October 3, 2022 7:59am
A BIG week of economic data and a cautious tred for share pricing
News: REGENXBIO (RGNX) announced positive interim data from the P2 AAVIATE® trial of RGX-314 for the treatment of wet AMD using suprachoroidal delivery. REGENXBIO also presented positive interim data from the P1/2a long-term follow-up (LTFU) study of RGX-314 for the treatment of wet AMD using subretinal delivery at the American Academy of Ophthalmology (AAO) annual meeting this past weekend in Chicago.
Indications: 1 Negative Indications, 2 New BUY Favorite, 5 Positive Indication with 1 Pump/Promote (BSTG – the usual suspect)
No tunnel vision here, this analyst/journalist gets into the weeds of daily share pricing and root causes
Why do I keep writing this blog/newsletter to inform investors, what they need to hear that others won’t say or write!
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 UP +0.65% or (+188 points), S&P futures are UP +0.50% or (+18 points) and NASDAQ futures are UP +0.16% or (+18 points) early in the pre-open – so far,
Stock futures ticked higher Monday starting the new month, and Q4 on a solid note,
European markets fell,
Asia-Pacific markets were mixed
Friday capped off a negative month and quarter for all the major averages …
Indexes were sloppy and down Friday as traders looked to close out a terrible week that brought the S&P 500 to a new 2022 low and the Nasdaq was 0.15% lower.
The Dow closed DOWN – 500.10 points (-1.71), the S&P closed DOWN -54.85 points (-1.51%) while the Nasdaq closed DOWN -161.89 points (-1.61%)
Some historical commentary, “October has historically been the most volatile month for markets during the year, seeing the most swings of greater than 1% in either direction. But October has also seen more bear markets end than begin while September has produced more down markets without earning a nickname.” <LPL Financial>
A survey by the American Association of Individual Investors showed 60% of retail investors hold a bearish view of the stock market, the highest level since 2008 and the eighth most pessimistic reading in the 35 years the survey has been conducted. <Yahoo Finance>
Economic Data Docket: Q4 kicks off amid volatility. Monday: $&P global U.S, Manufacturing PMI, Construction Spending, ISM Manufacturing, ISM Prices Paid, ISM New orders, ISM Employment and WARDS Total Vehicles Sales
- Jobs report in focus on Friday. Other labor market readings due out include the ADP’s employment report, which measures levels of non-farm private employment, the Job Openings and Labor Turnover Survey (JOLTS), and the Challenger Job-Cut report, which offers information on the number of tracked corporate layoffs by industry and region. <Yahoo Finance>
RegMed Investors’ (RMi) closing bell: “closing out September and Q3 with an algorithmic upside “rule”. NO positive catalysts drove up the cell and gene therapy equities through the end of the Friday session.” … https://www.regmedinvestors.com/articles/12630
Ebb and flow:
Q4 – first session
· September – 1 holiday, 10 positive and 11 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:
Regenxbio (RGNX) closed up +$1.51 to $26.43 after Thursday’s +$0.25, Wednesday +$1.48, Tuesday’s +$0.90 and Monday’s -$0.57 with a flat Friday aftermarket,
Intellia Therapeutics (NTLA) closed up +$0.67 to $55.96 after Thursday’s -$3.35, Wednesday’s +$2.61, Tuesday’s +$1.83 and Monday’s +$0.28 with a flat Friday aftermarket,
Brainstorm Cell Therapeutics (BCLI) closed up +$0.25 to $4.42 with a negative -$0.11 or -2.49% pre-open indication,
Maintain Favorites - BUY:
Agenus (AGEN) closed down -$0.01 to $2.05 after Thursday’s -$0.14 with a positive +$0.07 or +3.41% pre-open indication,
Sage Therapeutics (SAGE) closed down -$0.44 to $39.16 after Thursday’s -$0.63, Wednesday’s +$1.67, Tuesday’s +$0.50 and Monday’s -$0.83 with a flat Friday aftermarket indication,
Beam Therapeutics (BEAM) closed up +$0.14 to $47.64 after Thursday’s -$3.52, Wednesday’s +$2.61 and Tuesday’s +$1.85 with a positive +$0.36 or +0.76% pre-open indication,
CRISPR Therapeutics (CRSP) closed up +$0.86 to $65.35 after Thursday’s -$2.45, Wednesday’s +$3.31, Tuesday’s +$2.53 and Monday’s -$2.05 with a positive +$0.15 or +0.23% pre-open indication,
Caribou Biosciences (CRBU) closed up +$0.13 to $10.55 after Thursday’s -$0.58 with a positive +$0.47 or +4.45% pre-open indication,
Solid Biosciences closed down -$0.0016 to $0.46 with a positive +$0.04 or +9.39% pre-open indication after merger/acquisition of AvantiBio and a $75 million Bain financing
Verve Therapeutics (VERV) closed up +$0.15 to $34.35 with a positive +$0.35 or +1.02% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.10 with2,083 shares traded after Thursday closed FLAT with 1,100 shares traded, Wednesday’s +$1.00 with 1,545 shares traded, Tuesday’s flat ($0.00) with 2,675 shares traded and last Monday’s +$0.39 with 970 shares traded following the previous Friday’s -$1.39 with 2,051 shares traded <3-month average = 2,180>,
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: There is many a concern of sentiment and conviction to the cell and gene therapy sector.
I am seeing some blue skies and feeling tailwinds but, for how long?
The final Q4 is HERE … 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.