November 28, 2022 4:49pm

When a cell and gene therapy sector equity sells-off to or below a buy point, investors face a tough decision: hold tight, exit or trim the position. There's not necessarily a "right" answer. Sometimes the stock will bounce right back, others will keep falling — perhaps after briefly bouncing. A more-cautious approach may make more sense in the current volatile market.

Pre-open Indications: 4 Hit and 2 Miss

If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the extenuating factors of share pricing.

Why do I keep writing this blog/newsletter; to inform investors, what others won’t say or write

Your portfolio should be profiting from RMi’s analysis; subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  

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 -497.57 points (-1.45%), the S&P close DOWN -62.18 points (-1.54%) while the Nasdaq closed DOWN -176.86 points (-1.58%)

 

Henry’omics:

We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes fell Monday as social unrest from China’s prolonged Covid restrictions weighed on markets and pushed down oil prices.

“Over the weekend, demonstrations broke out in mainland China as people vented their frustrations with Beijing’s zero-Covid policy. Local governments tightened Covid controls as cases surged, even though earlier this month Beijing adjusted some policies that suggested the world’s second-biggest economy was on its way to reopening.” <CNBC>

 

Monday’s … RegMed Investor’s (RMi) Pre-Open: “Ending November this week (Wednesday). Growing unrest in China over Covid restrictions sent a shiver through global markets. A deluge of economic releases in the week ahead as investors head into the final month of 2022 and brace for the Fed’s last interest rate hike of the year.” … https://www.regmedinvestors.com/articles/12717

 

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

  • Monday’s advance/decline line opened negative at 12 up/ 21 down and 2 flats, stayed negative with 14 up/ 21 down and 0 flat at the mid-day, ending with a negative close of 7/27 and 1 flat.

 

Pre-open indication results: 4 Hit <Beam Therapeutics (BEAM -$1.10), Caribou Biosciences (CRBU -$0.21), CRISPR Therapeutics (CRSP -$1.65), Ultragenyx (RARE -$0.32)> and 2 Miss < Verve Therapeutics (VERV -$0.46), uniQure NV (QURE +$0.42)>

 

Key Metrics:

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

  • Monday, the IBB was down -0.69% and the XBI was down -1.74%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +1.70 points or +8.29% at 22.20

 

Closing Down (10 or 27):

  • Alnylam Pharmaceuticals (ALNY -$3.52 after Friday’s +$4.23),
  • Prime Therapeutics (PRME -$3.27 after Friday’s +$1.02),
  • Crisper Therapeutics (CRSP   -$1.65),
  • Intellia Therapeutics (NTLA -$1.42 after Friday’s -$0.21),
  • Ionis Pharmaceuticals (IONS -$1.23 after Friday’s +$0.31),
  • Beam Therapeutics (BEAM -$1.10 after Friday’s -$1.42),
  • AxoGen (AXGN -$0.78 after Friday’s +$0.25),
  • BioLife Solutions (BLFS -$0.57 after Friday’s -$0.34),
  • Fate Therapeutics (FATE -$0.57 after Friday’s +$0.18),
  • Vericel (VCEL -$0.46 after Friday’s +$0.03),

Closing Up (7 of 7):

  • uniQure NV (QURE +$0.42 after Friday’s +$0.54),
  • Chinook Therapeutics (KDNY +$0.27 after Friday’s -$1.50),
  • Sage Therapeutics (SAGE +$0.13 after Friday’s +$0.34),
  • Regenxbio (RGNX +$0.08 after Friday’s +$0.05),
  • Voyager Therapeutics (VYGR +$0.06 after Friday’s -$0.15),
  • Bellicum Pharmaceuticals (BLCM +$0.03),
  • Verastem (VSTM +$0.0051),

 

Q4 – November

  • Monday closed negative with 7 incliner, 27 decliners and 1 flat
  • Friday closed negative with 14 incliner, 21 decliners and 0 flat

 

The BOTTOM LINE: I try to keep it simple … and short!

Investors should be playing this market, but not for all the marbles.

Just 24 trading days remain in 2022.

There are still reasons to be cautious about the current market.

At any given time, not many stocks are flashing buy signals, while shakeouts and sector rotations can make holding onto positions difficult.

Avrobio (AVRO -$0.0259) filed a S-3 for $250 million common stock, preferred stock, debt securities, warrants and unit offering within draft prospectus by Cowen as stock sinks while delisting continues? Just another “screw-job” of investors! < Read, SELL and Weep - see hyperlink below> Avrobio (AVRO) files S-3 (Registration Statement) for offering with draft prospectus by Cowen … https://investors.avrobio.com/node/9116/html

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

 

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.