October 19, 2022 5:39pm

As I saw the sector share pricing dive forthcoming

Getting out of deep water is going to need more then electronic trading and algorithms while sentiment sinks even deeper

Pre-open indications: 6 Hits and 4 Miss

It’s an honor to be considered the “canary in the (sector) coal mine”!  I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors in the perception of sector vulnerabilities and strengths …

It’s more than opinion, the facts and truth need to be recognized! Why do I keep writing this blog/newsletter; to inform investors, what others won’t say or write

If I have learned one thing as a former research analyst in a venture and public fund now a journalist; it is that your life and your bank account are largely tied to your knowledge of price movements and questioning pricing targets.

 

The Dow closed DOWN -99.99 points (-0.33%), the S&P closed DOWN -24.82 points (-0.67%) while the Nasdaq closed DOWN -91.89 points (-0.85%)

 

Henry’omics:

Indexes moved lower on Wednesday having struggled to extend its rally amid a sharp rise in Treasury yields.

The losses ended a two-day winning streak, though all three averages are still up for the week.

Biotech stocks have been some of the worst performing stocks on Wednesday, as rising yields put pressure on stocks whose profits are expected to be far off in the future. Shares of Moderna (MRNA) fell more than 8%, while Biogen (BIIB) and Illumina (ILMN) each lost more than 2%. Even Novavax (NVNX), which received CDC approval on Wednesday for its Covid 19 shot to be used as a booster regardless of prior vaccines received, fell more than 3%. More established health care stocks were also under pressure, with Amgen and Merck among the worst performers in the Dow. <Jesse Pound, CNBC>

I got my third booster – PFE today along with a flu shot (last week).

Economic Data Docket: The impact of higher rates is being shown sharply in the housing market, where housing starts fell faster than expected in September. <Census Bureau>

 

RegMed Investor’s (RMi) Pre-Open: “I’d be letting the upsiders run and then fast walk share pricing profits. Coming correction, infection and sentiment disaffection as earnings LPS (loss-per-share) season is about to begin.” …  https://www.regmedinvestors.com/articles/12656

 

All-time lows: Verastem (VSTM) at $0.34

 

RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …

  • Wednesday’s advance/decline line opened negative at 4 up/ 29 down and 2 flats, stayed positive with 3 up/ 31 down and 1 flat at the mid-day, ending with a negative close of 1/34 and 0 flat.

 

Pre-open Indications: 6 Hit < Biostage (OTCQB: BSTG -$0.08), Ionis Pharmaceuticals (IONS -$1.73), Intellia Therapeutics (NTLA -$2.41), CRISPR Therapeutics (CRSP -$2.83), Fate Therapeutics (FATE +$1.96), Verve Therapeutics (VERV -$2.05)> 4 Miss < Agenus (AGEN -$0.13), Solid Biosciences (SLDB -$0.02), Alnylam Pharmaceuticals (ALNY-$2.05), Ultragenyx (RARE -$1.47)>   

 

Key Metrics:

  • Wednesday - Sector volume was LOW with 0 of the 1-upside having higher than the 3-month average volume with LOW volume of 13 of 34-downside having higher than the 3-month average volume

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB was down -3.41% and the XBI was down -4.90%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.26 points or +0.85% at 30.76

 

 

Jumping with share pricing momentum (1 of 1):

  • Homology Medicine (FIXX +$0.07)

Closing down (10 of 34):

  • Beam Therapeutics (BEAM -$3.20 after Tuesday’s -$0.12 and Monday’s +$2.70),
  • CRISP Therapeutics (CRSP +$2.83 after Tuesday’s +$0.57 and Monday’s +$2.26),
  •  Intellia Therapeutics (NTLA -$2.41 after Tuesday +$0.54 after Monday’s +$2.20),
  • Alnylam Pharmaceuticals (ALNY -$2.05 after Tuesday’s -$1.04 and Monday’s +$9.56),
  • Verve Therapeutics (VERV -$2.05 after Tuesday’s +$ 0.60 and Monday’s +$1.80),
  • Sage Therapeutics (SAGE -$2.00),
  • Fate Therapeutics (FATE -$1.96 after Tuesday’s +$0.56),
  • BioLife Solutions (BLFS -$1.88 after Tuesday’s -$1.10 and Monday’s +$1.11),
  • Ionis Pharmaceuticals (IONS -$1.73 after Tuesday’s -$0.32),
  • Ultragenyx (RARE -$1.47 after Tuesday’s +$1.15 and Monday’s +$1.24),

 

Q4 - October

  • Wednesday closed negative with 1 incliner, 34 decliners and 1 flat
  • Tuesday closed positive with 21 incliner, 13 decliners and 1 flat
  • Monday closed positive with 33 incliner, 2 decliners and 1 flat

 

The BOTTOM LINE: Wipe out … repeating, cell and gene therapy as part of the biotech stock universe has been some of the worst performing stocks on Wednesday,

 I try to keep it simple … and short!

We will be seeing what October brings – Q3 earnings LPS (loss-per-share) season and a whole lot of economic indicators.

Alnylam Pharmaceuticals (ALNY) is the first to declare is Q3 earnings report on Thursday, 10/27 at 8:30 a.m. MiMedx (MDXG) comes in second on 11/2 at 5 p.m.

Remember, historically October has NEVER been a good month for equities.

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 -$0.0322 to $0.65 after Tuesday +$0.07 after ILAP designation from the UK news after Monday’s +$0.02 to $0.60 which STILL does NOT get close to the $1.00 to continue its Nasdaq listing after a delisting notice.

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

Applied Genetic Technologies (AGTC) closed down -$0.0080 after Tuesday’s BARELY up of +$0.0022 and is 17 sessions into getting delisted (under $1.00)

October has 1 neutral, 7 positive and 6 negative closes;

As I continually question, “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!” 

I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”.

 

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.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.

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.