June 13, 2023 4:37pm

Sector share price runs with slight downdrafts; the strength of the economy will dictate whether the Fed hikes again and influence sector share pricing

Pre-open Indications: 3 Hits and 2 Miss

Biostage (OTCQB: BSTG) Chronicles: Question - on their investor day (6/20/23), will CEO Jerry He (formerly from Bright Scholar Education Holdings, LTD of Foshan, China) “address disclosure in past 10-K, that BSTG has “identified material weaknesses in our internal control over (their) financial reporting” including the issues of their INABILITY to confirm their “lost” invoicing, past liabilities and payables as well as their PONZI use of DST Capital to promote and pump their share pricing?

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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 UP +145.79 points (+0.43%), the S&P closed UP +30.08 points (+0.69%) while the Nasdaq closed UP +111.40 points (+0.83%)

 

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 rose Tuesday after new inflation data showed price pressures slowed again in May, adding to investor optimism that the Fed could skip a rate hike when it next decides on policy this week.

The annual increase in the consumer price index was the smallest in more than two years, though underlying price pressures are still strong and suggest inflation will not easily cool - a scenario that keeps the door open to a future Fed hike.

Economic Data Docket: US data from May showed that inflation is decelerating — but stubborn price gains showed that the Fed remains under pressure to hike interest rates this year. The Consumer Price Index — a closely-monitored measure of inflation that tracks changes in the costs of everyday goods and services — rose 4% in May versus a year earlier, according to the US Bureau of Labor Statistics. That was a step down from April’s 4.9% increase and marks the smallest

 

Tuesday (6/13) … RegMed Investors’ (RMi) pre-open: “bottom feed and sell into few tops. Bets should be placed on the downtrodden, don’t ignore the up sliders – they will be plucked, just a matter of sessions.” …  https://www.regmedinvestors.com/articles/13000

 

Pre-open Indications: 3 Hit < AxoGen (AXGN +$0.19), Intellia Therapeutics (NTLA +$2.42), Chinook Therapeutics (KDNY -$0.11)> and 2 Miss < Vericel (VCEL -$0.07), BioLife Solutions (BLFS+-$0.34)>   

 

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

  • Tuesday’s advance/decline line opened positive at 26 up/ 8 down and 1 flat, stayed positive with 27 up/ 7 down and 1 flat at the mid-day, ending with a positive close of 27/6 and 2 flat

 

Key Metrics:

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

  • Tuesday, the IBB was up +0.93% and the XBI was up +1.67%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was down -0.37 point or -2.47% at 14.69

 

Closing Down (6 of 6):

  • Solid Biosciences (SLDB -$0.12),
  • Chinook Therapeutics (KDNY -$0.11 after Monday’s +$13.99),
  • Homology Medicine (FIXX -$0.08),
  • Adverum Biotechnologies (ADVM -$0.07 after Monday’s -$0.03),
  • Agenus (AGEN -$0.04),
  • Cellectis SA (CLLS -$0.04),

Flat (2):

  • Biostage (OTCQB: BSTG – after Monday’s $0.00)
  • Mesoblast (MESO)

Closing Up (10 of 27):

  • Alnylam Pharmaceuticals (ALNY +$4.45 after Monday’s +$2.26,),
  • Intellia Therapeutics (NTLA +$2.42 after Monday’s +$0.37),
  • Editas Medicine (EDIT +$1.54),
  • Sage Therapeutics (SAGE +$1.11 after Monday’s -$1.88),
  • UniQure NV (QURE +$0.97 after Monday’s -$0.40)
  • CRISPR Therapeutics (CRSP +$0.89 after Monday’s -$1.34),
  • Beam Therapeutics (BEAM +$0.83 after Monday’s +$0.77),
  • Verve Therapeutics (VERV +$0.67),
  • Blueprint Medicine (BPMC +$0.67 after Monday’s -$0.84),
  • Ultragenyx (RARE +$0.63),

 

Q2/23 – June

  • Tuesday closed positive with 27 incliners, 6 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.”

Yesterday’s title said it all, “validation of sector by Novartis’ NV (NVS) acquisition of Chinook Therapeutics (KDNY) and Intellia Therapeutics’ (NTLA) potential cure” -- an acquisition and positive clinical data.

How long will investors remember these activities as share pricing falters?

Investors will be monitoring Wednesday’s reading of how the Fed's will cycle high inflation.

Right up front, “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!”

Yet, there is VALUE out there after electronic trading and algorithms take their toll on share pricing however, it’s about playing or betting and timing of the sector. Even as I had stated, “I wouldn’t be buying … I would be selling into this upside!”

 

The top three (3) performing in the session:

·         Tuesday: Alnylam Pharmaceuticals (ALNY) – again, Intellia Therapeutics (NTLA) and Editas Medicine (EDIT)  

·         Monday: Chinook Therapeutics (KDNY), Alnylam Pharmaceuticals (ALNY) and BioLife Solutions (BLFS)

While The worst three (3) in the session:

·         Tuesday: Solid Biosciences (SLDB), Chinook Therapeutics (KDNY) and Homology Medicine (FIXX)

·         Monday: Sage Therapeutics (SAGE), CRISPR Therapeutics and Blueprint Medicine (BPMC)

 

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.

Check your portfolio reports: Vanguard Group was fined and censured by the Financial Industry Regulatory Authority (FINRA) for errors appearing in about 8.5 million customer account statements.

 

The NO spin zone! U.S. public shareholders deserve accountability …

 

Biostage (OTCQB: BSTG) … so many issues from the past as many of those “miscreant management” members are still employed!

Tuesday closed FLAT with 20 shares traded after Monday closed FLAT with 116 shares traded, Friday closed FLAT with 0 shares traded, Thursday closed down -$0.11 with 301 shares traded, Wednesday closed FLAT with 46 shares traded and last Tuesday closed down -$0.06 with 1,100 shares traded <3-month average =938 shares>

·         Biostage (OTCQB: BSTG) finally announced a clinical trial initiation for an IND that was approved on 3/20/2020 – what’s with the time (3 years and 2 months) interval?

·         Question: Review the number of shares traded on a weekly and monthly basis … is OTCQB: BSTG a Ponzi scheme (with their pump/promote buy and sell agenda) as shares are bought to replace those sold?

·         Accumulated deficit:  $85,901 M – still NO product in sight – a 4-to-5-year clinical trial BEFORE they can evolve to a pediatric protocol!

·         OTCQB: BSTG is holding their annual meeting on 7/19, to vote the Beijing, China designated directors …??? Certainly NOT a US company ANYMORE!

 

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.