September 12, 2022 7:37am
The coming CPI and PPI reporting “attractions” present a cautionary threat to cell and gene therapy equities
News: Alnylam Pharmaceuticals (ALNY -$4.28 pre-open or -1.92% decline) proposes offering of $900 Million Convertible Senior Notes due 2027
Indications: 5 Sell into Strength, 4 Negative Indications and 1 Pump/Promotes
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.
More frequently right than consequentially wrong; there is VALUE out there. What I provide is an intelligence daily.
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 (+88 points), S&P futures are UP +0.47% (+19 points) and NASDAQ futures are UP +0.55% (+69 points) early in the pre-open – so far,
Stock futures rose Monday, talking a Dow 100-point move,
European stocks advanced higher as the pan-European Stoxx 600 climbed 1% by late morning,
Asia-Pacific markets rose in overnight trading on improved risk sentiment but, Mainland China, Hong Kong and South Korea markets are closed for a holiday.
The week ended with gains on Friday, as the NASDAQ and small-cap Russell 2000 reclaimed their 50-day moving averages.
No sweat, “Stocks have been volatile ahead of the September meeting of the Federal Reserve, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation.” <CNBC>
Economic Data Docket: on Monday, consumer price index (CPI) reports, Producer Price Index (PPI) reports on Tuesday.
RegMed Investors’ (RMi) closing bell: (Friday)“the share pricing levy is leaking from the morning’s opening” … https://www.regmedinvestors.com/articles/12597
Ebb and flow:
Q3/22 – September – 1 holiday, 4 positive and 2 negative closes
• August – 1 neutral, 11 positive and 11 negative closes
• July - 1 holiday, 10 negative and 10 positive closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
SELL into Strength: can investors trust the current marrket and sector scenario?
Intellia Therapeutics (NTLA) closed up +$3.11 to $64.44 after Thursday’s +$3.72, Wednesday’s +$2.24 and Tuesday’s -$0.64 with a +$0.29 or +0.45% pre-open indication
Ionis Pharmaceuticals (IONS) closed up +$2.57 to $46.94 after Thursday’s +$0.82 with a positive +$0.11 or +0.23% pre-open indication,
Sage Therapeutics (SAGE) closed up +$0.82 to $42.00 after Thursday’s +$2.14 with a flat or $0.00 pre-open indication
Vericel (VCEL) closed up +$0.77 to $26.02 after Thursday’s +$0.73 and Wednesday’s +$1.90) with a flat or $0.00 pre-open indication,
CRISPR Therapeutics (CRSP) closed up +$0.69 to $66.96 after Thursday’s +$1.26 with a positive +$0.04 or +0.06% pre-open indication,
Alnylam Pharmaceuticals (ALNY) closed down -$3.03 to $123.27 with a negative -$4.28 or 1.92% pre-open indication on news of a $900 Convertible Senior Notes sale due 2027
Caribou Therapeutics (CRBU) closed down -$0.42 to $11.47 with a negative -$0.69 or -6.02% pre-open indication,
Beam Therapeutics (BEAM) closed down -$0.16 to $28.10 after Thursday’s +$1.26, Wednesday’s +$2.88 and Tuesday’s +$0.25 with a negative -$0.22 or -0.78% pre-open indication.
Fate Therapeutics (FATE) closed down -$0.16 to $28.10 after Thursday’s +$2.01, Tuesday’s $25.30, Monday’s holiday and last Friday’s $26.72 with a negative -$0.22 or -0.78% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.06 with 3,600 shares traded after Thursday’s +$0.59 with 3,900 shares traded, Wednesday’s -$0.60 with 100 shares traded, Tuesday’s $0.00 with 34 shares traded, Monday’s holiday following Friday’s $0.00 Thursday’s $0.00 and last Wednesday’s $0.00 <3-month average = 1,619>,
- 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 follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
I try to keep it simple … and short as I love my coverage list – yet, the truth will set investors free from electronic and algorithm control!
September started with 1 holiday, 4 positive and 2 negative closes; August is over with 1 neutral, 11 positive and 11 negative closes while last week which ended the month.
In the first full week of September, the NASDAQ jumped +4.1%; the short-week ended with three (3) straight positive closes…
Whether the week’s end was just a sector responding to past overbought positions “adjustment” or the sign of anything more sustained will be on watch this week, especially as a new set of inflation reports comes out.
Cell and gene therapy news is on the light side, after a lousy earnings season reports.
As I continually question, “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!”
Second Question, “How many companies are LOSING the investment high ground? TOO MANY” …!!!
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 August’s final accounting of positive and negative closes.
· August – 1 neutral, 11 positive and 11 negative closes
Companies NEED BETTER 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
The only thing investors are able to hang to at that point is HOPE – which is not a technical or fundamental indicator. Keep your eyes on historical pricings that, haven’t responded to I-Bank research price targets.
As I have written, “I devote a lot of time to the direction of the sector to reckon the geography of my coverage group.”
That doesn't mean you should flee entirely to cash, but investors make sure gains don't evaporate thus … be quick to drop losing positions.
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.