November 18, 2022 4:52pm
Who is feeding your portfolio profits - electronic trading and algorithms; unfortunately, investors crave more certainty
Indication Results: 2 Hits and 2 Miss
News: On 11/4/22, Verastem received a deficiency letter from Nasdaq notifying that, for the last 30 consecutive business days, the bid price had closed below the $1.00 per share minimum bid price requirement for continued inclusion on the Nasdaq. 8-K filed to SEC, NO PR notice to stockholders after 11 session’s – wonder WHY, Erin Cox – IR and Commo director, a listing status cover-up?
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! Ask yourself, do you know why you own certain equity? What’s been communicated re a company’s status at any given time to shareholders other than quarterly reports or a once-upon-a-time press release!
Why do I keep writing this blog/newsletter; to inform investors, what others won’t say or write - NOT bought by anyone or any entity!
The week in review
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 +199.37 points (+0.59%), the S&P closed UP +18.78 points (+0.48%) while the Nasdaq closed UP +1.11 points (+0.01%)
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes flipped in the daily session closing positive … after wavering over the flat line for much of the day.
All of the major averages are on pace for down weeks — the Dow and S&P sit less than 1% below the flat line, while the Nasdaq is lower by 1.8%.
All three indexes are positive for the month.
A quote to ruminate about, “Markets aren’t paying adequate attention to the potential of a profits recession in the months ahead.” <Richard Bernstein, chief executive officer and chief investment officer at Richard Bernstein Advisors>
Note of the title: “rulered” – one of my words from the nuns (Sisters of Saint Joseph) until eight (8TH) grade who snapped your knuckles when not writing the palmer pen method as well as not completing a properly grammar sentences.
Friday’s … RegMed Investor’s (RMi) Pre-Open: “a tick or retreat Friday? Framing the main takeaway … pricing, volume as machine trading creates more volatility and less liquidity! So, I say skim if you can trim, buy if it will fly and sell if compelled!” … https://www.regmedinvestors.com/articles/12707
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened
- Friday’s advance/decline line opened positive with 22 up/ 11 down and 2 flats, flipped neutral with 17 up/ 17 down and 1 flat at the mid-day, ending with a positive close of 19/14 and 2 flats.
- Thursday’s advance/decline line opened negative at 5 up/ 29 down and 1 flat, stayed negative with 6 up/ 28 down and 1 flat at the mid-day, ending with a negative close of 9/24 and 2 flats.
- Wednesday’s advance/decline line opened negative at 8 up/ 26 down and 1 flat, stayed negative with 6 up/ 28 down and 1 flat at the mid-day, ending with a negative close of 5/29 and 1 flat.
- 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 10 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: 2 Hit < Prime Medicine (PRME -$0.40), Biostage (OTCQB: BSTG $0.00)> 2 Miss < Avrobio (AVRO +$0.0045), Beam Therapeutics (BEAM -$0.46) >
- Friday - Sector volume was LOW with 4 of the 19-upside having higher than the 3-month average volume with LOW volume of 1 of 14-downside having higher than the 3-month average volume
- Thursday - Sector volume was HIGH with 5 of the 9-upside having higher than the 3-month average volume with LOW volume of 8 of 24-downside having higher than the 3-month average volume
- Wednesday - Sector volume was HIGH with 3 of the 5-upside having higher than the 3-month average volume with LOW volume of 5 of 29-downside having higher than the 3-month average volume
- 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:
- Friday, the IBB was up +0.35% and the XBI was up +0.68%
- Thursday, the IBB was down – 0.69% and the XBI was down -1.17%
- Wednesday, the IBB was down – 0.67% and the XBI was down -2.81%
- 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:
- Friday was down -0.82 points or -3.43% at 23.11
- Thursday was down -0.19 points or -0.78% at 23.92
- Wednesday was down -0.40 points or -1.63% at 24.14
- 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 19):
- Alnylam Pharmaceuticals (ALNY +$8.24 after Thursday’s -$2.87, Wednesday’s -$2.30, Tuesday’s +$0.81 and Monday -$2.89),
- Sage Therapeutics (SAGE +$0.93),
- Ultragenyx (RARE +$0.87),
- Regenxbio (RGNX +$0.38),
- Voyager Therapeutics (VYGR +$0.31),
- Vericel (VCEL +$0.22 after Thursday’s -$1.35, Wednesday’s -$0.86, Tuesday’s +$0.19 and Monday’s -$0.71),
- Solid Biosciences (SLDB +$0.21),
- AxoGen (AXGN +$0.21),
- Verve Therapeutics (VERV +$0.14 after Thursday’s -$1.52, Wednesday’s -$1.27, Tuesday’s -$0.29 and Monday’s -$0.65),
- Precigen (PGEN +$0.11 after Thursday’s +$0.02),
Closing down (14 of 14):
- Fate Therapeutics (FATE -$0.24 after Thursday’s -$0.50 and Wednesday’s -$1.67),
- Prime Therapeutics (PRME -$0.40 after Thursday’s +$1.58, Wednesday’s -$1.98, Tuesday’s +$0.59 and Monday’s -$1.51)
- Beam Therapeutics (BEAM -$0.46 after Thursday’s -$0.45, Wednesday’s -$1.39, Tuesday’s -$0.56 and Monday’s -$1.19),
- Intellia Therapeutics (NTLA -$0.21 after Thursday’s -$1.55, Wednesday’s -$2.38, Tuesday’s -$0.38 and Monday’s -$1.65),
- Agenus (AGEN -$0.11),
- Homology Medicine (FIXX -$0.10),
- MiMedx (MDXG -$0.08),
- uniQure NV (QURE -$0.07 after Thursday’s +$0.57),
- Editas Medicine (EDIT -$0.06 after Thursday’s -$1.24),
- Compass Therapeutics (CMPX -$0.06),
- BioLife Solutions (BLFS -$0.05 after Thursday’s -$1.43, Wednesday’s -$1.92, Tuesday’s +$1.38 and Monday’s -$1.85),
- bluebird bio (BLUE -$0.04),
- Brainstorm Cell Therapeutics (BCLI -$0.01),
- Sangamo Therapeutics (SGMO -$0.01),
- Biostage (OTCQB: BSTG)
- Caribou Biosciences (CRBU)
Q4 – November
- Friday closed positive with 19 incliner, 14 decliners and 2 flat
- Thursday closed negative with 9 incliner, 24 decliners and 2 flats
- Wednesday closed negative with 5 incliner, 29 decliners and 1 flat
- 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: I try to keep it simple … and short!
The Strange Case of Dr. Jekyll and Mr. Hyde might make for a great read, but it’s far less fun when the sector act like it’s their blueprint. Stocks have lately been alternating between the horrific and the benign.
The week is over with four (4) negative and one (1) positive closes.
Reiterating, “It has been difficult to predict where the cell and gene therapy sector is headed in the short run.”
Key word, uncertainty …
Today resounds with sentiment issues and an extremely risk adverse investor psychology
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 …!
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 up +$0.0045 after Thursday’s +$0.04 after Wednesday’s +$0.0016, Tuesday’s -$0.03 and 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 59th 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 =$0.0058 after Thursday’s +$0.0012, Wednesday’s -$0.0186, Tuesday’s +$0.0072 and Monday’s -$0.02 after last Friday’s +$0.01 …
Isn’t it VSTM’s 41th 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.