March 30, 2023 7:41am

Keep your share pricing exposure in check, forget the rally call of the Alamo; remember the Silicon Valley Bank (SVB) failure and shuttering when you think you’re in investment control <Read: To be known and considered for many models of costs to be passed-on – below>

More frequently right than consequentially wrong

Earnings: Brainstorm Cell Therapeutics (BCLI)

Pre-open Indications: 6 Sell into Strength, 2 Positive Indications and 1 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 what will happen behind the headlines today, not tomorrow or yesterday …

 

Dow futures are UP +0.64% or (+211 points), S&P futures are UP +0.62% or (+25 point) and NASDAQ futures are UP +0.52% or (+67 points) early in the pre-open – so far

Stock futures are moving higher on Thursday,

European markets are higher,

Asia Pacific markets trade mixed.

 

Henry’omics:

All three major indexes ending up at least 1% as the Dow closed UP +323.35 points (+1%), the S&P closed UP +56.54 points (+1.42%) while the Nasdaq closed UP +210.16 points (+1.79%).

A quote that should stick in your brain, ““There has always been the natural seesaw, but it is sort of never been like this,” he said. “There’s just so many things that are on investors’ minds.” <Thomas Martin, senior portfolio manager at Globalt Investments>

To be known and considered for many models of costs to be passed-on: The Federal Deposit Insurance Corp., facing almost $23 billion in costs from recent bank failures, is said to be considering steering a larger-than-usual portion of that burden to the nation’s biggest banks.

·         The agency has said it plans to propose a so-called special assessment on the industry in May to shore up a $128 billion deposit insurance fund that is set to take hits after the recent collapses of Silicon Valley Bank (SVB) and Signature Bank.

·         The regulator—under political pressure to spare small banks—has noted it has latitude in how it sets those fees.

·         The KBW Regional Banking Index of 50 lenders reversed losses and rose 0.6% on Wednesday in New York after Bloomberg reported the FDIC’s internal deliberations. <David E. Rovella, Bloomberg>

Economic Data Docket: investors will watch for economic data on weekly jobless claims and the gross domestic product. Boston Fed President Susan Collins, Richmond Fed President Thomas Barkin and Minneapolis Fed President Neel Kashkari are all slated to speak in the afternoon.

·         Personal Consumption Expenditures data on Friday will show further clues on inflation.

 

Wednesday’s (3/29) … RegMed Investors’ (RMi) closing bell: “Investors are anticipating the end of a volatile month and Q1 of 2023. It is an honor to be considered the “canary in the (sectors) coal mine”! Is Avrobio (AVRO -$0.08 to $0.97 with 489 K shares traded, 3-month average = 1.345 M shares) headed to be de-listed (below the $1.00 requirement of Nasdaq) – again?” … https://www.regmedinvestors.com/articles/12894

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 --- 29 of 35 (my coverage group) added BLUE on Wednesday, 3/29

 

Ebb and flow:

Q1/23 –

March – 9 positive and 12 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

Positive indications:

Wednesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Beam Therapeutics (BEAM) closed up +$0.86 after Tuesday’s -$0.38 and Monday’s +$0.15 with a positive +$0.98 or +3.16% pre-open indication.

Voyager Therapeutics (VYGR) closed up +$0.56 with a positive +$0.20 or +2.63% aftermarket indication

 

Negative indications:

Wednesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Caribou Biosciences (CRBU) closed up +$0.44 with a negative -$0.07 or -1.35% pre-open indication

 

Sell into Strength indications:

Wednesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Verve Therapeutics (VERV) closed up +$0.43 with a positive +$0.30 or +2.03% aftermarket indication.

Chinook Therapeutics (KDNY) closed up +$0.69 with a positive +$0.16 or +0.68% pre-open indication

CRISPR Therapeutics (CRSP) closed up +$1.33 after Tuesday’s -$0.50, Monday’s +$0.92 and last Friday’s +$0.29, with a positive +$0.32 or +0.71% pre-open indication

Ionis Pharmaceuticals (IONS) closed up +$1.19 after Tuesday’s +$0.57 and Monday’s -$0.23 with a positive +$0.69 or +1.94% aftermarket indication.

Sage Therapeutics (SAGE) closed up +$1.96 with a positive +$0.11 or +0.25% pre-open indication.

Ultragenyx (RARE) closed up +$1.41 after Tuesday’s +$0.33 with a $0.00% aftermarket indication.

 

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

Reiterating, “We are in for a volatile ride up and down as the cell and gene therapy companies who banked with SVB have exited or gained control of their own deposits/monies.”

The CBOE volatility index (VIX), the street's fear gauge, ended at its lowest level since March 8 while momentum gained on Wednesday clearing key levels.

 As I had stated, the market and sector are in a correction, as the sector was up on Monday, then down on Tuesday and up on Wednesday.

I believe investors should STAY on the sidelines (for any NEW buys) or DUMP some percentage of upside driven equities.

If the cell and gene therapy sector has real legs, it won't take long to be DRIVEN to the downside. If the market soon reverses lower or peters out, it will be a lot easier mechanically and psychologically to exit if you are not fully committed.

A SUSTAINABLE uptrend is needed to get credibility BACK into the sector’s investment.

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!

Also, the rush of Q4 and FY22 earnings to release is slowing …

·         29 of my 35 covered have reported - 6 remaining

·         Waiting for release announcements …

 

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.