September 6, 2024 5:21pm

As jobs report misses expectations, creating severe headwinds causing a dramatic loss of lift value

I continue to ask “Why no one company is immune in the sector of economic inflation-oriented releases? Welcome to my world of defining the “grey’ in our universe!”

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!  

The week in review

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

 

Friday: The Dow closed DOWN -410.34 points or -1.01%, the S&P closed DOWN -94.99 points or -1.73% while the Nasdaq closed DOWN -436.83 points or -2.55%

  • Thursday: The Dow closed DOWN -21922 points or -0.54%, the S&P closed DOWN -16.66 points or -0.30% while the Nasdaq closed UIP +43.37 points or +0.25%
  • Wednesday: The Dow closed UP +38.04 points or +0.09%, the S&P closed DOWN -8.86 points or -0.16% while the Nasdaq closed DOWN -52 points or -0.30%
  • Tuesday: The Dow closed DOWN -626.15 points or -4.51%, the S&P closed DOWN -119.47 points or -2.12% while the Nasdaq closed DOWN -577.33 points or -3.26%
  • Monday was a holiday

 

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 struggled after getting smacked by weak non-farm payroll data and slowing labor market as unemployment rate edged down to 4.2%, although in line with expectations.

Nonfarm payrolls grew by 142,000, versus a 161,000-gain expected by economists.

Reiterating, August jobs data added fuel to concerns of a slowing labor market with weak data has sparked worries about the health of the economy, spooking markets and denting risk appetite in recent weeks.

For the week: the Dow has dived -2.9% the S&P 500 declined -4.3% decline with its worst week since March 2023, while the Nasdaq shed 5.8% for its worst week since 2022.

 

Friday’s advance/decline line at the open was negative with 6 incliners, 26 decliners and 3 flats; ending with a negative at the close of 4 incliner, 29 decliners and 2 flats

  • Thursday’s advance/decline line at the open was negative with 15 incliners, 17 decliners and 3 flats; ending with a negative at the close of 15 incliner, 18 decliners and 2 flats
  • Wednesday’s advance/decline line at the open was negative with 2 incliners, 31 decliners and 2 flats; ending with a negative at the close of 14 incliner, 19 decliners and 2 flats
  • Tuesday’s advance/decline line at the open was negative with 12 incliners, 21 decliners and 2 flats; ending with a negative at the close of 3 incliner, 29 decliners and 3 flats
  • Monday was a holiday

 

Metrics:

Friday, the IBB was down -1.41% and the XBI was down -1.59% while the VIX was up +2.48 points or up +12.46% at 22.38

  • Thursday, the IBB was down -0.49% and the XBI was down -0.45% while the VIX was down -1.45 points or down -6.80% at 19.87
  • Wednesday, the IBB was down -0.11% and the XBI was down -0.14% while the VIX was up +0.60 points or up +2.90% at 21.32
  • Tuesday, the IBB was down -1.69% and the XBI was down -2.57% while the VIX was up +5.11 points or up +32.86% at 20.66
  • Monday was a holiday

 

All-time lows:

  • bluebird bio (BLUE) at $0.529
  • Prime Medicine (PRME) at $3.67
  • Sage Therapeutics (SAGE) at $7.55
  • Voyager Therapeutics (VYGR) at $5.99

 

RegMed Investors’ (RMi) pre-open: “twisting and turning. Momentum and volatility have left many investors questioning share pricing after August lows.” …  https://www.regmedinvestors.com/articles/13604

 

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

Q3/24

  • September – 4 negative close
  • August: 1 neutral, 10 positive and 11 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

 

Friday’s Closing Down (10 of 29):

  • Blueprint Medicine (BPMC -$4.98 after Thursday’s -$1.20, Wednesday’s +$0.08, Tuesday’s -$3.01 after Monday’s holiday),
  • Alnylam Pharmaceuticals (ALNY -$4.70 after Thursday’s -$1.66, Wednesday’s +$0.64, Tuesday’s -$8.91 and Monday’s holiday),
  • Vericel (VCEL -$1.88 after Thursday’s -$0.87, Wednesday’s -$1.07 and Tuesday’s -$2.61),
  • Ionis Pharmaceuticals (IONS -$1.26 after Thursday’s +$0.50 and Wednesday’s +$0.34),
  • Intellia Therapeutics (NTLA -$1.21 after Thursday’s -$0.34, Wednesday’s +$0.35 and Tuesday’s -$0.82),
  • Ultragenyx Pharmaceuticals (RARE -$1.21 after Thursday’s +$0.33, Wednesday’s +$0.41, Tuesday’s -$1.07 and Monday’s holiday),
  • BioLife Solutions (BLFS -$0.94),
  • Beam Therapeutics (BEAM -$0.87 after Thursday’s +$0.10, Wednesday’s -$0.32, Tuesday’s -$2.28 and Monday’s holiday),
  • CRISPR Therapeutics (CRSP -$0.63 after Thursday’s +$0.22, Wednesday’s -$0.49, Tuesday’s -$2.20 after Monday’s holiday),

Flat (2):

  • Bellicum Pharmaceuticals (BLCM)
  • Homology Medicine (FIXX)

Friday’s Closing Up (4 of 4):

  • Harvard Apparatus RT (OTCQB: HRGN +$0.73, Thursday’s +$0.08, Wednesday’s -$0.15, Tuesday’s +$0.65 and Monday’s holiday),
  • Editas Medicine (EDIT +$0.10),
  • Regenxbio (RGNX -$0.10),
  • Verve Therapeutics (VERV +$0.06 after Thursday’s- $0.57 after Wednesday’s +$0.02),

 

 

The BOTTOM LINE: The 1st short week of September was a bust!

  • Having to contend with September's seasonal volatility, cell and gene therapy sector equities slid further down in Friday's session in response to the August jobs data released this morning granting the sector -- the poster child for risk.

 

I believe that “our” universe does have a valuation issue; so again, the oversold are trading at a 10% discount to the broad market... time to be picking the “lettuce”!

As the leading voice of cell and gene therapy investors; I am NOT always a doom and gloom analyst/journalist but a man who has been “there” (BUY, SELL, VC and operating roles) with the gray hair and a readership following with real numbers to prove it!

 

 Q3 and September’s 1st week:

  • Friday ended with a negative close of 4 incliners, 29 decliners and 2 flats
  • Thursday ended with a negative close of 15 incliners, 18 decliners and 2 flats
  • Wednesday ended with a negative close of 14 incliners, 19 decliners and 2 flats
  • (9/3) Tuesday ended with a negative close of 3 incliners, 29 decliners and 3 flats

 

The top three (3) performing in the session: 

  • Friday: Harvard Apparatus RT (OTCQB: HRGN), Editas Medicine (EDIT) and Regenxbio (RGNX)
  • Thursday: Ionis Pharmaceuticals (IONS), Ultragenyx Pharmaceuticals (RARE) and CRISPR Therapeutics (CRSP
  • Wednesday: Lenz Therapeutics (LENZ), Ultragenyx Pharmaceuticals (RARE) and Ionis Pharmaceuticals (IONS)
  • Tuesday: Harvard Apparatus RT (OTCQB: HRGN), Mesoblast (MESO) and Lenz Therapeutics (LENZ)
  • Monday: holiday

The worst three (3) in the session: 

  • Friday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals (ALNY), and Vericel (VCEL)
  • Thursday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and Vericel (VCEL)
  • Wednesday: Vericel (VCEL), Alnylam Pharmaceuticals (ALNY) and CRISPR Therapeutics (CRSP)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and Vericel (VCEL)
  • Monday: holiday

 

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.