January 18, 2017 8:17am

 

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as an insurance that all indications are being examined and evaluated or overlooked.

 

At least I know and admit , what I don’t know …

 

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

 

Who is in today’s headlights – five (5) equities, are they a BUY or a SELL?

Can you afford to miss the insider view … Click here for access and subscribe:  http://www.regmedinvestors.com/create-account       

 

 

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

 

 

BUY: AGTC, BLCM, HSGX and ONVO

SELL: ATHX,

 

Indexes and ETFs: The IBB (+0.16%), XBI (+0.50%), IWM (+0.13%) are UP and the XLV is NOT indicating

Dow futures are slightly UP +0.15% and NASDAQ futures are UP +0.22%

 

U.S. stock index futures pointed to a slightly higher open on Wednesday as traders eyed a host of data and earnings, as well as comments from Federal Reserve Chair Janet Yellen.

European markets turned lower in mid-morning trade as investors digested a number of corporate reports

Asia markets finished mostly higher, as the dollar index retreated from levels above 102 reached in the previous week, fueled by remarks from President-elect Donald Trump.

 

Data docket: Consumer Price Index is set to come out at 8:30 a.m. ET, with industrial production and capacity utilization following on at 9:15 a.m. The NAHB housing index is due at 10:00 a.m., with the Fed's Beige Book expected at 2:00 p.m.

  • Later on in the day, Yellen is due to give a speech at the Commonwealth Club in San Francisco, at 3:00 p.m. ET.

 

 

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

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

·         Tuesday closed NEGATIVE with 37 decliners, 4 advancers and 2 flats;

·         Monday was a holiday;

·         Friday closed POSITIVE with 14 decliners, 27 advancers and 2 flats;

·         Thursday closed NEGATIVE with 24 decliners, 18 advances and 1 flat;

·         Last Wednesday closed NEGATIVE with 34 decliners, 5 advancers and 4 flats;

 

 

Remembering Tuesday’s closing bell newsletter, “investors should reflect on what to do next. There are more risks to the downside … why? CEOs have forgotten, “The buck stops at their desk”, it means direct responsibility!”

  • As I had stated, “So far, the New Year’s action in the sector’s market suggests that investors are betting that the downside will define share pricing without definition of catalyst and milestone fulfillments which even then are overcome by headwinds of selling into strength.”

Reiterating, “My focus will be the … cash positions and burn rates <spending pattern> as Q4/16 financial results are announced coupled with ATM and debt increases!”

 

Bruised sector stocks are waiting at the crossroads waiting for a decision of which road to take a buy to the left or a sell to the right!

  • “Our” universe has been easy pickings as any strength has or will be sold into – eventually. Theirs is NO staying power or sustainability of pricing.

Reason – TRUST of share pricing CONTINUITY!

 

 

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  Tuesday down -1.96% and is UP +0.16% in Wednesday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Tuesday down -2.42% and is UP +0.50% in Wednesday’s after-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.51% Tuesday and is NOT indicating  in Wednesday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -1.36% on Tuesday and is UP +0.13% in Wednesday’s pre-market

 

                                                                                   

Companies in my headlights – short, sweet and some sour:

Athersys (ATHX) closed DOWN -$0.01 to $1.50 following Friday’s $1.51 (+$0.01). Where has the share price been all year? 12/1 $1.56, 11/1 $1.70, 10/3 $2.06, 9/1 $1.94, 8/1 $2.17, 7/1 $2.22, 6/1 $2.35, 5/2 $2.33, 4/1 $2.26, 3/1 $1.87, 2/1 $1.22 and 1/15 $1.13 adjusted for split. ATHX filed an 8-K, awarding the management team bonuses for 2016 and their CEO $154,071 and COO $96,417 – the stock might be up for the year (since last January) but, where has it been these last few months. Total compensation totals more than a million a year each for a stock that trades at $1.51? Pay for performance for executives is out of touch with investor’s portfolio – Maintaining SELL;

Applied Genetic Technologies (AGTC) closed DOWN -$0.45 to $8.95 following Friday’s $9.40 (+$0.15) after Thursday’s $9.25 (-$0.25) following Wednesday’s $9.50 (-$0.55) after Tuesday’s $10.05 (+$0.30). January has been good to the share pricing but, how long can it last? 12/30 priced at $9.35 offset by 1/4’s $9.70, 1/6’s $9.45, and 1/9’s $9.75. – Maintaining BUY;

Bellicum Pharma (BLCM) closed DOWN -$0.66 to $13.12. In January, the highs of $14.56 to the lows of $13.12 have been quite a momentum ride.  December began at $16.98 to its end of $13.62 while the low of November was $16.88 to its end at $16.98 while October began at $19.85 and ended at $16.88. My analysis is oversold – BUY;

Histogenics (HSGX) closed DOWN -$0.02 to $1.70 $1.72 (+$0.07) after Thursday’s $1.68 (+$0.16) following Wednesday’s $1.52 (-$0.02) after Tuesday’s $1.54 (-$0.03). Always the come-back-kid of share pricing with the aftermarket indication being a positive +$0.12 – Maintaining BUY;

Organovo Holdings (ONVO) closed DOWN -$0.15 to $3.55. ONVO has the technology with the capability to really save drug developers real money. ONVO also has been recognizing revenue from its collaboration with Merck, announced in 2015, announced collaborations with the University of California, San Francisco to develop 3D bio-printed tissues for skeletal disease research, and in December signed a distributor agreement with Cosmo Bio in Japan for its NovoView Preclinical Services. Oversold – 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.