August 31, 2022 5:00pm
Investors have been displaced as a factor in the cell and gene therapy sector by electronic and algorithmic trading
Pre-open indications: 1 HIT of a Pump/Promote
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?
Me, on the way to a few days’ vacation …
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 -280.44 points (-0.88%); the S&P closed DOWN -31.16 points (-0.78%) while the Nasdaq closed DOWN -66.93 points (-0.56%)
Henry’omics:
Indexes fell Wednesday — the last day of August — in choppy trading, putting the major averages on track for their fourth (4th) straight losing session as investors weighted the Fed’s efforts to fight inflation.
“Investors had been debating for weeks whether the economy is in a recession or heading toward one, and many thought an economic downturn would give the Fed reason to ease up on its rate hiking plan. Fed Chair Jerome Powell reiterated in his Jackson Hole speech Friday, however, that the central bank is committed to curbing inflation and will continue to raise rates even in a recessionary environment.” <CNBC>
The Dow finished August down 4.1%, while the S&P lost -4.2% and Nasdaq dived -4.6%.
RegMed Investor’s (RMi) Pre-Open: “August is over as the cell and gene therapy sector has not quite found its footing after the major indexes undercut Tuesday’s key support levels.” … https://www.regmedinvestors.com/articles/12587
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
Wednesday’s advance/decline line opened positive at 22 up/ 12 down and 1 flat, dived negative with 16 up/17 down and 2 flats at 11:15 a.m., flipped neutral at 17/17 and 1 flat at the mid-day, ending with a neutral close of 17/17 and 1 flat.
Pre-open Indications: 1 HIT < Biostage (BSTG $0.05 with 1,318 shares traded)>
Key Metrics: low volume pervades …
- Wednesday - Sector volume was LOW with 3 of the 17-upside having higher than the 3-month average volume with LOW volume of 2 of 17-downside having higher than the 3-month average volume
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB was up +0.26% and the XBI was up +0.76%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -0.39 points or -1.49% at 25.82
Jumping with share pricing momentum (10 of 17):
- Ionis Pharmaceuticals (IONS +$0.69),
- Voyager Therapeutics (VYGR +$0.37),
- Verve Therapeutics (VERV +$0.37 and Tuesday’s +$0.02),
- Caribou Biosciences (CRBU +$0.34 and Tuesday’s -$0.43),
- UniQure NV (QURE +$0.23 after Tuesday’s -$0.27),
- Mesoblast (MESO +$0.23),
- Chinook Therapeutics (KDNY +$0.22 after Tuesday’s -$0.87 and Monday’s +$0.33),
- Beam Therapeutics (BEAM +$0.22),
- Fate Therapeutics (FATE +$0.16 after Tuesday’s -$0.96 and Monday’s -$0.59),
- Cellectis SA (CLLS +$0.16),
Flat (1):
- Homology Medicine (FIXX)
Closing down (10 of 17):
- Alnylam Pharmaceuticals (ALNY -$3.30 after Tuesday’s +$0.94 and Monday’s -$1.91),
- Ultragenyx (RARE -$1.43 after Tuesday’s +$0.01),
- Vericel (VCEL -$0.91 after Tuesday’s -$0.48 and Monday’s -$0.73),
- Sage Therapeutics (SAGE -$0.48 after Tuesday’s -$1.24 and Monday’s +$0.37),
- Editas Medicine (EDIT -$0.42 after Tuesday’s +$0.24 and Monday’s +$0.05),
- Regenxbio (RGNX -$0.38 after Tuesday’s -$0.60 and Monday’s -$0.71),
- MiMedx (MDXG -$0.27),
- Intellia Therapeutics (NTLA -$0.18 after Tuesday’s +$1.18 and Monday’s +$0.31),
- CRISPR Therapeutics (CRSP -$0.08 after Tuesday’s -$0.60 after Monday’s -$1.60),
- Biostage (BSTG -$0.08 after Tuesday’s +$1.05 after Monday’s -$1.75),
August, Q3/2022:
Wednesday closed neutral with 17 incliner, 17 decliners and 1 flat
Tuesday closed negative with 11 incliner, 22 decliners and 2 flats
Monday closed negative with 7 incliner, 27 decliners and 1 flat
Friday closed negative with 1 incliner, 34 decliners and 0 flat
Thursday closed positive with 22 incliner, 12 decliners and 1 flat
Wednesday closed positive with 31 incliner, 3 decliners and 1 flat
Tuesday closed positive with 27 incliner, 7 decliners and 2 flats
Monday closed negative with 7 incliner, 27 decliners and 1 flat
Friday closed negative with 5 incliner, 29 decliners and 1 flat
Thursday closed negative with 14 incliner, 20 decliners and 1 flat
Wednesday closed negative with 6 incliner, 28 decliners and 1 flat
Tuesday closed negative with 7 incliner, 25 decliners and 3 flats
Monday closed positive with 26 incliner, 8 decliners and 1 flat
Friday closed positive with 30 incliner, 4 decliners and 1 flat
Thursday closed negative with 13 incliner, 20 decliners and 2 flats
Wednesday closed positive with 30 incliner, 4 decliners and 1 flat
Tuesday closed negative with 4 incliner, 29 decliners and 2 flats
Monday closed barely positive with 17 incliner, 16 decliners and 2 flats
Friday closed positive with 25 incliner, 8 decliners and 2 flats
Thursday closed positive with 23 incliner, 9 decliners and 2 flats
Wednesday closed positive with 31 incliner, 3 decliners and 1 flat
Tuesday closed positive with 29 incliner, 4 decliners and 2 flats
Monday closed negative with 8 incliner, 26 decliners and 1 flat
The BOTTOM LINE: I try to keep it simple … and short!
Cell and gene therapy stocks ended the month with 1 neutral, 11 positive and 11 negative closes.
The earnings season is nearing an end; Applied Genetic Technologies (AGTC) has NOT released.
As I have further questioned, “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!”
Reiterating, Investors need to come to terms of the cell and gene therapy sector’s state of affairs and health as individual company’s actions cast doubts upon sentiment as reflected by two (2) negative sessions, followed by three (3) positive sessions and five (5) negative sessions
Companies NEED transparency and advantage of good practices in relation to outreach to investors which means … NOT to enrich themselves at shareholder’s expense!
CEO salaries, spending the G&A are totally OUT-OF-WHACK; these are companies are in the development stage and will be for years without products in most cases not like the tech companies, who CEOs and management teams think they should be compared to for bi-weekly cash and “beanies”!
When it comes time to invest or even hold onto an investment; I’d say … focus on what percentage ownership of stock … NOT options CEOs and management teams own versus their salary and bonus.
Also, investors can’t afford the outsized valuation price targets by I-Banks research and believe that CEOs are “accomplices” to over-estimating expectation and guidance in regard to valuation
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.
