May 21, 2024 4:46pm

Sector rotation evolves as low volume tampers share pricing

Making money in the cell and gene therapy sector is trading the alpha layered with beta, the measure of volatility and risk

I write this blog/newsletter about – facts in evidence! 

Never leave an investor uninformed! A trusted source of factual reporting!

NO sigh of relief, I qualify the sector’s equity’s movement; with an emphasis on which company is gaining or losing stride in “our” portfolios in the short and near-term

 

Tuesday: The Dow closed UP +66.81 points or +0.17%, the S&P closed UP +13.28 points or +0.25% while the Nasdaq closed UP +37.75 points or +0.22%

 

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 ticked higher Tuesday, hanging on to the record levels seen in the previous session, as cell and gene therapy sector investors got trounced.

 

All-time low:

  • Verve Therapeutics (VERV) at $5.54

 

Advance/Decline (A/D) Line:

  • Tuesday’s advance/decline line at the open was neutral with 16 incliner, 16 decliners and 3 flats; ending with a negative close of 9 incliners, 24 decliners and 3 flats

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

Q2/24: 8 positive and 7 negative closes

  • April; 16 negative and 6 positive closes

 

Key Metrics:

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

  • Tuesday, the IBB was down -0.44% and the XBI was down -0.76%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was down -0.26 point or -2.14% at 11.89

 

Tuesday’s Closing Down (10 of 24):

  • Ionis Pharmaceuticals (IONS -$1.35 after Monday’s +$1.41),
  • Ultragenyx Pharmaceuticals (RARE -$0.95 after Monday’s -$0.34
  • CRISPR Therapeutics (CRSP -$0.71 after Monday’s -$0.75
  • Blueprint Medicine (BPMC -$0.63 after Monday’s -$0.70),
  • Alnylam Pharmaceuticals (ALNY -$0.62 after Monday’s +$0.84,
  • Solid Biosciences (SLDB -$0.61 after Monday’s +$0.17
  • Regenxbio (RGNX -$0.54),
  • Verve Therapeutics (VERV -$0.41),
  • Adverum Biotechnologies (ADVM -$0.39 after Monday’s +$0.21)
  • Fate Therapeutics (-$0.21),

Flat (3):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Compass Therapeutics (CMPX)
  • Precigen (PGEN)

Tuesday’s Closing Up (9 of 9):

  • Sage Therapeutics (SAGE +$0.87 after Monday’s -$0.52
  • Mesoblast (MESO +$0.60),
  • Prime Medicine (PRME +$0.40 after Monday’s +$0.45),
  • Agenus (AGEN +$0.42 after Monday’s -$0.16
  • Vericel (VCEL +$0.40 after Monday’s +$2.78
  • Harvard Apparatus RT (OTCQB: HRGN +$0.15 after Monday’s $0.00),
  • Brainstorm Cell Therapeutics (BCLI +$0.053),
  • Lenz Therapeutics (LENZ +$0.05 after Monday’s +$2.24),
  • Homology Medicine (FIXX +$0.0071),

 

Q2/24 – May

  • Tuesday closed negative with 9 incliners, 24 decliners and 3 flats
  • (5/20) Monday closed negative with 15 incliners, 16 decliners and 4 flats

 

The BOTTOM LINE:  No, bad or even good news or somewhere in between gets sold into – lately it’s just a matter of form as algorithms, dark pools and ETFs … disrupt!

  • Reiterating, “Anyone puzzled by the most recent sector moves has reason for feeling so; volatility sketches a sometimes-contradictory picture of share pricing.”
  • Today’s trend is an admission that the sector is without pricing sustainability which suppresses a value directional
  • Who do you call for “share side” assistance?  It’s not AAA … try RMi

Again, a day/session speaks for itself!

 

The top three (3) performing in the session:  

  • Tuesday: Sage Therapeutics (SAGE), Prime Medicine (PRME) and Mesoblast (MESO)
  • Monday: Vericel (VCEL), Lenz Therapeutics (LENZ) and Ionis Pharmaceuticals (IONS) 

The worst three (3) in the session:

  • Tuesday: Ultragenyx Pharmaceuticals (RARE), Ionis Pharmaceuticals (IONS) and CRISPR Therapeutics (CRSP)
  • Monday: CRISPR Therapeutics (CRSP), Blueprint Medicine (BLMC) and Sage Therapeutics (SAGE)

Welcome to my world of defining the “grey’ in our universe!

  • Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I can always be 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. 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.