September 19, 2022 5:12pm
Low volume volatile trading sets the course of the session as affordability of new gene therapy treatment
The Biostage (OTCQB: BSTG) Chronicles: they’re pimping/pumping/promoting again, up +$0.10 <was +$0.95) with 9,718 shares traded – driven low by their own manipulation?
Pre-open indications: 4 HITs, 3 MISS and 1 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?
If I have learned one thing as a former research analyst in a venture and public fund 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 +197.26 points (+0.64%) the S&P closed UP +26.56 points (+0.69%) while the Nasdaq closed UP +86.62 points (+0.76%)
Henry’omics:
Indexes snapped a two (2) session losing streak on Monday in a volatile trading session ahead of the Fed’s two-day policy meeting that kicks off Tuesday.
The fed is expected to raise interest rates by another 75 basis points. Investors are also watching for guidance about corporate earnings before the next reporting season begins in October.
“Yields pushed higher ahead with the 10-year Treasury yield topping 3.51% and hitting its highest level in 11 years” <CNBC>
Largest volume of the session:
- bluebird bio (BLUE) -30.962 million shares traded (-$0.41 or -6.47%)
RegMed Investor’s (RMi) Pre-Open: “Investors are getting spooked, reality is a _itch. Fed meeting this week” … https://www.regmedinvestors.com/articles/12609
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Monday’s advance/decline line opened negative at 4 up/ 30 down and 1 flat, stayed negative with 9 up/26 down and 0 flat at the mid-day, ending with a negative close of 9/26 and 0 flat.
Pre-open Indications: 4 HITs < BioLife Solutions (BLFS +$0.64), Caribou Biosciences (CRBU -$0.03), Intellia Therapeutics (NTLA -$2.24), Verve Therapeutics (VERV -$0.92) > 3 MISS < Beam Therapeutics (BEAM -$2.33), CRISPR Therapeutics (CRSP -$1.71), Verve Therapeutics (VERV -$0.92) and Pimp/ Pump/Promote <Biostage (BSTG +$0.10)>
Key Metrics:
- Monday - Sector volume was LOW with 2 of the 9-upside having higher than the 3-month average volume with LOW volume of 3 of 26-downside having higher than the 3-month average volume
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday, the IBB was down -0.94% and the XBI was down -2.05%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was down -0.54 points or -2.05% at 25.76
Jumping with share pricing momentum (9 of 9:
- Alnylam Pharmaceuticals (ALNY +$3.00 after Friday’s +$4.52),
- Sage Therapeutics (SAGE +$1.55 after Friday’s -$2.18),
- BioLife Solutions (BLFS +0.64 after Friday’s -$3.06),
- Ionis Pharmaceuticals (IONS +$0.41),
- Global Blood Therapeutics (GBT +$0.41),
- Fate Therapeutics (FATE +$0.31 after Friday’s -$2.02),
- Editas Medicine (EDIT +$0.14 after Friday’s -$1.70),
- Biostage (BSTG +$0.10 after Friday’s +$1.19, Thursday’s -$0.19, Wednesday’s +$0.15, Tuesday’s -$0.30 and last Monday’s -$0.10),
- Sangamo Therapeutics (SGMO +$0.06),
Closing down (10 of 26):
- Beam Therapeutics (BEAM -$2.33 after Friday’s -$3.93),
- Intellia Therapeutics (NTLA -$2.24 after Friday’s -$3.27),
- CRISPR Therapeutics (CRSP -$1.71 after Friday’s -$4.61),
- Verve Therapeutics (VERV -$0.92 after Friday’s -$4.95),
- Chinook Therapeutics (KDNY -$0.87),
- uniQure NV (QURE -$0.42),
- bluebird bio (BLUE -$0.41),
- Voyager therapeutics (VYGR -$0.39),
- Brainstorm Cell Therapeutics (BCLI -$0.25),
- Regenxbio (RGNX -$0.24),
September, Q3/2022:
- Monday closed negative with 9 incliner, 26 decliners and 0 flat
The BOTTOM LINE: The sector ended the day in the RED - again!
Cell and gene therapy equities finished LOWER on Monday, as investors braced for a key Fed’ rate decision that is likely to be echoed by major central banks in Europe and Asia.
I try to keep it simple … and short!
“With investors now increasingly pricing-in the prospect of a U.S. recession, and more and more companies warning on the impact of fading demand and surging input costs, traders and investors will be keenly focused on any suggestion that Powell may alter the Fed's inflation fight in order to avoid longer-term damage to the world's biggest economy.” <The Street>
September continued with 1 holiday, 7 positive and 5 negative closes; August is over with 1 neutral, 11 positive and 11 negative closes while last week which ended the month.
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!”
Repeating myself, “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.
