March 10, 2023 4:57pm

As damage plays out as Silicon Valley Bank’s (SVB) eco financial support banking and investment for sector companies and VCs dissolves into FDIC

The Biostage (OTCQB: BSTG) Chronicles: Question: a Ponzi scheme on the make (?), Friday popped +$0.31 with 7,963 shares traded <3-month average volume = 1,275 shares> after Thursday -$0.02 with 13,252 shares traded, Wednesday’s +$0.02 with 2,700 shares traded, Tuesday -$0.10 with 510 shares traded, Monday closed flat with 0 shares traded following the previous Friday closed -$0.20 with 2,270 shares traded.

Pre-open indication Results: 2 Hits and 3 Miss

As I have stated, “What goes up with ceremony, goes down with disdain followed by the opposite effect.”

I write this blog/newsletter to inform investors with facts and supporting numbers focused on what they need to hear that others will not say or write about - truth!  

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

If I have learned one thing as a former research analyst in a venture and public fund, MBA adjunct faculty now a journalist; it is that your life and your portfolio are largely tied to your knowledge of price movements and questioning pricing targets.

 

The Dow closed DOWN -345.22 points (-1.07%); the S&P closed DOWN -56.73 points (-1.45%) while the Nasdaq closed DOWN -199.47 points (-1.76%)

 

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes tumbled on Friday as Silicon Valley Bank – a banker of liquid assets, and lender to tech and cell/gene therapy companies was shut down after losses in its bond portfolio, a huge bank failure sent shockwaves through the banking sector.

The turmoil among bank stocks overshadowed a February jobs report, which gave some hints that inflation could be slowing. Payrolls increased more than expected, but investors focused on the smaller-than-expected gain in wages, which could cause the Federal Reserve to rethink more aggressive on rate hikes. <CNBC>

As interest rates rose, sector companies and VC investments began to dwindle, and SVB's clients drew down their accounts at the bank faster than expected to cover expenses.

Economic exposure, payrolls increased more than expected, but investors focused on the smaller-than-expected gain in wages, which could cause the Fed to rethink more aggressive on rate hikes.

Economic Data Docket: The U.S. economy added 311,000 jobs in February, topping a consensus estimate of 225,000. The number comes as traders assess the possibility of higher interest rates for longer. However, wages rose just 0.2% for the month; well below the forecast of a 0.4% increase. <CNBC>

 

Pre-open indication Results: 2 Hits <Ionis Pharmaceuticals (IONS -$0.37), uniQure NV (QURE -$0.67)> and 3 Miss <Caribou Biosciences (CRBU -$0.25), Sage Therapeutics (SAGE -$2.40), Ultragenyx Pharmaceuticals (RARE -$1.10)  

 

52-week lows:

·         Precigen (PGEN) at $1.09

·         Sangamo Therapeutics (SGMO) at $2.26

·         Solid Biosciences (SLDB) at $4.91

·         Editas Medicine (EDIT) at $7.83

·         Prime Medicine (PRME) at $13.85

 

RegMed Investors (RMi) Research Note: Q4 and FY22 earnings reporting … https://www.regmedinvestors.com/articles/12843 - 21 of 35

RegMed Investors (RMi) Research Note: Upcoming Q4 earnings reporting dates … https://www.regmedinvestors.com/articles/12830

 

RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened – differences

  • Friday’s advance/decline line opened negative at 0 up/ 32 down and 3 flats, stayed negative at the mid-day with 2 up/ 32 down and 1 flat, ending with a negative close of 1/34 and 0 flat
  • Thursday’s advance/decline line opened negative at 10 up/ 21 down and 4 flats, stayed negative at the mid-day with 8 up/ 26 down and 1 flat, ending with a negative close of 2/33 and 0 flat
  • Wednesday’s advance/decline line opened negative at 19 up/ 15 down and 1 flat, flipped positive at 10 a.m. with 20 up/ 15 down and 0 flat, strayed negative at the mid-day with 13 up/ 21 down and 1 flat, ending with a negative close of 12/20 and 3 flats
  • Tuesday’s advance/decline line opened negative at 15 up/ 18 down and 2 flats, flipped positive with 18 up/ 16 down and 1 flat at the mid-day, ending with a positive close of 14/20 and 1 flat
  • Monday’s advance/decline line opened negative at 7 up/ 26 down and 2 flats, stayed negative with 5 up/ 28 down and 2 flats at the mid-day, ending with a negative close of 6/27 and 2 flats

 

Key Metrics:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Friday, the IBB was down -1.60% and the XBI was down -3.90%
  • Thursday, the IBB was down -1.92% and the XBI was down -3.08%
  • Wednesday, the IBB was down -0.68% and the XBI was down -0.93%
  • Tuesday, the IBB was down -1.59% and the XBI was down -0.12%
  • Monday, the IBB was down -0.93% and the XBI was down -1.75%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was up +2.06 points or +9.11% at 24.67
  • Thursday was up +3.21 points or +16.80% at 22.32
  • Wednesday was down -0.53 points or -2.71% at 19.06
  • Tuesday was up +0.98 points or +5.27% at 19.59
  • Monday was up +0.22 points or +1.19% at 18.71

 

Closing Down (10 of 34):

  • Sage Therapeutics (SAGE -$3.51 after Thursday’s -$1.35 after Wednesday’s +$3.67, Tuesday’s -$1.34 and Monday’s +$0.30),
  • Alnylam Pharmaceuticals (ALNY -$3.29 after Thursday’s -$4.46 after Wednesday’s -$3.93, Tuesday’s -$5.36 and Monday’s -$2.88),
  • BioLife Solutions (BLFS -$3.00) – admitting exposure to SVB,
  • Beam Therapeutics (BEAM -$2.67 after Thursday’s -$2.58, Wednesday’s -$0.23, Tuesday’s -$0.51 and Monday’s -$0.97),
  • CRISPR Therapeutics (CRSP -$2.57 after Thursday’s -$2.14 after Wednesday’s -$0.09, Tuesday’s -$1.49 and Monday’s -$1.51)
  • Intellia Therapeutics (NTLA -$1.60 after Thursday’s -$2.83 and Wednesday’s -$0.22),
  • Chinook Therapeutics (KDNY -$1.46 after Thursday’s +$0.10, Wednesday’s +$0.01 and Tuesday’s +$0.13),
  • uniQure NV (QURE -$1.20 after Thursday’s -$0.90),
  • Ultragenyx (RARE -$1.16 after Thursday’s -$2.57 after Wednesday’s -$0.17, Tuesday’s -$1.50 and Monday’s -$1.54),
  • Regenxbio (RGNX -$1.16 after Thursday’s -$1.21, Wednesday’s -$0.47, Tuesday’s +$0.51 and Monday’s -$1.46),

Closing Up (1 of 1):

  • Biostage (OTCQB: BSTG +$0.31 after Thursday -$0.02, Wednesday’s +$0.02, Tuesday -$0.10 and Monday closed flat

 

Q1/23 – March

  • Friday closed negative with 1 incliner, 34 decliners and 0 flat
  • Thursday closed negative with 2 incliner, 33 decliners and 0 flat
  • Wednesday closed negative with 12 incliner, 20 decliners and 3 flats
  • Tuesday closed negative with 14 incliner, 20 decliners and 1 flat
  • Monday closed negative with 6 incliner, 27 decliners and 2 flats

 

 

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

Bad, bad day at Silicon Valley Bank (SVB) which has supported, financed and banked many cell and gene therapy companies -- NOW taken over by the FDIC after Thursday’s sector equities kissed the ground following a deep dive on Wednesday.

A big issue is how many companies are … exposed … as SVB forced many sector companies to bank following VC funding, IPOs, secondary financings and ATMs.

Implication Note: BioLife Solution's (BLFS) deposit accounts held at SVB in excess of the $250,000 FDIC-insured limits are less than $1 million which the company does not believe is a material portion of its cash and cash equivalents.  Multiple institutions serve as custodians for third-party investments held in BLFS's name, and those investments are not directly exposed to any consequences of a liquidity concern at SVB.

The rush of Q4 and FY22 earnings to release is on … 21 of my 35 covered have reported.

Upcoming Q4 earnings reporting will present challenges to share pricing.

·         Agenus (AGEN) 3/14 -Tuesday

·         AxoGen (AXGN) 3/14 Tuesday

·         BioLife Solutions (BLFS) 3/16 - Thursday

WHY (?) do I keep posting, so investors can get a daily update of the sector's share pricing and some individual companies TRUTHS while electronic trading chews on our portfolio edges.

Remember, there are four (4) phases of the stock cycle: accumulation; markup; distribution; and markdown.

My advice: open that portfolio envelope and think of a game of monopoly and follow RMi’s moves to recoup losses. As I have stated, “What goes up with ceremony, goes down with disdain followed by the opposite effect.”

I am definitely considered a contrarian depending on the session – one has to be a watcher of the ups and downs as well as measurer of sentiment. I am also a NO trust investor but, a validate and verify journalist/analyst.

The NO spin zone!

 

Biostage (OTCQB: BSTG) – still pumping!!

Friday closed up +$0.31 after Thursday -$0.02 with 13,252 shares traded after Wednesday’s +$0.02 with 2,700 shares traded  Tuesday -$0.10 with 510 shares traded after Monday closed flat with 0 shares traded <3-month average volume = 1,071 shares> after Friday’s down -$0.20 with 2,270 shares traded after being flat on Thursday with 0 shares traded after Wednesday flat with 71 shares traded after Tuesday’s flat 5,601 shares traded.

·         Yet another CEO and chairman, Jerry He – what changes to the ill-fated story will ONLY be relieved by TRULY reviewing the past and communicating with those who have something to say – to right-size this company!

·         Question: Review the number of shares traded … is OTCQB: BSTG a Ponzi scheme (with their pump/promote buy and sell agenda) as shares are bought to replace those sold??

·         Let’s also welcome a NEW accounting firm – the fourth (4th) in five (5) years. When will they resign …??

 

My question that resounds, 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.