April 24, 2023 7:34am
Q1/23 earnings release this week: Sangamo Therapeutics (SGMO) reports Wednesday – 4/26,
Pre-open indications: 2 Sell into Strength, 2 Positive and 3 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 -0.16% or (-53 points), S&P futures are DOWN -0.13% or (-5 point) and NASDAQ futures are DOWN -0.05% or (-5 points) early in the pre-open – so far
Stock futures fell on Monday morning as investors await tech earnings, as well as fresh economic data releases,
European markets opened lower,
Asia-Pacific markets were mostly lower
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 Friday, indexes popped late in the session reacting to a mixed bag of a weakening economy, earnings beating expectations and drooping profits. The Dow closed UP +22.34 points (+0.07%), the S&P closed UP +3.73 points (+0.09%) while the Nasdaq closed UP +12.90 points (+0.11%)
All major indices finished the week in the red, with the Dow falling -0.23% while the Nasdaq fell -0.42%, while the S&P slipped -0.1%.
Economic Data Docket: this week, GDP numbers for Q1/23, as well as April’s consumer sentiment data will be released among a flurry of other economic indicators
· Dallas Fed’s Manufacturing survey results to gauge the state of the state’s factory activity.
Friday’s (4/21) … RegMed Investors’ (RMi) closing bell: “the oversold cell and gene therapy sector was feeling the love. Is it algorithms and electronic trading, it’s not investors or just covering options?” … https://www.regmedinvestors.com/articles/12927
Ebb and flow:
Q2/23 – 1 holiday, 6 positive close and 8 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 (%)
Avrobio (AVRO) closed up +$0.0751 with a negative -$0.02 or -2.03% aftermarket indication
AxoGen (AXGN) closed down -$0.60 after Thursday’s +$0.02, Wednesday’s +$0.25 and Tuesday’s -$0.50 with a negative -$0.19 or -2% aftermarket indication <52-week low of $6.89 and a high of $13.66>
Sell into Strength:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Beam Therapeutics (BEAM) closed up +$1.09 after Thursday’s -$1.35, Wednesday’s +$0.34 and Tuesday’s -$0.75 with a positive +$0.69 or +2.21% pre-open indication
CRISPR Therapeutics (CRSP) closed up +$2.12 after Thursday’s -$3.59, Wednesday’s +$1.56, Tuesday’s -$2.37 and last Monday’s +$3.98 with a positive +$0.48 or +$0.92% aftermarket indication.
Negative Indications:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
BioLife Solutions (BLFS0 closed up +$0.50 after Thursday’s -$0.57 with a negative -$0.34 or -1.72% aftermarket indication
Sage Therapeutics (SAGE) closed up +$0.67 after Thursday’s -$0.62, Wednesday’s -$0.44, Tuesday’s +$2.10 after Monday’s +$1.80 with a negative -$0.48 or -1.01% aftermarket indication.
Ultragenyx (RARE) closed up +$0.98 after Thursday’s -$0.63, Wednesday’s +$0.91, Tuesday’s +$0.23 and Monday’s +$2.55 with a negative -$2.11 or -5% 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.”
Coming this week, the first Q1 earnings season.
Investors should be hesitant to add to positions re concerns of persisted inflation while electronic trading i.e., algorithms seem to be the only ones to lead the upside.
I STILL believe the cell and gene therapy sector will continue to trade sideways, spotty with some down. Sector breadth has been less impressive on the Nasdaq; it is STILL a tug of war between sentiment and conviction
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; I can always be WRONG but, I am mostly EARLY!
At ANY time, this week, be ready to take partial profits and exit losers.
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.
