April 27, 2023 7:46am

After negative breadth has pervaded the cell and gene therapy sector with losers outpacing winners once again. A “bare” aftermarket as the Russell 2000 is below all its moving averages and not that far from six-month lows

Earnings: Sangamo Therapeutics (SGMO) could NOT recognize their quarterly numbers of net loss and per share loss but could identify its cash position – NOT quite the bell weather for the sector as even preliminary numbers were NOT available – WRONG measure of defining expectation!

Pre-open indications: 4 Positive and 5 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.

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 +0.39% or (+132 points), S&P futures are UP +0.52% or (+21 point) and NASDAQ futures are UP +0.87% or (+111 points) early in the pre-open – so far

 

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 …

Wednesday, indexes were mixed (the Dow and S&P were down) while the Nasdaq was up with the Dow closed DOWN -228.96 points (-0.68%), the S&P closed DOWN -15.64 points (-0.38%) while the Nasdaq closed UP +55.19 points (+0.47%).

Economic Data Docket: The Commerce Department will release its initial estimate of first-quarter GDP at 8:30 a.m. Thursday. Economists expect to see a 2% annual gain. The report also will include Q1 inflation data that will give strong signals about Friday's PCE price gauge for March. The Labor Department will release weekly jobless claims data at 8:30 a.m.

 

Wednesday’s (4/26) … RegMed Investors’ (RMi) closing bell: “Uncle algo showed briefly and left early. The reaction to no action, cell and gene therapy sector dived yet, again.” …  https://www.regmedinvestors.com/articles/12933

 

Ebb and flow:

Q2/23 – 1 holiday, 6 positive close and 11 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:

Wednesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Agenus (AGEN) closed down -$0.0293 with a positive +$0.06 or +3.80% pre-open indication.

Avrobio (AVRO) closed up +$0.005 with a positive +$0.06 or +6.74% aftermarket indication.

CRISPR Therapeutics (CRSP) closed down -$0.778 with a positive +$0.82 or +1.69% pre-open indication

Intellia Therapeutics (NTLA) closed down -$0.04 after Tuesday’s -$0.24 with a positive +$0.13 or +0.36% pre-open indication

 

Negative Indications:

Wednesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Alnylam Pharmaceuticals (ALNY) closed down -$4.63 with a negative -$1.57 or -0.79% pre-open indication.

AxoGen (AXGN) closed down -$0.06 after Tuesday’s -$0.14 with a negative -$0.18 or -1.96% aftermarket indication.

Ionis Pharmaceuticals (IONS) closed down -$0.13 after Tuesday’s +$0.16 with a negative -$0.40 or -1.12% aftermarket indication after its partner Biogen (BIIB) has received FDA approval of QALSODY™ (tofersen) for the treatment of amyotrophic lateral sclerosis (ALS) in adults

Sage Therapeutics (SAGE) closed down -$0.34 after Tuesday’s +$0.14 with a negative -$0.74 or -1.57% aftermarket indication.

Verve Therapeutics (VERV) closed up =$0.09 with a negative -$0.32 or -2.02% 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.”

I was extremely tentative about the performance of our universe as we awaited the first showing (Sangamo Therapeutics (SGMO) of earnings season – and NOTHING came out as MY prejudice (as to words in title) one again those who shows who NEGLECT to "totally" inform shareholders.

A quote from IBD, “ Investors should have modest exposure, cutting back on many recent buys.”

More frequently right than consequentially wrong … “The rubber is hitting the road, so those companies have to do quite well to justify it.” What is the “it” – upside as LPS (loss-per-share) numbers facilitate downslides.

Investors should be hesitant to add to positions re concerns of electronic trading i.e., algorithms seem to be the only ones leading any upside – go with flow.

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.