October 17, 2022 8:02am

The market shows signs of strength yet, the sector “seems” weak

Indications: 2 Positive Indications, 1 Negative Indications and 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!

8:00 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 +1% or (+294 points), S&P futures are UP +1.20 % or (43 points) and NASDAQ futures are UP +1.37% or (+137 points) early in the pre-open – so far,

 

Stock futures rose Monday as investors,

European markets were higher

Asia-Pacific markets were mixed

 

Henry’omics:

Friday, capped-off a volatile week of trading …

The main indexes had a wild week, with the major indexes breaking to bear market lows before rebounding powerfully on Thursday despite a hot inflation report. Stocks resumed selling Friday as Treasury yields powered higher. <IBD>

The Dow fell 403.89 points, or 1.34%, the index was up 1.15% on the week. The S&P 500 shed 86.84 points or 2.37% notching its seventh (7th) negative close in eight (8) sessions falling -1.55% for the week. The Nasdaq slipped 327.76 points or -3.08% and -3.11% for the week.

 

RegMed Investors’ (RMi) closing bell: “risk and sentiment have broken through cell and gene therapy equities. Too many risks to liquidity and equity movements that are NOT dependent on investors.” …  https://www.regmedinvestors.com/articles/12651

 

Ebb and flow:

Q4 – 1 neutral, 5 positive and 5 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;

Ionis Pharmaceuticals (IONS) closed up +$0.69 to $46.36 with a negative -$0.36 or -0.78% pre-open indication,

 

Positive Indication:

Intellia Therapeutics (NTLA) closed down -$2.74 to $52.37 with a positive +1.40 or +2.67% pre-open indication,

Fate Therapeutics (FATE) closed down -$1.09 to $20.36 with a positive +$0.17 or +0.83 pre-open indication,

CRISPR Therapeutics (CRSP) closed down -$3.99 to $54.07 with a positive +#1.57 or +2.90% pre-open indication,

 

Puff/Pump and Promote: Maintaining SELL

Biostage (OTCQB: BSTG) closed down -$1.06 with 1,401 shares traded after Thursday’s +$0.06 with 1,400 shares traded, Wednesday’s +$0.05 with 2,100 shares traded, Tuesday’s -$0.10 with 5,600 shares traded and last Monday’s -$0.10 with 2,700 shares traded, <3-month average = 2,263 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: It is difficult to predict where the cell and gene therapy sector is headed in the short run.

Reiterating, “I try to keep it simple … and short …

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 BUY Agenus (AGEN) and Solid Biosciences (SLDB).

DISPOSE Avrobio (AVRO) who experiences news and the stock drops after a de-listing notice while the management DID NOTHING to AVOID this dilemma while president, CEO and director Geoff Mackay carries home a HUGE salary of $754.39 K per year?

•             AVRO closed down -$0.0149 Tuesday’s -$0.02 on Wednesday, Thursday’s $0.60 (-$0.00) and Friday’s -$0.0151 to $0.58 which does NOT get close to the $1.00 delisting amount.

•             Will AVRO have to “commission" a stock reverse to address delisting?

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.