October 11, 2022 7:55am

The Cboe Volatility Index, or VIX, rose 3.5% to 32.45, its third straight gain; still below the 9/28’s intraday high of 38.44

News: AVROBIO (AVRO +$0.06 – pre-open) reported favorable data on the combined use of two state-of-the-art assays to evaluate the genotoxicity risk of integrating vectors used in hematopoietic stem cell (HSC) gene therapy prior to clinical use, at the 29th Annual Congress of the European Society of Gene & Cell Therapy (ESGCT), Oct. 11-14, 2022 in Edinburgh, Scotland.

Indications: 4 Negative Indications, 3 Positive Indications with 1 Pump/Promote (BSTG – the usual suspect)

My interpretation of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today, not tomorrow or yesterday.

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 -0.37% or (-109 points), S&P futures are DOWN -0.49% or (-17 points) and NASDAQ futures are DOWN -0.60% or (-65 points) early in the pre-open – so far,

 

U.S. stock futures fell Tuesday,

European markets are pulling back,

Asia-Pacific markets were mixed.

 

Henry’omics:

Stocks declined on Monday with the Nasdaq falling to the lowest level in two years as tech shares continue to be the hardest hit in this bear market because of spiking interest rates.

Yesterday, the Dow closed DOWN -93.91 points (-0.32%), the S&P closed DOWN -27.27 points (-0.75%) while the Nasdaq closed DOWN -110.30 points (-1.04%)

Investors weighed comments from JPMorgan CEO Jamie Dimon, who warned that the U.S. would likely fall into a recession over the next “six to nine months,” and said the S&P 500 could fall another 20% depending on whether the Federal Reserve engineers a soft or a hard landing for the economy.

  • Those remarks came at the start of a big week for third quarter bank earnings, and ahead of Wednesday’s producer price report, Thursday’s consumer price index report for September and Friday’s retail sales numbers, also for last month.

Economic Data Docket: September's NFIB small business owners survey is likely to paint a recessionary picture of the economy from their perspective. The survey is likely to confirm that fewer of them are raising their selling prices.

 

RegMed Investors’ (RMi) closing bell: “Waiting for Godot” gets replaced by Jerome Powell in the offing.” … https://www.regmedinvestors.com/articles/12643

 

Ebb and flow:

Q4 – 3 positive and 3 negative 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

Negative Indications:

CRISPR Therapeutics (CRSP) closed down -$0.83 to $60.82 after Friday’s -$3.61 with a negative -1.33 or -2.19% pre-open indication,

Ionis Pharmaceuticals (IONS) closed down -$0.83 to $45.10 after Friday’s $0.33 with a negative -$1.00 or -2.22% pre-open indication,

Regenxbio (RGNX) closed down -$0.38 to $21.98 with a negative -$0.58 or -$2.64% pre-open indication,

Intellia Therapeutics (NTLA) closed down -$1.71 to $54.31 after Friday’s -$6.67, Thursday’s +$1.77, Wednesday’s +$0.04 and last Tuesday’s +$5.05 following the previous Monday’s -$0.13 with a negative -$0.28 or -0.52% pre-open indication,

 

Positive Indications:

AVROBIO (AVRO) closed down -$0.03 to $0.63 with a positive +$0.06 or +9.39% pre-open indication -after reporting favorable news <see above in title.

Beam Therapeutics (BEAM) closed down again -$1.08 to $46.67 after Friday’s -$2.84, Thursday’s +$0.39, Wednesday’s -$0.65 and last Tuesday’s +$3.71 with a positive +$2.33 or +4.99% pre-open indication,

Caribou Biosciences (CRBU) closed down -$0.74 to $9.42 with a positive =$0.47 or +4.99% pre-open indication,

 

Puff/Pump and Promote: Maintaining SELL

Biostage (OTCQB: BSTG) closed down -$0.10 with 2,689 shares traded after Friday’s +$0.15 with 10.467 shares traded, Thursday’s $0.15 with 4,500 shares traded, Wednesday’s -$0.45 with 2,705 shares traded and last Tuesday’s -$0.39 with 2,300 shares traded, <3-month average = 2,165 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: “Venimus nos emit et vendidit nos rursus” – “We have bought and sold again". That's why today's a good day for all who owned cell and gene therapy equities to reassess?

Reiterating, “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”!

The sector is what it is, until it isn’t and even then, it doesn’t seem to be…

The RegMed sector suffers the tourist routine … most traders hear a piece of news, contemplate a pumping to buy and a dumping to sell.  These same buyers/sellers can also be very fickle as their purchasing habits are often based on emotion, not sound investment strategies.

In “our’ universe of cell and gene therapy, we are betting on the hope for a cure or a treatment but, we are dependent on the management team to represent our hopes and aspirations. 

Reiterating, “I believe the sector is showing mixed signals, some BUYs more SELLs – yet I also believe we should review the new bottoming of Agenus (AGEN) and Solid Biosciences (SLDB) while DISPOSING of Avrobio (AVRO) who just experiences a de-listing Notice while the management DID NOTHING to AVOID this dilemma!

Amid the ongoing cell and gene therapy sector volatility, “our” universe’s trend remains " in correction." That means that investors are safer on the sidelines.

WHY can’t Applied Genetic Technologies get out from under the “boulder” of share pricing compression – ask Sue Washer, CEO … she has NEVER had the right answers for the past two (2) years, time for a management change as AGTC trades at $0.25 while she pockets almost $800 K a year!!

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

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

If you have gains, you might want to lock-in profit if any …!

The final Q4 is HERE … and then back to earnings season which could be a minefield!

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.