August 27, 2024 5:08pm

As share pricing confidence drops into toilet, positive news of any sort is needed to allay fears of further depression

Why no pre-open post because I “smelled” a rat attack (i.e., algo and electronic trading attack) and a day of exhausting porch reconstruction

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.”

 

Tuesday: The Dow closed UP +9.98 points or +0.02%, the S&P closed UP +8.96 points or +0.16% while the Nasdaq closed UP +29.06 points or +0.16%

  • As compared with Monday’s … The Dow closed UP +65.44 points or +0.16%, the S&P closed DOWN -17.77 points or -0.32% while the Nasdaq closed DOWN -152.03 points or -0.85%

 

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 found a minimal stable footing on brutal Tuesday after a positive Monday

 

Tuesday’s advance/decline line at the open was negative with 6 incliners, 26 decliners and 3 flats; ending with a negative close of 8 incliner, 22 decliners and 5 flats

  • As compared with Monday’s advance/decline line at the open was positive with 24 incliners, 8 declined and 3 flats; at 10:30 a.m., a dramatic decline occurred with a negative 9 incliners, 22 decliners and 4 flat ending with a positive close of 18 incliner, 13 decliners and 4 flats

Metrics:              

Tuesday, the IBB was down -0.01% and the XBI was down -0.62% while the VIX was up +0.62 point or up +4.19% at 15.42

  • As compared with Monday: the IBB was down -0.07% and the XBI was up +0.19% and the VIX was up +1.30 point or +8.78% at 16.10

Economic Data Docket: Confidence among consumers increased in August while the outlook for inflation was the lowest since the Covid-19 pandemic hit, according to The Conference Board. monthly survey which showed the confidence index rising to 103.3, up 1.4 points from July and better than the Dow Jones forecast for 101. On inflation, the 12-month expectation dipped to 4.9%, well above the Federal Reserve’s 2% goal but the lowest going back to March 2020. Even with that improved outlook, a gauge of plans to purchase a home fell to a fresh 12-year low.

 

RegMed Investors (RMi) Research Note: Harvard Apparatus RT (OTCQB: HRGN) raises $5 M without name identification … https://www.regmedinvestors.com/articles/13590

 

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

Q3/24

  • August: 1 neutral, 8 positive and 10 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

 

Tuesday’s Closing Down (10 of 22):

  • Blueprint Medicine (BPMC -$1.94 after Monday’s +$0.53),
  • CRISPR Therapeutics (CRSP -$0.93 after Monday’s +$0.48),
  • Beam Therapeutics (BEAM -$0.82 after Monday’s +$0.30),
  • Intellia Therapeutics (NTLA -$0.64 after Monday’s -$0.05),
  • Regenxbio (RGNX -$0.50 after Monday’s -$0.02),
  • Solid Biosciences (SLDB -$0.31 after Monday’s -$0.10),
  • Fate Therapeutics (FATE -$0.29),
  • Voyager Therapeutics (VYGR -$0.25),
  • Agenus (AGEN -$0.24),
  • Adverum Biotechnologies (ADVM -$0.23 after Monday’s +$0.15),

Flat (5):

  • Bellicum Pharmaceuticals (BLCM)
  • Cellectis SA (CLLS)
  • Homology Medicine (FIXX)
  • Lenz therapeutics (LENZ)
  • Precigen (PGEN)

Tuesday’s Closing Up (8 of 8):

  • Alnylam Pharmaceuticals (ALNY +$11.22 after Monday’s -$3.50),
  • Vericel (VCEL +$3.62 after Monday’s +$0.65),
  • Ionis Pharmaceuticals (IONS +$1.55 after Monday’s -$0.12),
  • Ultragenyx Pharmaceuticals (RARE +$0.57 after Monday’s +$0.30),
  • Verve Therapeutics (VERV +$0.41 after Monday’s +$0.17),
  • Harvard Apparatus RT (OTCQB: HRGN +$0.30 after Monday’s $0.00),
  • AxoGen (AXGN +$0.05 after Monday’s +$0.14),
  • Sangamo Therapeutics (SGMO +$0.0063 after Monday’s -$0.0481)

 

The BOTTOM LINE: Wham, bam the sector got slammed.

The cell and gene therapy sector are entering "a pretty ugly seasonal period historically.

  • investors are counting down to a crucial update to the inflation gauge favored by the Fed. Chair Powell's clear message that an interest rate cut is imminent confirmed widespread confidence in a policy pivot in September. Friday's reading on the PCE price index could dent or cement bets on a 0.5% interest rate cut next month. <IBD>
  • The Russell 2000 index of smaller companies fell 14.93 points, or 0.7%, to 2,203.00
  • In the bond market, the 10-year Treasury yield rose two basis points to 3.84% Tuesday. U.S. crude oil fell to $75.73 a barrel.

 

A tough Note: Gene editing start-up files to lay-off entire staff (BioSpace) …

Tome Biosciences, a gene editing startup that launched in late 2023 with $213 million in funding, will eliminate 131 positions in November, according to a Worker Adjustment and Retraining Act notice.

  • Gene editing startup Tome Biosciences is letting go of 131 employees, nearly all of its headcount, according to a Worker Adjustment and Retraining Act notice filed on Friday in Massachusetts.
  • The layoffs will take place from Nov. 1 through Nov. 14, according to the filing. Tome CEO Rahul Kakkar in a statement to Endpoints News declined to provide more details regarding the reorganization—including whether a small group will stay on to manage the company as it winds down its operations.
  • Before the restructuring, Tome had over 130 employees, Kakkar told Endpoints, noting that the layoffs had not been announced during a company meeting early last week. The CEO also refuted reports that the startup had a Nov. 1 deadline to look for a buyer. Tome is currently in talks with at least 3 companies interested in its pipeline or platform, according to Kakkar.

 

Tuesday turned red… Monday closed in the green.

Cell and gene therapy share pricing ascended last Friday – thank you Jerome and “uncle algo and his electronic trading dwarfs) after Thursday was shucked like corn after jumping on Wednesday after diving Tuesday after popping Monday after last week's gains, pain and a neutral share pricing as a measure of calm returns – hope springs eternal but, not a technical factor.

  • As “uncle algo and his electronic dwarfs” left the previous week’s Friday’s closing sector pricing neutral, pumped 2 sessions and dumped 2 sessions of the cell and gene therapy sector’s share pricing!
  • The second week of the month slowed with the sector’s Friday neutral close after Thursday’s positive close following Wednesday’s negative close, Tuesday’s positive close and Monday’s negative close.
  • Following the 1st week of August’s Friday’s decline and the previous Thursday’s incline after drooping on Wednesday following Tuesday’s pop and Monday’s decline in a new week …

The up/downs in sessions could be a preview of the rest of the month, quarter and year …

  • Economic concerns, geopolitical conflict and the looming November elections could keep investors on edge in the coming months.

 

Reiterating, “There’s more room for “tactical downside in the weeks to come as we enter the gauntlet of the weakest two months and only consecutive losing months for equities, with markets at all-time highs.”

 

Q3 and August’s 3rd full week:

  • Tuesday ended with a negative close of 8 incliners, 22 decliners and 5 flats
  • (8/26) Monday with a positive close of 18 incliners, 13 decliners and 4 flats

 

Electronic trading pops and flops the cell and gene therapy sector

  • There is evidence of a slower … slowdown coming (it’s the contrarian in me) and it's going to become even more thin as we go forward into 2H/24.

 

The top three (3) performing in the session: 

  • Tuesday: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and Ionis therapeutics (IONS)
  • Monday: BioLife Solutions (BLFS), Vericel (VCEL) and Blueprint Medicine (BPMC)

The worst three (3) in the session: 

  • Tuesday: Blueprint Medicine (BPMC), CRISPR Therapeutics (CRSP) and Beam therapeutics (BEAM)
  • Monday: Alnylam Pharmaceuticals (ALNY), Lenz Therapeutics (LENZ) and MiMedx (MDXG)

 

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.