December 7, 2022 8:04am
A weak aftermarket; will algorithms influence advances to an improved cell and gene therapy sector condition?
Indications: 2 Positive Indication and 2 Negative Indication
News: AVROBIO (AVRO +$0.05 pre-open) announced new interim pharmacokinetic, pharmacodynamic and clinical efficacy data, showing stabilization or reversal of multiple clinically relevant measures in five patients with Gaucher disease after they received a single dose of AVR-RD-02, an investigational hematopoietic stem cell (HSC) gene therapy. In addition, following positive discussions with regulators, AVROBIO plans to initiate a global, registrational P2/3 clinical trial in Gaucher disease type 3 (GD3) in the 2H/23. Still has a filed follow-on offering on tap!
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 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!
8:00 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 -0.46% or (-154 points), S&P futures are DOWN -0.71% or (-28 point) and NASDAQ futures are DOWN -1.11% or (-128 points) early in the pre-open – so far,
Stock futures slid Wednesday,
European markets retreat as global sentiment wavers on recession fears,
Asia Pacific markets declined with China leading losses.
Henry’omics:
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes tumbled Tuesday, building on the previous session’s losses as fears of even higher rates stoked fears of a recession.
- Tuesdaay, the Dow closed DOWN -350.76 points (-1.03%), the S&P close DOWN -57.58 points (-1.44%) while the Nasdaq closed DOWN -225.05 points (-2%)
On target quote, “Investors couldn’t decide which they were more worried about: an impending recession, as implied by November declines for the ISM, Chicago PMI and Philly Fed, as well as housing data, or the threat of a more hawkish-leaning FOMC, as a result of stronger than expected employment data and factory orders,” said Sam Stovall, chief investment strategist at CFRA Research. “Stocks sold off across the board, as investors decided to take the profits generated by the last two monthly price gains, the first since August 2021.” <CNBC>
Economic Data Docket: Mortgage Bankers Association will release its weekly report of mortgage loan applications.
Tuesday’s (12/6) … RegMed Investors’ (RMi) closing bell: “sentiment remains in the toilet, eroding daily and dependent on electronic trading crushing individual investors. The beatdown comes as “believability” and length of small patent (recruitment) testing population, therapeutic and gene editing outcomes are at a low point while some managements fiddle as sector burns.” … https://www.regmedinvestors.com/articles/12732
Ebb and flow:
Q4 – December – 3 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:
Verve Therapeutics (VERV) closed down -$0.35 to $21.07 with a positive +$1.06 or +5.03% pre-open indication,
Solid Biosciences (SLDB) closed down -$0.15 to $6.31 after Monday’s 0.31 and Friday’s +$0.12 with a positive +$0.41 or +6.50% pre-open indication,
Negative Indication:
Beam Therapeutics (BEAM) closed down again -$1.19 to $43.18 after Monday’s -$2.45, Friday’s +$0.99, Thursday’s -$0.36 and last Wednesday’s +$2.58 with a negative -$0.68 or -1.57% pre-open indication.
Sage Therapeutics (SAGE) closed down again -$1.91 to $41.61 after Monday’s -$0.09 with a negative -$1.25 or -3% pre-open indication.
The BOTTOM LINE: I try to keep it simple and short!
Do less, it’s better to watch than act today …
Indecision of any moves in this sector is STILL wrapped with pessimism in a less than impressive week to date.
In the very short term until December 31, 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?
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.
