January 20, 2017 8:12am

 

I’d be BUYING some oversold sector equities

 

We have been experiencing a volatility squeeze - such crushes tend to precede moves higher

 

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: PSTI and STML

 

Indexes and ETFs: The XBI (+0.52%) and IWM (+0.29%) are DOWN while the IBB and XLV are NOT indicating

Dow futures are UP +0.06% and NASDAQ futures are UP +0.25%

 

U.S. stock index futures pointed to a higher open on Friday as traders eyed the inauguration which is now just hours away.

Europe's markets turned slightly higher ahead of the inauguration of soon-to-be U.S. President Donald Trump.

Asian markets were a mixed bag after China's latest set of economic data suggest the economy is recovering, even as risk sentiment sours ahead of Trump's inauguration.

 

Data docket: None

 

 

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

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

·         Thursday closed NEGATIVE with 32 decliners, 8 advancers and 3 flats;

·         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;

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

 

 

Remembering Thursday’s closing bell newsletter, “Value keeps slippin’ and sliding from the sector. Volatility takes its toll related directly to the sector’s credibility.”

  • Reiterating, “That is not to say that SCG&RT equities won’t continue to record down drafts or even carve out some recapture of being oversold or past highs!”

Markets will eye warily Trump's inauguration speech and potential executive actions on his first day.

  • It just might be possible that the Trump will set a new barometer for the country and markets and possibly manage to deliver economic expansion.

This history of the stem, cell, gene and regenerative therapy (SCG&RT) sector implies concerns for 2017, after all the rhetoric of the campaign, investors will have good days, weeks, months and quarters; and bad times .

 

So,what is different and what has changed, we all always adapting, evolving and acclimatizing …

 

 

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  Thursday down -0.84% and is NOT indicating in Friday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Thursday down -0.97% and is UP +0.52% in Friday’s after-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.64% Thursday and is NOT indicating  in Friday’s pre-market;

·         The iShares Russell 2000 (IWM) closed up +0.33% on Thursday and is UP +0.29% in Friday’s pre-market

 

                                                                                   

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

Applied Genetic Technologies (AGTC) closed FLAT at $8.75 after Wedneday’s $8.75 (-$0.20) following Tuesday’s $8.95 (-0.45) after Friday’s $9.40 (+$0.15) and last Thursday’s $9.25 (-$0.25). 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 another -$0.30 to $12.68 following Wednesday’s $12.98 (-$0.14) 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;

Organovo Holdings (ONVO) closed DOWN -$0.07 to $3.48 following Wednesday’s 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 -$0.07 to $1.40 following Wednesday’s $1.47 (-$0.08). PSTI announced specifics of offering - a minimum of 8.16 M shares at a price of $1.225 per share together with 50% warrants, as previously mentioned HC Wainright is manager – Maintaining SELL;

Stemline Therapeutics (STML) closed DOWN -$0.70 to $11.00. STMLproposes offering, no pricing or share amounts noticed.  Strong 133.7K volume <3 month average = 164.3 K>. Jefferies LLC is acting as book-running manager for the offering – 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.