November 28, 2016 7:25am

 

… However, expectation is not that great, if it exists at all!

 

 

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

Who is in today’s headlights – seven (7) equities, are they BUYS or a SELL – subscribers know!

 

 

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

 

 

The sector is being driven by the same theme - until we get some optimism, the path of least resistance is lower.

 

 

BUY: HSGX, AGTC, FATE

SELL:  BSTG, IMUC, OPXA, VCEL

 

 

Indexes and ETFs: The IBB, XBI, XLV  are NOT indicating while the  IWM (-0.31%) is DOWN  

Dow futures are DOWN -0.34% and NASDAQ futures are DOWN -0.28%

 

U.S. stock index futures pointed to a lower open on Monday amid increasing levels of investor angst that OPEC will be not able to agree to a production cut this week.

European markets were lower in morning trade amid continued political uncertainty in Italy and fading hopes of an OPEC production cut which pushed oil prices lower.

Asian markets were mixed while the Japanese benchmark closed lower after seven straight sessions of gains as the yen rose sharply against the dollar and oil prices slipped.

 

Data docket: Dallas Fed survey data released at 10.30 a.m. ET.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Friday, the market was closed 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 POSITIVE with 15 decliners, 26 advancers and 2 flats;

·         Thursday, the market was CLOSED for Thanksgiving;

·         Wednesday closed NEGATIVE with 21 decliners, 20 advancers and 2 flats;

·         Tuesday closed NEGATIVE with 26 decliners, 14 advancers and 3 flats;

·         Monday closed POSITIVE with 15 decliners, 27 advancers and 1 flat;

 

 

Low volume was Friday’s bottom line while Cellectis SA (CLLS +$0.64), Fate Therapeutics (FATE -$0.11), Histogenics (HSGX -$0.06), Opexa (OPXA +$0.24), ReNeuron (RENE.L +$0.28) and Vericel (VCEL +$0.10) experienced a surge in traffic.

  • On the macro scale, U.S. equities closed higher on Friday, posting weekly gains, as investors kept an eye on retailers during Black Friday as a post-election rally moved forward.

The Russell 2000, which is made up of many of the sector’s small-cap stocks, closed higher to hit a new record level and notch its longest winning streak since 1996.

  • How long can this post-election rally last?

Watch your portfolio … highs are fleeting and may only last so long … untill they sputter!

 

 

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 up +0.25% and is NOT indicating in Monday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Friday up +1% and is NOT indicating in Monday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.39% Friday and is NOT indicating  in Monday’s pre-market;

·         The iShares Russell 2000 (IWM) closed up +0.33% on Friday and is DOWN -0.31% in Monday’s pre-market.

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed UP +$0.05 to $9.90 with low volume of 30.3 K shares <3 month average =229.6 K shares>. Last week’s range of $9.90 to $9.95 compared to the previous week’s $9.35 to $10.55. Up, down, up, down – there is still $9.23 of cash in the per share pricing, solid revenue, a quarterly net income and a solid partner – Biogen (BIIB), what more does an investor need – Maintaining BUY;

Biostage (BSTG) closed UP +$0.01 to $0.86. The week’s range was $0.76 to $0.84 while the previous week ranged $0.80 to $0.84 without direction. What are the options going forward? As I have stated – BSTG HAS a therapeutic approach but, they haven’t been able to sell it to investors beyond day traders! With a needed financing hanging as a “Sword of Damocles” over the share price – what named investor will step-up? Show me the market moving tangibles as I do favor the CEO but, the realities “stink” – Maintaining SELL;

Histogenics (HSGX) closed DOWN -$0.06 to $2.04. I have noticed the downward slope however; never under-estimate the “comeback kid” of this equities share pricing. Last week ranged from $2.04 to $2.28, while the previous week ranged from $2.21 to $2.32. HSGX has a solid P3 enrolling and is preparing for a top-line data “read-out” in the middle of 2018 and a BLA submission shortly thereafter – Maintaining BUY;

ImmunoCellular (NYSEMKT: IMUC) closed UP +$0.02 to $2.90 following 11/21’s 1/40 reverse split. Last week’s high of $3.30 had slipped to $2.89.  Reverses just don’t work for me - watch for the historical downside movement post a reverse … Maintaining SELL;

Fate Therapeutics (FATE) closed DOWN -$0.11 to $3.18. FATE just raised approximately $57 M prior to fees and expenses while news resounded about the EU granting FATE  Orphan Drug designation on 11/18/16 for its treatment in haematopoietic stem cell transplantation.  With cash in the bank, an Orphan Designation and closing a strong financing deal, FATE) appears to be on track to deliver some meaningful data in the coming months – Maintaining BUY;

Opexa (OPXA) closed UP +$0.241 to $1.148 in last week’s range of $0.91 to $1.47 following the previous week’s $0.56 to $0.67.   Give me a break, it “don’t work” - Tcelna (imilecleucel-T) in patients with secondary progressive multiple sclerosis (SPMS) did NOT meet its primary endpoint of reduction in brain volume change (atrophy), nor did it meet the secondary endpoint of reduction of the rate of sustained disease progression. Tcelna did show a favorable safety and tolerability profile - Maintaining SELL;

Vericel (VCEL) closed UP +$0.10 to $2.55. In an 8-K <material>, VCEL initiated agreements with  Sarton’s Vital Care, Burnham's Vital Care, L.L.C., and Atticus Group, LLC, d/b/a Vital Care of Central Mississippi and Vital Care for the provision of data reporting services and to purchase, bill and collect from certain payers for its autologous cultured chondrocytes product Carticel for the treatment of cartilage defects in the knee, and once approved, MACI (autologous cultured chondrocytes on porcine collagen membrane), VCEL's investigational autologous cellular product intended for the treatment of symptomatic cartilage defects of the knee in adult patients – there is still a COST of outsourcing even though this service was provided by Dohmen Life Science Services – so WHY are they gone? Last week’s range of $2.30  to $2.35 compared to the previous week’s $2.15 to $2.38 – time to lighten the load - 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.

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.