November 29, 2016 7:30am

 

… Getting it back into the glass is questionable

 

 

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

 

Who is in today’s headlights – four (4) equities, are they a BUY 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 a missing theme - until we get some optimism, the path of least resistance is lower.

 

 

BUY: HSGX, AGTC, FATE

SELL: JUNO

 

Indexes and ETFs: The IBB and XLV are NOT indicating, the XBI (+0.64%) and IWM (+0.28%) are UP 

Dow futures are UP +0.12% and NASDAQ futures are UP +0.10%

 

U.S. stock index futures pointed to a higher open on Tuesday as traders digested Wall Street's worst performance in nearly a month in the previous session.

European bourses were mixed as investors focused on talks between OPEC members and the political uncertainty ahead of a key referendum in Italy.

Asian markets were mixed as South Korean shares retraced losses late Tuesday afternoon, as investors reacted to a televised speech by President Park Geun-hye offering to step down through a legal process, according to reports. Japanese markets slipped, despite the release of government data hinting at stabilization in domestic demand. Australia's benchmark ASX 200 finished down 6.9 points, or 0.13 percent, at 5,457.50 while Hong Kong's Hang Seng index was down. Chinese mainland markets were mixed, with the Shanghai composite closing up and the Shenzhen composite falling.

Data docket: quarterly gross domestic product (GDP) data released at 8:30 a.m. ET followed by Case-Shiller 20-city home price index at 9 a.m. ET. Conference board consumer confidence wraps up the U.S. data releases on Tuesday and is set to be reported at 10 a.m. ET.

 

 

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

 

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

·         Monday closed NEGATIVE with 34 decliners, 7 advancers and 2 flats;

·         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;

 

 

Remembering last night’s newsletter, “Our universe was cruising for a bruising ... It is still the old battle of the oversold versus the overbought.  I’d be buying after big crashes, for the sector will swing to the upside.”

·         Monday’s decliners ranged from -0.91% <BCLI> to -9.94% <BTX> in 34 equities;

·         Monday’s gainers ranged from +1.44% <CUR> to +5.96% <ISCO> in 7 equities;

The biggest losers of the session were bluebird bio (BLUE -$3.30), Kite Pharma (KITE -$2.21), Bellicum (BLCM -$1.80), Spark Therapeutics (ONCE -$1.69) and Aduro Biotech (ADRO -$1.35) …

 

U.S. stock futures on Tuesday pointed to be a little higher at the open, as maybe the post-election rally has run its course. Investors are also about to get a dose of Federal Reserve speeches and economic reports, including a reading on U.S. GDP.

  • Reality has started to set back in, and traders have started to recognize that there are still a lot of short and long-term risks out there, and there is a dearth of events on the calendar.

So, I am maintaining my BUY to a number of the oversolds … and adding a SELL

 

 

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 -1.57% and is NOT indicating in Tuesday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Monday down -3.09% and is UP +0.64% in Tuesday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down-0.75% Monday and is NOT indicating  in Tuesday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -1.30% on Monday and is UP +0.28% in Tuesday’s pre-market.

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed DOWN -$0.70 to $9.20 after Friday’s $9.90 (+$0.05). 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;

Histogenics (HSGX) closed DOWN -$0.05 to $1.99 after Friday’s $2.04 (-$0.06). I have noticed the downward slope however; never under-estimate the “comeback kid” of this equity 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;

Fate Therapeutics (FATE) closed DOWN -$0.09 to $3.09 after Friday’s $3.18 (-$0.11). 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;

Juno Therapeutics (JUNO) closed DOWN -$0.89 to $22.12. JUNO watched its shares hit a new 52-week low last week following a self-imposed clinical hold on its JCAR015 trial. JUNO has voluntarily placed on hold the P2 clinical trial in adult patients with relapsed or refractory B cell acute lymphoblastic leukemia, known as the “ROCKET” trial. The clinical hold was initiated after two patients suffered cerebral edema earlier this week. One patient died and, as of last night, the other is not expected to recover. The aftermarket is negative -$0.05 for the pre-market – 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.