March 31, 2023 4:41pm

From one negative extreme on Thursday to a furthermost positive on Friday

The Biostage (OTCQB: BSTG) Chronicles: still pumping the volume and promoting the share pricing – Question: a Ponzi scheme or not? <read below> No conference call re net loss earnings or press release of Q2/23 runway  – is new CEO afraid of backlash as only 10-K filed with statement of “Our audited financial statements for the year ended December 31, 2022 contain a going concern qualification. Our financial status creates doubt whether we will continue as a going concern. We will need additional funds in the near future and our operations will be adversely affected if we are unable to obtain needed funding.”?

Pre-open Indications: 5 Hits and 3 Miss

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, operating executive, adjunct (MBA) business school professor 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 UP +414.07 points (+1.26%), the S&P closed UP +52.18 points (+1.44%) while the Nasdaq closed UP +208.44 points (+1.74%)

 

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 rose Friday as wrapping up a volatile month, but winning quarter that saw more Fed rate tighten and a mini-financial panic spurred on by the collapse of Silicon Valley Bank (SVB).

Economic Data Docket: The February core PCE Price Index rose 4.6% from last year, down from the 4.7% pace recorded in January and coming in lower than consensus Street forecast of 4.7%. The core index was up 0.3% on the month, the Bureau of Economic Analysis reported, down from last month's 0.5% tally (which was revised lower) and Street forecasts of 0.3%. The headline PCE index rose 0.3% on the month and eased to 5% on the year, with both readings falling below analyst’s forecasts. Personal incomes rose by 0.3% while real personal spending rose 0.2%, the BEA noted

  • The University of Michigan’s consumer sentiment index fell in March to 62 from 67 in February. Economists polled by Dow Jones expected a decline to 63.

 

Pre-open Indications: 5 Hits <Beam Therapeutics (BEAM +$0.47), Compass Therapeutics (CMPX +$0.08), CRISPR Therapeutics (CRSP +$1.07), Intellia Therapeutics (NTLA +$1.25), Prime Medicine (PRME +$0.02)> and 2 Miss < Alnylam Pharmaceuticals (ALNY +$5.20), uniQure NV (QURE +$0.34)>

 

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

  • Friday’s advance/decline line opened positive at 29 up/ 25 down and 1 flat, stayed positive with 32 up/ 2 down and 1 flat at the mid-day, ending with a positive close of 32/3 and 0 flat
  • Thursday’s advance/decline line opened negative at 9 up/ 25 down and 1 flat, stayed negative with 6 up/ 29 down and 0 flat at the mid-day, ending with a negative close of 8/27 and 0 flat
  • Wednesday’s advance/decline line opened positive at 31 up/ 2 down and 2 flats, stayed positive with 31 up/ 4 down and 0 flat at the mid-day, ending with a positive close of 31/4 and 0 flat
  • Tuesday’s advance/decline line opened negative at 13 up/ 27 down and 0 flat, stayed negative with 11 up/ 24 down and 0 flat at the mid-day, ending with a negative close of 11/24 and 0 flat
  • Monday’s advance/decline line opened positive at 27 up/ 7 down and 1 flat, stayed positive with 24 up/ 10 down and 1 flat at the mid-day, ending with a positive close of 23/11 and 1 flat

 

RegMed Investors (RMi) Research Note: Q4 and FY22 earnings reporting … https://www.regmedinvestors.com/articles/12843 - 31 of 35 – added BCLI, ADVM and BSTG

 

Key Metrics:

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

  • Friday, the IBB was up +1.52% and the XBI was up +2.06%
  • Thursday, the IBB was down -0.47% and the XBI was down -2.16%
  • Wednesday, the IBB was up +1.40% and the XBI was up +2.50%
  • Tuesday, the IBB was up +0.02% and the XBI was down -0.63%
  • Monday, the IBB was up +0.13% and the XBI was up +1.02%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.26 points or -1.37% at 18.76
  • Thursday was down -0.04 points or -0.21% at 19.08
  • Wednesday was down -0.83 points or -4.16% at 19.14
  • Tuesday was down -0,66 points or -3.20% at 19.94
  • Monday was down -1.122 points or -5.15% at 20.62

 

Closing Down (3 of 3):

  • Cellectis SA (CLLS -$0.09 after Thursday’s +$0.11),
  • Voyager therapeutics (VYGR -$0.01 after Thursday’s +$0.12),
  • Adverum Biotechnologies (ADVM -$0.0026)

Closing Up (10 of 32):

  • Alnylam Pharmaceuticals (ALNY +$5.20 after Thursday’s -$0.79, Wednesday’s +$7.36, Tuesday’s -$1.96 and Monday’s +$0.53),
  • Ultragenyx (RARE +$1.46 after Thursday’s -$0.43, Wednesday’s +$1.41, Tuesday’s +$0.33 and Monday’s -$0.35),
  • Intellia Therapeutics (NTLA +$1.25 after Thursday’s -$1.54, Wednesday’s +$1.54, Tuesday’s -$1.13 and Monday’s -$1.15),
  • Vericel (VCEL +$1.09 after Thursday’s -$0.53, Wednesday’s +$0.60 after Tuesday’s -$0.92),
  • BioLife Solutions (BLFS +$0.97),
  • Ionis Pharmaceuticals (IONS +$ after Thursday’s -$0.59, Wednesday’s +$1.19 and Monday’s -$0.23),
  • Regenxbio (RGNX +$0.83 after Thursday’s -$0.87),
  • Brainstorm Cell Therapeutics (BCLI +$0.80 after Thursday’s +$0.06),
  • Beam Therapeutics (BEAM +$0.47 after Thursday’s -$0.87, Wednesday’s +$0.86 and Tuesday’s -$0.38),
  • Fate Therapeutics (FATE +$0.40),

 

Q1/23 – March

Friday closed positive with 32 incliner, 3 decliners and 0 flat

Thursday closed negative with 8 incliner, 27 decliners and 0 flat

Wednesday closed positive with 31 incliner, 4 decliners and 0 flat

Tuesday closed negative with 11 incliner, 24 decliners and 0 flat

Monday closed positive with 23 incliner, 11 decliners and 1 flat

Friday closed positive with 19 incliner, 15 decliners and 1 flat

Thursday closed positive with 20 incliner, 15 decliners and 0 flat

Wednesday closed negative with 3 incliner, 32 decliners and 0 flat

Tuesday closed positive with 21 incliner, 13 decliners and 1 flat

Monday closed negative with 13 incliner, 21 decliners and 1 flat

Friday closed negative with 7 incliner, 28 decliners and 0 flat

Thursday closed positive with 20 incliner, 14 decliners and 1 flat

Wednesday closed negative with 10 incliner, 21 decliners and 4 flats

Tuesday closed positive with 18 incliner, 14 decliners and 3 flats

Monday closed positive with 27 incliner, 7 decliners and 1 flat

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

Friday closed positive with 22 incliner, 13 decliners and 0 flat

Thursday closed negative with 12 incliner, 19 decliners and 4 flats

Wednesday closed negative with 12 incliner, 22 decliners and 1 flat

 

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

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

End of the quarter (Q1) and on a high note; capping a choppy month for sector equities marked by shockwaves from the collapse of two regional U.S. banks and signs of trouble in some EU banks which have led to a repricing in interest rate expectations from the Fed.

Q1/2023 ended with 10 positive and 13 negative closes!

Algorithms came in recognizing the ebbs of the sector as the month and Q1 ended – problem they will leave just as fast as a premium can be realized – key, to recognize when they can extradite and sell into the strength.

Contributing to the month and Q1 and final Friday … The personal consumption expenditure (PCE) index, which is the Fed's preferred inflation gauge, rose 0.3% in February on a monthly basis, moderating from a 0.6% rise in January.

The rush of Q4 and FY22 earnings to release has slowed as … 31 of my 35 covered have reported.

·         Brainstorm Cell Therapeutics (BCLI – FY22 only), Adverum Biotechnologies (ADVM Q4 and FY22) and Biostage (OTCQB: BSTG – FY22 only) reported losses yesterday,

·         Four (4) more releases forthcoming of my 35 covered companies

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.

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 the volume and to promote the share price!!

Friday closed up +$0.30 with 1,861 shares traded after Thursday closed up +$0.05 with 2,298 shares traded after Wednesday closed up +$0.16 with 1,200 shares traded, Tuesday closed down -$0.51 with 3,895 shares traded and Monday closed flat with 25 shares traded <3-month average volume = 1,736 shares>

·         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??

·         Where is the SEC??

·         NEW Auditors STILL DETERMINED there is substantial doubt about the company’s ability to continue, an assessment of the company’s viability over the next year.

·         As OTCQB: BSTG continues as an “going concern”!

·         In the title, says it all: loss, losses and more losses – with NO capacity to FINANCE with US investors – example, what analysts are following the company? - NONE

 

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.