April 17, 2023 7:43am
A volatile, potently resilient sector and market is coming yet, susceptible to economic head and crosswinds
Pre-open indications: 3 Positive and 3 Negative Indications
News: Cellectis SA (Euronext Growth: ALCLS - NASDAQ: CLLS +$0.07) released pre-clinical data on TALEN®-edited MUC1 CAR T-cells. The data showed the capability of armored allogeneic MUC1 CAR T-cells to excel in the immune suppressive tumor micro-environment suggesting that they could be an effective option in treating relapsed and refractory triple negative breast cancer (TNBC) patients with limited therapeutic options.
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 +0.10% or (+34 points), S&P futures are +0.08% or (+3 point) and NASDAQ futures are DOWN -0.02% or (-2 points) early in the pre-open – so far
Stock futures were positive yet, flat on Monday,
European markets slightly higher,
Asia-Pacific markets traded higher on Monday,
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 …
Last week, indexes dived and rallied, with some sizable gains and big reversals. Recession fears are rising, even as inflation TEMPORARILY or supposedly cooled.
The Dow closed DOWN -143.22 points (-0.42%), the S&P closed DOWN -8.58 points (-0.21%) while the Nasdaq closed DOWN -42.81 points (-0.35%)
For the week, stocks remained resilient. The Dow was positive overall last week for the fourth straight time, while the S&P 500 and Nasdaq Composite both had their fourth week in the green in five.
Friday’s (4/14) … RegMed Investors’ (RMi) closing bell: “understanding risk, be anticipatory and early. It's a daunting task to understand the patterns of risk, seeing the unforeseen; on the basis of my own “rules,” I set-up my own “warning analysis” which isn’t machine oriented!” … https://www.regmedinvestors.com/articles/12916
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, 3 positive close and 6 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
Positive Indications:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Agenus (AGEN) closed down -$0.05 with a positive +$0.06 or +4.14% pre-open indication,
Beam Therapeutics (BEAM) closed down -$0.97 after Thursday’s +$2.49 with a positive +$0.48 or +1.54% aftermarket indication
Cellectis SA (CLLS closed down -$0.09 with a positive pre-open indication +$0.07 or +$0.07 or +3.43%) released preclinical data on TALEN®-edited MUC1 CAR T-cells at the American Association for Cancer Research (AACR) Annual Meeting 2023. The data showed the capability of armored allogeneic MUC1 CAR T-cells to excel in the immune suppressive tumor micro-environment suggesting that they could be an effective option in treating relapsed and refractory triple negative breast cancer (TNBC) patients with limited therapeutic options.
Negative Indications:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Intellia Therapeutics (NTLA) closed down -$0.95 after Thursday’s +$4.53 with a negative -$1.15 or -3.01% pre-open indication
CRISPR Therapeutics CRSP) closed down -$0.25 after Thursday’s +$7.09 with a negative -$0.05 or -0.10% pre-open indication
Ionis Pharmaceuticals (IONS) closed down -$0.56 after Thursday’s +$0.97 with a positive +$0.51 or +1.38% aftermarket indication,
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.”
Friday's sector’s action was a negative end to a ghastly week; although, I called Friday a “make a BUCK.”
There haven't been many buying opportunities; some stocks flashed buy signals, then quickly fell back on Friday.
The market along with the sector are still in an any-which-way pattern, with sectors and Friday’s biggest percentage (%) names prone to up-coming swings.
• Downsizers: -0.25% to -6.93%
• Upsiders: +0.15% to +4.07%
The macroeconomic picture remains in flux, over-whelming the cell and gene therapy sector’s diminishing share pricing while Q1 earnings season will be ramping up over the next few weeks.
So, more volatility is likely in the cards.
If the market does show some strength, and SOME sector stocks flash buy signals, add exposure gradually.
At ANY time, this week, be ready to take partial profits and exit losers.
Over the past week, the sector is more concerned about recession risks, especially on Wednesday news that Fed staff predicted a "mild recession" back at the March policy meeting. But despite those concerns, and Thursday’s improving inflation data, the odds of a May rate hike actually increased to 80% on Friday.
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!
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.
