December 5, 2022 8:28am
The problem, tax-selling will cripple the cell and gene therapy sector
Indications: 1 Positive Indication, 1 Sell into Strength and 3 Negative Indications
News: Solid Biosciences (SLDB +$0.05) closed its acquisition of AavantiBio, a privately held gene therapy company The combined company will focus on advancing a portfolio of neuromuscular and cardiac programs, including SGT-003, a differentiated gene transfer candidate, for the treatment of Duchenne, AVB-202, a gene transfer candidate for the treatment of Friedreich’s ataxia, AVB-401 for BAG3 mediated dilated cardiomyopathy, and additional assets for the treatment of undisclosed cardiac diseases. Concurrent with the closing of the merger, SLDB closed the previously announced $75 million private placement with a select group of institutional investors and accredited investors.
A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined, evaluated and reported.
I don’t seek fame, do podcasts or give speeches; what I do is write this blog/newsletter to inform investors with facts and supporting numbers focused on what they need to hear that others won’t say or write about - truth!
8:30 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 DOWN -0.72% or (-248 points), S&P futures are DOWN -0.74% or (-30 point) and NASDAQ futures are DOWN -0.72% or (-86 points) early in the pre-open – so far,
Stock futures are slipping slightly on Monday,
European markets were subdued,
Asia-Pacific markets mostly rose on Monday as China relaxed virus testing rules in some cities
Henry’omics:
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
U.S. stock futures fell Monday as investors awaited more economic data ahead of the Federal Reserve’s December policy meeting later this month.
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.
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%)
Economic Data Docket: November ISM services data at 10 a.m. ET
Friday’s (12/2) … RegMed Investors’ (RMi) closing bell: The sector is what it is until it isn’t and even then, it doesn’t seem to be. I am thankfully 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.” … https://www.regmedinvestors.com/articles/12728
Ebb and flow:
Q4 – December – 1 negative and 1 positive close
· November -1 holiday, 14 negative and 8 positive closes
· October -1 neutral, 11 positive and 9 negative closes
Q3/22 –
· 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
Positive indication:
Solid BioSciences (SLDB) closed up +$0.12 to $6.77 with a positive +$0.05 or +0.74% pre-open indication,
Sell Into Strength:
Beam Therapeutics (BEAM) closed up +$0.99 to $46.82 after Thursday’s -$0.36, Wednesday’s +$2.58, Tuesday’s +$0.43 and last Monday’s -$1.10 with a positive +$0.55 or +1.17% pre-open indication on news <in title>.
Negative Indication:
Verve Therapeutics (VERV) closed up +$1.43 to $24.00 after Thursday’s -0.66, Wednesday’s +$1.49 with a negative -$2.00 or -8.33% pre-open indication.
CRISPR Therapeutics (CRSP) closed up +$0.16 to $54.50 after Thursday’s -$0.45 with a negative -$0.47 or -0.86% pre-open indication
Ultragenyx (RARE) closed up +$2.36 to $40.17 with a negative -$0.37 or -0.92% pre-open indication
The BOTTOM LINE: I try to keep it simple and short!
Indecision of any moves in this sector is wrapped with pessimism as the stock market rally had an impressive week, even though the laggard Nasdaq was the only big index with a strong gain.
Today, the Nasdaq has some distance before reaching its 200-day average, but that will also serve as a big test.
In the very short term, investors may want to be cautious about making new buys. The market and sector face a big technical test with inflation and jobs reports likely to play a key role in how that plays out.
I’d be calculating selling for tax purposes.
Reiterating, “While it's fine putting money to work in the current stock market, keep your exposure on the conservative side with small positions to start. Just because the stock market is in a confirmed uptrend doesn't mean you have to be 100% invested. And don't be afraid to take a 10% gain if you have it, given the choppy nature of the market.” <IBD>
Amid the ongoing cell and gene therapy sector volatility, “our” universe’s trend remains " in a constant correction." That means that … lately we are investors are safer on the sidelines.
Reiterating, “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”.
Insight is about understanding perception and also about putting into context what is relevant to expectation fulfillment
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.
