October 20, 2022 8:09am
It’s a crap shoot of a sector and market; If you do take any positions, make them small and be quick to take profits
Indications: 2 Favorites & BUY Dips, 2 Positive Indications, 5 Negative Indication 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 +0.39% or (+120 points), S&P futures are UP +0.20% or (+7 points) and NASDAQ futures are UP +0.03% or (+3 points) early in the pre-open – so far,
Stock futures rose slightly on Thursday,
European markets were lower,
Asia-Pacific markets traded lower
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.
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%)
Economic Data Docket: the Philadelphia Fed manufacturing survey and the weekly jobless claims data
RegMed Investors’ (RMi) closing bell: “RegMed Investors’ (RMi) closing bell: wipe-out. 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.” … https://www.regmedinvestors.com/articles/12657
Ebb and flow:
Q4 – 1 neutral, 7 positive and 6 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
My Favorites: BUY Dips
Agenus (AGEN) closed down -$0.13 to $2.59 after Tuesday’s +$0.04 after Monday’s +$0.24 with a negative -$0.03 or -1.16% pre-open indication,
Solid Biosciences (SLDB) closed down -$0.0226 to $0.4474 after Tuesday’s +$0.0073, Monday’s +$0.0064 with a positive $0.00 or +0.80% pre-open indication. Sharpen your pencil – new investment and management coming from Bain funds,
Negative Indications;
Brainstorm Cell Therapeutics (BCLI) closed down -$0.25 to $3.46 with a negative -$0.16 or -4.62% pre-open indication,
Ionis Pharmaceuticals (IONS) closed down -$1.73 to $44.47 after Tuesday’s -$0.32, Monday’s +$0.16 and Friday’s +$0.69 with a negative -$0.45 or -1.01% pre-open indication,
Sage Therapeutics (SAGE) closed down -$2.00 to $36.14 with a negative -$0.40 or -1.11% pre-open indication,
Ultragenyx (RARE) closed down -$1.47 to $37.98 after Tuesday’s +$1.15, Monday’s +$1.24, Friday’s -$2.59 and last Thursday’s +$1.18 following the previous Wednesday’s +$1.01, Tuesday’s +$0.27 and Monday’s -$0.74 with a negative -$0.93 or -0.93% pre-open indication.
Vericel (VCEL) closed down -$0.61 to $24.29 with a negative -$1.21 or -4.98% pre-open indication,
Positive Indication:
AxoGen (AXGN) closed down -$0.19 to $11.45 with a positive +$0.57 or +4.98% pre-open indication,
CRISPR Therapeutics (CRSP) closed down -$2.83 to $54.07 after Tuesday’s +$0.57, Monday’s +$2.26 to $56.33 and Friday’s -$3.99 with a positive +0.13 or +0.24% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed down -$0.08 with 2,031 shares traded after Tuesday’s +$0.28 with 1,010 shares traded, Monday’s +$0.92 with 3,006 shares traded, Friday’s -$1.06 with 1,401 shares traded and last Thursday’s +$0.06 with 1,400 shares traded <3-month average = 2,142 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: Reiterating, “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, algorithms, electronic trading and short covering.
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. followed by AxoGen (AXGN) on 11/8 at 8a.m.
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 up +$0.07 with news of Granted ILAP Designation from U.K. MHRA for gene therapy potential treatment for Gaucher Disease after Monday’s +$0.02 to $0.60 which does NOT get close to the $1.00 up-listing amount.
• Will AVRO have to “commission" a stock reverse to address its 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 as again … earnings are coming.
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 traded at $0.245 after Monday’s $0.24 and Friday’s $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 … before earnings season begins!
The final Q4 is HERE … and then back to earnings season which could be a minefield!
Earnings reports may/will cause many of the sector’s t moves in stocks!
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.
