March 10, 2023 7:29am
February non-farm payrolls report could determine the direction on the Fed’s rate hikes ahead and the capacity to capitalize cell/gene therapy company burn rates and runways as their go-to Silicon Valley Bank now has even bigger problems of its own
Pre-open Indications: 3 Positive and 2 Negative Indication
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.
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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 DOWN -0.21% or (-69 points), S&P futures are DOWN -0.05% or (-2 point) and NASDAQ futures are UP +0.21% or (+26 points) early in the pre-open – so far
U.S. futures were mixed yet,falling on Friday,
European markets were lower,
Asia Pacific markets were down
Henry’omics:
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes deeply sold-off on Thursday bracing for a key payroll report tomorrow, Friday that could set the direction of interest rates.
The Dow closed DOWN -543.54 points (-1.66%); the S&P closed DOWN -73.69 points (-1.85%) while the Nasdaq closed DOWN -237.65 points (-2.05%)
Economic Data Docket: The Bureau of Labor Statistics is expected to announce another strong jobs report, with economists expecting 225,000 jobs were added to the U.S. economy last month. This report would build on January's blowout report that showed 517,000 jobs were created in the first month of the year.
Thursday’s (3/9) … RegMed Investors’ (RMi) closing bell: “the sector does the limbo dance and low it went? Equities plummeting on Thursday with a volume expansion bracing for Friday’s job’s report.” … https://www.regmedinvestors.com/articles/12862
RegMed Investors (RMi) Research Note: Upcoming Q4 earnings reporting dates … https://www.regmedinvestors.com/articles/12830
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 --- 21 of 35 (my coverage group)
Ebb and flow:
Q1/23 –
March – 1 positive and 6 negative close
· February – 1 holiday, 2 vacation, 7 negative and 8 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
Positive indications:
Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
· Caribou Biosciences (CRBU) closed down -$0.36 with a positive +$0.64 or +11.62% pre-open indication,
· Sage Therapeutics (SAGE) closed down -$1.35 with a positive +$0.94 or +2.18% aftermarket indication
· Ultragenyx Pharmaceuticals (RARE) closed down -$2.57 with a positive +$1.41 or +3.53% positive indication
Negative Indications:
Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
· Ionis Pharmaceuticals (IONS) closed down -$0.87 with a negative -$0.94 or -2.70% aftermarket indication.
· uniQure NV (QURE) closed down -$0.90 with a negative -$0.70 or -3.44% aftermarket indication.
The BOTTOM LINE: I try to keep it simple and short!
Investors should be cautious in this economic release time short term and might want to reduce overall exposure to risky sector and market.
Today's February jobs report, as well as next week's CPI inflation report will put pressure on share pricing.
The rush of Q4 and FY22 earnings to release is STILL on … I do NOT believe there are not 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.
21 of my 35 covered have reported.
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
· AxoGen (AXGN) 3/14 – also on Tuesday
· BioLife Solutions (BLFS) 3/16 - Thursday
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.
