September 25, 2023 4:39pm
Not an egg but, a cannon that fired and fell off a battlement; “all the Kings horses and all the Kings men … Couldn’t put Humpty together again.” The actual meaning to this rhyme to me a crushing of indexes and to “wreak untold destruction’ upon the sector
Pre-open Indications: 3 Hit and 4 Miss
Also, final trading week of Q3, from a.m. post: some means few; when you are a cell and gene therapy believer, the benefit of the doubt is immeasurable – the sector is oversold
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Never leave an investor uninformed!
Investors crave share pricing explanations because they give us an illusion of portfolio control. I know what a company is supposed to look like, be like, and smell like to succeed; bottom line, investors own the right to exit or enter sector’s share pricing.
The Dow closed UP +43.04 points or +0.13%, the S&P closed UP +17.38 points or +0.40% while the Nasdaq closed UP +59.51 points or +0.45%
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 “popped” in the last minutes in another struggling and weakened session.
Volume fell on the Nasdaq versus the same time on Friday.
Moody’s Investors Service warned in a note on Monday that a U.S. government shutdown would be a “credit negative” event for the country. <CNBC>
52-week low:
- XBI at 71.70
- Prime Medicine (PRMC) at $11.81
- Fate Therapeutics (FATE) at $2.06
- Intellia Therapeutics (NTLA) at $32.00
- Sangamo Therapeutics (SGMO) at $0.68
- Regenxbio (RGNX) at $16.75
Monday (9/25) … RegMed Investors’ (RMi) Opening Bell: “a tough week ahead. Is it time to step-up newest bottom buys; after more than a few downsides in cell and gene therapy sector, I believe some are actionable?” … https://www.regmedinvestors.com/articles/13134
Pre-Open indications: 3 Hit < Regenxbio (RGNX -$0.23), Sage Therapeutics (SAGE -$0.30), Ionis Pharmaceuticals (IONS -$0.05)> and 4 Miss < Ultragenyx Pharmaceuticals (RARE +$0.24), Alnylam Pharmaceuticals (ALNY -$0.78), Editas Medicine (EDIT -$0.74), Verve Therapeutics (VERV -$0.67)>
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened – differences …
- Monday’s advance/decline line opened negative at 4 up/ 29 down and 2 flats, stayed negative with 13 up/ 22 down and 0 flat at the mid-day, ending with a negative close of 7 incliners, 26 decliners and 2 flats
- Friday’s advance/decline line opened negative at 9 up/ 24 down and 2 flats, stayed negative at the mid-day with 9 up/ 25 down and 1 flat, ending with a negative close of 9 incliners, 22 decliners and 4 flats
Ebb and flow:
Q3: September – 1 holiday, 6 positive and 10 negative closes
· August – 9 positive and 14 negative closes
· July - 1 holiday, 12 positive and 8 negative close
Key Metrics:
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday, the IBB was down -0.24% and the XBI was down -1.47%
- Friday, the IBB was down -0.40% and the XBI was down -1%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was down -0.14 point or -0.81% at 17.06
- Friday was down -0.34 point or -1.94% at 17.20
Closing Down (10 of 26):
- Alnylam Pharmaceuticals (ALNY -$0.78 after Friday’s -$2.30),
- Beam Therapeutics (BEAM -$0.75 after Friday’s -$1.20),
- Editas Medicine (EDIT -$0.74),
- Verve Therapeutics (VERV -$0.67 after Friday’s -$0.36),
- Prime Medicine (PRMC -$0.51),
- Harvard Apparatus RN (HRGN -$0.39 after Friday’s $0.00),
- Brainstorm Cell Therapeutics (BCLI -$0.38),
- Sage Therapeutics (SAGE -$0.30),
- uniQure NV (QURE -$0.24 after Friday’s $0.00),
- Regenxbio (RGNX -$0.23 after Friday’s -$0.51),
FLAT (2)
- Homology Medicine (FIXX $0.00 after Friday’s $0.00),
- Vericel (VCEL $0.00 after Friday’s -$0.19
Closing Up (7 of 7):
- CRISPR Therapeutics (CRSP +$0.37 after Friday’s -$0.57
- Ultragenyx Pharmaceuticals (RARE +$0.24 after Friday’s -$0.18),
- Graphite Bio (GRPH +$0.18 after Friday’s +$0.01)
- BioLife Solutions (BLFS +$0.15 after Friday’s +$0.47),
- AxoGen (AXGN +$0.14),
- MiMedx (MDXG +$0.13),
- Compass Therapeutics (CMPX +$0.06 after Friday’s +$0.09),
Q3/23 – September
- Monday closed negative with 7 incliners, 26 decliners and 2 flats
- Friday closed negative with 9 incliners, 22 decliners and 4 flats
The BOTTOM LINE: I try to keep it simple … and short!
Key word of the state of uncertainty in “our” universe of cell and gene therapy … “which makes It difficult to predict where sector is headed in the short run.”
Invest like you're driving on an icy, windy road, not an open highway. Proceed carefully, or wait it out on the side of the road.
Contributing to today’s (9/25) downdraft … fear of inflation and its resulting market forces:
- The Fed's "higher for longer" interest rate strategy continued to pile on pressure as a US government shutdown loomed.
- Oil prices have resumed their rally, raising the prospect of inflation staying high.
- With less than a week left to avert a government shutdown, investors are starting to assess its potential impact on the economy, given there's little sign of progress on a budget agreement by lawmakers.
- A reading on second quarter GDP is scheduled for Thursday.
- The UAW ratchets up walkouts in its strike against GM (GM), Ford (F) and Stellantis (STLA).
The cell and gene therapy sector equities share pricing dived yet again on Monday, Friday, Thursday, Wednesday, Tuesday and last Monday.
As I have written, too many factors are calling the ball on share pricing – algorithms and electronic trading, here and there sentiment, economics, upcoming Q3 earnings.
I STILL believe the political aspect of the country’s leanings, polarization, and disparities of the debt ceilings arguments are contributing to the roller coaster ride for share pricing actions.
It’s still about the economy … STUPID as investors congest a raft of economic reports pointing to … tamer core inflation data and a spending consumer.
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!”
Being “greedy when others are fearful” is easier said than done!
When a cell and gene therapy sector equity sells-off to or below a buy point, investors face a tough decision: hold tight, exit or trim the position. There's not necessarily a "right" answer. Sometimes the stock will bounce right back, others will keep falling — perhaps after briefly bouncing. A more-cautious approach may make more sense in the current volatile market.
The top three (3) performing in the session:
Monday: CRISPR therapeutics (CRSP), Ultragenyx Pharmaceuticals (RARE) and Graphite Bio (GRPH)
Friday: BioLife Solutions (BLFS), Ionis Pharmaceuticals (IONS) and Blueprint Medicines (BPMC),
The worst three (3) in the session:
Monday: Alnylam Pharmaceuticals (ALNY) – 8x, Beam Therapeutics (BEAM) – 2x and Editas Medicine (EDIT)
Friday: Alnylam Pharmaceuticals (ALNY) – 7x, Beam Therapeutics (BEAM) and Intellia Therapeutics (NTLA)
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.
Harvard Apparatus Regenerative Technology (HRGN) formerly Biostage (OTCQB: BSTG) … as of 7/20/23 -- so many issues according to the 8-K and 10-K!
Still labeled a … Going Concern
· WHY does Chinese investor DST Capital and Beijing based Dixintong Technology Group need a regenerative medicine/biotech public and money losing company in its investment group that resides in the middle of medical and scientific innovation in America?
· HRGN has incurred substantial operating losses since its inception, and as of June 30, 2023 had an accumulated deficit of approximately $88.5 million and will require additional financing to fund future operations.
· Question #1, did you notice how it barely trades unless volume is “pump” – is it by DST, run by the president of HRGN, Hong Yu and Mrs. Mrs. bin Zhao of Weston, Mass – funded by Lui Dong Hai, chairman of Dixintong Technology Group (D. Phone, the largest smartphone retailer in China) the husband of Mrs. bin Zhao??
· Questions #2, Is the current or future investment coming directly or indirectly from those associated with two (2) directors of BSTG, Jason Jing Chen (chairman of BSTG’s board of directors who resides in Beijing, China and is employed by a subsidiary of Dixintong technology Group – D. Phone, the largest cell phone company in China), Ting Li (Donghai Securities Co., Ltd) - all reside in China – what are their affiliations with China’s security service - MSS??
· Monday, 9/25 – HRGN declines -$0.39 <down from -$1.36> with 1,289 shares traded after last week’s closes – Friday’s $0.00 after Thursday’s $0.00, Wednesday’s $0.00, Tuesday’s -$0.09 and the previous Monday’s $0.00.
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.
