May 2, 2023 7:40am

There could a new meaning to this rhyme this week; a shattering of sector share pricing by earnings LPS (loss-per-share). I’m selling in May to go away; I will come back soon!

Earnings: Sage Therapeutics (SAGE) and MiMedx (MDXG)  

Pre-open indications: 1 Positive and 3 Negative indications

My version of the morning’s “indications” is about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session

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.

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 -0.12% or (-41 points), S&P futures are DOWN -0.08% or (-3 point) and NASDAQ futures are UP +0.06% or (+8 points) early in the pre-open – so far

Stock futures are mixed on Tuesday,

European markets are mixed,

Asia-Pacific markets also mixed after the long Labor Day weekend.

 

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 …

Indexes had modest declines as the Dow closed DOWN -46.46 points (-0.14%), the S&P closed DOWN -1.61 points (-0.04) while the Nasdaq closed DOWN -31.99 points (-0.11%)

“The muted activity seen in Monday’s regular session is typical in the days leading up to a Fed policy meeting. Members of the Federal Open Market Committee will begin their policy meeting Tuesday, with an announcement on interest rates and a subsequent press conference expected Wednesday.” <Jamie Cox, managing partner, Harris Financial Group>

Economic Data Docket: data on job openings, factory orders, light vehicle sales and preparing for the Fed meeting policy statement.

 

Monday’s (4/28) … RegMed Investors’ (RMi) closing bell: “upside comes before it goes dark, or does it? Seven (7) Q1 LPS (loss-per-share) earnings releases coming this week, post session reporting could begin with a wavering sector response.” … https://www.regmedinvestors.com/articles/12939

 

Ebb and flow:

Q2/23 – May – 1 positive close

·         April ended - 1 holiday, 8 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:

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

CRISPR Therapeutics (CRSP) closed up +$0.14 after Friday’s -$0.17 with a positive +$0.61 or +1.24% pre-open indication.

 

Negative Indications:

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

BioLife Solutions (BLFS) closed up +$0.54 with a negative -$0.36 or -1.99% aftermarket indication.

Brainstorm Cell Therapeutics (BCLI) closed up +$0.10 with a negative -$0.06 or -2.01% aftermarket indication.

Prime Medicine (PRME) closed up +$0.51 with a negative -$0.51 or -3.64% 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.”

This week’s special, sector earnings start rolling out …

The cell and gene therapy sector could experience the “flight of Icarus” …  since “our” universe have oscillated between gains and losses since the first of 2023!

There are really three camps, electronic algorithms, traders versus investors who STILL don’t comprehend if the worst is behind us and those “entities” that continue to focus on tailwinds and not headwinds?

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 shows to those who NEGLECT shareholders.

The cell and gene therapy sector was healthy after three (3) upside session but remains "under pressure."  Investors need to get beyond earnings to see buying opportunities.

Reiterating, “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” – as LPS (loss-per-share) numbers facilitate downslides.”

The market had a wild week, with the major indexes testing support but ultimately closing with solid gains.

Investors should STILL 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.

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.