June 17, 2024 4:44pm

Never forget sentiments an opinion, a view or judgment that blooms or withers furthering uncertainty of investor sustainability

Skim if you can trim, buy if it will fly and sell if compelled!

Pre-open Indications: 5 Hits and 1 Miss

I say today what others won't, so you can do what others can't!

Never leave an investor uninformed! 

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

 

Monday: The Dow closed UP +188.94 points or +0.49%, the S&P closed UP +41.63 points or +0.77% while the Nasdaq closed UP +168.14 points or +0.95%

 

RegMed Investors’ (RMi) pre-open post: “risk seems riskier; it’s what’s in flavor. JUNE’s trend so far is an admission that the sector is without pricing sustainability suppressing a value directional” … https://www.regmedinvestors.com/articles/13502

 

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes surged after the S&P 500 and Nasdaq posted their seventh weekly gain in eight weeks. Entering the new week, investors wondered if the market could sustain its current momentum.

Economic Data Docket: Investors are waiting May retail sales data, due out on Tuesday, as well as home sales and housing starts data later in the week.

 

Metrics & Advance/Decline (A/D) Line:

Monday’s advance/decline line at the open was negative with 7 incliner, 26 decliners and 3 flats; ending with a negative close of 9 incliners, 22 decliners and 4 flats

  • Monday, the IBB was down -0.74% and the XBI was down -1.26%
  • Monday, the VIX was up +0.09 point or +0.71% at 12.75

Friday’s advance/decline line at the open was negative with 5 incliner, 27 decliners and 3 flats; ending with a negative close of 4 incliners, 29 decliners and 2 flats

  • the IBB was down -0.64% and the XBI was down -2.21%
  • the VIX up +0.72 point or +6.03% at 12.67

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

  • June: 4 positive and 7 negative closes

 

Pre-open Indications: 5 Hits < Alnylam Pharmaceuticals (ALNY -$3.09), Ionis Pharmaceuticals (IONS +$0.11), Agenus (AGEN -$1.16), Beam Therapeutics (BEAM -$0.84), Sage Therapeutics (SAGE -$0.73)> and 1 Miss < Vericel (VCEL -$0.58), BioLife Solutions (BLFS +$0.06)>

 

Monday’s Closing Down (10 of 22):

  • Alnylam Pharmaceuticals (ALNY -$3.09 after Friday’s +$0.34
  • CRISPR Therapeutics (CRSP -$1.78 after Friday’s -$1.70
  • Blueprint Medicine (BPMC -$1.68 after Friday’s -$0.84)
  • Agenus (AGEN -$1.16 after Friday’s -$0.54
  • Beam Therapeutics (BEAM -$0.84),
  • Regenxbio (RGNX -$0.77 after Friday’s -$0.67),
  • Prime Medicine (PRME -$0.76 after Friday’s -$0.79
  • Sage Therapeutics (SAGE -$0.73 after Friday’s +$0.50
  • Vericel (VCEL -$0.58 after Friday’s -$1.06
  • Solid Biosciences (SLDB -$0.43 after Friday’s -$0.61),

Flat (4):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN)
  • Homology Medicine (FIXX) – under $1.00
  • Precigen (PGEN)

Monday’s Closing Up (9 of 9):

  • Ultragenyx Pharmaceuticals (RARE +$0.75 after Friday’s -$4.07)
  • Generation Bio (GBIO +$0.18 after Friday’s -$0.68),
  • Ionis pharmaceuticals (IONS +$0.11),
  • Compass Therapeutics (CMPX +$0.06),
  • BioLife Solutions (BLFS +$0.05),
  • MiMedx (MDXG +$0.04),
  • Intellia Therapeutics (NTLA +$0.02 after Friday’s -$0.81),
  • Precigen (PGEN +$),
  • Editas Medicine (EDIT +$0.01),

 

The BOTTOM LINE: As the markets look at and to June, consolidate around fair value,

the sector isn’t in the all-clear zone, noting the significant lack of market breadth and weakness under the surface.

Healthcare lagged the market rally in May and is now trading at a 2% discount as opposed to a premium earlier this year. Within the healthcare sector, we are seeing a number of stocks that rarely have traded at much of a discount,

There seems to be/are share pricing dislodgments in sector level valuations with fewer undervalued opportunities for investors.

In this period of ups, downs and uncertainty having experienced performance in the sector these months; I think investors need to SELL the HIGHS and BUY the LOWS … contrarian investment opportunities, especially in this sector that has underperformed, usually unloved—and most importantly—undervalued.

These MOVE plays are often “news or story stocks,” which typically revolve around catalysts that may or may NOT have short and near-term risk; but most of all require a greater amount of analysis.

 

3rd week of June, 1st session … the cell and gene therapy sector experienced a negative close …

  • 2nd week of June, 5th session … negative closes on Friday and Thursday after Wednesday ascended positively as Tuesday drifted lower, retreating from Monday’s highs.
  • 1stweek of June: Friday and Thursday ended in the toilet after Wednesday’s positive close Tuesday negative close following Monday’s positive close.

 

The worst and critical thought must remain in our heads…

  • For over a year, economists and investors have been fearful that elevated interest rates and tight monetary policies could tip the U.S. economy into a recession. U.S. consumers seem healthy for now, but the Fed is reaching a critical point in its battle against inflation.

 

How To Invest in June?? … <the view from Morningstar>

While the economic outlook remains uncertain, there are reasons for investors to be optimistic in June and beyond.

  • Since 1950, the S&P 500 has averaged a 1.3% gain in June during U.S. election years. Summer election-year stock market strength has historically continued through August before markets tend to cool in September and October leading up to Election Day.
  • The S&P 500 has also historically performed very well in the second half of election years under a first-term president, such as current President Joe Biden.

Investors concerned about the potential for a U.S. economic slowdown or election-related volatility can take a more defensive approach to the market and increase their financial flexibility by dialing back exposure to stocks and increasing their cash holdings.

 

Adam Turnquist, chief technical strategist for LPL Financial, says historical market performance since 1950 suggests there’s no good reason for investors to “sell in May and go away” this year.

 

The top three (3) performing in the session:  

  • Monday: Ultragenyx Pharmaceuticals (RARE), Generation BIO (GBIO) and Ionis Pharmaceuticals (IONS)

The worst three (3) in the session:  

  • Monday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and Blueprint Medicine (BPMC)

 

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

  • Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I can always be WRONG but … I am mostly EARLY!”

 

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 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.