May 2, 2023 4:56pm

The rhyme was created to symbolize Tuesday’s action and reveal more serious “things” in this market

Pre-Open Indications: 2 Hits and 2 Miss

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.

Skim if you can trim, buy if it will fly and sell if compelled!

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 DOWN -367.17 points (-1.08%), the S&P closed DOWN -48.29 points (-1.16%) while the Nasdaq closed DOWN -132.09 points (-1.08%)

 

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 fell sharply Tuesday recoiling from fear, led lower by declines in bank shares, as traders braced for the latest Fed policy announcement.

Appropriate quote, ““We think that the concerns around the bank sector, combined with uneasiness regarding the debt ceiling — and most importantly, apprehension over the uncertain future Fed rate policy stance — are all contributing to this risk off sentiment. So, in an area like the bank sector that already was under stress, we’re also seeing greater unease because of these other contributing factors.” <Greg Bassuk, CEO of AXS Investments>

Economic Data Docket: Job Openings and Labor Turnover Survey for March showed signs of a loosening job market. Employment openings hit their lowest levels since April 2021. Employment openings hit a nearly two-year low in March, a sign the jobs market is loosening up, the Labor Department reported Tuesday. Openings totaled 9.59 million, the lowest since April 2021 and below the FactSet estimate of 9.64 million, according to the Job Openings and Labor Turnover Survey.

Orders for manufactured goods in March grew 0.9%, falling below expectations of a 1.3% increase.

  • Interesting Commentary, 2nd Opinion: Eric Rosengren thinks his former colleagues at the Federal Reserve will be making a mistake if they raise interest rates Wednesday. The former Boston Fed president, who retired from the board in September 2021, told CNBC on Tuesday that turmoil in the banking industry and an economic slowdown should push policymakers to end the rate-hiking campaign that began in March 2022. “My own view is that the economy is quite likely to slow down in the second half of the year and that it’s not necessary at this point to be raising rates until we get a better view of what the second half of the year looks like.” < Rosengren said on CNBC’s Squawk Box> Odds for a 25-basis-point hike in the interest rate the Fed charges banks stood at nearly 85%

 

Tuesday (5/2) … RegMed Investors’ (RMi) pre-open: “will the cell and gene therapy sector follow Humpty-Dumpty who sat on the wall and then had a great fall?  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!” … https://www.regmedinvestors.com/articles/12940

 

Pre-Open Indications: 2 Hits < BioLife Solutions (BLFS -$0.91), Prime Medicine (PRME -$0.26)> 2 Miss < CRISPR Therapeutics (CRSP -$1.03),  Brainstorm Cell Therapeutics (BCLI +$0.01)>

 

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

  • Tuesday’s advance/decline line opened negative at 6 up/ 28 down and 1 flat, stayed negative with 5 up/ 29 down and 1 flat at the mid-day, ending with a negative close of 5/30 and 1 flat
  • Monday’s advance/decline line opened positive at 28 up/ 5 down and 2 flats, stayed positive with 29 up/ 4 down and 2 flats at the mid-day, ending with a positive close of 26/7 and 2 flats

 

Key Metrics:

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

  • Tuesday, the IBB was down -1.32% and the XBI was down -2.88%
  • Monday, the IBB was up +0.79% and the XBI was up +2.42%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +1.69 points or +10.51% at 17.77
  • Monday was up +0.29 points or +1.84% at 16.07

 

Closing Down (10 of 30):

  • Sage Therapeutics (SAGE -$3.09 after Monday’s -$0.43),
  • Alnylam Pharmaceuticals (ALNY -$2.85 after Monday’s +$2.67),
  • Ultragenyx (RARE -$1.52 after Monday’s +$0.36),
  • Chinook Therapeutics (KDNY -$1.18 after Monday’s -$0.17),
  • CRISPR Therapeutics (CRSP -$1.03),
  • BioLife Solutions BLFS -$0.91),
  • Vericel (VCEL -$0.89 after Monday’s +$0.71),
  • Verve Therapeutics (VERV -$0.79),
  • Intellia Therapeutics (NTLA -$0.74 after Monday’s -$0.01)

Regenxbio (RGNX -$-0.61 after Monday’s +$0.74),

Flat (1):

  • Biostage (OTCQB: BSTG)

Closing Up (4 of 4):

  • Mesoblast (MESO +$0.06),
  • uniQure NV (QURE +$0.06 after Monday’s +$0.70),
  • Brainstorm Cell Therapeutics (BCLI +$0.01),
  • MiMedx (MDXG +$),
  • Bellicum Pharmaceuticals (BLCM +$0.005),

 

Q2/23 – May

  • Tuesday closed negative with 4 incliner, 30 decliners and 1 flat
  • Monday closed positive with 26 incliner, 7 decliners and 2 flats

 

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.”

From the title, “According to a number of military historians, Humpty Dumpty was the name of a cannon used by the Royalists during the English Civil War. The conflict raged from 1642 to 1649, and in June of 1648, Humpty Dumpty was stationed on the walls of Colchester.”

I have recommended in last night’s post, “Skim if you can trim, buy if it will fly and sell if compelled!”

 Timing is everything, “I learned very early (as a military officer), if you weren’t 5 minutes early for a meeting, you were 10 minutes late – follow my lead by being EARLY in portfolio deliberations.”

Have you asked yourself, do you know why you own certain equity? What’s been communicated re a company’s status at any given time to shareholders other than quarterly reports or a once-upon-a-time press release!

There are clear winners — and losers — at the start of May. The top three performing are:

·         Today – Mesoblast (MESO), uniQure NV (QURE) and Brainstorm Cell Therapeutics (BCLI)

·         Monday’s: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and Regenxbio (RGNX).

While The worst three (3):

·         Today - Sage Therapeutics (SAGE) – again, Alnylam Pharmaceuticals (ALNY) and Ultragenyx (RARE)

·         Monday’s: Sage Therapeutics (SAGE), Chinook Therapeutics (KDNY). Avrobio (AVRO),

 

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!

Mesoblast (MESO) Q3/23 NO Q (even in SEC filed 6K) information while reporting $48.8 M in cash with an additional debt financing in place.

Sage Therapeutics (SAGE) reported a Q/23 net loss of -$146.8 M, a share pricing loss of -$2.46 with a cash position of $1.1 B and a runway until 2025

MiMedx (MDXG) reported a Q/23 net loss of -$5 M, a share pricing loss of -$0.06 with a cash position of $61.2 M and a runway until 2025

 

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.

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! Do not U.S. public shareholders deserve accountability …

 

De-Listing Update:

Avrobio (AVRO) – Tuesday closed down-$0.168 to $0.65 after Monday closed down -$0.01596 to $0.83 after CEO Geoff MacKay resigned; still under Nasdaq minimum rule of $1.00; after twenty-one (21) sessions

·         Will AVRO do a reverse split to up-end delisting to “SCREW” shareholders yet, AGAIN?

 

Verastem Oncology (VSTM) closed down -$0.0070 after Monday’s -$0.075one hundred ninety-nine (199) sessions under the Nasdaq $1.00 minimum pricing

 

Biostage (OTCQB: BSTG) …

·         Tuesday closed FLAT with 0 shares traded Monday closed FLAT with 0 shares traded after Friday closed FLAT with 0 shares traded, Thursday closed flat with 0 shares traded, Wednesday closed flat with 27 shares traded and last Tuesday closed FLAT with only 15 shares traded <3-month average =1,613 shares>

·         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?

 

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.