October 13, 2022 8:35am
Will CPI report (+0.4%)change the upside direction or spiral downward?
News: Editas Medicine (EDIT +$0.10 pre-open) announced ex vivo and in vivo pre-clinical data supporting its experimental medicine EDIT-103 for the treatment of rhodopsin-associated autosomal dominant retinitis pigmentosa (RHO-adRP).
Indications: I am abstaining from indication direction, too many factors; although I still include 1 Pump/Promote (BSTG – the usual suspect)
My daily prognostication 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!
8:45 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 -1.08% or (-319 points), S&P futures are DOWN -1.49% or (-53 points) and NASDAQ futures are DOWN -2.57% or (-276 points) early in the pre-open – so far,
Stock futures rose Thursday as investors look ahead to inflation data,
European markets were mixed,
Asia-Pacific markets fall ahead of U.S. inflation data.
Henry’omics:
Indexes closed lower Wednesday …
The Dow closed DOWN -28.34 points (-0.10%), the S&P closed DOWN -11.81 points (-0.33%) while the Nasdaq closed DOWN -9.09 points (-0.09%)
Traders took a comment in the central bank’s September meeting minutes as a sign that the Fed may back off rate hikes in the event of more market turbulence, lifting stocks further. <CNBC>
Economic Data Docket: the consumer price index report
- A Dow Jones’ consensus estimate (excluding food and energy) shows the CPI rose 0.4% in September, up from 0.6% in August. That would bring inflation’s annual pace to 6.6% from 6.3%. Weekly jobless claims data will also be released Thursday morning.
RegMed Investors’ (RMi) closing bell: “cell and gene therapy sector share pricing rides the roller-coaster. With a rebound from the open’s 25 down to closing positive with 19 ascending of 35 covered.” … https://www.regmedinvestors.com/articles/12647
Ebb and flow:
Q4 – 1 neutral, 4 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
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.10 with 5,591 shares traded after Tuesday’s -$0.10 with 2,689 shares traded, Friday’s +$0.15 with 10.467 shares traded, Thursday’s $0.15 with 4,500 shares traded, and last Wednesday’s -$0.45 with 2,705 shares traded <3-month average = 2,207 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 potential for volatility is only heightened as the major indices (^DJI, ^IXIC, ^GSPC) are precariously perched at or near the lowest levels in two years. Throw in chaotic, illiquid bond and currency markets, and investors have their work cut out for them today.” <Yahoo Finance>
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… as NOT much changes as the sector’s share pricing rides the waves of volatility.
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.
