December 19, 2022 4:53pm
Declining sector equities (30) outnumbered advancers (4) with gene editors taking the downdraft the hardest as recession fears mount
The Biostage (OTCQB: BSTG) closed flat with 8,115 shares traded, the pump/promote stymied the downslide.
Pre-open Indications: 3 Hits and 2 Miss
Why do I keep writing this blog/newsletter; to inform investors, what others won’t say or write
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 -162.92 points (-0.49%), the S&P closed DOWN -34.70 points (-0.90%) while the Nasdaq closed DOWN -159.38 points (-1.49%)
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes dumped on Monday after posting their second straight week of losses for the first time since September.
“Recession fears mounted as the central bank upped its forecast for future hikes above previous expectations, saying that it now expects to hike rates to 5.1%.” <CNBC>
“The main U.S. benchmarks have sold off sharply in December, putting them on course for their worst annual declines since the 2008 financial crisis, after mixed economic data and the Fed's hawkish stance fueled worries of a recession.” <Reuters>
Economic Data Docket: Builder sentiment dropped two points to 31 in December, according to the National Association of Home Builders survey. The report marked the twelfth (12) consecutive monthly declines for the index.
Monday’s … RegMed Investor’s (RMi) Pre-Open: “a Santa Claus bounce after recent sell-off. Algorithms are hoping for an early holiday delivery after the “witch” departed on Friday.” … https://www.regmedinvestors.com/articles/12749
- Didn't happen!
Pre-open Indications: 3 Hit < BioLife Solutions (BLFS +$0.07), Editas Medicine (EDIT -$1.10), Vericel (VCEL -$1.72)> 2 MISS < bluebird BLUE -$0.52), Verve Therapeutics (VERV -$1.30)>
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened – quite a difference
- Monday’s advance/decline line opened negative at 3 up/ 30 down and 2 flats, stayed negative with 0 up/ 34 down and 1 flat at the mid-day, ending with a negative close of 4/30 and 1 flat.
52-weekand all-time lows:
- Sangamo Therapeutics (SGMO -$3.08)
- Editas Medicine (EDT -$9.14)
- Adverum Biotechnologies (ADVM -$0.59)
- Homology Medicine (FIXX -$1.28)
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday, the IBB was down -1.83% and the XBI was down -2.05%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was down -0.30 points or -1.33% at 22.32
Closing Down (10 of 30):
- Ultragenyx (RARE -$3.93),
- Alnylam Pharmaceuticals (ALNY -$2.85 after Friday’s +$7.55),
- Beam Therapeutics (BEAM -$2.44 after Friday’s +$0.23),
- CRISPR Therapeutics (CRSP -$2.35 after Friday’s -$1.09),
- Sage Therapeutics (SAGE -$1.77)
- Vericel (VCEL -$1.72 after Friday’s +$0.53),
- Verve Therapeutics (VERV -$1.30 after Friday’s -$0.25),
- Regenxbio (RGNX -$1.20 after Friday’s +$0.19),
- uniQure NV (QURE -$1.16),
- Editas Medicine (EDIT -$1.10 after Friday’s +$0.26),
Closing Up (4 of 4):
- Compass Therapeutics (CMPX +$0.09),
- BioLife Solutions (BLFS +$0.07 after Friday’s -$1.19),
- Mesoblast (MESO+$0.02),
- Avrobio (AVRO +$0.0081)
Q4 – December
- Monday closed negative with 4 incliner, 30 decliners and 1 flat
The BOTTOM LINE: I try to keep it simple … and short!
As I stated this a.m., “The weekly percentage losses on the cell and gene therapy sector were large, but the damage has been far worse. If you're buying on weakness, you might be jumping onto a sinking ship.”
After Friday’s session evolver from an utter slide to a marginal downside as options were covered on an expiration Friday.
What can I say, NOT much and NOTHING new … an already anxiety driven market in a down sliding direction.
“As I stated Friday day and again this a.m., “be prepared for downdrafts and it came TRUE!”
This market and sector aren't giving any reason to add exposure as the major indexes can't hold a gain. If you're buying on weakness, you might be jumping onto a sinking ship.
Be prepared … just 9 trading days remain in 2022.
Yet again, many stocks have experienced downside progression - today as I believe, “uncle” algorithms filleted the oversold to continue the down slide.
Avrobio (AVRO closed barely up on Monday -$0.0081 post Friday’s -$0.0291, Thursday’s -$0.0028, Wednesday’s -$0.0049, Tuesday’s +$0.01 and Monday’s flat $0.00 (says a lot of addressing the delisting issue) having 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 – a sign of dissatisfaction!
· While, President, CEO and director Geoff Mackay carries home a HUGE salary of $754.39 K per year?
Biostage (OTCQB: BSTG) closed flat $0.00 to $5.82 with 8,115 shares traded after Friday’s -$0.80 to $5.85 with 8,115 shares trade after Thursday’s $0.00 with only 100 shares traded after Wednesday’s $0.00 with1,100 shares traded following Tuesday’s $6.90 with NO shares traded after Monday’s $6.90 with 400 shares traded?
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.