September 22, 2022 5:22pm
Why are CEOs and management TEAMS NOT initiating defensive PERSONAL BUYS amid the persistent market volatility this year to boast their bottoming share pricing?
Pre-open indications: 3 HIT and 3 MISS <1 by pennies>
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 DOWN -107.10 points (-0.35%) the S&P closed DOWN -31.94 points (-0.84%) while the Nasdaq closed DOWN 153.39 points (-1.77%)
Indexes slipped on Thursday after steep losses following a rate hike from the Fed.
The third straight daily decline, as mounting fears that the Fed’s rate hikes will push the economy into a recession dented risk appetite for investors.
A quote from a friend to ponder, “The markets feel they have to recalibrate valuations and when that happens, it happens in a linear fashion — shoot first ask questions later,” said Art Hogan, B. Riley Wealth’s chief market strategist. ´<CNBC>
Thursday’s session left the major averages on pace to close the week with losses.
The Dow is down about 2.42% week to date, while the S&P is -3% and Nasdaq 3.3%.
Economic Data Docket: Initial jobless claims rose to 213,000 for the week ended Sep. 17, showing signs of a strong labor market despite the Fed’s attempts to slow economic growth. Economists surveyed had anticipated jobless claims would rise to 215,000 for the period. Claims for the week ended Sep.10 were revised down to 208,000.
Largest volume of the session:
- bluebird bio (BLUE) +6.546 million shares (-$0.20) after Wednesday’s +9.118 million shares traded (-$0.69), Tuesday’s +21.503 million shares traded (+$0.93) after Monday’s -30.962 million share traded (-$0.41 or -6.47%) – EXPECT an offering!
RegMed Investor’s (RMi) Pre-Open: “is there a “Terminal Rate” for cell and gene therapy sector equities. With Q3 ending in seven (7) sessions … make sure your investments are on a static line before any portfolio jump.” … https://www.regmedinvestors.com/articles/12615
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Thursday’s advance/decline line opened negative at 5 up/ 29 down and 1 flat, stayed negative with 4 up/31 down and 0 flat at the mid-day, ending with a negative close of 5/29 and 1 flat.
Pre-open Indications: 3 HITs < Biostage (BSTG $0.00 with 1,844 shares traded), Alnylam Pharmaceuticals (ALNY -$3.68), Chinook Therapeutics (KDNY -$0.30), > 3 MISS < Verve Therapeutics (VERV +$0.76), Sangamo Therapeutics (SGMO -$0.03), CRISPR Therapeutics (CRSP -$1.75) >
- Thursday - Sector volume was LOW with 1 of the 5-upside having higher than the 3-month average volume with LOW volume of 5 of 29-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 down -1% and the XBI was down -1.31%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was down -0.64 points or -2.29% at 27.35
Jumping with share pricing momentum (5 of 5):
- Verve Therapeutics (VERV +$0.76 after Thursday’s +$0.06),
- Global Blood Therapeutics (GBT +$0.28),
- Brainstorm Cell Therapeutics (BCLI +$0.06 after Wednesday’s +$0.16, Tuesday’s +$0.04 and Monday’s -$0.25),
- Precigen (PGEN +$0.05),
- Bellicum Pharmaceuticals (BLCM +$0.01),
- Biostage (BSTG with 1,844 shares traded)
Closing down (10 of 29):
- Alnylam Pharmaceuticals (ALNY -$3.68 after Wednesday’s -$5.52, Tuesday’s -$3.99 and Monday’s +$3.00),
- Beam Therapeutics (BEAM -$3.47 after Wednesday’s -$1.86, Tuesday’s -$0.31 and Monday’s -$2.33),
- Intellia Therapeutics (NTLA -$2.39 after Wednesday’s -$3.06, Tuesday’s -$0.94 and Monday’s -$2.24),
- CRISPR Therapeutics (CRSP -$1.75 after Wednesday’s -$3.48, Tuesday’s +$1.31 and Monday’s -$1.71),
- Fate Therapeutics (FATE -$1.00),
- BioLife Solutions (BLFS -$0.97 after Wednesday’s -$1.39, Tuesday’s +$0.91 and Monday’s +0.64),
- Vericel (VCEL -$0.96),
- Ultragenyx (RARE -$0.94 after Wednesday’s -$1.23 and Tuesday’s -$0.48),
- Caribou Biosciences (CRBU -$0.75),
- Sage Therapeutics (SAGE -$0.66 after Wednesday’s -$1.38, Tuesday’s -$0.89 and Monday’s +$1.55),
- Thursday closed negative with 5 incliner, 29 decliners and 1 flat
- Wednesday closed negative with 4 incliners, 30 decliners and 1 flat
- Tuesday closed negative with 9 incliner, 26 decliners and 0 flat
- 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, Tuesday, Wednesday and Thursday as investors accepted .75% or basis point as the close to a maybe final Fed’ rate decision
I try to keep it simple … and short!
With investors now increasingly pricing-in the prospect of a U.S. recession; more and more companies should be warned on the impact of fading share pricing i.e., demand, G&A and employment costs.
Traders and investors should be focused on which CEOs and management teams will step-up and BUY their company shares with personal capital!!
Extra problem coming … with another quarter about to close (Q3) … and back to earnings season!
September continued with 1 holiday, 7 positive and 8 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.