September 8, 2022 5:29pm
Hedge funds are nervous re the alternating share pricing dives and jives
Pre-open indications: 1 HIT, 4 MISS and 1 Pump/Promote
The Biostage (BSTG) Chronicles: they’re back pumping the volume and share pricing with 3,872 shares trading (who is buying an equity with NO clinical trial) after closing down -$0.59, Tuesday’s $0.00, Monday’s holiday, Friday’s $0.00 and last Thursday’s $0.00 and the previous Wednesday’s $0.00. Biggest question: who is LIU Dong-hai chairman of D. Phone, one of the largest smartphone retailers in China and Dixintong Technology group and Beijing, China communist elite; the ultimate funder of DST Capital?
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 +193.24 points (+0.61); the S&P closed UP +26.31 points (+0.66%) while the Nasdaq closed UP +70.23 points (+0.60%)
Indexes reversed lower and closed higher in trading in a day of sharp changes in market direction. Fed Chair Powell this morning affirmed he sees the need for a firm stance on fighting inflation. The Dow went from a midday gain to a loss of 0.3%. The S&P 500 also fell 0.3% and the Nasdaq lost 0.5% as indexes fluctuated. The small-cap Russell 2000 also lost gains and was down 0.2%.
US house prices make BIGGEST drop in 11 years - leaving hundreds of thousands of owners at risk of going UNDERWATER - and West Coasters are worst hit. <Daily Mail>
Focus of U.S. things to come, “The European Central Bank early Thursday morning hiked interest rates by 0.75 percentage point, raising its deposit to 0.75% from zero, in a largely expected move to tamp down inflation”.
Although, “Stocks seemed to shrug off hawkish commentary from Federal Reserve Chairman Jerome Powell, along with the European Central Bank's largest interest-rate hike since the early days of the euro. Some market strategists said the rebound was the result of stocks falling into 'oversold' territory.” <MarketWatch>
Economic Data Docket: Initial jobless claims were 222,000, lower than the revised number of 228,000 for the week ended Aug. 27. The four-week moving average declined to 233,000 from 240,500 last week. Continuing claims rose 36,000, however, to 1.473 million as of Aug. 27, indicating a cooling job market. Other indicators of softening were seen in the ISM employment components which have trended lower in recent months.
RegMed Investor’s (RMi) Pre-Open: “yesterday’s added value was a gift. Realize some profit and build more cash from any new highs.” … https://www.regmedinvestors.com/articles/12594
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/ 3 down and 3 flats, stayed positive with 32 up/3 down and 0 flat at the mid-day, ending with a positive close of 30/5 and 0 flat.
Pre-open Indications: 1 HIT <Fate Therapeutics (FATE +$0.95)> 4 MISS < Chinook Therapeutics (KDNY +1.26), uniQure NV (QURE -$0.24), bluebird bio (BLUE +$0.25), Intellia Therapeutics (NTLA +$3.72)> 1 Pump/Promote < Biostage (BSTG -$0.59 with 3,872 shares traded)>
- Thursday - Sector volume was LOW with 7 of the 30-upside having higher than the 3-month average volume with LOW volume of 0 of 5-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 +3.33% and the XBI was up +3.10%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was down -1.02 points or -4.14% at 23.62
Jumping with share pricing momentum (10 of 30):
- Alnylam Pharmaceuticals (ALNY +$17.44 after Wednesday’s +$7.60 and Tuesday’s -$4.19),
- Intellia Therapeutics (NTLA +$3.72 after Wednesday’s +$2.24 and Tuesday’s -$0.64),
- Sage Therapeutics (SAGE +$2.14 after Wednesday’s +$1.53 and Tuesday’s -$1.14),
- BioLife Solutions (BLFS +$1.34),
- Chinook Therapeutics (KDNY +$1.26),
- Beam Therapeutics (BEAM +$1.26 after Wednesday’s +$2.88 and Tuesday’s +$0.25),
- CRISPR Therapeutics (CRSP +$1.26 after Wednesday’s +$2.25 and Tuesday’s -$0.98),
- Fate Therapeutics (FATE +$0.95 after Wednesday’s +$2.01 and Tuesday’s -$1.42),
- Ionis Pharmaceuticals (IONS +$0.82 after Wednesday’s +$1.80),
- Vericel (VCEL +$0.73 after Wednesday’s +$1.90),
Closing down (5 of 5):
- Verve Therapeutics (VERV -$0.08 after Wednesday’s +$3.60),
- Solid Biosciences (SLDB -$0.0224 after Wednesday’s -$0.0215 and Tuesday’s +$0.03335),
- Global Blood Therapeutics (GBT -$0.01),
- Bellicum Pharmaceuticals (BLCM -$0.0098),
- Applied Genetic Technologies (AGTC -$0.0018 after Wednesday’s -$0.0003 and Tuesday’s +$0.012),
- Thursday closed positive with 30 incliner, 5 decliners and 0 flat
The BOTTOM LINE: I try to keep it simple … and short!
Cell and gene therapy sector equites barreled to the upside as indexes reversed lower in afternoon trading in a day of sharp changes in market direction. Fed Chair Powell this morning affirmed he sees the need for a firm stance on fighting inflation.
Algorithms and electronic trading are salivating …!!
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!
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.
“Screw” exercise of options as a response to purchases!
Also, investors can’t afford the outsized valuation price targets by I-Banks research 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.