January 27, 2025 7:08am

Why are investors concerned, DeepSeek released an open-source AI model that reportedly outperformed OpenAI’s in several tests. The Chinese company had launched an open source large-language model in December for what it says was less than $6 million. While Wall Street questions that figure, the foreign startup is still raising concern that the billions being spent to build out big AI models could be done for much more cheaply. CNBC>

  • Deepseek’s highly efficient and lower resource-intensive AI model has shown such significant innovation and success is posing thoughts to investors that the AI investment cycle may be over-hyped and a more efficient future is possible.”

The week ahead will bring investors a deluge of earnings releases and Wednesday’s Fed monetary policy decision news that will put that rally to the test.

Pre-open Indications: 2 Positive, 1 Negative and 1 Sell into Strength

Never leave an investor uninform

Remember that overnight and pre-open actions’ futures and markets doesn’t necessarily translate into actual trading in today’s market session.

My interpretation of the morning’s numbers is written to be informative; it’s built on what happened to make “it” happen today!

 

Friday’s night’s … RegMed Investors (RMi) Closing Bell: ambiguity points to downdraft of share pricing … https://www.regmedinvestors.com/articles/13779

 

Monday; the pre-open Dow futures are DOWN -0.72% or (-321 points), the S&P futures are DOWN -2.08% or (127 points) and the Nasdaq futures are DOWN -3.55% or (-777 points)

  • Stock futures were down sharply on Monday, 1/27/25,
  • European markets opened in negative territory,
  • Asia-Pacific markets traded mostly higher

 

Henry’omics: We need to more than consider the economic environment to comprehend the micro re “our” universe of cell and gene therapy companies

Friday: The Dow closed DOWN -140.82 points or -0.32%, the S&P closed DOWN -17.47 points or -0.29% while the Nasdaq closed DOWN -99.38 points or -0.50%

Economic Data Docket: New home sales (10 a.m.) - Dec.               

 

Q1/25: January – 2 holidays, 1 market close, 6 negative and 9 positive closes

  • Q4/24: December 1 holiday, 15 negative and 5 positive closes
  • November 10 negative and 9 positive closes
  • October: 8 positive and 15 negative closes

 

Companies in my headlights – It’s your decision; I provide ideas and context

I post about “indication intelligence” looking toward investment conferences … 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:

Alnylam Pharmaceuticals (ALNY) closed up +$3.22 after Thursday’s +$9.00, Wednesday’s +$1.55, Tuesday’s +$18.72 and Friday’s -$2.89 with a positive +$0.24 or +0.09% aftermarket

 

Positive:

AxoGen (AXGN) closed down -$0.84 with a positive +$0.35 or +1.93%

Ionis Pharmaceuticals (IONS) closed up +$0.29 after Thursday’s +$1.96, Wednesday’s -$0.18, Tuesday’s +$1.25 and Friday’s -$0.85 with a positive +$0.25 or +0.72% aftermarket

 

Negative:

Cellectis SA (CLLS) closed up +$0.145 with a negative -$0.02 or -0.95% aftermarket

 

The BOTTOM LINE: The RegMed sector suffers the tourist routine … most traders hear a piece of news, contemplate a pumping to buy and a dumping to sell. 

  • These same buyers/sellers can also be very fickle as their purchasing habits are often based on emotion, not sound investment strategies.

 

 These are the best of times and the worst of times.

  • Expect volatility to be more the norm versus exception.
  • Short term, markets and the cell and gene therapy sector will have to contend with upcoming earnings reports as the usual reporting pushes into the “dump.”
  • 1/24 – Friday ended with a negative close at the close of 12 incliner, 22 decliners and 1 flat
  • 1/23 – Thursday ended with a positive close at the close of 26 incliner, 4 decliners and 5 flats
  • 1/22 - Wednesday ended with a positive close at the close of 18 incliner, 14 decliners and 3 flats
  • 1/21 - Tuesday advance/decline line ended with a positive close at the close of 28 incliner, 6 decliners and 1 flat
  • 1/20 – Inauguration Day, markets were closed

 

I will be giving blood at hospital this a.m., - early thus the early piece as “the babe” needs some surgery!!! Will up to update when back!

 

Earnings are a-comin’ … from Q4/24 are due … as downdrafts follow as proven in past sessions!

  • Big Point to remember “Think about it; the biggest problem the cell and gene therapy sector has …  99% of them have no earnings! If rates are higher for longer, that means that sector companies will continue to struggle or be unable to raise capital and therefore be subject to debt servicing firms!” <Me>

 

What could 2025 have in store for the capital access space as Partners are the gift of life!

  • "You'll see a number of cell and gene therapy comandantes drive for secondaries – they’re desperate for cash, but I do think a lot of cell and gene therapy sector companies NEED to be focused on what is driving their own growth —they're focused on a lot of change BUT … that's happening in the market… capital expansion is second.

I seem to be asking a question followed by a question …

  • Do we need to brace ourself for more economics and their down trending affect?
  • Is this market STILL “bubblicious” my concerns are macroeconomic and valuation

 

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

  • 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.
  • I am more frequently right than consequentially wrong; if I wanted to be liked, I wouldn’t have been an analyst/journalist.

 

 

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 it’s 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.