June 17, 2021 5:45pm

Decliners in the sector were fewer than expected

Pre-open indications: 3 HITs and 0 MISS

My comments try to distinguish the temporary from real pricing digression or progress.

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The Dow closed DOWN -210.22 points (-0.62%); the S&P closed DOWN -1.84 points (-0.04%) while the Nasdaq closed UP +121.67 points (+0.87%)

 

Henry’omics:

Indexes fell for a second day (other than the Nasdaq) as investors digested the Fed’s latest policy update, where it moved up its timeline for interest rate hikes and forecast higher inflation.

Adding to the bearish sentiment on Thursday, the Labor Department reported that initial jobless claims.

 

Data Docket: The Labor Department reported that initial jobless claims rose last week to 412,000, up from the previous week’s 375,000. Economists expected jobless claims of 360,000.

 

RegMed Investors’ (RMi) pre-open: “uncertainty as liquidity of pricing reflects conflicted value. As the cell and gene therapy sector runs out of buyers, it runs into trouble (just like a fire that runs out of wood)” … https://www.regmedinvestors.com/articles/11959

 

RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines:

  • Thursday opened negative at 13/18, 3 flats and 1 acquired, strayed positive at the mid-day to 21/10, 3 flats and 1 acquired, closing positive at 23/10, 1 flat and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump” is STILL promoting, after volume of 735 shares on Thursday dropped the price -$0.09 to $1.21 after Wednesday 200 shares drove the price +$0.089 to $1.30 after Tuesday’s 10,703 shares traded with the pricing DROPPED to -$0.039 to $1.21 after Monday’s 2,305 shares traded with NO gain … after Friday’s 1,395 shares traded moving up +$0.04 to $1.25, Thursday’s 1,050 share traded only moved the share price +$0.01 to $1.21 and last Wednesday’s 2,200 shares traded with a negative close of -$0.06 to $1.20 WHO is buying this “zombie”?

 

Pre-open Indications: 3 HITs < Biostage (BSTG -$0.09), CRISPR Therapeutics (CRSP +$3.36), Editas Medicine (EDIT +$1.16) and 0 MISS>  

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results: https://www.regmedinvestors.com/articles/11628

 

There are clear winners and losers

Jumping with share pricing momentum:

  • CRISPR Therapeutics (CRSP) – again, BioLife Solutions (BLFS), Alnylam Pharmaceuticals (ALNY), Fate Therapeutics (FATE), Editas Medicine (EDIT) to name 5 of the 23 inclining of the 35 covered

Hammered in today’s market:

  • Ultragenyx (RARE) – again, Global Blood Therapeutics (GBT) – again, Regenxbio (RGNX), Chinook Therapeutics (KDNY), Precigen (PGEN) to name 5 of the 10 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 6 of the 23-upside having higher than the 3-month average volume with the volume of 5 of 10-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 23-upside were +0.17% (QURE) to +6.56% (BLFS) while the 10-downside ranges from -1.07% (RGNX) to -6.92% (BSTG);

 

Thursday’s (10 of 23) incliners:

  • Alnylam Pharmaceuticals (ALNY +$3.95 after Wednesday’s +$1.80);
  • CRISPR Therapeutics (CRSP +$3.36 after Wednesday’s +$0.29, Tuesday’s -$5.14 and Monday’s +$3.29);
  • BioLife Solutions (BLFS +$2.60 after Wednesday’s +$0.03, Tuesday’s +$0.97 and Monday’s +$0.63);
  • Fate Therapeutics (FATE +$1.56 after Wednesday’s -$4.14, Tuesday’s -$3.18 and Monday’s +$0.22);
  • Vericel (VCEL +$1.44 after Wednesday’s +$2.07);
  • AxoGen (AXGN +$1.22 after Wednesday’s -$0.47);
  • Editas Medicine (EDIT +$1.16);
  • MiMedx (MDXG +$0.61 after Wednesday’s +$0.27);
  • Cellectis SA (CLLS +$0.41 after Wednesday’s -$0.35, Tuesday’s -$0.74 and Monday’s +$0.62);
  • Ionis Pharmaceuticals (IONS +$0.35 after Wednesday’s +$0.45, Tuesday’s -$1.11 and Monday’s -$0.14);

Thursday’s (10 of 10) decliners:

  • Intellia Therapeutics (NTLA -$2.74);
  • Ultragenyx (RARE -$1.80 after Wednesday’s -$2.26, Tuesday’s -$2.84 and Monday’s +$1.17);
  • Global Blood Therapeutics (GBT -$1.17 after Wednesday’s -$1.29, Tuesday’s -$0.73 and Monday’s -$0.36);
  • Regenxbio (RGNX -$0.41 after Wednesday’s +$1.74, Tuesday’s -$0.96 and Monday’s -$0.16);
  • Chinook Therapeutics (KDNY -$0.38);
  • Precigen (PGEN -$0.20);
  • Voyager Therapeutics (VYGR -$0.17 after Wednesday’s +$0.12 and Tuesday’s +$0.01);
  • Brainstorm Cell Therapeutics (BCLI -$0.15);
  • Pluristem (PSTI -$0.11);
  • Biostage (BSTG -$0.09 after Wednesday’s +$0.089), Tuesday’s -$0.039 and Monday’s flat);

Closing flat - 1 – ReNeuron (RENE.L) and 1 -Stemline Therapeutics (STML – acquired)

 

Stats:

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

  • Thursday, the IBB closed up +0.49% and XBI closed up +0.59%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -0.40 points or -2.20% at 17.75

Upside volume: weak

  • Thursday: 6 out of the 23-upside had higher than the 3-month average volume

Downside volume:

  • Thursday: 5 out of the 10-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: price versus percentage …

  • Thursday’s percentage (%) of the 23-upside were +0.17% (QURE) to +6.56% (BLFS) while the 10-downside ranges from -1.07% (RGNX) to -6.92% (BSTG);

 

June, third month of Q2/21:

Thursday closed positive with 23 advancers, 10 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: I’m in for the “ride” however, I’m STILL expecting the sector rotation trades to continue to play out.

I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim any new highs if one can!”

Don’t get complacent …

 

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.