September 27, 2023 7:43am
What goes up with dramatic upside price actions under a dark cloud; you might want to lock-in profit if any exacerbated as rotational anxiety pervades the cell and gene therapy sector
News: BrainStorm Cell Therapeutics (BCLI) Nasdaq has halted trading. The FDA’s Cellular, Tissue and Gene Therapies Advisory Committee is meeting today to review their Biologics License Application (BLA) for NurOwn® for the treatment of amyotrophic lateral sclerosis (ALS). The ADCOM meeting is scheduled to take place 10:00 am to 6:00 pm ET. Ionis Pharmaceuticals (IONS +$0.92 pre-open) has entered an agreement with Roche for two (2) undisclosed early-stage programs for RNA-targeting investigational medicines for the treatment of Alzheimer's disease (AD) and Huntington's disease (HD).
Pre-open Indications: 2 Positive, 3 Negative and 2 Sell-into-Strength Indications
My version of the morning’s “indications” is about what you need to know; it’s what could happen or materialize and what did happen at the close of the session
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8:00 a.m. edition
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 UP +0.31% or (+104 points), S&P futures are UP +0.34% or (+17 points) and NASDAQ futures are UP +0.40% or (+59 points) early in the pre-open – so far
U.S. stock futures traded higher Wednesday,
European markets were mixed,
Asia-Pacific markets reversed losses to trade mostly higher.
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 as the Dow closed DOWN -388.13 points or -1.14%, the S&P closed DOWN -63.91 points or -1.47% while the Nasdaq closed DOWN -207.71 points or -1.57.
Economic Data Docket: August’s durable goods orders; expected to decline -0.5%
Tuesday’s (9/26) RegMed Investors’ (RMi) closing bell: “sector was at its worst just before share pricing got better. As indexes crashed, the cell and gene therapy sector responded to “uncle algo and his electronic trading dwarfs” visit but, how long will it last – one (1) to three (3) sessions i.e., month and Q3’s end?” … https://www.regmedinvestors.com/articles/13137
Ebb and flow:
Q3: September – 1 holiday, 7 positive and 10 negative closes
· August – 9 positive and 14 negative closes
· July - 1 holiday, 12 positive and 8 negative close
Companies in my headlights – It’s your decision; I provide ideas and context:
I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors with insight into sector vulnerabilities and strengths. A dictionary definition of “indicate” refers to something less than a certainty; an indication could be a signal of being oversold or overbought, a recommendation, or grounds for inferring or a basis for believing.
Sell into Strength:
Tuesday’s closing price, some Monday, Friday, Thursday, Wednesday, Tuesday and Monday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Alnylam Pharmaceuticals (ALNY) closed up +$4.28 after Monday -$0.78, Friday’s -$2.30 and Thursday’s -$1.67 with a positive +$0.05 or +0.03% pre-open indication.
Ultragenyx Pharmaceuticals (RARE) closed up +$0.74 after Monday’s +$0.24, Friday’s -0.18 and Thursday’s +$0.43 with a neutral $0.00 or 0.00% aftermarket indication.
Negative Indications:
Tuesday’s closing price, some, Monday, Friday, Thursday, Wednesday, Tuesday and Monday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Sage Therapeutics (SAGE) closed up +$1.58 with a negative -$0.40 or -2.40% aftermarket indication.
Verve Therapeutics (VERV) closed up +$1.57 after Monday’s -$0.67 with a negative -$0.26 or -2% pre-open indication.
Maintaining, Editas Medicine (EDIT) closed down -$0.05 after Monday’s -$0.74 with a negative -$0.14 or -2.06% pre-open indication
Positive indications:
Tuesday’s closing price, some Monday, Friday, Thursday, Wednesday, Tuesday and Monday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Maintaining, Prime Medicine (PRME) closed down -$0.32 after Monday’s -$0.51 with a positive +$0.25 or +2.44% aftermarket indication.
Ionis Pharmaceuticals (IONS) closed up +$3.62 after Monday’s -$0.05 and Friday’s +$0.23 with a positive +$0.92 or +1.99% pre-open indication; also, with news of Roche deal for two undisclosed early-stage programs for RNA-targeting investigational medicines for the treatment of Alzheimer's disease (AD) and Huntington's disease (HD).
The BOTTOM LINE: underlines the framework of share pricing actions...
I DEVOTE a HUGE amount of time to “reckoning” the geography of my coverage group - it’s more than opinion, I deal in the facts and numbers that back them up.
- I am more frequently right than consequentially wrong; if you want to be liked, don’t be an analyst/journalist.
On Tuesday, indexes took a BIG hit with the stock market now in the grip of a correction, investors need to concentrate on reducing market exposure to the 0%-20% range while building up a robust watchlist of strong stocks that could emerge as leaders when the next uptrend kicks off.
- While, the cell and gene therapy closed up on Tuesday after seven (7) down sessions.
- Where and when is value creation as we slip to the end of September and the end of Q3 with LPS <loss-per-share> quarterly releases coming due?
In final trading week of September and Q3, <3 sessions> the sector has gone from oversold to overbought! The sector is what it is, until it isn’t and even then, it doesn’t seem to be… as NOT much changes as the sector’s share pricing rides the waves of volatility, algorithms, electronic trading and short covering.
- Investors should be playing this market, but not for all the marbles.
- There are still reasons to be cautious about the current market.
- At any given time, not many stocks are flashing buy signals, while shakeouts and sector rotations can make holding onto positions difficult.
Another session of influencing economic data on …
- Wednesday - MBA Mortgage Applications, week ending September 22 (+5.4% prior); Durable goods, August (-0.5% expected, -5.2% previously)
Coming attraction:
Though October is known as the “jinx month” because of the 1929 and 1987 crashes, it also has a reputation as a “bear killer,” according to the “Stock Trader’s Almanac.”
“While October tends to be among the more volatile months of the year, it’s also the month where we usually see great buying opportunities, because it’s just before November and December, which are seasonally strong periods of the year for the markets.” <Mary Ann Bartels, chief investment strategist at Sanctuary Wealth>
I hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I am more frequently right than consequentially wrong but, I am mostly EARLY!
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.
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. 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 could hold or have positions securities referred to in this publication and he will NOTIFY investors of holdings.
