74 points (+1.67%)

 

Henry’omics:

Indexes rose Thursday as traders searched for clues out of the Federal Reserve’s annual Jackson Hole symposium.

Still, the major averages are on pace for a losing week. The Dow is down 1.6% so far, the S&P 500 is 1.2% lower and the Nasdaq is down 1%.

Economic Data Docket: The first revision for Q2 GDP painted a slightly less dour picture for the U.S. economy. The Bureau of Economic Analysis said on Thursday that GDP contracted by -0.6% in Q2. The advance estimate released last month showed a decline of -0.9%.

  • The BofA US Consumer Confidence Indicator reached a three-month high of 31% as of August 21, following a period of lower gas prices and better-than-expected economic data, according to a Thursday note.
  • Jobless claims came in 243,000 for the week ended Aug. 20, down 2,000 from the prior week. It was also lower than consensus estimates of 255,000.

 

RegMed Investor’s (RMi) Pre-Open: “algos salivate over upside. Sector equities have bounced back after two (2) positive sessions that followed five (5) negative sessions; however, many are extended.” … https://www.regmedinvestors.com/articles/12578 

 

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

  • Thursday’s advance/decline line opened positive at 29 up/ 6 down and 0 flat, stayed positive with 19 up/16 and 0 flat at the mid-day, ending with a positive close of 22/12 and 1 flat.

 

Pre-open Indications: 4 HITs < Biostage (BSTG -$0.40 with 7,913 shares traded), Alnylam Pharmaceuticals (ALNY -$7.08), Brainstorm Cell Therapeutics (BCLI -$0.19), BioLife Solutions (BLFS +$0.94). 3 MISS < Homology Medicine (FIXX +$0.19), Fate Therapeutics (FATE +$0.25), Ionis Pharmaceuticals (IONS -$0.80)>

 

Key Metrics:

  • Thursday - Sector volume was LOW with 2 of the 22-upside having higher than the 3-month average volume with LOW volume of 2 of 12-downside having higher than the 3-month average volume;

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

  • Thursday, the IBB was up +0.30% and the XBI was down -0.29 %

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -0.91 points or -3.99% at 21.91

 

Jumping with share pricing momentum (10 of 22):

  • Beam Therapeutics (BEAM +$2.31 after Wednesday’s +$5.60, Tuesday’s +$2.83, Monday’s -$1.88),
  • Verve Therapeutics (VERV +$1.19 after Wednesday’s +$3.35, Tuesday’s +$4.04 and Monday’s -$0.75),
  • Intellia Therapeutics (NTLA +$1.12 after Wednesday’s +$1.82, Tuesday’s +$6.31 and Monday’s -$2.05),
  • BioLife Solutions (BLFS +$0.94 after Wednesday’s +$1.09),
  • Vericel (VCEL +$0.88),
  • Regenxbio (RGNX +$0.60 after Wednesday’s +$1.54 and Tuesday’s +$0.56),
  • CRISPR Therapeutics (CRSP +$0.47 after Wednesday’s +$3.27, Tuesday’s +$2.35 and Monday’s -$2.25),
  • uniQure NV (QURE +$0.43 after Wednesday’s +$1.28),
  • Precigen (PGEN +$0.30 after selling Trans Ova Genetics, L.C.  an animal reproductive technologies company, to URUS, a private owned holding company, for $170 million in upfront cash and up to $10 million earn-out),
  • Fate Therapeutics (FATE +$0.25),

Flat (1):

  • Sangamo Therapeutics (SGMO)

Closing down (12 of 12):

  • Alnylam Pharmaceuticals (ALNY -$7.08 after Wednesday’s +$4.11, Tuesday’s -$1.02 and Monday’s +$1.94),
  • Sage Therapeutics (SAGE -$2.16),
  • Biostage (BSTG -$0.40 with 7,913 shares traded after Wednesday’s +$2.20 after Tuesday’s +$0.45, Monday’s $0.00, Friday’s $0.00, Thursday’s -$0.15, and last Wednesday’s +$0.15 following the previous Tuesday’s $0.00),
  • Brainstorm Cell Therapeutics (BCLI -$0.19),
  • bluebird bio (BLUE -$0.16),
  • Agenus (AGEN -$0.10),
  • Adverum Biotechnologies (ADVM -$0.06),
  • Cellectis SA (CLLS -$0.05),
  • AxoGen (AXGN -$0.05),
  • Bellicum Pharmaceuticals (BLCM -$0.01 after Wednesday’s -$0.02),

 

August, Q3/2022:

  • Thursday closed positive with 22 incliner, 12 decliners and 1 flat

 

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

What changes the sector rolled up after multiple down sessions; there are more clear winners after three (3) upside “rolls” following a five (5) session degrade than losers so far, this week.

What is share pricing SUSTAINABLE?

As I questioned yesterday, “The real question that should be asked is how many companies are at the end of sentiments leash? Start by looking at cell and gene therapy companies trading below cash!” 

A good read by “Simply Wall Street”, Investors five-year losses grow to 64% as the stock sheds US$34m this past week. Statistically speaking, long term investing is a profitable endeavor. But that doesn't mean long term investors can avoid big losses. For example, the Verastem (VSTM) share price dropped 64% over five years. … https://finance.yahoo.com/news/investors-five-losses-grow-64-162345509.html 

The cell and gene therapy sector is STILL experiencing the “flight of Icarus” …  since “our” universe have oscillated between gains and losses since the first of the year!

New peaks will just increase the appetite of electronic trading and algorithms.

There are really three camps, electronic algorithms, traders versus investors who STILL don’t comprehend if the worst is behind us and those “entities” that continue to focus on tailwinds and not headwinds?

There are ONLY net and per share losses in Q2. SG&A’s are, I believe “OUT-OF-CONTROL”, CEOs are skimming shareholders with HIGH salaries and perks as share pricing gets hammered on alternate sessions.

The real question is how recently have CEOs bought-into their depreciated share pricing such as two: AVRO and AGTC.

As I have “noticed” yet again from to date reporting, “Most reporting sector companies … to date have reported net losses, lagging revenue estimates … although AXGN, FATE, RGNX, FIXX and NTLA beat on revenues generating forward motion while ATM use is up.”

I find it very interesting to evaluate share price over earnings and a shortage of revenue reporting as a proxy for share pricing performance?

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.