July 26, 2016 6:04pm

Many sector “watchers” have expressed concern that “our” universe is saddled with capricious degrees of sentiment

My pre-open indications – 2 hit (HSGX and KOOL) and 4 miss (ADRO, BLUE, JUNO and KITE)

 

I answer one question; in which company should investors put, keep and commit their money!

 

Do you care what happened today, you should … because it has implications to Wednesday's sector activity?  

Where has today’s market gone – subscribe and find out. 

 

 

There are two things that investors need - interpretation of news and translation of market metrics concerning the stem, cell, gene and regenerative therapy sector to substantiate share pricing.

 

U.S. stocks closed mixed Tuesday, amid major earnings reports and lower oil prices, ahead of the week's central bank meetings.

The NASDAQ closed UP +12.42 or +0.24% to 5,110.05 and the DOW closed DOWN -19.31 or -0.10% to 18,473.75.

 

 

A day in the life of the stem, cell, gene and regenerative therapy (SCGT & RT) sector – the advance/decline line scenario of our 43 covered companies:    

  • The open was positive with an A/DL of 25/15 and 3 flats;
  • 11:30 am was negative with an A/DL of 19/21 and 3 flats;
  • The mid-day flipped positive with an A/DL of 25/16 and 2 flats;
  • The closing bell was positive with A/DL of 28/13 and 2 flats;

 

 

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector opened positive, slipped negative at 11:30 am while the mid-day was positive, and the sector closed positive.

  • I read a LOT into trading levels because trading volumes are generally low.

Development stage (P1 and P2) trials aren’t everything but, something in the stem, cell, gene and regenerative therapy sector, but the stage of development is important.

  • There is also TOO MUCH dependence on pre-clinical models; I know companies have to start somewhere.

Getting beyond the P1 and luckily the P2 stage to a P3 shows a greater significance of moving forward in the eyes of institutional investors <due to scrutiny> and a capacity to keep raising more money.

  • There is just too much emotion as investors and day-traders that have the tendency to cling to alternating pricing positions while taking profits in daily winners.

Chalk it up to the capricious degrees of sentiment and the dependence on trading that constantly adds, deletes and depreciates any degree of upside.

  • Too many times investors enter position based on emotion not its price action, its technical pattern, its value and a potential of a trend – which hasn’t been our friend.

I am still focused on pricing levels and the who, what, when and what of it … and the rhyme and reason and … it still doesn’t ADD-UP in many cases …

 

Call me cantankerous, contrarian or even a curmudgeon but at last I get it right …

 

 

Review my fear gauge or the CBOE Volatility Index (VIX):

  • Tuesday traded above 13;
  • Monday traded above 13;
  • Friday traded near 12.17;
  • Thursday traded near 12.73;
  • Wednesday traded near 11.72;
  • Last, Tuesday near 12.6;

 

 

Today’s Bottom Line:

I wouldn't look too much into today's price action because it makes my premise of the short-term oversold condition.

 

 

My pre-open indications – 2 hits and 4 miss:

  • Aduro Biotech (ADRO) closed UP +$0.06 – miss;
  • bluebird bio (BLUE) closed UP +$1.27 – miss;
  • Cesca Therapeutics (KOOL) closed UP +$1.52 – hit;
  •  Juno Therapeutics (JUNO) closed UP +$1.20 – miss;
  • Histogenics (HSGX) closed DOWN -$0.07 – hit;
  • Kite Pharma (KITE) closed UP +$0.49 – miss;

 

 

Largest decliners:

  • Capricor (CAPR) -6.25% after Monday’s-6.11% after Friday’s -4%;
  • Applied Genetic technologies (AGTC) -1.68%;
  • Verastem (VSTM) -1.55%;
  • BioLife Solution (BLFS) -1.41%;
  • Pluristem (PSTI) -1.32%

 

Advancers:

  • Cesca Therapeutics (KOOL) +44.06% after Monday’s +9.87%;
  • StemCells (STEM) +19.44% or +$0.07;
  • Caladrius Biosciences (CLBS) +7.41% or +$0.04;
  • VistaGen (VTGN) +4.35%;
  • Brainstorm (BCLI) +6.35% after Monday’s +2.08%

 

Flat:                                                                                                                                      

  • Cytori (CYTX) at $2.01;
  • Vericel (VCEL) at $2.13;

 

 

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.