September 7, 2022 4:39pm
As I had stated this a.m., “arguably the cell and gene therapy sector is due for a bounce”
Pre-open indications: 3 HITs and 0 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?
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 +435.98 points (+1.98); the S&P closed UP +71.68 points (+1.83%) while the Nasdaq closed UP +246.99 points (+2.14%)
Henry’omics:
Indexes rose Wednesday — trying to shake off a three-week slide.
In midday trading, the Nasdaq had gained about 1.25%, lifted most by health technology stocks.
Economic Data Docket: The Fed gave its summary on current economic conditions, known as the Beige Book. The report showed that economic activity was little changed in many regions across the U.S., and that growth outlooks remain weak.
RegMed Investor’s (RMi) Pre-Open: “the issues; resistance, the lack of support, conviction and relative strength. And that ain’t all; arguably the cell and gene therapy sector is due for a bounce; but the weakness is expressive.” … https://www.regmedinvestors.com/articles/12592
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 26 up/ 7 down and 2 flats, stayed positive with 27 up/8 down at the mid-day, ending with a positive close of 28/6 and 1 flat.
Pre-open Indications: 3 HITs <Biostage (BSTG -$0.60 with 102 shares traded), Caribou Biosciences (CRBU +$0.83), uniQure NV (QURE +$0.92)> 0 MISS
Key Metrics:
- Wednesday - Sector volume was LOW with 4 of the 28-upside having higher than the 3-month average volume with LOW volume of 1 of 6-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 +2.80% and the XBI was up +4.24%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -2.16 points or -8.03% at 24.75
Jumping with share pricing momentum (10 of 25):
- Alnylam Pharmaceuticals (ALNY +$7.60 after Tuesday’s -$4.19),
- Verve therapeutics (VERV +$3.60),
- Beam Therapeutics (BEAM +$2.88 after Tuesday’s +$0.25),
- CRISPR Therapeutics (CRSP +$2.25 after Tuesday’s -$0.98),
- Intellia Therapeutics (NTLA +$2.24 after Tuesday’s -$0.64),
- Fate Therapeutics (FATE +$2.01 after Tuesday’s -$1.42),
- Vericel (VCEL +$1.90),
- Ionis Pharmaceuticals (IONS +$1.80),
- Editas Medicine (EDIT +$1.55 after Tuesday’s -$0.53),
- Sage Therapeutics (SAGE +$1.53 after Tuesday’s -$1.14),
Flat (1):
- Ultragenyx (RARE)
Closing down (6 of 6):
- Biostage (BSTG -$0.60 after Tuesday’s $0.00),
- MiMedx (MDXG -$0.08),
- Homology Medicine (FIXX -$0.04),
- Solid Biosciences (SLDB -$0.0215 after Tuesday’s +$0.03335),
- Mesoblast (MESO -$0.02),
- Brainstorm Cell Therapeutics (BCLI -$0.02),
- Applied Genetic Technologies (AGTC -$0.0003 after Tuesday’s +$0.012),
September, Q3/2022:
- Wednesday closed positive with 28 incliner, 6 decliners and 1 flat
- Tuesday closed negative with 8 incliner, 25 decliners and 2 flats
- Monday was a holiday
- Friday closed negative with 8 incliners, 26 decliners and 1 flat
- Thursday closed positive with 22 incliners, 12 decliners and 1 flat
The BOTTOM LINE: I try to keep it simple … and short!
Sector specific, I think cell and gene therapy equities remain in a tough spot given a poor news flow, investor pessimism, sentiment’s degradation and POOR outreach as to CEO and management team LACK of BUYs of lows – they send a solid message IF ever made!
“Screw” exercise of options as a response to purchases!
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!”
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
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.
