May 4, 2023 7:45am
The key to the sector’s share pricing during earnings loaded week
Earnings: Alnylam Pharmaceuticals (ALNY), Compass Therapeutics (CMPX), Intellia therapeutics (NTLA), Ultragenyx Pharmaceuticals (RARE) and Cellectis SA (CLLS)
Pre-open indications: 4 Positive and 1 Negative indications
My interpretation of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today, not tomorrow or yesterday.
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 -0.31% or (-104 points), S&P futures are DOWN -0.35% or (-14 point) and NASDAQ futures are DOWN -0.04% or (-5 points) early in the pre-open – so far
Stock futures were down on Thursday, May 4, 2023 as banking contagion spreads,
European markets dived ahead of European Central Bank rate decision,
Asia Pacific markets were mixed.
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 on Wednesday after the Fed rate-hiked; with the Dow closed DOWN -270.29 points (+0.80%), the S&P closed DOWN -28.83 points (-0.70%) while the Nasdaq closed DOWN -55.18 points (-0.46%).
The Federal Reserve hiked rates Wednesday afternoon, with the central bank and Fed chief Jerome Powell hinting at a pause. But they didn't rule out further tightening, and Powell continued to push back at market calls for Fed rate cuts later this year. <IBD>
Economic Data Docket: initial jobless claims
Wednesday’s (5/3) … RegMed Investors’ (RMi) closing bell: “I’m not changing my treatise on the cell and gene therapy sector as investors are still marginalized, luckily to the upside by electronic trading. Sentiment is often driven by an algorithm; when sentiment readings are unusually high or low, they may begin acting in a diffident and contrarian way.” … https://www.regmedinvestors.com/articles/12943
RegMed Investors (RMi) Research Note: Upcoming Q1/23 earnings reporting dates … https://www.regmedinvestors.com/articles/12923
Ebb and flow:
Q2/23 – May – 1 negative and 2 positive closes
· 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:
Wednesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Beam Therapeutics (BEAM) closed up +$1.48 to $31.64 after Tuesday’s $30.16 and Monday’s $30.73 with a positive +$0.66 or +2.09% pre-open indication.
CRISPR Therapeutics (CRSP) closed up +$1.14 after Tuesday’s -$1.03 with a positive +$0.31 or +0.63% pre-open indication.
Intellia therapeutics (NTLA) closed up +$1.58 after Tuesday’s -$0.74 after Monday’s -$0.01 with a negative +$0.22 or +0.57% pre-open indication
Prime Medicine (PRME) closed up +$0.63 with a positive +$0.56 or +3.89% aftermarket indication.
Negative Indications:
Wednesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Sage Therapeutics (SAGE) closed up +$1.91 after Tuesday’s $3.09 after Monday’s -$0.43 with a negative -$0.46 or -0.97% 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.”
It has been said that, “Sentiment surveys are contrarian indicators. The more optimism found, the greater the risk in stocks. The greater the pessimism, the less risk.” <Scott Schnipper, CNBC>
This week’s special, sector earnings are rolling out …
Could 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?
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.”
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.
