July 11, 2024 4:45pm

However, I am still of the opinion that, that it’s a “warning, for an overbought sector … ignores or dismisses the downside risks in these parabolic indexes moves alongside uncertain economic, political and upcoming earnings season?”

The Harvard Apparatus RT (OTCQB: HRGN +$0.70 to $2.89 with 3,100 shares traded) “humping or pumping” the volume to make-up for selling momentum after a totally lack luster July of barely or zero volume and past stripped pricing following the China led private placement with no U.S. capital market access!

I say today what others won't, so you can do what others can't by sticking to the FACTS!

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.”

 

Thursday: The Dow closed UP +32.39 points or +0.08%, the S&P closed DOWN -49.37 points or -0.88% while the Nasdaq closed DOWN -364.04 points or -1.95%

Thursday’s advance/decline line at the open was positive with 30 incliner, 2 decliners and 3 flats; ending with a positive close of 31 incliners, 2 decliners and 2 flats

  • the IBB was up +2.36% and the XBI was up +2.61%
  • the VIX was up +0.06 point or +0.47% at 12.91

Economic Data Docket: The consumer price index fell 0.1% last month from May, bringing the annual inflation rate down to 3%. Economists had expected a 0.1% monthly increase and a 3.1% annual rate. Core CPI, which excludes food and energy, came in at a 3.3% annual rate, also lower than economists expected.

 

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 closed mixed as investors rotated …

The Nasdaq pulled back nearly 1.95%, after also hitting a new record earlier in today’s trading day.

 

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

Q3/24

  • July: 1 market holiday. 1 day off, 2 negative, 1 neutral (Friday) and 4 positive closes (this week)

Q2/24 -June: 1 market holiday, 7 positive and 12 negative closes

  • May – 1 holiday, 11 positive and 12 negative closes
  • April - 16 negative and 6 positive closes

 

Thursday’s Closing Down (3 of 3):

  • uniQure NV (QURE -$0.85 after Wednesday’s +$3.45, Tuesday’s +$2.89 and Monday’s -$0.06),
  • Ionis Pharmaceuticals (IONS -$0.46 after Wednesday’s +$0.81, Tuesday’s -$0.20 and Monday’s +$1.15),
  • Mesoblast (MESO -$0.03 after Wednesday’s-$0.16, Tuesday’s -$0.14 and Monday’s -$0.01)

Flat (2):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Homology Medicine (FIXX) – under $1.00

Thursday’s Closing Up (10 of 30):

  • Vericel (VCEL +$4.18 after Wednesday’s -$0.60 and Tuesday’s   -$0.89),
  • Alnylam Pharmaceuticals (ALNY +$2.92 after Wednesday’s +$3.02, Tuesday’s -$0.37 and Monday’s +$4.080
  • Blueprint Medicine (BPMC +$2.09 after Wednesday’s +$0.70, Tuesday’s -$1.07 and Monday’s +$4.62),
  • CRISPR Therapeutics (CRSP +$2.14 after Wednesday’s +$0.53 and Tuesday’s +$1.80),
  • Regenxbio (RGNX +$1.98),
  • Beam Therapeutics (BEAM +$1.88),
  • Intellia Therapeutics (NTLA +$1.72 after Wednesday’s +$0.89 and Tuesday’s -$0.68),
  • BioLife Solutions (BLFS +$1.67),
  • Ultragenyx Pharmaceuticals (RARE +$1.48 after Wednesday’s +$0.21, Tuesday’s +$0.76 and Monday’s +$0.61),
  • Solid Biosciences (SLDB +$1.17 after Wednesday’s +$0.35, Tuesday’s -$0.09 and Monday’s +$0.88),

 

 

The BOTTOM LINE: I still believe that money will be coming off the table …

  • Even after a good start into the 2nd week of July with 4 positive closes which may NOT ensure a gain for the rest of week and month.
  • The cell and gene therapy sector STILL looks frothy, but there’s no indication yet that sector earnings can’t support these valuations.
  •  When, there’s slippage it’s going to have an amplified effect.

 

“Today’s market action is reflective of how far we’ve stretched the rubber band between the top few stocks we all know and everything else. If there is an area of the market that needs rate cuts, it’s small and medium sized businesses who have suffered the most because of the higher cost of capital.” < Peter Boockvar, chief investment officer at Bleakley Financial Group>

 

Q3 and July to date:

  • Thursday ended with a positive close of 30 incliners, 3 decliners and 2 flats
  • Wednesday ended with a positive close of 23 incliners, 10 decliners and 2 flats
  • Tuesday ended with a positive close of 19 incliners, 12 decliners and 4 flats
  • Monday ended with a positive close of 24 incliners, 8 decliners and 3 flats
  • Friday ended with a neutral close of 16 incliners, 16 decliners and 3 flats
  • Thursday was a market holiday
  • Wednesday was a day off
  • Tuesday ended with a negative close of 6 incliners, 19 decliners and 3 flats
  • (7/1) Monday ended with a negative close of 13 incliners, 19 decliners and 3 flats

 

So, I am still NOT bullish because the cell and gene therapy sector always … kind of moves along however (versus but), there is evidence of a slowdown coming and it's going to become, I think, even more thin as we go forward.

 

“Stuff” happens:

  • The small-cap benchmark Russell 2000 Index gained 3.6% as investors hoped for a Fed rate cut in September and an economic soft landing following the inflation data.

 

The top three (3) performing in the session:   

  • Thursday: Vericel VCEL), Alnylam Pharmaceuticals (ALNY) and Blueprint Medicine (BPMC)
  • Wednesday: uniQure NV (QURE), Alnylam Pharmaceuticals (ALNY) and Intellia Therapeutics (NTLA)
  • Tuesday: uniQure NV (QURE), CRISPR Therapeutics (CRSP) and Ultragenyx Pharmaceuticals (RARE)
  • Monday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals ALNY) and Ionis Pharmaceuticals (IONS)

The worst three (3) in the session:   today 2 …

  • Thursday: uniQure NV (QURE) and Ionis pharmaceuticals (IONS)
  • Wednesday: Vericel VCEL), Sage Therapeutics (SAGE) and Agenus (AGEN)
  • Tuesday: BioLife Solutions (BLFS), Blueprint Medicine (BPMC) and Vericel VCEL)
  • Monday: Regenxbio (RGNX), uniQure NV (QURE) and Fate Therapeutics (FATE)

 

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.