October 5, 2022 7:55am

The major indexes backed off its intraday highs, should investors be ready for a little “whiplash”? I say EXIT on Wednesday for portfolio protection utilizing caution.

Indications: 4 Negative Indications, 2 BUYs and don’t let Dip, 2 Sell into Strength, 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 DOWN -0.81% or (-245 points), S&P futures are DOWN -0.78% or (-29 points) and NASDAQ futures are DOWN -0.76% or (-90 points) early in the pre-open – so far,

 

U.S. stock futures are falling on Wednesday,

European markets retreat,

Asia-Pacific markets traded higher.

 

Henry’omics:

Tuesday, the Dow jumped about 825.43 points, or +2.8%; the S&P 500 gained 112.50 points or +3.1%, while the Nasdaq advanced 360.97 points or +3.34%.

Economic Data Docket: Data on weekly mortgage applications is expected. September’s ADP private payrolls report is due out at 8:15 a.m. ET. The latest international trade reading is due at 8:30 a.m. ET, while the ISM services index is set to be released at 10 a.m. ET.

 

RegMed Investors’ (RMi) closing bell: “the cell and gene therapy sector ballooned-up. Will it stay up with a follow-on or collapse on quarter-end rebalancing?” …  https://www.regmedinvestors.com/articles/12634

 

Ebb and flow:

Q4 – 2 positive closes

Q3/22 –

·         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

Maintain BUY and don’t let it dip:

Agenus (AGEN) closed up +$0.12 to $2.21 after Monday’s +$0.04, Friday’s -$0.01 and Thursday’s -$0.14 with a negative -$0.0` or -0.45% pre-open indication,

Solid Biosciences (SLDB) closed up +$0.015 to $0.51 after Monday’s +$0.0284 to $0.495 and Friday’s -$0.0016 with a flat $0.00 pre-open indication after merger/acquisition of AvantiBio and a $75 million Bain financing

 

Sell into Strength:

Fate therapeutics (FATE) closed up +$1.16 to $23.83 after Monday’s +$0.26 with a positive +$0.05 or +0.21% pre-open indication,

Voyager Therapeutics (VYGR) closed up +$0.98 to $6.61 after Monday’s -$0.29 with a positive +$0.20 or +3.03% pre-open indication.

 

Negative Indications:

Beam Therapeutics (BEAM) closed up +$3.71 to $51.60 after Monday’s +$0.25, Friday’s +$0.14, Thursday’s -$3.52 and last Wednesday’s +$2.61 following the previous Tuesday’s +$1.85 with a negative -$1.29 or -2.50% pre-open indication,

CRISPR Therapeutics (CRSP) closed up +$2.57 to $65.67 after Monday’s -$2.25, Friday’s +$0.86, Thursday’s -$2.45 and last Wednesday’s +$3.31 following the previous Tuesday +$2.53 and Monday’s -$2.05 with a negative -$1.29 or -1.96% pre-open indication,

Intellia Therapeutics (NTLA) closed up +$5.05 to $60.88 after Monday’s -$0.13, Friday’s +$0.67, Thursday’s -$3.35 and last Wednesday’s +$2.61, the previous Tuesday’s +$1.83 and Monday’s +$0.28 with a negative -$0.88 or -1.45% pre-open,

Verve Therapeutics (VERV) closed up +$2.31 to $35.72 after Monday’s -$0.94 with a negative -$1.02 or -2.86% pre-open indication,

 

Puff/Pump and Promote: Maintaining SELL

Biostage (OTCQB: BSTG) closed down -$0.39 with 2,300 shares traded after Monday’s -$0.71 with 2,918 shares traded, Friday’s +$0.10 with2,083 shares traded, Thursday closed FLAT with 1,100 shares traded and last Wednesday’s +$1.00 with 1,545 shares traded <3-month average = 2,192 shares>,

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: the cell and gene therapy sector was due for a second (2nd) session bounce; however, with its daily performance … rising on hope … be ready to jump out just as fast before the sector rebound (from Monday and Tuesday) falters.

There is STILL many a concern of sentiment and conviction in the cell and gene therapy sector.

I am sensing some tailwinds after Monday and Tuesday’s headwinds.

Tuesday’s A/D Line (advance/decline) opened at 27/6 and 2 flats as compared to Monday opening of 23 up of 35 (coverage group) however it kept slipping slowly on valuation; closing with a Tuesday A/D line of 30/5 and 0 flats as compared to Monday’s A/D Line of 19/15 and 1 flat.

I still believe the sector is headed into “correction” which means that investors should remain cautious.

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 IDENTIFY the coming “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.