September 28, 2022 4:38pm

Probably early but, protective as Q3 comes to an end this week and earnings season LPS (loss-per-share) begins when the drama of low volume and upside pricing actions are suspect

Pre-open indications: 6 HITs, 1 MISS and 1 Pump/Promote <Biostage (OTCQB: BSTG) – the usual suspect>

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?

Why do I keep writing this blog/newsletter; to inform investors, what others won’t say or write!

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 +548.75 points (+1.88), the S&P closed UP +71.75 points (+1.97%) while the Nasdaq closed UP +22.13 points (+2.05%)

 

Henry’omics:

Indexes jumped as a comeback rally gained steam Wednesday as U.S. Treasury yields retreated from multiyear highs.

The Bank of England said it would temporarily purchase long-dated UK government bonds in an effort to stabilize its plunging currency. Sterling recovered and was last trading 1.1% higher against the dollar at $1.085. <CNBC>

 

Largest volume of the session:

  • bluebird bio (BLUE) 5.088 million shares (+$0.32) after Tuesday’s 1.657 million shares (+$0.37), Monday’s 6.089 million shares (-$0.46), Friday’s 5.87 M shares (-$0.35) and last Thursday’s 6.546 million shares (-$0.20), <average 3 mo. volume = 8.32 million shares>

 

RegMed Investor’s (RMi) Pre-Open: “sell into any strength as U.S. and global markets fall. 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” …  https://www.regmedinvestors.com/articles/12623

 

RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …

  • Wednesday’s advance/decline line opened positive at 28 up/ 5 down and 2 flats, stayed positive with 30 up/5 down and 2 flats at the mid-day, ending with a positive close of 29/4 and 2 flats.

 

Pre-open Indications: 6 HITs – Sell into Strength < BioLife Solutions (BLFS +$1.28), CRISPR Therapeutics (CRSP +$3.31), Editas Medicine (EDIT +$0.82), Ionis Pharmaceuticals (IONS +$2.13), Sage Therapeutics (SAGE +$2.04), Verve therapeutics (VERV +$0.55)> 1 MISS <Beam Therapeutics (BEAM +$0.55)> 1 Pump/Promote < Biostage (OTCQB: BSTG +$1.00)>

 

Key Metrics:

  • Wednesday - Sector volume was MODERATE with 14 of the 29-upside having higher than the 3-month average volume with LOW volume of 2 of 4-downside having higher than the 3-month average volume

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB was up +3.93% and the XBI was up +5.14%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -2.16 points or -6.63% at 30.44

 

Jumping with share pricing momentum (10 of 29):

  • Alnylam Pharmaceuticals (ALNY +$8.15 after Tuesday’s +$5.22 and Monday’s -$3.39),
  • CRISPR Therapeutics (CRSP +$3.31 after Tuesday’s +$2.53 and Monday’s -$2.05),
  • Intellia Therapeutics (NTLA +$2.61 after Tuesday’s +$1.83 and Monday’s +$0.28),
  • Beam therapeutics (BEAM +$2.61 after Tuesday’s +$1.85),
  • Ionis Pharmaceuticals (IONS +$2.15),
  • Sage Therapeutics (SAGE +$1.67 after Tuesday’s +$0.50 and Monday’s -$0.83),
  • Regenxbio (RGNX +$1.48 after Tuesday’s +$0.90 and Monday’s -$0.57)
  • BioLife Solutions (BLFS +$1.30 after Tuesday’s +$0.84 and Monday’s -$0.64),
  • Vericel (VCEL +$1.26),
  • Fate Therapeutics (FATE +$1.22 after Tuesday’s +$0.89 and Monday’s -$0.93),

FLAT (2):

  • Mesoblast (MESO) and Bellicum Pharmaceuticals (BLCM

Closing down (4 of 4):

  • Global Blood Therapeutics (GBT -$0.07),
  • Brainstorm Cell Therapeutics (BCLI -$0.02),
  • Applied Genetic Technologies (AGTC -$0.0118),
  • Solid Biosciences (SLDB -$0.01 after Tuesday’s -$0.0141),

 

September, Q3/2022

  • Wednesday closed positive with 29 incliner, 4 decliners and 2 flats
  • Tuesday closed positive with 28 incliner, 5 decliners and 2 flats
  • Monday closed negative with 5 incliner, 30 decliners and 0 flat

 

The BOTTOM LINE: I am concerned that the cell and gene therapy sector is OVERBOUGHT!

Cell and gene therapy equities ended the day in the GREEN again on Wednesday, Tuesday’s GREEN after a RED Monday – a break from the 7X downslides in a row!

I try to keep it simple … and short!

Wednesday’s pricing “ascension” (an action from our prayers); I welcomed the upside as a time to take profits, even if I am early and leave some pennies, nickels, dimes or even a dollar “on the table”

Given today’s market dramatic upside, I believe driven by algorithms - investors should be very cautious about position entry.

The end of Q3 is coming this week and October has NEVER been a good month for equities.

September continued with 1 holiday, 10 positive and 10 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!” 

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.