January 19, 2017 7:48am
In spite of the tug-of-war between investors versus traders, algorithms and ETFs
A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.
Who is in today’s headlights – five (5) equities, are they a BUY or a SELL?
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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, ONVO,
SELL: CYTX and PSTI
Indexes and ETFs: The XBI (-0.37%) and IWM (-0.09%) are DOWN while the IBB and XLV are NOT indicating
Dow futures are DOWN -0.05% and NASDAQ futures are DOWN -0.05%
U.S. stock index futures pointed to a lower open on Thursday as traders eyed the confirmation hearing of President-elect Donald Trump's Treasury pick, Steven Mnuchin.
European markets turned lower as investors wait to hear from President Mario Draghi of the European Central Bank.
Asia markets were mixed with shares of Japanese electronics maker Toshiba tumbling nearly 16% after a report suggested it was considering the sale of its semiconductor business.
Data docket: initial claims, housing starts and the Philadelphia Fed survey are all due at 8:30 a.m. ET.
The stem, cell, gene and regenerative therapy (SCG&RT) closed NEGATIVE on Wednesday and Tuesday; Monday was a holiday after the sector closed POSITIVE on Friday and NEGATIVE on last Thursday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Wednesday closed NEGATIVE with 22 decliners, 17 advancers and 4 flats;
· 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;
· Last Thursday closed NEGATIVE with 24 decliners, 18 advances and 1 flat;
Remembering Wednesday’s closing bell newsletter, “short-term oversold conditions continue to challenge the sector. There are possibilities and options but, inadequate perception of emerging risks.”
- Reiterating, “There remains much trepidation with regard to expectation!”
Depending on whom you ask, stem, cell, gene and regenerative therapy (SCG&RT) stocks are either headed for another overbought selloff or an oversold rally.
- Hedge funds and other speculators have been increasing their short positions at the same time as traders continue to hedge their exposure.
Directionless sentiment indicators just increase the speculation!
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 Wednesday up +0.83% and is NOT indicating in Thursday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Wednesday up +1.28% and is DOWN -0.37% in Thursday’s after-market;
· The Health Care Select Sector SPDR ETF (XLV) closed down -0.09% Wednesday and is NOT indicating in Thursday’s pre-market;
· The iShares Russell 2000 (IWM) closed up +0.33% on Wednesday and is DOWN -0.09% in Thursday’s pre-market
Companies in my headlights – short, sweet and some sour:
Applied Genetic Technologies (AGTC) closed DOWN -$0.20 to $8.75 following Tuesday’s $8.95 (-0.45) after Friday’s $9.40 (+$0.15) and last Thursday’s $9.25 (-$0.25) following the previous Wednesday’s $9.50 (-$0.55). 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 -$0.14 to $12.98 following Tuesday’s $13.12 (-$0.66). 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 – Maintaining BUY;
Cytori (CYTX) closed UP +$0.12 to $1.65 before they announced a proposed acquisition of a nanoparticle development platform from privately held Azaya Therapeutics Inc., a leader in the research, development and manufacturing of nanoparticle and protein-stabilized liposomal therapeutics. Under the terms of the purchase agreement, at the close of the acquisition, CYTX will issue $2 M in Cytori common stock up front, 25% of which will be subject to a 15-month escrow, and will also pay off approximately $2 M of Azaya’s trade payables. CYTX can’t afford to “spit” and is trying to broaden its platforms without any semblance of furthering what they currently have – SELL;
Organovo Holdings (ONVO) closed FLAT at $3.55 following Tuesday’s $3.55 (-$0.15). 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 – Maintaining BUY;
Pluristem (PSTI) closed DOWN -$0.08 to $1.47. Brokers were calling to potential subscribers for a small, quick and dilutive offering with NO indication of size or dollar pricing of shares offered … volume closed with 372.1 K shares <3 month average =130.37 K shares> – 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.
