February 28, 2023 8:03am

The final trading session of February and heavy earnings release day

Earnings: Beam Therapeutics (BEAM), Chinook Therapeutics (KDNY), Mesoblast (MESO), Fate Therapeutics (FATE), MiMedx (MDXG) and Regenxbio (RGNX)

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.

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  Join me … in the NO spin zone.

The 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. My interpretation of the morning’s numbers is written to be informative; it’s built on will happen behind the headlines today, not tomorrow or yesterday …

 

Dow futures are UP +0.31% or (+103 points), S&P futures are UP +0.39% or (+15 point) and NASDAQ futures are UP +0.49% or (+59 points) early in the pre-open – so far

Stocks futures rose Tuesday

European markets moved from early losses to trade flat,

Asia-Pacific markets were mostly higher.

 

Henry’omics:

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

Indexes rose Monday as traders tried to recover some ground following the worst week of the year. The Dow closed UP +72.23 points (+0.22%); the S&P closed UP +12.27 points (+0.31%) while the Nasdaq closed UP +72.04 points (+0.63%).

Despite a solid start to the year, all the major indexes are on pace for their second negative month in three. As of Monday’s close, the Dow is down 3.5% for the month and the only major index negative for the year. The S&P 500 is down -2.3% and Nasdaq -1% in February.

Economic Data Docket: consumer confidence data, wholesale inventories, Chicago PMI and the S&P Case-Shiller home prices index. 

 

Tuesday’s (2/27) … RegMed Investors’ (RMi) closing bell: “hunker down but, be aware of earnings backlash. Is it worth the risk to buy cell/gene therapy sector equities; while interest rates are driving stock values- NOT until the earnings’ season reaps what it has sone.” … https://www.regmedinvestors.com/articles/12846

 

RegMed Investors (RMi) Research Note: Q4 and FY22 earnings reporting … “The cell and gene therapy sector fluctuates in revenues, collaboration, regulatory submissions and expenses, but the changes may alarm investors who prefer to see expectation and consensus stability and share pricing growth” … https://www.regmedinvestors.com/articles/12843

 

Ebb and flow:

Q1/23 – February – 1 holiday, 2 vacation, 7 negative and 7 positive closes

·         January – 2 holidays, 11 positive and 9 negative closes

 

Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS

Passing today, let the sector run – too many questions even as I “spot” a few movements of both side of the buy/sell “poker table”

 

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

The rush of Q4 and FY22 earnings to release is on … I do NOT believe there aren't a lot of cell/gene therapy companies in position yet – UNTIL earnings (Q4 and FY22) are reported – any breakout is a false hope with the inevitable downside re-occurring.

Maintaining my investing thesis, “Until the sector as well shows some strength, investors should be careful about adding exposure. The recent pullbacks highlight the importance of adding exposure gradually, and not buying extended.”

Cell and gene therapy sector companies ended 2022 with dwindling cash positions and many candidates in development and, apparently, too many employees.  I foresee sector sees companies slashing programs, culling staff and reorganizing, which will make sector “participants” leaner with better cash “runways”. That will certainly be the case for 2023.

I also hate to be so negative or contrarian but, this is a NO spin zone and truth is its product.

And I can always be WRONG but, mostly EARLY!

Upcoming Q4 earnings reporting will present challenges to share pricing.

·         Agenus (AGEN) -3/14 – Tuesday

I am also catching-up on publishing results of ALNY, VCEL, NTLA, EDIT, QURE and MESO earnings’ releases.

A couple of companies have become … black holes … of investor sentiment; yet, some get financing to continue the chain around investors’ necks until they recognize it could be forever with “some” of these equities.

 

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.