August 24, 2016 4:33pm

… But, how long is the wait and the ultimate downside

We're trading in constricting ranges, volume is low and that’s a heads I win and a tail’s I don’t lose signal <to me> …

… Be aware, Yellen is not ringing “our” universe’s bell

 

Pre-open indication’s tally: 4 hits (CLLS, KOOL, OPXA and RGNX) and 1 miss (AGTC)

 

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 Thursday'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 lower on Wednesday, with health care shedding more than 1.5%, while investors eagerly awaited a speech from Fed Chair Yellen.

The NASDAQ closed DOWN -42.38 or -0.81% to 5,217.69 and the DOW closed DOWN -65.82 or -0.35% to 18,481.48.

 

 

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 mid-day was negative  with an A/DL of 17/25 and 1 flat;
  • The closing bell was negative with A/DL of 5/35 and 3 flat;

 

 

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector was negative at the mid-day with the sector closing negative.

The NASDAQ closed about 0.8% lower, with the iShares Nasdaq Biotechnology ETF shed 3.36%.

  • Biotechs erased earlier gains in afternoon trade after Democratic presidential nominee Hillary Clinton tweeted about the recent price hikes on EpiPens.

Stocks traded slightly lower for most of the session before health care and biotech began to slide.

  • Volume has dropped off due to the many vacationing investors.

Reiterating, stocks are still trading in tight ranges and volatility is higher.

  • Every sector and market needs a certain amount of speculative sentiment, or risk-taking.

Seeing stem, cell, gene and regenerative therapy stocks “dance” all over the tape in my mind opens the door to a solid pricing spurt but, for how long?

  • The health and breadth of the sector is “flagging” and can be disastrous; if it is seen as defeatist – put a line in the sand – it’s an opportunity for reward!

 

Today’s “go-go names” are hot now, but experienced speculators recognize that these same issues are the ones most likely to fall hard!

  • Vericel (VCEL)
  • BioLife Solutions (BLFS)
  • Stemline (STML)
  • Histogenics (HSGX)
  • Pluristem (PSTI)

While development-stage pre-clinical companies with no revenue or earnings are subjected to derision as very aggressive speculators jump and dump by the day, week and month.

  • I’m still holding on to “some” equities, recommending selling others and sticking my head in the sand until after Labor Day!

 

Call me cantankerous, contrarian or even a curmudgeon but at the least I get it right and investors make money!

 

 

Today’s Bottom Line:

Show me the upside and WHY (?), Q3 is 3/4’s done!

 

 

Pre-open indication’s tally:  4 hits and 1 miss:

  • Applied Genetic Technologies (AGTC) closed DOWN -$0.91 – miss;
  • Cellectis SA (CLLS) closed FLAT at $27.08 – hit;
  • Cesca Therapeutics (KOOL) closed DOWN -$0.24 – hit;
  • Opexa (OPXA) closed DOWN -$0.20 – hit;
  • Regenxbio (RGNX) closed DOWN -$0.32 – hit;

 

 

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

  • Wednesday traded 13.39;
  • Tuesday traded 12.19;
  • Monday traded 12.6;
  • Friday traded near 11.6;
  • Thursday trade near 11.6;
  • Last Wednesday traded 12.5;

 

 

Decliners:

  • Mesoblast (MESO) -10.59% - an opportunity;
  • Intrexon (XON) -10.18%;
  • StemCells (STEM) -9.60% - another I told you so, I haven’t been wrong;
  • Adverum (ADVM) -9.40%;
  • bluebird bio (BLUE) -8.50%

 

Advancers:

  • Vericel (VCEL)+7.20%;
  • BioLife Solutions (BLFS) +5.49% - be ready for a decline;
  • Stemline (STML) +4.03%;
  • Histogenics (HSGX) +2.47%;
  • Pluristem (PSTI) +0.60%;

 

Flat:

  • ImmunoCellular (NYSEMKT: IMUC) at $0.128;
  • International Stem Cell  (ISCO) at $2.00;
  • ReNeuron (RENE.L ) at $2.75

                                                                                                                                       

                                                                                                  

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.