December 2, 2022 4:55pm

I am thankfull for a Friday inclining sector and positive close; however, the RegMed sector suffers the tourist routine … most traders hear a piece of news, contemplate a pumping to buy and a dumping to sell.  These same buyers/sellers can also be very fickle as their purchasing habits are often based on emotion, not sound investment strategies.

Pre-open Indications: 3 Hits and 1 Miss

The Biostage (OTCQB: BSTG) Chronicles: the pump/promote of volume and share pricing (+$0.40)has never left +2,897 shares traded. Hong Yu manages DST capital and president of BSTG - a conflict if he is "managing" share pricing "initiates" with LIU Dong-hai chairman of D. Phone's Beijing-based monies? a question that needs an answer from SEC? 

 

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! 

TGIF - 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 +34.87 points (+0.10%), the S&P close DOWN -4.87 points (-0.12%) while the Nasdaq closed DOWN -20.95 points (-0.18%)

 

Henry’omics:

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

Indexes slid Friday as investors received stronger-than-expected labor data, which worried investors looking for signals that the Fed can soon begin slowing interest rate hikes.

All three indexes set weekly gains, with the Nasdaq posting the largest increase at 2.1%, the S&P gained +1.1% and the Down +0.02% .

Economic Data Docket: Nonfarm payrolls increased 263,000 in November, a bigger gain than the 200,000-increase expected by economists.

  • The unemployment rate held steady at 3.7%. Average hourly earnings also came in above expectations, jumping 0.6% compared with the prior month and 5.1% against the same month a year ago.
  • It was final monthly employment report before the Fed’s two-day meeting Dec. 13-14, in which the central bank is expected to slow to a 50-basis point interest rate hike from the 75 basis point hikes seen in recent months.

 

Friday’s … RegMed Investor’s (RMi) Pre-Open: “jobs report looms as go markets and sector” …  https://www.regmedinvestors.com/articles/12726

 

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

  • Friday’s advance/decline line opened positive at 22 up/ 12 down and 1 flat, stayed positive with 21 up/ 14 down and 0 flat at the mid-day, with a positive close of 29/5 and 1 flat.
  • Thursday’s advance/decline line opened negative at 12 up/ 21 down and 2 flats, stayed negative with 11 up/ 23 down and 1 flat at the mid-day, with a negative close of 8/24 and 3 flats.
  • Wednesday’s advance/decline line opened positive at 24 up/ 9 down and 2 flats, slipped neutral with 16 up/ 16 down and 2 flats at the mid-day, with a positive close of 30/4 and 1 flat.
  • Tuesday’s advance/decline line opened positive at 23 up/ 10 down and 2 flats, stayed positive with 21 up/ 14 down and 0 flat at the mid-day, went neutral at 3 p.m. 17/17 and 0 flat ending with a negative close of 15/17 and 2 flats.
  • 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: 3 Hit <Beam Therapeutics (BEAM +$0.99), Intellia Therapeutics (NTLA +$0.32), CRISPR Therapeutics (CRSP +$0.16)> and 1 Miss < Verve Therapeutics (VERV +$1.43),

 

Key Metrics:

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

  • Friday, the IBB was up +0.93% and the XBI was up +3.09%
  • Thursday, the IBB was up +0.46% and the XBI was down -0.61%
  • Wednesday, the IBB was up +3.22% and the XBI was up +4.55%
  • Tuesday, the IBB was down -0.47% and the XBI was up +0.41%
  • Monday, the IBB was down -0.69% and the XBI was down -1.74%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.73 points or -3.68% at 19.11
  • Thursday was down -0.67 points or -3.26% at 20.19.91
  • Wednesday was down -1.31 points or -5.98% at 20.58
  • Tuesday was down -0.36 points or -1.62% at 21.85
  • Monday was up +1.70 points or +8.29% at 22.20

 

Closing Down (5 or 5):

  • uniQure NV (QURE -$0.26),
  • Avrobio (AVRO -$0.0228),
  • Brainstorm Cell Therapeutics (BCLI -$0.02),
  • Mesoblast (MESO -$0.02),
  • Adverum Biotechnologies (ADVM -$0.0180 after Thursday’s +$0.0081 and Wednesday’s -$0.01),

Flat (1):

  • Cellectis SA (CLLS)

Closing Up (10 of 29):

  • Alnylam Pharmaceuticals (ALNY +$14.15),
  • Sage Therapeutics (SAGE +$2.67),
  • Ultragenyx (RARE +$2.36 after Thursday’s +$1.51),
  • Verve Therapeutics (VERV +$1.43 after Thursday’s -$0.49, Wednesday’s +$1.49 and Tuesday’s -$0.10),
  • Chinook Therapeutics (KDNY +$1.08),
  • Beam Therapeutics (BEAM +$0.99 after Thursday’s -$0.36, Wednesday’s +$2.58 after Tuesday’s +$0.43 and Monday’s -$1.10),
  • bluebird bio (BLUE +$0.99 – waiting for the offering announcement),
  • Prime Therapeutics (PRME +$0.88 after Thursday’s -$0.69, Wednesday’s -$0.14, Tuesday’s -$0.11 and Monday’s -$3.27),
  • Vericel (VCEL +$0.80,
  • Regenxbio (RGNX +$0.72 after Thursday’s -$0.36, Wednesday’s +$1.34, Tuesday’s -$0.13 and Monday’s -$0.08),

 

Q4 – December

  • Friday closed positive with 29 incliner, 5 decliners and 1 flat
  • Thursday (12/1/22) closed negative with 8 incliner, 24 decliners and 3 flats
  • Wednesday (11/30) closed positive with 30 incliner, 4 decliners and 1 flat
  • Tuesday closed negative with 15 incliner, 17 decliners and 2 flats
  • Monday closed negative with 7 incliner, 27 decliners and 1 flat

 

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

There are still reasons to be cautious about the current market. Yesterday, the sector got a punch to the sector’s share pricing’s gut; today the algorithms “ruled” in their…and our favor.

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

Just 20 trading days remain in 2022.

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

Avrobio (AVRO closed down -$0.0228 to $0.87) 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

·         Also, RA Capital has sold its position in the company!

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.