August 22, 2016 7:49am
… Recent performance reinforces the randomness of the sector
Don't be fooled into believing that a lower open isn't an opportunity
… It’s always good to check the indexes against the events of “our’ universe and the market that surrounds us
Companies in my headlights: CLLS, FATE, ONCE and STEM
I answer one question; in which company should investors put, keep and commit their money!
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Indexes and ETFs: The IBB (+0.41%) and the XBI (+0.49) are UP while the IWM (-0.38) and XLV (-0.08%) are DOWN
Dow futures are DOWN -0.25% and NASDAQ futures are DOWN -0.18%
U.S. stock index futures pointed to a lower open Monday, as investors remain on edge ahead of the U.S. Federal Reserve's Jackson Hole meeting later this week, while keeping an eye on oil prices.
European markets were slightly higher as investors trod cautiously ahead of the U.S. Fed's Jackson Hole meeting this week which could produce some hints about the timing of a further interest rate hike.
Asian markets mostly retreated, with traders likely holding their horses ahead of Yellen’s speech.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Friday, POSITIVE on Thursday, NEGATIVE on Wednesday and Tuesday and POSITIVE last Monday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Friday closed NEGATIVE with 29 decliners, 13 advancers and 1 flat;
- Thursday closed POSITIVE with 14 decliners, 26 advancers and 3 flats;
- Wednesday closed NEGATIVE with 33 decliners, 9 advancers and 1 flat;
- Tuesday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats;
- Last Monday closed POSITIVE with 13 decliners, 28 advancers and 2 flats;
Remembering Friday’s closing post, “summer doldrums cast their spell, the oversold sector fell further. Don’t assume appreciation is off-the-table.”
Stem, cell, gene and regenerative therapy stocks ended higher Thursday, boosted by being oversold after a run-down post a run-up that helped classify the timing of historical and noticed patterns.
- Fundamentals have been weakened, but were offset by cheaper valuations.
Stem, cell, gene and regenerative therapies sector investors tend to chase performance in good times but, should flee stocks when the market is volatile. Why complain, it is a traders market in “our” universe!
- Near and long-term rate of return will not be determined solely by an initial return on investment – the issues of constant leaps to the capital markets deplete any gain and only incur further dilution.
And, we shouldn’t forget – in my mind, the “evil” effect of the over-hanging warrant!
- It is the dilemma of investing in a development company and a function of the buying and selling at opportune timing and those decisions MUST be made if investors are going to stay, as I say … along for the ride.
I’m still holding on to “some” equities, recommending selling others and sticking my head in the sand until after Labor Day!
You’ve made it to the office, turned on the monitor, having just gotten your coffee and it hits you - what could be today’s trades?
Watch list:
- The iShares Nasdaq Biotechnology (IBB) closed Friday down -0.466% and is UP +0.41% in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Friday down -0.58% and is UP +0.49% in Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down Friday -0.08% and is DOWN -0.03% in Monday’s pre-market;
- The iShares Russell 2000 (IWM) closed down -0.02% on Friday and is DOWN -0.38% in Monday’s pre-market.
Companies in my headlights:
Cellectis SA (CLLS) closed DOWN -$0.81 to $25.90 following Thursday’s $26.71 (-$0.43) after Wednesday’s $27.14 (-$0.73), Tuesday’s $27.87 and last Monday’s $28.23. CLLS is oversold as reflected the past week’s pricings. The aftermarket indication is positive +$0.31 – Maintaining BUY;
Fate Therapeutics FATE) closed FLAT at $2.92. New highs could prompt a trader target after the week’s range of $2.73 to $2.92 and 7/25’s $1.68. Like the company and the management team but, the market speaks to itself – SELL to come back;
Histogenics (HSGX) closed DOWN -$0.09 to $3.09.Since 8/11 but, support levels and resistance is high. HSGX has had a good run from $1.99 – SELL;
Spark Therapeutics (ONCE) closed DOWN -$1.15 to $57.25. The oversold condition resulted from the sale of securities of ONCE from its research collaborator, Children’s Hospital of Philadelphia Foundation (CHOP) - ONCE will not receive any proceeds from the sale of shares. The aftermarket indication is positive +$0.10 – BUY;
StemCells (STEM) closed DOWN -$0.42 to $1.24 following Thursday’s $1.66 (-$0.18) after Wednesday’s $1.84 (-$0.76) after Tuesday’s $2.60 (+$2.2278 or +598.55%) post the announcement of a merger agreement with Microbot. The run-up was TOO extreme making it a target for profit taking initiatives as day traders were the major influence in its past pricing. The aftermarket indication is still negative -$0.01 – Maintaining SELL;
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
