October 25, 2016 7:11am

 

... Underperforming companies are picking investor’s pockets over and over

And why … managements have forgotten that they’re supposed to be shareholders’ representatives

 

 

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

 

 

Where is “our” universe going today?  If you are not a subscriber, you won’t know the morning’s indications and who is in the headlights.

 

I write in every line that investors need to avoid risks as if I were the first to be hurt if I am wrong!

 

 

 

RegMed Investors’ willingness to provide the facts in evidence gets results that classify reality and veracity. 

 

BUY:  AGTC, AST, BTX, CLLS, ONCE, PSTI and XON

SELL: KOOL and MESO

 

Indexes and ETFs: The IBB (+0.41%) and IWM (+0.11%) are UP while the XLV and XBI are NOT indicating

Dow futures are UP +0.13% and NASDAQ futures are UP +0.23%

 

U.S. stock index futures pointed to a slightly higher open on Tuesday, as investors prepared themselves for a deluge of corporate earnings, amid an influx of economic data releases.

European stocks were higher with corporate earnings dominating market moves.

Asian markets finished mixed, as South Korea's shares slipped after data showed economic growth slowed in Q3.

Data docket: At 9.00 a.m. ET, the FHFA House Price Index and S&P Case-Shiller Home Price Index are due, while at 10.00 a.m. ET, sentiment will shift to the release of the Richmond Fed Survey and Consumer Confidence.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Monday and Friday, POSITIVE on Thursday, NEGATIVE on Wednesday and POSITIVE last Tuesday.

The SCG&RT sector’s record after the last 5 days (of 43 covered companies):

·         Monday closed NEGATIVE with 27 decliners, 10 advancers and 6 flats;

·         Friday closed NEGATIVE with 23 decliners, 17 advancers and 3 flats;

·         Thursday closed POSITIVE with 16 decliners, 25 advancers and 2 flats;

·         Wednesday closed NEGATIVE with 26 decliners, 14 advancers and 3 flat

·         Last Tuesday closed POSITIVE with 12 decliners, 27 advancers and 4 flats;

 

 

Remembering Monday’s closing post, “The sector started falling at the open and was on its butt by mid-day, staying there until the close. The Nasdaq Biotech ETF (IBB) was down -0.51% today, -21% year to date and down just over -30% since hitting an all-time-high last July.  Risk expands as a frail month, quarter and year are getting weaker.”

  • Reiterating, pre financial results/earnings season, investors should re-arrange their “eggs” in the basket, because it's just a matter of time before investors are taken to the “cleaners” by needed offerings with disturbing  discounts, disquieting dilution and onerous warrant “sweeteners”.

Q4/16 tends to be a good one for stocks but, the issue of NEEDED capital market access will not go away!

 

The real issue is UNDERPERFORMING companies will and is the ones that will be proposing offerings!

 

 

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 Monday down -0.51% and is UP +0.41% in Tuesday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Monday down -1.02% and is NOT indicating in Tuesday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.19% Monday and is NOT indicating in Tuesday’s pre-market;

·         The iShares Russell 2000 (IWM) closed up +0.64% on Monday and is UP +0.11% in Tuesday’s pre-market.

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed DOWN -$0.05 to $8.20 after Friday’s $8.25 (-$0.75) following Thursday’s $9.00, Wednesday’s $8.70 and last Tuesday’s $8.70. What has changed, AGTC has a substantial cash position of $172.7 M, revenue, no debt, and a named partner – Biogen (BIIB), multiple trials as well as pre-clinical programs and on-going research in a hot universe.  Book value per share is $9.87 value and NO need for a capital markets offering; with a float of 9.88 M shares with 52.30% held by institutions and 18.05 M outstanding with 51.15% held by insiders are positives. I’d be buying for the upside - OVERSOLD – Maintaining BUY;

Asterias Biosciences (NYSEMKT: AST) closed DOWN -$0.10 to $3.45. OVERSOLD as compared to Friday’s $3.55, Thursday’s $3.64, Wednesday’s $3.75 and last Tuesday’s $3.60. The ebb and flow momentum I believe begets a - BUY;

BioTime (NYSEMKT: BTX) closed DOWN -$0.0.06 to $3.51. As goes AST, usually it follows to an upside and a down. UNDERVALUED based on the week’s momentum -Friday’s $3.57. Thursday’s $3.58, Wednesday’s $3.49 and last Tuesday’s 3.54. It’s still the big casino – BUY;

Cellectis SA (CLLS) closed DOWN -$0.48 to $18.52 after Friday’s $19.00 (-$0.06) following Thursday’s $19.06 (-$0.49) after Wednesday’s FLAT at $19.55 post last Tuesday’s $19.55 (-$0.36). 9/1’s $26.40 followed 8/1’s $27.10 post 7/1’s $27.25 and 6/1’s $32.51. Still holding-on to my undervalued position. Might be time to play the past value card. I’d also be buying for the upside, Oversold – Maintaining BUY;

Cesca therapeutics (KOOL) closed UP +$0.83 (+27.04%) to $3.90 after Friday’s $3.07 (+6.68%), Thursday’s $2.96, Wednesday’s $3.03 and last Tuesday’s $3.06. KOOL is always a trader’s delight as it pops and drops. Shooting stars get sold-off – SELL;

Intrexon (XON) closed DOWN -$0.01 to $26.62. The rains have stopped but, the Zika mosquitoes are still multiplying and what is any other remedy, spraying seems to be the only deterrents. As long as you’re in the casino, the slots work – pull the handle – BUY;

Mesoblast (MESO) closed UP +$0.19 to $4.49. Another shooting at with low volume movement – 2597 shares traded <3 month average = 197 K shares>. A target of opportunity – SELL;

Pluristem (PSTI) closed DOWN -$0.01 to $1.52. Never liked the company, too prone to hyperbole and slanting the truth of a situation. The past five (%) days speak, Friday’s $1.53, Thursday’s $1.50, Wednesday’s $1.49 and last Tuesday’s $1.46. But, news is good; PSTI has signed a term sheet for an investment of approximately $30 M by China-based Innovative Medical Management Co., Ltd., a publicly listed Chinese Company active in the healthcare industry and an affiliate of Zheshang Venture Capital Co., Ltd.  The term sheet has been approved by Innovative Medical’s Board of Directors and is subject to its shares holders’ approval, which is expected to occur on or about November 9, 2016. Upon the approval of Innovative Medical’s shareholders, the term sheet will become binding. Pursuant to the term sheet, approximately 16,890,000 shares of Pluristem common stock will be sold at $1.77 per share. In addition, Pluristem will issue to Innovative Medical approximately 4,422,500 warrants to purchase shares of PSTI’s common stock with an exercise price of $2.50 per warrant, exercisable for a period of five years.  – BUY;

Spark Therapeutics (ONCE) closed DOWN -$1.56 to $51.06 following Friday’s $52.42, Thursday’s $51.65, Wednesday’s $51.39 and last Tuesday’s $53.91.New has been slow while the vagaries of the market have been high – Maintaining BUY;

 

 

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.

Henry’s comments are for informational purposes only and are not a substitute for personalized advice. Consult your advisor about what is best for you.