Reg Med Investors (RMi) closing Bell: oscillating between gains and losses since the beginning of August

August 11, 2023 7:25pm

Algorithms play out “The Scorpion and the Frog” fable/moral to the week’s share pricing

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The week in review

If I have learned one thing as a former research analyst in a venture and public fund, operating executive, x-military officer and x-FBI, an adjunct (MBA) business school professor now a journalist; my life and your portfolio are largely tied to our knowledge of price movements and questioning pricing targets.

The Dow closed UP +105.25 or +0.30%, the S&P closed DOWN -4.78 or -0.11%% while the Nasdaq closed DOWN -76.18 points (-0.58%)

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 closed mixed as the week closed with the S&P 500 diving -0.3% and the Nasdaq declined -1.9% as the Dow advanced +0.6%.

Economic Data Docket: July’s consumer price index, a major inflation read came in softer than anticipated on a year-over-year basis. Prices climbed 3.2% on an annual basis, less than the consensus estimate of 3.3%.  The CPI reading showed some signs of stickiness. So-called core CPI, which excludes volatile food and energy costs, rose 4.7% from the prior year.

·         But inflation data released Friday complicated the picture. July’s producer price index, which tracks the price wholesalers pay for raw goods, rose 0.3% from the previous month. Economists expected a 0.2% increase month over month.

Friday (8/11) … RegMed Investors’ (RMi) Opening Bell: “a fizzle or a sizzle? Traders awaited wholesale prices data and mulled over July’s consumer inflation report.” … https://www.regmedinvestors.com/articles/13074

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

• Friday’s advance/decline line opened negative at 12 up/ 22 down and 1 flat, stayed negative with 14 up/ 18 down and 3 flats at the mid-day, ending with a negative close of 12 incliners, 18 decliners and 5 flats

• Thursday’s advance/decline line opened positive at 25 up/ 8 down and 2 flats, stayed positive with 22 up/ 12 down and 1 flat at the mid-day, ending with a negative close of 16 incliners, 18 decliners and 1 flat

• Wednesday’s advance/decline line opened negative at 15 up/ 18 down and 3 flats, strayed negative with 13 up/ 18 down and 4 flats at the mid-day, ending with a positive close of 18 incliners, 16 decliners and 1 flat

• Tuesday’s advance/decline line opened positive at 19 up/ 14 down and 4 flats, strayed negative with 16 up/ 17 down and 2 flats at the mid-day, ending with a positive close of 20 incliners, 15 decliners and 0 flat

• Monday’s advance/decline line opened negative at 2 up/ 30 down and 3 flats, stayed negative with 4 up/ 30 down and 1 flat at the mid-day, ending with a negative close of 2 incliners, 31 decliners and 2 flats

Ebb and flow:

• Q3: August – 2 positives and 7 negative closes

Closing Down (10 of 18):

• Prime Medicine (PRME -$0.44 after Thursday’s -$0.59),
• CRISPR Therapeutics (CRSP -$0.42 after Thursday’s -$0.88)
• BioLife Solutions (BLFS -$0.28 after Thursday’s -$0.69 after Wednesday’s -$5,28 after Tuesday's -$0.25),
• Caribou Bioscience (CRBU -$0.25 after Thursday’s +$0.29 after Wednesday’s -$0.04),
• Ultragenyx Pharmaceuticals (RARE -$0.20 after Thursday’s -$0.31),
• Vericel (VCEL -$0.18 after Thursday’s -$0.29 after Wednesday’s -$0.64 after Tuesday's +$0.90),
• AxoGen (AXGN -$0.18 after Thursday’s -$0.43),
• Fate Therapeutics (FATE -$0.17),
• bluebird bio (BLUE -$0.12),
• Regenxbio (RGNX -$0.07),

Flat (5):

• Harvard Apparatus RM (HRGN)
• Brainstorm Cell Therapeutics (BCLI)
• Mesoblast (MESO)
• Sangamo Therapeutics (SGMO)
• Solid Biosciences (SLDB)

Closing Up (12 of 12):

• Alnylam Pharmaceuticals (ALNY +$0.76 after Thursday’s -$1.33)
• Sage Therapeutics (SAGE +$2.41 after Thursday’s +$0.37),
• Ionis Pharmaceuticals (IONS +$0.40),
• Voyager Therapeutics (VYGR +$0.21 after Thursday’s +$0.08 after Wednesday +$0.16),
• Beam Therapeutics (BEAM +$0.15 after Thursday’s -$0.71, Wednesday’s -$0.14 after Monday’s -$1.58),
• Cellectis SA (CLLS +$0.06 after Thursday’s +$0.05),
• Adverum Biotechnologies (ADVM +$0.06),
• Agenus (AGEN +$0.03),
• Compass Therapeutics (CMPX +$0.03),
• Editas Medicine (EDIT +$0.02 after Thursday’s -$0.18),
• Precigen (PGEN +$ after Thursday’s +$0.28),
• Graphite Bio (GRPH +$0.02),

Q3/23 – August

• Friday closed negative with 12 incliners, 18 decliners and 5 flats
• Thursday closed negative with 16 incliners, 18 decliners and 1 flat
• Wednesday closed positive with 18 incliners, 16 decliners and 1 flat
• Tuesday closed positive with 20 incliners, 15 decliners and 0 flat
• Monday closed negative with 2 incliners, 31 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 –

The fable, “The Scorpion and the Frog is an animal fable which teaches that vicious people cannot resist hurting others even when it is not in their own interests.”

The moral from the Scorpion and The Frog, as it is generally interpreted, is that there are certain irrepressible instincts that “investors” is helpless against.

August tends to frighten many stock market investors and historians.

·         The stock market is riding high after a strong performance in July, but August could be a difficult month for investors.

·         Data compiled by the Stock Trader’s Almanac shows the S&P 500 averages just a 0.1% gain in August. That makes it the third-worst month on average for the benchmark index. The Dow, meanwhile, averages a loss of 0.04% in August. <CNBC>

Ultragenyx pharmaceuticals (RARE) - Days after settling a lawsuit with Thermo Fisher Scientific (TMO) over the use of their ancestor's cells, Henrietta Lacks' descendants have also sued them.

Cell and gene therapy sector performance continues to suggest the results of earning season…

Q2/23 net losses earnings, cash positions and runway outcomes. LPS (loss-per-share) releases will present challenges to share pricing with outcomes included … https://www.regmedinvestors.com/articles/13058

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!”

The top three (3) performing in the week:

Friday: Sage Therapeutics (SAGE) – again, Alnylam Pharmaceuticals (ALNY) and Ionis Pharmaceuticals (IONS)

Thursday: Blueprint Medicine (BPMC), Verve Therapeutics (VERV) and Sage Therapeutics (SAGE)

Wednesday: Ultragenyx (RARE), Alnylam Pharmaceuticals (ALNY) – again, and Blueprint Medicine (BLMC)

Tuesday: CRISPR Therapeutics (CRSP), Sage Therapeutics (SAGE) and Alnylam Pharmaceuticals (ALNY)

Monday: Solid Biosciences (SLDB), Precigen (PGEN) and Bellicum Pharmaceuticals (BLCM)

While The worst three (3) in the week:

Friday: Prime Medicine (PRME), CRISPR Therapeutics (CRSP) and BioLife Solutions (BLFS)

Thursday: Alnylam Pharmaceuticals (ALNY), Beam Therapeutics (BEAM) and CRISPR Therapeutics (CRSP) - again

Wednesday: BioLife Solutions (BLFS) – again, CRISPR Therapeutics (CRSP), and Vericel (VCEL)

Tuesday: AxoGen (AXGN), Ultragenyx (RARE) and BioLife Solutions (BLFS)

Monday: Sage Therapeutics (SAGE) and Bellicum Pharmaceuticals (BLCM)

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! U.S. public shareholders deserve accountability …

Harvard Apparatus Regenerative Technology (HRGN)  formerly Biostage (OTCQB: BSTG) … as of 7/20/23 -- so many issues!

·         Question: is HRGN just another Ponzi scheme (with their pump/promote buy and sell agenda) as shares are bought to replace those sold?

·         Accumulated deficit:  $85,901 M

·         Will HRGN ESCAPE the scandals when its “former” corporate name was used by a former chairman and CEO Green initiating scandal plagued utilization of an Italian surgeon and the $5 M it took to settle out the executive responsibility as it was SHIFTED to the company shareholders and Harvard Bio (HBIO)???

·         Can this management team be TRUSTED by ANY shareholder other then major holders’ Chinese off-shore investors.

·         HRGN schedules earnings LPS (loss-per-share) conference call on 8/14

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.