October 24, 2022 7:58am
Syncona (SYNC) to acquire Applied Genetic Technologies Corporation (AGTC) https://www.regmedinvestors.com/articles/12663
Indications: 2 BUY Dips, 4 Negative Indication, 1 positive Indication, 1 Sell into Strength 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 +0.77% or (+2237 points), S&P futures are UP +0.73% or (+27 points) and NASDAQ futures are UP +0.53% or (+60 points) early in the pre-open – so far,
U.S. stock futures are rising albeit slowly on Monday morning,
European markets opened higher,
Asia Pacific markets were mixed while Hong Kong stocks and mainland China markets fell sharply.
Indexes rose on Friday after a report said the Fed will likely debate on signaling plans for a smaller interest rate hike in December, although declines capped gains on the Nasdaq.
· The Dow closed UP + 748.97 points (+2.47%), the S&P closed UP +86.97 points (+2.37%) while the Nasdaq closed UP +244.87 points (+2.31%)
The major indexes were higher from last Monday's open through Friday, and remained comfortably positive throughout the week even when Treasury yields kept rising.
A right-on quote, “The equities market is trying to form a bottom to get to the last leg of the bear market,” said David Donabedian, chief investment officer of CIBC Private Wealth US, in a Friday note. “It feels like a two-way market right now. We have a tug of war going on between the skeptics and those who think it is time to own equities.” <CNBC>
Economic Data Docket: October manufacturing and services purchasing managers indexes
Friday’s … RegMed Investors’ (RMi) closing bell: “no ladders needed; the tide went out and today came back in. Could it be the Fed might consider less aggressive inflation-curbing tactics after November as the rumor abounded possibly helping the market and sector re daily expectation.” … https://www.regmedinvestors.com/articles/12662
Ebb and flow:
Q4 – 1 neutral, 8 positive and 6 negative closes
· 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 up +$0.10 to $2.64 after Thursday’s -$0.05, Wednesday’s-$0.13, Tuesday’s +$0.04 and last Monday’s +$0.24 with a neutral $0.00 pre-open indication,
Solid Biosciences (SLDB) closed down -$0.0027 to $0.447 after Thursday’s $0.0026, Wednesday’s -$0.0226, Tuesday’s +$0.0073 and last Monday’s +$0.0064 with a positive $0.01 or +1.65% pre-open indication. Sharpen your pencil – new investment and management coming from Bain funds,
Avrobio (AVRO) closed down -$0.0066 to $0.65 with a negative -$0.01 or -1.77% pre-open indication. The 40th session of being under Nasdaq’s $1.00 listing requirement.
Beam Therapeutics (BEAM) closed up +$1.11 to $44.96 after Thursday’s -$1.00, Wednesday’s -$3.20 after Tuesday’s -$0.12 and last Monday’s +$2.70 with a negative -$1.96 or -4.36% pre-open indication.
CRISP Therapeutics (CRSP) closed down -$0.45 to $50.84 after Thursday’s -$2.78, Wednesday’s +$2.83, Tuesday’s +$0.57 and last Monday’s +$2.26 with a negative -$0.04 or -0.08% pre-open indication,
Prime Medicine (PRME) closed up =$0.39 to $15.76 after an IPO with a negative -$0.13 or -0.82% as the flippers could be selling.
Ionis Pharmaceuticals (IONS) closed up again +$0.12 to $44.95 after Thursday’s +$0.36, Wednesday’s -$1.73, Tuesday’s -$0.32 and last Monday’s +$0.16 with a positive +$0.55 or +1.22% pre-open indication,
Sell Into Strength:
Intellia therapeutics (NTLA) +$0.83 to $50.22 after -$3.31, Wednesday’s -$2.41, Tuesday +$0.54 after Monday’s +$2.20 with a positive +$0.30 or +0.60% pre-open indication,
Puff/Pump and Promote: Maintaining SELL
Biostage (OTCQB: BSTG) closed up +$0.23 with 1,082 shares traded after Thursday’s -$0.08 with 2,031 shares traded <3-month average = 2,190 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: WHAT CHANGES … volatility added to investor risk after Thursday’s option expirations pushing Nasdaq volume higher at the close.
Reiterating, “Set aside volatility and there still aren't good reasons to be invested now; companies are saving ANY news for the earnings season.”
Sign of the times for a few gene therapy companies (?) … Syncona (SYNC) to acquire Applied Genetic Technologies Corporation (AGTC).
· Applied Genetic Technologies (AGTC) just couldn’t get out from under the “boulder” of share pricing compression. Sue Washer, CEO NEVER had the right answers for the past two (2) years and it was FINALLY recognized by the BOD. I wrote it was a “more than a shame” as to the acquisition – I really felt (an opinion) it was “criminal” for Washer while pocketing almost $800 K … a year a real question to other shareholders?
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.
The final Q4 is HERE … and then back to earnings season which could be a minefield:
· 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.
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 of 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 +$0.0065 on Thursday after Wednesday’s -$0.0032 after Tuesday ‘s +$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.
· Where is the upside coming from to “solve” the de-listing “position” on Nasdaq?
· 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.
“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!
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.
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.