December 3, 2021 5:06pm

As I stated this a.m., “Friday could be a quick-out to an exit session” as the 52-week lows are conspicuous about the state of the sector – all week!

The Biostage (BSTG) Chronicles: Friday closed $0.00 with 200 shares traded after Thursday closed up +$0.07 with 3,527 shares traded; the “pump and promote” lingers. What’s there to invest in – the “Sword of Damocles” hanging over its recent insurance company rejection of legal expense/costs of a terminal death suit against the company?

Pre-open indication results: 5 HITs, 0 MISS

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 week in review …

The Dow closed DOWN -60.24 points (-0.17%); the S&P closed DOWN -36.68 points (-0.85%) while the Nasdaq closed DOWN -295.85 points (-1.92%)

 

Henry’omics:

The end of a roller-coaster week driven by Covid omicron variant developments and today’s disappointing November jobs report.

  • “The uncertainty regarding Omicron is high, but coupled with the disappointing jobs number and investors decided to dump in front of the weekend,” said Ryan Detrick, chief market strategist at LPL Financial.

The CBOE volatility index, the VIX fear gauge, was higher 30.96 after Thursday’s 27.95 after Wednesday’s 31.12, Tuesday’s 27.19 and Monday’s 22.96.

 

Economic Data Docket: the unemployment rate fell sharply to 4.2%, better than estimates of 4.5%.

  • November’s jobs report showed slower-than-expected job creation last month. Nonfarm payrolls increased by just 210,000 for the month, well below the 573,000 jobs predicted by economists.

 

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

  • Friday opened negative at 0 ups/32 downs, 2 flats and 1 acquired, stayed negative at the mid-day at 0/33, 1 flat and 1 acquired, ending with a positive close of 1 up/31 downs, 2 flats and 1 acquired;
  • Thursday opened positive at 25 ups/6 downs, 3 flats and 1 acquired, stayed positive at the mid-day at 22/12, 2 flats and 1 acquired, ending with a positive close of 26 ups/8 downs and 1 acquired;
  • Wednesday opened positive at 27 ups/6 downs, 1 flat and 1 acquired, flipped negative at the mid-day at 11/22, 2 flats and 1 acquired, ending with a negative close of 4 ups/29 downs, 1 flat and 1 acquired;
  • Tuesday opened positive at 18 ups/15 downs, 1 flat and 1 acquired, flipped negative at the mid-day at 12/22 and 1 acquired, ending with a positive close of 19 ups/15 downs and 1 acquired;
  • 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;

 

RegMed Investors’ (RMi) pre-open: “a pre-occupied week. A debt showdown and an Omicron expansion” …  https://www.regmedinvestors.com/articles/12209

 

Pre-open indication results: 5 HITs: < Biostage (BSTG -$0.00), Athersys (ATHX -$0.06), CRISPR Therapeutics (CRSP -$6.76), Sangamo Therapeutics (SGMO -$0.35), Cellectis SA (CLLS -$0.37)> and 0 MISS>

 

The Biostage (BSTG) Chronicles: Friday closed flat with 200 shares traded after Thursday closed up +$0.07 with 3,527 shares traded after Wednesday closed up +$0.95 with 2,590 shares traded after Tuesday closed down again -$0.02 with 2,143 shares traded after Monday closed down -$0.40 to $2.00 with 6,025 shares traded.

  • New CEO and chairman with a personal investment.
  • My view, “the grifters are still running the company”
  • 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” terminal death suit insurance claim rejection hanging over the companies non-going operations?

 

Key Metric - volume

Sector volume INCREASED with 1 of the 1-upside having higher than the 3-month average volume with INCREASED volume of 19 of 31-downside having higher than the 3-month average volume;

  Outstanding Downside Volume:

  • CRISPR Therapeutics (CRSP) with 2.882 m shares traded
  • Editas Medicine (EDIT) with 2.365 m shares traded
  • Solid Biosciences (SLDB) with 2.16 m shares traded

 

  The 52-week losers:

  • XBI reached a 52-week low of 110.03
  • Pluristem Therapeutics (PSTI) reached a 52-week low of $2.32
  • Mesoblast (MESO) reached a 52-week low of $5.31
  • Editas Medicine (EDIT) reached a 52-week low of $28.40
  • Fate Therapeutics (FATE) reached a 52-week low of $47.77
  • Cellectis SA (CLLS) reached a 52-week low of $8.06
  • Applied Genetic Technologies (AGTC) reached a 52-week low of $1.92
  • Homology Medicine (FIXX) reached a 52-week low of $4.59

 

Jumping with share pricing momentum (1 of 1):

  • Ionis Pharmaceuticals (IONS +$0.24),

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

  • Alnylam Pharmaceuticals (ALNY -$11.9 after Thursday’s +$2.92, Wednesday’s -$3.87, Tuesday’s +$3.06 and Monday’s -$7.79),
  • Intellia Therapeutics (NTLA -$8.92 after Thursday’s +$3.03, Wednesday’s -$8.09, Tuesday’s +$3.28 and Monday’s -$1.40),
  • CRISPR Therapeutics (CRSP -$6.76 after Thursday’s +$1.57),
  • Fate Therapeutics (FATE -$4.60),
  • Ultragenyx (RARE -$3.11 after Thursday’s +$2.96, Wednesday’s +$0.93, Tuesday’s +$1.52 and Monday’s -$2.78),
  • Editas Medicine (EDIT -$2.31 after Thursday’s -$0.38),
  • BioLife Solutions (BLFS -$2.03 after Thursday’s -$1.38),
  • Global Blood Therapeutics (GBT -$1.45 after Thursday’s +$1.78, Wednesday’s -$1.13),
  • Sage Therapeutics (SAGE -$1.31 after Thursday’s +$1.22, Wednesday’s -$1.76, Tuesday’s +$0.38 and Monday’s -$0.79)
  • Regenxbio (RGNX -$1.05 after Thursday’s +$1.34, Wednesday’s -$1.70, Tuesday’s +$1.81 and Monday’s -$0.77),

Closing Flat:

  • 2 – Biostage (BSTG), ReNeuron (RENE.L) and 1 - Stemline Therapeutics (STML) – acquired

 

Stats: notice the divergence

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

  • Friday, the IBB closed down -1.88% and XBI closed down -4.40%
  • Thursday, the IBB closed up +0.33% and XBI closed up +2.18%
  • Wednesday, the IBB closed down -2.26% and XBI closed down -3.56%
  • Tuesday, the IBB closed down -1.18% and XBI closed up +1.06%
  • Monday, the IBB closed up +0.75% and XBI closed down -1.48%

 

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was up +2.72 points or 9.72% at 30.67
  • Thursday was down -3.17 points or down -10.19% at 27.95
  • Wednesday was up +3.93 points or +14.45% at 33.12
  • Tuesday was up +4.23 points or +18.42% at 27.19
  • Monday was down -5.66 points or -19.78% at 22.96

 

December, the second month of Q4/21:

Friday closed negative with 1 incliner, 31 decliners, 2 flats and 1 acquired

Thursday closed positive with 26 incliners, 8 decliners and 1 acquired

Wednesday (12/1) closed negative with 4 incliners, 29 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE:  Key term was what … sustainable from Thursday’s “up” to today’s … nada!

Yesterday, I stated, “I don’t feel the term “rally is to describe the sector’s move; it was an oversold response – just another rebound!”

Another way to expound, the sector recovered ground lost over recent past sessions as the algorithms instructed and re-ruled there were bargains … ignoring the implications of a shifting pandemic – it’s not programmed-in.

However, it could be a wee-bit of that we are about to enter into TAX SELLING for year’s end!

In any case, I have continued to write … don’t ramp 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.