November 15, 2022 5:04pm

Stocks are wavering as inflation cools, time to continue portfolio protection selling

Indication Results: 6 Hits and 3 Miss

It’s an honor to be considered the “canary in the (sector) coal mine”! 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 UP 57.22 points (+0.17%), the S&P closed UP +34.48 points (+0.87%) while the Nasdaq closed UP +162.19 points (+1.45%)

 

Henry’omics:

U.S. stocks stayed up yet, trimmed some gains, after a news report indicated Russian missiles crossed into Poland, a NATO member.

The deceleration in the stock market came after Wall Street rallied on new signs of optimism that inflation may be cooling. October’s producer price index (PPI) declined to 8% annually, down from 8.5% in September, after economists forecasted 8.3%.

  • Annual core PPI also surprised at 6.7% year over year, compared to a consensus estimate of 7.2%. The PPI report comes after other key inflation data came in lower-than-expected last Thursday, with consumer prices rising 0.4% in October and core prices adding 0.3%.

 

Tuesday’s … RegMed Investor’s (RMi) Pre-Open: “Monday’s whiplash leaves share pricing ready to move upward” … https://www.regmedinvestors.com/articles/12700

 

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

  • Tuesday’s advance/decline line opened positive at 30 up/ 3 down and 2 flats, stayed positive with 21 up/ 10 down and 1 flat at the mid-day, ending with a positive close of 21/14 and 0 flat.
  • Monday’s advance/decline line opened negative at 18 up/ 7 down and 1o flat, stayed negative with 12 up/ 23 down and 0 flat at the mid-day, ending with a negative close of 13/21 and 1 flat.

 

Pre-open Indications: 6 Hit < Biostage (OTCQB: BSTG -$0.60), BioLife Solutions (BLFS +$1.38), CRISPR Therapeutics (CRSP +$1.23), Chinook Therapeutics (KDNY -$0.36) Ultragenyx Pharmaceuticals (RARE +$0.21), Vericel (VCEL +$0.19)> 3 Miss < AxoGen (AXGN -$0.08), Caribou Biosciences (CRBU -$0.17), Intellia Therapeutics (NTLA -$0.38), >

 

Key Metrics:

  • Tuesday - Sector volume was HIGHER with 10 of the 21-upside having higher than the 3-month average volume with LOW volume of 3 of 14-downside having higher than the 3-month average volume
  • Monday - Sector volume was MODERATE with 5 of the 13-upside having higher than the 3-month average volume with HIGHER volume of 10 of 21-downside having higher than the 3-month average volume

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

  • Tuesday, the IBB was up +0.32% and the XBI was down -0.26%
  • Monday, the IBB was up +0.32% and the XBI was down -0.84%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.53 points or +2.23% at 24.46
  • Monday was up +1.12. points or +4.97% at 23.64

 

Jumping with share pricing momentum (10 of 21):

  • BioLife Solutions (BLFS +$1.38 after Monday’s -$1.85),
  • CRISPR Therapeutics (CRSP +$1.23),
  • Alnylam Pharmaceuticals (ALNY +$0.81 after Monday -$2.89),
  • Prime Therapeutics (PRME +$0.59 after Monday’s -$1.51)
  • Agenus (AGEN +$0.24 after Monday’s +$0.42),
  • Ultragenyx (RARE +$0.21 after Monday’s -$1.30),
  • MiMedx (MDXG +$0.20),
  • Vericel (VCEL +$0.19 after Monday’s -$0.71),
  • Homology Medicine (FIXX +$0.17 after Monday’s +$0.10),
  • Mesoblast (MESO +$0.14),

Closing down (10 of 14):

  • Sage Therapeutics (SAGE -$0.71 after Monday’s +$0.35),
  • Biostage (OTCQB: BSTG -$0.60 after Monday’s +$0.71),
  • Beam Therapeutics (BEAM -$0.56 after Monday’s -$1.19),
  • Ionis Pharmaceuticals (IONS -$0.52 after Monday’s +$0.79),
  • Regenxbio (RGNX -$0.39),
  • Intellia Therapeutics (NTLA -$0.38 after Monday’s -$1.65),
  • Chinook Therapeutics (KDNY -$0.36 after Monday’s +$0.24),
  • Verve Therapeutics (VERV -$0.29 after Monday’s -$0.65),
  • Caribou Biosciences (CRBU -$0.17),
  • AxoGen (AXGN -$0.08 after Monday’s -$0.76),

 

Q4 – November

  • Tuesday closed positive with 21 incliner, 14 decliners and 0 flat
  • Monday closed negative with 13 incliner, 21 decliners and 1 flat

 

The BOTTOM LINE: The wind blows where it will … as algorithms are BACK …driving the sector …  today (Tuesday’s positive close), Monday’s (negative close).

I try to keep it simple … and short!

I keep repeating a “mantra” for effect, “Kenny Storch at BTIG, states there are 226 public biotech companies trading below cash currently. With 1 out of 5 in the Nasdaq Biotech Index trading below cash.” <I have also been stating the same theme!>

CEO salaries, spending the G&A are totally OUT-OF-WHACK; these are companies are in the development stage and will be for years without products in most cases not like the tech companies, whose CEOs and management teams think they should be compared to for bi-weekly cash and “beanies”!

If you have gains, you might want to lock-in profit if any … before earnings season begins!

Avrobio (AVRO) lives 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 barely down -$0.03 after Monday’s -$0.03 which STILL does NOT get close to the $1.00 to continue its Nasdaq listing after a delisting notice.

·         AVRO’s 56th session of under $1.00,

·         Will AVRO have to “commission" an offering to relieve the delisting?

Avrobio (AVRO) files S-3 (Registration Statement) for offering with draft prospectus by Cowen … https://investors.avrobio.com/node/9116/html

•             A SCREW-JOB for early and present investors ...

Isn’t this Verastem Oncology’s (VSTM closed barely up =$0.0072 to $0.40 after Monday’s -$0.02 after Friday’s +$0.01 …

Isn’t it VSTM’s 38th session of being UNDER $1.00 heading for de-listing under Nasdaq.

As I continually question, “The real question that should be asked is how many companies are at the end of sentiments …  leash? 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.