November 29, 2021 4:56pm

For SELLING into Friday’s rout as the sector continued to roll downward

Pre-open indication results: 5 HITs, 5` MISS

The Biostage (BSTG) Chronicles: Monday closed down -$0.40 to $2.00 with 6,025 shares traded. What’s there to invest in, the “Sword of Damocles” hanging over the companies non-going operations after insurance rejection of reimbursement in a terminal death suit?

Who else is tracking a broad representative of cell and gene therapy equities – with facts supported by real numbers?

If I have learned one thing as a former research analyst, venture and public markets investor to a journalist; it is that your life and your bank account are largely tied to your questioning of price targets.

 

The Dow closed UP +236.60 points (+0.68%); the S&P closed UP +60.65 points (+1.32%) while the Nasdaq closed UP +291.18 points (+1.88%)

 

Henry’omics:

The Dow rose as stocks recovered some of Friday's losses while the Nasdaq led the upside and the stem, cell and gene therapy sector crashed again.

Small caps tracked by the Russell 2000 climbed 0.5%. Volume was lower on both major exchanges vs. the same time Friday, which was a half-day, post-holiday session.

Investors are spooked by fears over the B.1.1529 Covid variant, dubbed "omicron" of the coronavirus,  discovered in South Africa reigniting concerns over renewed global lockdown restrictions.

  • Genetic sequencing shows it carried a large number of troubling mutations on the spike protein -- the knoblike structure on the surface of the virus that it uses to grapple onto the cells it infects.
  • Some of those mutations were already recognized from other variants and were known to make them more dangerous, including one called E484K that can make the virus less recognizable to some antibodies -- immune system proteins that are a frontline defense against infection and that form the basis of monoclonal antibody treatments.
  • It also carries a mutation called N501Y, which gave both Alpha and Gamma their increased transmissibility.

 

Economic Data Docket: Signed contracts on existing homes, so-called pending sales, jumped 7.5% from September, according to the National Association of Realtors. The average rate on the popular 30-year fixed mortgage was just below 3% in mid-September, but climbed to 3.22% by the end of October, according to Mortgage News Daily.

 

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

  • Monday opened negative at 12 ups/20 downs, 2 flat and 1 acquired, stayed negative at the mid-day at 6/27, 1 flat and 1 acquired, ending with a negative close of 4/31 and 1 acquired;
  • Friday opened negative at 5 ups/28 downs, 1 flat and 1 acquired, stayed negative at 11 am at 1/31, 2 flats and 1 acquired, ending with a negative close of 3 ups/29 downs, 2 flats and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “will futures moves drive a sustainable sector response” … https://www.regmedinvestors.com/articles/12201  

 

Pre-open indication results: 5 HITs: <Biostage (BSTG -$0.40), Chinook Therapeutics (KDNY +$0.23), Cellectis SA (CLLS -$0.32), Sage Therapeutics (SAGE -$0.79), Verastem (VSTM -$0.09)> 5 MISS < CRISPR Therapeutics (CRSP -$0.81), Fate Therapeutics (FATE -$0.75), Alnylam Pharmaceuticals (ALNY -$7.79), Ionis Pharmaceuticals (IONS -$1.60), MiMedx (MDXG +$0.23)>

 

Note: The omicron news sent Covid-19 vaccine makers soaring Friday. On Monday, the stocks extended their gains.

  • Moderna (MRNA) soared +11.80% ($38.88) in heavy trade to its highest level in nearly two months. MRNA stock soared 20.1% on Friday.
  • Pfizer (PFE) closed down -2.96% (-$1.60) gain to 0.8%, after soaring 6% Friday.
  • BioNTech (BNTX) - jumped +4.17% (+$14.52) on Friday, the German biotech and PFE's Covid vaccine partner gapped up and soared 14%.
  • Merck & Co (MRK) fell -5.39% (-$4.27) extending Friday's losses even after updated data from a study of its experimental COVID-19 pill showed lower efficacy in reducing risk of hospitalization and deaths than previously reported.

 

The Biostage (BSTG) Chronicles: Monday closed down -$0.40 to $2.00 with 6,025 shares traded after Friday closed up +$0.10 with 100 share traded, Thursday markets was closed, as Wednesday closed flat with 15 shares traded, Tuesday closed $0.00 with 0 shares traded following last Monday closing down again -$0.30 with 1,141 shares traded. Where is the SEC and Nasdaq monitoring?

  • NO clinical trial from a one (1) and 3/4-year-old IND and a negligence rejection of reimbursement in a terminal death suit.
  • What’s there to invest in, the “Sword of Damocles” hanging over the companies non-going operations?

 

Key Metric - volume

Sector volume LOW with 1 of the 4-upside having higher than the 3-month average volume with LOW volume of 12 of 31-downside having higher than the 3-month average volume;

Outstanding upside volume:

  • Brainstorm Cell Therapeutics (BCLI) +$0.07 with 1.509 m shares traded

Outstanding downside volume:

  • Ionis Pharmaceuticals (IOND) closed down -$1.60 with 1.595 m shares traded

There are clear winners and losers:

  • Ionis Pharmaceuticals (IONS) reached a 52-week low of $28.45, closing at $27.45

 

Jumping with share pricing momentum (3 of 3):

  • ReNeuron (RENE.L +$1.00 after Friday’s -$3.00),
  • Chinook Therapeutics (KDNY +$0.23 after Friday’s -$1.04),
  • Brainstorm Cell Therapeutics (BCLI +$0.07 after Friday’s +$0.031),

Hammered in today’s market (10 of 31):

  • Alnylam Pharmaceuticals (ALNY -$7.79),
  • Ultragenyx (RARE -$2.78 after Friday’s -$1.09),
  • BioLife Solutions (BLFS-$2.07 after Friday’s -$2.79),
  • Ionis Pharmaceuticals (IONS -$1.60 after Friday’s -$1.27),
  • Intellia Therapeutics (NTLA -$1.40 after Friday’s -$2.39),
  • Global Blood Therapeutics (GBT -$1.27 after Friday’s -$1.04),
  • Editas Medicine (EDIT -$1.11 after Friday’s -$0.75),
  • Vericel (VCEL -$1.00 after Friday’s -$1.88),
  • Sage Therapeutics (ASAGE -$0.79)
  • Regenxbio (RGNX -$0.77 after Friday’s -$2.25),

Closing Flat:

  • 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Monday, the IBB closed up +0.75% and XBI closed down -1.48%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -5.66 points or -19.78% at 22.96

 

November, the second month of Q4/21:

Monday (11/29) closed negative with 3 incliners, 31 decliners and 1 acquired

Friday closed negative with 3 incliners, 29 decliners, 2 flats and 1 acquired

 

The BOTTOM LINE: Revisiting Friday’s statement, “Sector equities are not easy to buy in this environment, especially after today’s BIG “dump”.

We are also about to enter into TAX SELLING for year’s end!

In any case, I wouldn’t ramp up your exposure at the current levels.

There's also nothing wrong with standing pat after reducing exposure earlier in the month.

Reiterating, “the stem, cell and gene therapy sector is still seen as vulnerable to extreme low volume moves in either direction, as share pricing risk stimulates their susceptibility!”

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!”

WHY do I keep analyzing Biostage (BSTG): When one sees an inextricable wrong and morally repulsive scenario; it takes courage, resolve and patience to stay the course of asking the questions without response!

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations?  What I provide is a trusted source of share pricing intelligence – it’s more than opinion, I deal in the facts and numbers that back them up.

 

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.