June 14, 2023 5:14pm

The Fed skipped, signaled that more rate hikes are coming after this month’s meeting

Pre-open Indications: 5 Hits and 1 Miss

Financing: Editas Medicine (EDIT -$0.82 aftermarket) offers to sell $125 M shares in an offering; also granting a 30-day option to purchase an additional $18.8 M shares. J.P. Morgan Securities LLC, Cowen and Company, LLC, and Evercore Group L.L.C. are acting as joint book-running managers

Biostage (OTCQB: BSTG) Chronicles: after sessions and weeks of flat and down sessions; the pimp, pump and promote is back with a +$0.11 upside (from +$0.41 pre-close) 2,899 shares traded; must have come from an overflight balloon? Supports a Ponzi/Madoff scheme?

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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 DOWN -232.79 points (-0.68%), the S&P closed UP +3.58 points (+0.08%) while the Nasdaq closed UP +53.16 points (+0.39%)

 

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 were mixed on Wednesday as the Fed paused its rate-hiking campaign and signaled it was making progress on fighting inflation. But at the same time, the central bank indicated it would hike another two times later this year.

The percentage of bullish financial newsletter writers climbed to 53.4% in the latest week from 51.3% a week ago, according to Investors Intelligence (II) — that’s the most bulls since November, 2021 when they reached “a danger level of 57.2%.”

Economic Data Docket: May’s producer price index, an indicator of the path of inflation, fell 0.3%, a larger decrease than expected. Economists anticipated a decline of 0.1%.

  • Fed Chair Powell said the central bank hadn’t yet made a decision about July’s meeting. He also said the Fed was making progress against inflation.

 

Wednesday (6/14) … RegMed Investors’ (RMi) pre-open: “another journey to Fed decision. As we wait for Jerome’s pontification of insight into the state of the economy and the central bank’s path forward.” … https://www.regmedinvestors.com/articles/13002

 

Pre-open Indications: 5 Hit <Verve Therapeutics (VERV -$1.02), Beam Therapeutics (BEAM -$0.03), Sage Therapeutics (SAGE -$0.73), uniQure NV (QURE -$0.80)> and 1 Miss < Editas Medicine (EDIT -$0.38)>   

 

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

  • Wednesday’s advance/decline line opened negative at 13 up/ 20 down and 2 flats, stayed negative with 13 up/ 21 down and 1 flat at the mid-day, ending with a negative close of 10 incliners and 25 decliners and 0 flats

 

Key Metrics:

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

  • Wednesday, the IBB was down -0.80% and the XBI was down -1.49%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.73 point or -5% at 13.88

 

Closing Down (10 of 25):

  • Ultragenyx (RARE -$1.94 after Tuesday’s +$0.63),
  • CRISPR Therapeutics (CRSP -$1.83 after Tuesday’s +$0.89 after Monday’s -$1.34),
  • BioLife Solutions (BLFS -$1.13),
  • Ionis Pharmaceuticals (IONS -$1.07),
  • Verve Therapeutics (VERV -$1.02 after Tuesday’s +$0.67),
  • Intellia Therapeutics (NTLA -$0.83 after Tuesday’s +$2.42 after Monday’s +$0.37),
  • UniQure NV (QURE +$0.80 after Monday’s -$0.40)
  • Sage Therapeutics (SAGE -$0.73 after Tuesday’s +$1.11 after Monday’s -$1.88),
  • Generation BIO (GBIO -$0.56),

Regenxbio (RGNX -$0.54),

Closing Up (10 of 10):

  • Alnylam Pharmaceuticals (ALNY +$0.95 after Tuesday’s +$4.45 and Monday’s +$2.26),
  • Blueprint Medicine (BPMC +$0.46 after Tuesday’s +$0.67 and Monday’s -$0.84),
  • AxoGen (AXGN +$0.23),
  • bluebird bio (BLUE +$0.15),
  • Biostage (OTCQB: BSTG +$0.11 after Tuesday’s and Monday’s FLAT),
  • Mesoblast (MESO +$0.10),
  • Prime Medicine (PRME +$0.05),
  • Bellicum Pharmaceuticals (BLCM +$0.01 after Tuesday’s +$0.01),
  • Cellectis SA (CLLS +$0.01 after Tuesday’s -$0.04),
  • Adverum Biotechnologies (ADVM +$0.01 after Tuesday’s -$0.07 after Monday’s -$0.03),

 

Q2/23 – June

  • Wednesday closed negative with 10 incliners, 25 decliners and 0 flat

 

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.”

Trading was choppy and volume was heavy even before the rate-setting Federal Open Market Committee (FOMC).

How long do algorithms and electronic trading versus investors remember the activities that acquisition and clinical data causing share pricing falters – NOT long?

“As markets were expecting, the Fed kept interest rates unchanged at a target range of 5%-5.25% on Wednesday, ending a streak of 10 consecutive hikes. However, traders were focusing on the central bank’s projections for the rest of the year, which indicated two more rate increases were ahead.” <CNBC>

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:

·         Wednesday: Alnylam Pharmaceuticals (ALNY) – again, Blueprint Medicine (BPMC) and AxoGen (AXGN)

·         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:

·         Wednesday: Ultragenyx (RARE), CRISPR Therapeutics (EDIT) and BioLife Solutions (BLFS)

·         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) … Ponzi, Madoff scheme,  so many issues from the past as many of those “miscreant management” members are still employed!

Wednesday closed up +$0.11 with 2,899 shares trade after Tuesday closed FLAT with 20 shares traded, 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 =857 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.