September 29, 2022 4:49pm

Yesterday, I wrote: “sell into any strength with sector volume very low; and “don’t get use to Tuesday’s upside, I believe it’s transitory” …  and it was!

Pre-open indications: 6 HITs and 1 MISS

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 DOWN -458.13 points (-1.54); the S&P closed DOWN -78.57 points (-2.11%) while the Nasdaq closed DOWN -314.13 points (-2.84%)

 

Henry’omics:

Indexes sold-off on Thursday, erasing gains from the prior day’s rally, while a decline in cell and gene therapy sector equities had a deleterious or toxic effect on “our” universe.

Economic Data Docket: jobless claims data hit a five-month low despite the Fed’s efforts to slow the labor market. U.S. GDP fell at an unrevised 0.6% annualized rate last quarter, the government said in its third estimate of GDP.

·         The economy contracted at a 1.6% rate in Q1,

·         A stronger-than-expected jobless claims report; initial jobless claims slid to 193,000, the lowest since April, in the week ended Sept. 24 from a downwardly revised 213,000 the prior week,

 

Largest volume of the session:

  • bluebird bio (BLUE) 4.748 million shares (-$0.07) after Wednesday’s 1.35 million (-$0.09), Wednesday’s 3.786 million shares (+$0.35), Tuesday’s 1.657 million shares (+$0.37), Monday’s 6.089 million shares (-$0.46) and last Friday’s 5.87 M shares (-$0.35) <average 3 mo. volume = 8,204 million shares>

 

RegMed Investor’s (RMi) Pre-Open: “what now, after I wrote “sell into any strength”? If you didn’t, be very cautious or just hold-on in any market or sector scenario; any market rebound will likely depend on whether Treasury yields continue to pull back” …  https://www.regmedinvestors.com/articles/12626

 

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 4 up/ 30 down and 1 flat, stayed negative with 3 up/ 31 down and 1 flat at the mid-day, ending with a negative close of 3/31 and 1 flat.

 

Pre-open Indications: 6 HITs < Biostage (OTCQB: BSTG $0.00), Beam Therapeutics (BEAM +$3.52), CRISPR Therapeutics (CRSP -$2.45), Sage Therapeutics (SAGE -$0.63), Vericel (VCE: -$1.15), Ultragenyx (RARE -$0.72)> 1 MISS < uniQure NV (QURE -$0.94)>

 

Key Metrics:

  • Thursday - Sector volume was LOW with 1 of the 3-upside having higher than the 3-month average volume with LOW volume of 12 of 31-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 -1.45% and the XBI was down -2.88%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was up +1.60 points or +5.30% at 31.78

 

Jumping with share pricing momentum (3 of 3):

  • Regenxbio (RGNX +$0.25 after Wednesday +$1.48, Tuesday’s +$0.90 and Monday’s -$0.57)
  • Bellicum Pharmaceuticals (BLCM +$0.08),
  • Avrobio (AVRO +$0.0191),

FLAT (1):

  • Biostage (BSTG)

Closing down (10 of 31):

  • Beam Therapeutics (BEAM -$3.52 after Wednesday’s +$2.61 and Tuesday’s +$1.85),
  • Intellia Therapeutics (NTLA -$3.35 after Wednesday’s +$2.61, Tuesday’s +$1.83 and Monday’s +$0.28),
  • CRISPR Therapeutics (CRSP -$2.45 after Wednesday’s +$3.31, Tuesday’s +$2.53 and Monday’s -$2.05),
  • Alnylam Pharmaceuticals (ALNY -$1.47 after Wednesday’s +$8.15, Tuesday’s +$5.22 and Monday’s -$3.39),
  • Editas Medicine (EDIT -$1.24),
  • Vericel (VCEL -$1.15 after Wednesday’s +$1.26),
  • uniQure NV (QURE -$0.94),
  • Voyager therapeutics (VYGR -$0.70),
  • Sage Therapeutics (SAGE -$0.63 after Wednesday’s +$1.67, Tuesday’s +$0.50 and Monday’s -$0.83),
  • Caribou Biosciences (CRBU -$0.58),

 

September, Q3/2022

  • Thursday closed negative with 3 incliner, 31 decliners and 1 flat
  • 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 was right again …as I WAS concerned that the cell and gene therapy sector was OVERBOUGHT on Wednesday!

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

I try to keep it simple … and short!

Given today’s market dramatic downside was driven by electronic trading and algorithms - investors should be very cautious about Friday (9/3) as Q3 closes.

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 11 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.