March 20, 2023 7:21am
The cell and gene therapy sector rush to new bank deposit and share pricing safety. The problem, larger institutions aren't exactly rolling out the red carpet for small and midsize cell and gene therapy companies.
Pre-open Indications: 3 Positive and 3 Negative Indications
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 down -0.08% or (-26 points), S&P futures are DOWN -0.11% or (-4 point) and NASDAQ futures are DOWN -0.08% or (-9 points) early in the pre-open – so far
U.S. stock futures were down, up and fluctuating on Monday,
European shares turn higher,
Asia PACIFIC markets mostly fall
Henry’omics:
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes fell last Friday, the Dow closed DOWN -384.57 points (-1.19%); the S&P closed DOWN -43.64 points (-1.10%) while the Nasdaq closed DOWN -86.76 points (-0.74%)
For the week, the Dow dived -0.15%, the S&P 500 advanced 1.43%, the Nasdaq gained 4.41%.
“Investors remained on edge as the week’s trading began with regional banks still under pressure to shore up their deposit bases in the wake of the collapse of Silicon Valley Bank earlier this month. Wall Street expects more may be needed to be done to restore confidence in the banking system after U.S. regulators backstopped SVB’s uninsured deposits and offered new funding for troubled banks one week ago.” <CNBC>
Economic Data Docket: The Fed's Tuesday-Wednesday policy meeting will try to balance banking woes with fighting inflation. Fed funds futures have swung wildly over the past week, but markets currently are leaning toward a modest rate hike.
Friday’s (3/17) … RegMed Investors’ (RMi) closing bell: “a second Black Swan event this week. Silicon Valley Bank Group (SIVB) bankruptcy resulted in deeper cell and gene therapy sector lows.” … https://www.regmedinvestors.com/articles/12878
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 --- 26 of 35 (my coverage group)
Ebb and flow:
Q1/23 –
March – 4 positive and 9 negative closes
· 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
Negative indications:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
· Beam Therapeutics (BEAM) closed down -$2.29 after Thursday’s +$0.41, Wednesday’s +$0.96, Tuesday’s +$0.38 and Monday’s +$1.62 with a negative -$0.22 or -0.66% pre-open indication.
· bluebird bio (BLUE) closed down -$0.07 with a negative -$0.15 or -3.30% aftermarket indication
· Vericel (VCEL) closed down -$1.60 with a negative -$1.31 or -4.47% aftermarket indication
Positive Indications:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
· Compass Therapeutics (CMPX) closed down 0.02 with a positive +$0.21 or +6.18% aftermarket indication
· Prime Medicine (PRME) closed down -$0.92 after Thursday’s +$0.23, Wednesday’s +$0.96, Tuesday’s +$0.38 and Monday’s +$1.62 with a positive +$0.61 or +4.96% aftermarket indication.
· Solid Biosciences (SLDB) closed down -$0.51 after Thursday’s -$0.18, Wednesday’s +$0.17, Tuesday’s -$0.32 and Monday’s +$2.12 with a positive +$0.20 or +4.87% aftermarket indication.
The BOTTOM LINE: I try to keep it simple and short!
I will start-off with a quote, "Sometimes people ask you a question with their eyes begging you to not tell them the truth." - Nassim Nicholas Taleb @nntaleb
A new week with a zinger, a Fed 25 basis point move?
short-term momentum with trade ideas designed to capture breakouts & breakdowns as markets move
Also, 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.
· 26 of my 35 covered have reported - 9 remaining
· There are more coming – waiting for announcements
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, I am mostly EARLY!
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.
