April 13, 2023 4:39pm

Together with tailwinds and a cooler PPI

Always’ remember and do NOT forget, today’s investors’ gold is a trader’s disposable tin.

Avrobio (AVRO) closed up Thursday +$0.07 to $0.96 after Wednesday -$0.06 to $0.89 and Tuesday’s +$0.04 – still under Nasdaq rule of $1.00; will it revisit the de-listing status after eight (8) sessions under the minimum?

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 +383.19 points (+1.14%), the S&P closed UP +54.27 points (+1.33%) while the Nasdaq closed UP + 236.93 points (+1.99%)

 

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

All three (3) indexes jumped Thursday, as traders welcomed today’s PPI report pointing to cooling U.S. inflation.

“Data released before the bell showed a steeper-than-expected cooldown in producer prices and new claims for jobless benefits coming in above consensus. Both signal that the Fed's hawkish barrage of rate hikes, which began over a year ago, is working as intended.”

"Inflation is coming down, but the process of Fed hiking rates is not necessarily over yet."

Economic Data Docket: The March producer prices index, a measure of prices paid by companies and often a leading indicator of consumer inflation, declined by 0.5% month over month versus expectations for prices to be flat. Excluding food and energy, the core wholesale prices reading shed 0.1% month over month, much better than the 0.2% increase expected by economists.

·         Applications for US unemployment benefits rose for the first time in three weeks, largely due to a jump in California and suggesting some more softening in the labor market.

 

Thursday (4/13) … RegMed Investors’ (RMi) pre-open: “the news, pricing is under pressure. So, what’s different – what lies ahead more hesitancy, turning or burning?” … https://www.regmedinvestors.com/articles/12913

 

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

  • Thursday’s advance/decline line opened positive at 31 up/ 3 down and 1 flat, stayed positive with 33 up/ 1 down and 1 flat at the mid-day, ending with a positive close of 32/3 and 0 flat

 

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

 

Key Metrics:

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

  • Thursday, the IBB was up +2.31% and the XBI was up +4.46%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -1.23 points or -6.44% at 17.86

 

Closing Down (3 of 3):

  • Mesoblast (MESO -$0.07),
  • Compass Therapeutics (CMPX -$0.04),
  • Bellicum Pharmaceuticals (BLCM -$0.006 after Wednesday’s +$0.0061 after Tuesday’s -$0.005),

Closing Up (10 of 32):

  • CRISPR Therapeutics (CRSP +$7.09 after Wednesday’s -$1.94 and Tuesday’s +$0.32),
  • Intellia Therapeutics (NTLA +$4.53 after Wednesday’s -$0.73, Tuesday’s +$0.35 and Monday’s -$1.00),
  • Alnylam Pharmaceuticals (ALNY +$4.44 after Wednesday’s +$0.08, Tuesday’s -$2.63 and Monday’s -$5.45),
  • Beam Therapeutics (BEAM +$2.49 after Wednesday’s -$0.34),
  • Verve Therapeutics (VERV +$2.00 after Wednesday’s -$0.30, Tuesday’s +$0.35 and Monday’s +$0.05),
  • Regenxbio (RGNX +$1.66),
  • BioLife Solutions (BLFS +$1.43 and Wednesday’s +$0.52),
  • Editas Medicine (EDIT +$1.29 and Wednesday’s -$0.35),
  • Sage Therapeutics (SAGE +$1.26 after Wednesday’s -$0.51 and Tuesday’s +$1.90),
  • Ultragenyx (RARE +$1.14 after Wednesday’s -$0.94, Tuesday’s +$1.08 and Monday’s -$2.26),

 

Q2/23 – April

  • Thursday closed positive with 33 incliner, 2 decliners and 0 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.”

The cell and gene therapy sector advanced on Thursday as economic data showed cooling inflation and a loosening labor market, fueling optimism that the Fed is nearing the end of its aggressive interest rate hike cycle.

"Inflation is going to come down faster than the Fed thinks it will, but ironically the banking crisis is bullish for a Fed pause, which is bullish for the market, particularly tech stocks." <Jay Hatfield, CEO Infrastructure Capital Management in New York>

Investor focus will now shift to Q1 earnings season. Investors are hesitant to add to positions re concerns of persisted inflation while electronic trading i.e., algorithms are the only ones to lead the upside.

April is typically a good month as investors look to the Q2 and move past tax season, among other reasons. It has historically been the second-best month of the year for the S&P 500 and fourth best for the Nasdaq.

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

·         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!!

OTCQB: BSTG closed Thursday +$0.10 with 150 shares traded after Wednesday -$0.05 with 101 shares traded after Tuesday $0.00 with 108 shares traded and Monday’s down -$0.07 with 200 shares traded <3-month average =1,821 shares>

·         Did FINANCE happen with US investors – NO mention, possibly ALL …. Beijing, China money. What analysts are following the company? - NONE

·         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??

·         Notice the new director, Ron Packard, MATCH his background to the new Chairman and CEO – education buddies (different companies each in ed field – independent director?

 

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.