April 10, 2023 7:57am

As of or if there is any chance of adding the intangible confidence to the model

Pre-open Indications: 2 Sell into Strength and 2 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.

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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 what will happen behind the headlines today, not tomorrow or yesterday …

 

Dow futures are DOWN -0.06% or (-20 points), S&P futures are DOWN -0.24% or (-9 point) and NASDAQ futures are DOWN -0.56% or (-73 points) early in the pre-open – so far

U.S equity futures are mixed and fluctuating on Monday,

Europeans are experiencing an Easter holiday

Asia Pacific markets trade mostly higher as investors come back from long weekend while Australian and Hong Kong markets remained close

 

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 …

On Thursday, the major averages ended a holiday-shortened trading week, the Dow ended with a weekly gain of 0.6% while the S&P 500 ended -0.1% lower with the Nasdaq also falling -1.1%.

Economic Data Docket: this week, consumer price index and producer price index data – due out Wednesday and Thursday, respectively – which will be key in determining if or when the Fed will pause or put an end to its rate hiking campaign.

 

Thursday’s (4/8) … RegMed Investors’ (RMi) closing bell: “algorithms and electronic trading come to the rescue of the cell and gene therapy sector to close positive. Although what’s in store as weakening labor market fuels fears of an economic downturn on the horizon?” … https://www.regmedinvestors.com/articles/12906

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 --- 31 of 35 (my coverage group)

 

Ebb and flow:

Q2/23 – 1 holiday, 1 positive close and 3 negative closes

Q1/23 –

·         March – ended with 10 positive and 13 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

Sell into Strength:

Friday was a market holiday, Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Beam Therapeutics (BEAM) closed up +$0.42 on Thursday after Wednesday’s-$0.25 with a positive +$0.59 or +1.98% pre-open indication.

Alnylam Pharmaceuticals (ALNY) closed up +$10.17 after Wednesday’s -$1.88 with a positive +$6.33 or +3% pre-open indication.

 

Negative indications:

Friday was a market holiday, Thursday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Fate Therapeutics (FATE) closed up +$0.35 with a negative -$0.18 or -3.08% pre-open indication.

Sage Therapeutics (SAGE) closed up +$0.82 with a negative -$0.83 or -2% aftermarket indication,

 

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

Slowing economic data is the enforcer of share pricing.

If cell and gene therapy stocks show strength in the coming days, investors can make some new buys. But don't ramp up exposure quickly and don't get too concentrated in a particular stock or sector, especially those that are especially volatile.

A shame, another company bites the dust, “Pear Therapeutics, Inc. (PEAR) a company focused on developing and commercializing software-based medicines called prescription digital therapeutics (PDTs), voluntarily filed for protection under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware and they intend to pursue a sale of the business or assets under section 363 of the Bankruptcy Code.

Reiterating, “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 …

·         31 of my 35 covered have reported - 4 remaining

·         Waiting for remaining 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.