June 2, 2021 5:13pm

A negative sector close following a barely positive Tuesday post a negative sector close on last Friday

Pre-open indications: 7 HITs and 0 MISS

My comments are important in trying to distinguish the temporary from real pricing digression or progress.

If you’re looking for sector intel, ideas and facts or numbers (which don’t lie) in a volatile climate, RMi defines the rigors of share pricing! My comments distinguish the temporary from real pricing digression or progress.

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  

The Dow closed UP +25.07 points (+0.07%); the S&P closed UP +6.08 points (+0.14%) while the Nasdaq closed UP +19.85 points (+0.14%)

 

Henry’omics:

All three indexes are fairly close to record levels. The Dow and Nasdaq are 1.4% and 3.2% below their respective records.

June is historically a weak month for stocks, but Instinet points out that the S&P 500 has had a better track record recently, gaining every June since 2016.

Another bad session in the cell and gene therapy sector …

Reviewing the month of May, last week, there were 3 negative sector closes of five sessions (beginning 5/24) after the previous week’s) beginning 5/17) two negative closes of five sessions following the mid-month (5/10) four negative closes of five sessions as Monday began the month (5/3) with a negative close. Not a good track record as the sector barely closed positive on the first day, Tuesday and closed negative in the second session of June.

 

RegMed Investors’ (RMi) pre-open: ““Trounced or bouncing? The oversold are crying-out for or wailing about recognition in this rotation” … https://www.regmedinvestors.com/articles/11937  

 

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

  • Wednesday opened negative at 14/19, 1 flat and 1 acquired, stayed negative by the mid-day to 4/30 and 1 acquired, closing negative at 10/23, 1 flat and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump and promote” is NOT working as 5,673 shares are traded and the stock is down -$0.11 to $1.11; WHO is buying this “zombie” stock after Tuesday’s +$0.10 to $1.22 with 2216 shares traded in a company with NO runway, a filed IND - no clinical trial after a year plus (+), their auditor (RSM US LLP “ceasing the client-auditor relationship”, a Beijing based board of directors (BOD) majority, barely ANY employees left in 17,000 square feet of office (maybe 3 who show-up and 1 IT p/t?

  • WHAT’s the allure and again, WHO is buying – SEC, Mass Secretary of State – enforcement division where you be in regulation review?
  • Is Mrs. Bin Zhao, the head of DST Capital, Weston, Mass. BSTG’s major and seemingly ONLY investor RESPONSIBLE for these unfulfilled “activities especially the purchase, “pump and promote” share volatility?
  • DOESN’T the SEC, Mass Secretary of State Enforcement division NEED to REVIEW her participation?

Re RSM US LLP, “Wouldn’t quit, walked-away or resigned fit the action specifically.” … https://www.regmedinvestors.com/articles/11932 ,

  • BSTG was down -$0.11 to $1.12 with 5,673 shares traded after Tuesday’s +$0.10 to $1.22 with 2,216 shares traded, Friday’s -$0.20 to $1.12 with 600 shares traded, Thursday’s flat at $1.32 and last Wednesday’s $1.32 after it had been down -$0.21 to $1.11 with 5,605 shares traded until the “promote and pump” kicked-in with shares bought to move it to -$0.00 with 5,617 shares trade.
  • Maintaining SELL

This all could have been avoided IF they had kept the team together that qualified the IND but, did Hong Yu – president and Shunfu Hu – VP of business development and operations NEED to indulge their egos or was it … “ORDERS” from Beijing, China?

 

Pre-open Indications: 7 HITs < Biostage (BSTG -$0.11), bluebird bio (BLUE +$0.03), Editas Medicine (EDIT +$0.82), ReNeuron (RENE.L +$2.50), Applied Genetic Technologies (AGTC -$0.12), Sage Therapeutics (SAGE -$1.89), Verastem (VSTM -$0.00)> and 0 MISS

 

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

 

There are clear winners and losers

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), Editas Medicine (EDIT) - again, Bellicum Pharmaceuticals (BLCM), Sangamo Therapeutics (SGMO), Voyager therapeutics (VYGR) to name 5 of the 10 inclining of the 35 covered

Hammered in today’s market:

  • Fate Therapeutics (FATE) - again, Ultragenyx (RARE) - again, Sage Therapeutics (SAGE), Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) – again to name 5 of the 23 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 1 of the 10-upside having higher than the 3-month average volume with the volume of 4 of 23-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 10-upside were +0.10% (BLUE) to +5.59% (BLCM) while the 23-downside ranges from -0.28% (BLFS) to -9.02% (BSTG);

 

Wednesday’s (10 of 10) incliners:

  • ReNeuron +$2.50 after Tuesday’s flat;
  • Editas Medicine (EDIT +$0.82 after Tuesday’s +$0.27);
  • Global Blood Therapeutics (GBT +$0.19 after Tuesday’s -$1.23);
  • Bellicum Pharmaceuticals (BLCM +$0.16);
  • Mesoblast (MESO +$0.15 after Tuesday’s -$0.34);
  • Sangamo Therapeutics (SGMO +$0.15);
  • Voyager Therapeutics +$0.06);
  • Brainstorm Cell therapeutics (BCLI +$0.05);
  • Bluebird bio (BLUE +$0.03);
  • Precigen (PGEN +$0.01);

Wednesday’s (10 of 23) decliners:

  • Fate Therapeutics (FATE -$3.52 after Tuesday’s -$4.14);
  • Ultragenyx (RARE -$2.13 after Tuesday’s -$1.88);
  • Sage Therapeutics (SAGE -$1.89 after Tuesday’s +$0.37);
  • Alnylam Pharmaceuticals (ALNY -$1.43 after Tuesday’s +$2.29);
  • Cellectis SA (CLLS -$1.15 after Tuesday’s +$0.68);
  • CRISPR Therapeutics (CRSP -$1.06 after Tuesday’s -$2.38);
  • Ionis Pharmaceuticals (IONS -$1.06 after Tuesday’s -$0.51);
  • Vericel (VCEL -$1.03);
  • Intellia Therapeutics (NTLA -$0.95 after Tuesday’s -$1.21);
  • uniQure NV (QURE -$0.87 after Tuesday’s -$0.17);

Closing flat: 1 – Verastem (VSTM) and 1 -Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

  • Twelve U.S. states now have 70% of adult residents with at least one Covid vaccine shot, Centers for Disease Control and Prevention data published Tuesday shows. The U.S. is reporting an average of 1.2 million vaccinations per day over the past week, according to the CDC.

Wednesday’s COVID Data Tracker <Million>:

  • Cases: 34.145 M
  • Death rate totaled 610,833
  • 62.8% of the U.S. population has received one dose or more.

 

Stats:

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

  • Wednesday, the IBB closed up +0.12% and XBI closed up +0.62%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.42 points or -2.35% at 17.48

Upside volume: low

  • Wednesday: 1 out of the 10-upside had higher than the 3-month average volume;

Downside volume: low

  • Wednesday: 4 out of the 23-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: LOW % with limited pricing drops as upside maintains

  • Wednesday’s percentage (%) of the 10-upside were +0.10% (BLUE) to +5.59% (BLCM) while the 23-downside ranges from -0.28% (BLFS) to -9.02% (BSTG);
  •  

June, third month of Q2/21:

Wednesday closed negative with 10 advancers, 23 decliners, 1 flat and 1 acquired

Tuesday closed positive with 17 advancers, 16 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: What changes, it might just pay to read … I haven’t been wrong, as I had stated “Expect the sector rotation trades to continue to play out.”

Q1 earnings season is wrapping up and my reaction to earnings LPS (loss-per-share) results reveals more than some skepticism that Q1 losses provide a reason for additional forward-looking less than optimistic and more pessimism through the mid-year.”

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!”

My time frame of measurement remains Friday to Friday and has been proved right again, 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.