September 28, 2022 7:47am
The Cboe volatility index, or VIX, or fear gauge rose to a fresh three-month high of 32.96 with sector volume very low on Tuesday. As I had written, “don’t get use to Tuesday’s upside, I believe it’s transitory” after seven (7) sector losses in a row cell and gene therapy sector dived
Indications: 6 Negative and 1 Sell into Strength with 1 Pump/Promote (BSTG – the usual suspect)
Why do I keep writing, to inform investors that the cell and gene therapy sector shows more signs of continued weakness.
No tunnel vision here, this analyst/journalist gets into the weeds of daily share pricing and root causes
8:00 a.m. 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 DOWN -0.42% or (-122 points), S&P futures are DOWN -0.64% or (-23 points) and NASDAQ futures are DOWN -1.12% or (-125 points) early in the pre-open – so far,
Stock futures are falling on Wednesday after the Bank of England said it would temporarily purchase long-dated UK government bonds in an effort to stabilize the plunging British pound,
European markets fell sharply with the STOX down -1.9%,
Asia Pacific markets also fell sharply with MSCI’s broadest index of Asia-Pacific shares outside Japan dropping -2.32%, reaching lowest levels since March 2020.
Henry’omics:
Tuesday, indexes were mixed with only the Nasdaq up with the S&P 500 setting a new 2022 low (-24.7% below its record set in January).
The Dow closed DOWN -123.91 points (-0.42%), the S&P closed DOWN -7.45 points (-0.20%) while the Nasdaq closed UP +26.58 points (+0.25%)
Economic Data Docket: The National Association of Realtors reports the number of home sales from August.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.52% from 6.25%. Applications to refinance a home loan dropped 11% for the week and were 84% lower than the same week one year ago. Mortgage applications to purchase a home decreased 0.4% for the week and were 29% lower than the same week one year ago.
RegMed Investors’ (RMi) closing bell: “don’t get use to today’s upside, I believe it’s transitory. Tuesday pares losses after seven (7) in a row cell and gene therapy sector dives” … https://www.regmedinvestors.com/articles/12622
Ebb and flow:
Q3/22 – September – 1 holiday, 8 positive and 10 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:
Beam therapeutics (BEAM) closed up +$1.85 to $48.41 after Monday’s -$0.53, Friday’s $1.06, Thursday’s -$3.47 and last Wednesday’s -$1.86 and the previous Tuesday’s -$0.31 and Monday’s -$2.33 with a +$1.33 or +2.75% pre-open indication.
Negative Indication:
BioLife Solutions (BLFS) closed up +$0.84 to $22.43 after Monday’s -$0.64, Friday’s -$0.08 with a negative -$0.43 or -1.92% pre-open indication,
CRISPR Therapeutics (CRSP) closed up =$2.53 to $63.63 after Monday’s -$2.06 to $61.10 after Friday’s -$1.74, Thursday’s -$1.75, Wednesday’s -$3.48 and last Tuesday’s +$1.31 following the previous Monday’s -$1.71 with a negative -$0.98 or -1.54% pre-open indication,
Editas Medicine (EDIT) closed up +$0.49 to $12.70 with a negative -$0.20 or -1.57% pre-open indication,
Ionis Pharmaceuticals (IONS) closed up =$0.52 to $42.27 after Monday’s -$1.48 and Friday’s -$1.74 with a negative -$1.47 or -3.48% pre-open indication,
Sage Therapeutics (SAGE) closed up +$0.89 to $38.56 after Monday’s -$0.83 and Friday’s -$0.72 with a negative -$1.16 or -3.01% pre-open indication,
Verve therapeutics (VERV) closed up +$3.13 to $34.28 after Monday’s -$3.94 and Friday’s +$1.25 with a negative -$0.94 or -2.74% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed flat ($0.00) with 2,675 shares traded after Monday’s +$0.39 with 970 shares traded, Friday’s -$1.39 with 2,051 shares traded, Thursday’s FLAT again with 1,844 shares traded, and last Wednesday’s FLAT with 3,196 shares traded and last Tuesday’s +$0.10 with 9,718 shares traded, <3-month average = 2,095>,
Questions need to be answered and they NEVER are for shareholders; as the First Amendment of the U.S. Constitution does guarantee the “freedom of speech, or of the press” … but I guess NOT to respond?
- Who, WHAT and WHERE are pumping and promoting the “spikes” in volume and share price … coming from?
- 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 with BSTG being their corporate “concubine”?
The BOTTOM LINE: I believe the dramatic “ascension” of the sector on Tuesday on low volume is a cause of concern to this sector.
After the last tough week and a very week Monday, SOME upside was due for SOME cell and gene therapy sector equities.
Problem, another quarter (Q3) about to close … and then back to earnings season!
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!
As I continually write, “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!”
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.
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.
