September 14, 2022 8:35am
Which companies are still bleeding, changing places to the upside, responding to news flow, looking for opportunity or getting further burned?
News: Avrobio (AVRO +$0.087 or +10% pre-open) on news of the U.K. Medicines and Healthcare Products Regulatory Agency (MHRA), Research Ethics Committee (REC) and Health Research Authority (HRA) have approved the clinical trial application (CTA) submitted by AVROBIO’s collaborators at the University of Manchester, U.K. (UoM) for initiation of the P1/2 clinical trial of investigational autologous hematopoietic stem cell (HSC) gene therapy in infants diagnosed with neuronopathic mucopolysaccharidosis type II (nMPS-II) or Hunter syndrome.
Indications: 4 positive Indications (1 with news), 5 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 8:30 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 +0.06% or (+18 points), S&P futures are UP 0.12% (+5 points) and NASDAQ futures are UP +0.13% (-15 points) early in the pre-open – so far,
Stock futures are fluctuating on Wednesday while with PPI economic data at -0.1%,
European markets were lower,
Asia-Pacific markets dropped sharply.
Henry’omics:
On Tuesday, the Dow sank 1,276.37 points, or -3.94%, while the S&P 500 slid 177.72 points or -4.32% to 3,932.69 and the Nasdaq dived -632.84 points or -5.16%. All the major averages broke a four-day winning streak.
“The stock market rally suffered its worst loss of 2022, with the major indexes closing near session lows on the hot inflation report and Fed rate hike fears. Another factor? The U.S. mulling options for sweeping sanctions vs. China to head off any Taiwan invasion, Reuters reported Tuesday. The European Union is facing pressure to do the same. That would raise the risks of a massive economic decoupling between China and the West.” <IBD>
Economic Data Docket: Producer Price Index (PPI) report will offer further clues into the state of inflation before the Fed’s rate-hike meeting next week.
· Mortgage demand from homebuyers falls 29% since last year, as interest rates surge past 6%
RegMed Investors’ (RMi) closing bell: “no chicken dinner as sector and indexes got kicked to the floor while inflation numbers become an unequivocal negative for equities. Another I told you so … more frequently right than consequentially wrong. 32 on my 35-coverage list dived to some of last year’s depth.” … https://www.regmedinvestors.com/articles/12601
Ebb and flow:
Q3/22 – September – 1 holiday, 5 positive and 3 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
Still Bleeding with a Negative Indications:
AxoGen (AXGN) closed down -$0.45 to $11.00 after Monday’s -$0.05 and Friday’s +$1.27 with a negative -$0.10 or -0.91% pre-open indication,
BioLife Solutions (BLFS) closed down -$0.65 to $25.85 after Monday’s -$0.12, Friday’s -$0.08 after Thursday’s +$1.34 with a negative -$0.28 or -1.08% pre-open indication,
Brainstorm Cell Therapeutics (BCLI) closed up +$0.02 to $4.06 after Monday’s +$0.24, Friday’s +$0.41 with a negative -$0.06 or -1.48% pre-open indication.
Caribou Therapeutics (CRBU) closed down -$0.46 to $12.30 after Monday’s +$1.29, Friday’s -$0.42 with a negative -$0.37 or -3.01% pre-open indication,
CRISPR Therapeutics (CRSP) closed up +$2.86 to $69.82 after Friday’s +$0.69 and Thursday’s +$1.26 with a negative -$1.33 or -1.97% pre-open indication,
Moving on News:
Avrobio (AVRO) closed down -$0.0217 to $0.826 with a positive +$0.08 or +10% pre-open indication on news of the U.K. Medicines and Healthcare Products Regulatory Agency (MHRA), Research Ethics Committee (REC) and Health Research Authority (HRA) have approved the clinical trial application (CTA). Avrobio (AVRO) closed down -$0.0217 to $0.826 with a positive +$0.12 or +13.38% pre-open indication on news of the U.K. Medicines and Healthcare Products Regulatory Agency (MHRA), Research Ethics Committee (REC) and Health Research Authority (HRA) have approved the clinical trial application (CTA) submitted by AVROBIO’s collaborators at the University of Manchester, U.K. (UoM) for initiation of the P1/2 clinical trial of investigational autologous hematopoietic stem cell (HSC) gene therapy in infants diagnosed with neuronopathic mucopolysaccharidosis type II (nMPS-II) or Hunter syndrome.
Changing Places to a Positive Indication:
Fate Therapeutics (FATE) closed down -$3.53 to $25.59 with a positive +$0.39 or +1.52% pre-open indication,
uniQure NV (QURE) closed down -$0.34 to $20.19 after Monday’s +$0.03 with a positive +$0.98 or +4.85% pre-open indication,
Vericel (VCEL) closed down -$0.65 to $25.04 after +$0.77, Thursday’s +$0.73 and Wednesday’s +$1.90 with a positive +$1.25 or +4.99% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$0.30 with 500 shares traded after Monday’s -$0.10 with 442 shares traded, Friday’s +$0.06 with 3,600 shares traded, Thursday’s +$0.59 with 3,900 shares traded, and last Wednesday’s -$0.60 with 100 shares traded, <3-month average = 1,740>,
- How many non-citizens of Chinese nationality are employed at BSTG – 3 managers/directors of 5 and 3 of 5 board directors?
- Who and WHAT are funding the “spikes” in volume and share price?
- What is DST Capital? Is DST Capital really managed by Mrs. bin Zhao of Weston, Mass and Hong Yu, president of BSTG? Is LIU Dong-hai chairman of D. Phone, one of the largest smartphone retailers in China and Dixintong Technology group; the ultimate funder of DST Capital?
- Are Chinese communist bureaucrats from Beijing, China directing the company’s activities?
The BOTTOM LINE: as I wrote last evening, “Tuesday’s sell-off followed a hot inflation report spurred calls for the biggest Fed rate hike since the early 1980s which was particularly painful in cell and gene therapy sector stocks.”
· 32 on my 35-coverage list dived to some of last year’s depths!
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!
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
September, so far has …
· 1 holiday, 5 positive and 3 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.
