December 2, 2016 5:30pm
… The sector traded up … having fallen from grace
Will redemption last through mid-week?
Pre-open indication’s tally: 8 hits (ADRO, AGTC, BSTG, BLUE, CLLS, ONCE and XON) and 0 miss
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.
I answer one question; in which company should investors put, keep and commit their money!
I say today what others won't, so you can do what others can't!
U.S. stocks closed mostly flat on Friday, as investors braced themselves for a key constitutional referendum in Italy while digesting a stronger-than-expected jobs report.
The NASDAQ closed UP +0.09 or -1.36% to 5,255.65 and the DOW closed DOWN -21.51 or -0.11% to 19,170.42.
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 open was barely positive with an A/DL of 23/17 and 3 flats;
- The mid-day stayed positive with an A/DL of 28/13 and 2 flats;
- The closing bell was positive with A/DL of 25/15 and 3 flat;
Henry’omics:
The stem, cell, gene and regenerative therapy (SCG&RT) sector opened positive, stayed positive at the mid-day and closed positive.
- For the week, the S&P 500 is down 1.1%.
- The NASDAQ has been pressured by weakness in biotech stocks, is down 2.7%, on track for its worst weekly decline the one before the Nov. 8 election.
- The Dow is off less than 0.1%; the blue-chip index closed at a record on Thursday.
- The Russell 2000 index (-0.16%) which has been one of the biggest gainers of the postelection rally, is down 2.3% for the week, which characterizes the small-cap gauge’s worst weekly fall since the final week of October.
From this morning’s investor’s letter, “There are few things more ominous than a sector that’s running out of new buyers … There was no coiled spring here … yet!”
- Trading was volatile, with major indexes fluctuating between positive and negative territory throughout the session.
The upside trading of the oversold names underlined how traders bid up the SCG&RT sector without understanding the difference of expectations and top heavy valuations.
As a die-hard contrarian, I believe today’s winners are numbered … and that view hasn't diminished, and it may be difficult for managements to justify their current compensation levels, given the depressed share pricing!
- The iShares Russell 2000 (IWM) indicated a negative pre- open of -0.23% and closed DOWN -0.05% while the iShares NASDAQ Biotechnology (IBB) indicated a negative -0.65% in the pre-open and closed UP +0.36%.
- The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower, near 14.1.
At the close …
$ Gainers included:
- Bellicum (BLCM) +$1.74 after Thursday’s -$0.95;
- bluebird bio (BLUE) +$1.10 after Thursday’s +$8.30 after Wednesday’s -$4.05 after Tuesday’s +3.75 after Monday’s -$3.30;
- Cellectis SA (CLLS) +$0.60;
- Juno Therapeutics (JUNO) +$0.53;
- Intrexon (XON) +$0.44 after Thursday’s -$1.34 after Wednesday’s -$1.17;
The biggest $ losers of the session were:
- ReNeuron (RENE.L) -$0.375;
- uniQure (QURE) -$0.31;
- International Stem Cell (ISCO) -$0.24;
- Stemline (STML) -$0.20 after Thursday’s -$3.79 after Wednesday’s +0.05;
- Biostage (BSTG) -$0.18 after Thursday’s +$0.28 after Wednesday’s +$0.01;
The downside trend reflects a pricing trend range of:
- Friday’s decliners ranged from -0.66% <MESO> to -20.87% <ISCO>in 15 equities;
- Thursday’s decliners ranged from -0.41% <KITE> to -9.58% <ONCE> in 30 equities;
- Wednesday’s decliners ranged from -0.17% <OSIR> to -11.12% <FCSC> in 36 equities;
- Tuesday’s decliners ranged from -0.13% <XON> to -18.75% <ISCO> in 22 equities;
- Monday’s decliners ranged from -0.91% <BCLI> to -9.94% <BTX> in 34 equities;
- Last Friday’s numbers were not tracked
The upside shows a pricing trend range of:
- Friday’s gainers ranged from +0.00% <VCEL> to +10.25% <BLCM> in 25 equities;
- Thursday’s gainers ranged from +0.45% <RXGN> to 35% <BSTG> in 13 equities;
- Wednesday’s gainers ranged from +0.38% <STML> to +12.50% in 7 equities;
- Tuesday’s gainers ranged from +0.74 <CUR> to +6.18% <BLUE> in 16 equities;
- Monday’s gainers ranged from +1.44% <CUR> to +5.96% <ISCO> in 7 equities;
- Last Friday was NOT tracked
Wrap-up: anybody can read a paragraph … review the percentage changes per day in the week of the decliners and advancers while …
- Friday’s 25 gainers followed Thursday’s 13 compared to Wednesday’s 7 following Tuesday’s 16 gainers compared to Monday’s 7 …
- Friday’s 15 decliners followed Thursday’s 30 compared to Wednesday’s 36decliners followed Tuesday’s 22 decliners compared to Monday’s 34...
Pre-open indication’s tally: 8 hits (ADRO, AGTC, BSTG, BLUE, CLLS, ONCE and XON) and 0 miss
- Aduro Biotech (ADRO) closed UP +0.25 – hit;
- Applied Genetic Technologies (AGTC) closed UP +$0.25 – hit;
- Bellicum (BLCM) closed UP +$1.74 – hit;
- Biostage (BSTG) closed DOWN -$0.18 – hit;
- bluebird bio (BLUE) closed UP +$1.10 – hit;
- Cellectis SA (CLLS) closed UP +$0.60 – hit;
- Spark Therapeutics (ONCE) closed UP +$0.27 – hit;
- Intrexon (XON) closed UP +$0.42 – hit;
Percentage (%) decliners:
- International Stem Cell (ISCO) -20.87% after Thursday’s -8.73%;
- Biostage (BSTG) -16.67% after Thursday’s+35% <+$0.28>after Wednesday’s +1.27% <+$0.01>;
- ReNeuron (RENE.L) -11.54%;
- UniQure (QURE) -5.18%;
- Caladrius Biosciences (CLBS) -4.81%;
Percentage (%) advancers:
- Bellicum (BLCM) –10.2%%;
- Fibrocell (FCSC) +4.82% after Thursday’s +3.76% after Wednesday’s -11.12% after Tuesday’s -6.25%;
- Cellectis SA (CLLS) +3.66% after Thursday’s -2.73%;
- Fate Therapeutics (FATE) +2.99% after Thursday’s +2.72%
- Capricor (CAPR) +2.89%
Flat:
- Asterias Biotherapeutics (NYSEMKT: AST) at $4.15;
- Athersys (ATHX) at $1.56;
- Brainstorm (BCLI) at $2.09;
Review my fear gauge or the CBOE Volatility Index (VIX):
· Friday traded near 14.1;
· Thursday traded near 14.5 - traded about 8.6% higher ;
· Wednesday traded near 13;
· Tuesday traded near 12.7;
· Monday traded near 12.9;
· Last Friday traded near 12.3;
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.
