August 6, 2024 7:53am

Headwinds turn into tailwinds for some sector equities who have reported earnings to date

As investors wait out the share pricing depression with valuations, sentiment, confidence and investor positioning depressed

The drumbeat of earnings reports: Beam Therapeutics (BEAM), Voyager Therapeutics (VYGR) and Sangamo Therapeutics (SGMO)

Pre-open Indications: 3 Positive and 1 Sell into Strength

 

A daily analytic read-out from RMi is constructed of signals thought-provoking share pricing situations.

Never leave an investor uninformed

Remember that overnight and pre-open actions’ futures and markets doesn’t necessarily translate into actual trading in today’s market session.

My interpretation of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today!

 

Tuesday: The pre-open Dow futures are UP +0.72% or (+281 points), the S&P futures are UP +0.89% or (+46 points) as the Nasdaq futures are UP +1.01% or (+182 points)

  • Futures rose slightly on Tuesday (8/6) after indexes notched their worst day in nearly two years as global markets sold off,
  • European stocks inched higher,
  • Asia Pacific markets rebounded.

 

Henry’omics:

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

(8/5) The Dow closed DOWN -1,033.20 points or -2.60%, the S&P closed DOWN -160.23 points or -3% while the Nasdaq closed DOWN -576.08 points or -3.43%

  • Monday’s advance/decline line at the open ended with a negative close of 1 incliner, 31 decliners and 3 flats

Economic Data Docket: Trade balance, June (-$72.6 billion expected, -$75.1 billion previously)

 

Monday’s RegMed Investors (RMi) Closing bell: “wipe out! As U.S. recession fear undermines confidence. The level of fear is out of whack with fundamentals as share pricing schizophrenia continues into another volatile week.” … https://www.regmedinvestors.com/articles/13569

 

Q3/24:

  • August – 3 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

Q2/24: 

  • June – 1 market holiday, 7 positive and 1 negative closes
  • May – 1 holiday, 11 positive and 11 negative closes
  • April - 16 negative and 6 positive closes

 

Companies in my headlights – It’s your decision; I provide ideas and context:

I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors with insight into sector vulnerabilities and strengths. A dictionary definition of “indicate” refers to something less than a certainty; an indication could be a signal of being oversold or overbought, a recommendation, or grounds for inferring or a basis for believing.

Sell into Strength:

Monday, Friday, Thursday, Wednesday, Tuesday and last Monday closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)

Alnylam Pharmaceuticals (ALNY) closed down -$7.05 after Friday’s +$3.44, Thursday’s +$31.15, Wednesday’s +$3.65 and last Tuesday’s -$2.47 with a positive +1.07 or +0.40% aftermarket

 

Positive Indications:

Monday, Friday, Thursday, Wednesday, Tuesday and last Monday closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)

CRISPR Therapeutics (CRSP) closed down -$1.45 after Friday’s -$3.74, Thursday’s -$2.44, Wednesday’s +$0.88 and last Tuesday’s -$2.09 with a positive +$0.73 or +1.47% pre-open indication.

Ionis Pharmaceuticals (IONS) closed down -$2.13 after Friday’s -$2.19, Thursday’s +$1.86, Wednesday’s -$0.32 and last Tuesday’s -$0.46 with a positive +0.91 or +1.94% aftermarket.

Lenz Therapeutics (LENZ) closed down -$1.74 after Friday’s -$0.59 with a positive +$0.52 or +2.33% aftermarket.

 

 

The BOTTOM LINE: The short-term value of the stem, cell and gene therapy sector’s share pricing reflects the market’s acrobatics …

  • On Monday, the VIX spiked from around 23 to above 65, reflective of extreme fear, before pulling back below 39. This Cboe index can offer a hedge against sudden market downturns. However, if investors are positioned for continued low volatility, as has been the case, the reversal can be even more jarring. <IBD>

 

For the balance of the month, investors will focus most on share pricing bounce-back share pricing in and earnings EPS and meeting expectations!

It’s tough to scale-back or even add sector holdings during earnings’ season, however buy points are a signal for exposure rendition.

 

A market panic like this creates risks big and small. Most prominent among them: the selloff, if left unchecked long enough, could muck up the gears of the financial system, slow lending and act as the final straw that tips the global economy into the recession that many now fear. <Bloomberg>

 

Another favorite, Ed Yardeni, an economist who’s closely tracked markets for half a century; said/wrote … the sudden collapse in markets brought back memories of Black Monday in 1987 — a one-day plunge that shaved 23% off the Dow.

  • It was scary but, Yardeni notes, ultimately not a harbinger of economic doom.
  • Back then, “the implication was that we were in or about to fall into recession and that didn’t happen at all. It had really more to do with the internals of the market. I think there’s the same thing going on here.” < Yardeni, runs Yardeni Research, said on Bloomberg TV>

 

The top three (3) performing in Monday and Friday’s session:

  • uniQure NV (QURE) – just one
  • Ultragenyx Pharmaceuticals (RARE), Alnylam Pharmaceuticals (ALNY) and Sangamo Therapeutics (SGMO)

The lowest three (3) in Monday, Friday’s session:

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

 

Due “dates” for Q2 LPS (loss per-share) boding releases:

  • Editas Medicine (EDIT) Wednesday, 8/7
  • AxoGen (AXGN) on Thursday, 8/8
  • BioLife Solutions (BLFS) on Thursday, 8/8
  • Intellia therapeutics (NTLA) on Thursday, 8/8

 

Watch the “numbers, charts and indicators” measure the daily, weekly, and monthly charts to filter out or lessen the noise of back-and-forth share pricing from the sector rotation.

  • The short-term moving averages help you identify the momentum of the trend — that is, overbought or oversold

 

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!”
  • The sector is what it is, until it isn’t and even then, it doesn’t seem to be… as NOT much changes as the sector’s share pricing rides the waves of volatility, algorithms, electronic trading and short covering.
  • I am more frequently right than consequentially wrong; if I wanted to be liked, I wouldn’t have been an analyst/journalist.

 

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. All investments are subject to risks. Investors should consider investment objectives.

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.  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.

Henry McCusker, the editor and publisher of RegMed Investors could hold or have positions securities referred to in this publication and he will NOTIFY investors of holdings.