RegMed Investors’ (RMi) closing bell analysis, a new tide of shareholder populism is about to kick-off

January 20, 2017 6:16pm

CEOs have become too dismissive of stakeholders as their share pricing declines

Spin and puffery have a long history in share pricing, but something has snapped with investors that we no longer expect managements to talk straight. We have become immune and I say "susceptible" to hype and the “story makers” who create them …

Pre-open indication’s tally:  3 hit (ONVO, STML and PSTI) and 2 miss (AGTC and BLCM)

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

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

U.S. equities rose on Friday, but gave back some of their gains.

The NASDAQ closed UP +15.25 or +0.28% to 5,555.33 and the DOW closed UP +94.85 or +0.48% to 19,827.25.

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 positive with an A/DL of 20/18 and 5 flats;                      
• The mid-day slipped negative with an A/DL of 19/23 and 1 flat;
• The closing bell stayed negative with A/DL of 15/26 and 2 flats;

Henry’omics:

From this morning’s investor’s letter, “”While everyone is watching the inauguration, I’d be BUYING some oversold sector equities.”

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

As I had stated, “So, what is different and what has changed, we all always adapting, evolving and acclimatizing …”

• Stem, cell, gene and regenerative therapy (SCG&RT) stocks have traded mostly sideways for the past month as investors look for more details about Trump's proposed policies and Q4/16 financial results to identify what 2017 … MIGHT look like.

Equities had pulled back slightly leading up to the inauguration, with the benchmark indexes all tracking for weekly losses heading into Monday's session.

• Despite some selling, no one wants the sector to stay down as indexes remain near record highs.

Be ready … for investors to get more … ACTIVIST!

As deaf CEOs dismiss the grumble of investors’ misery of having been forgotten highlighted by the fact that nothing is being done to protect their investment … from further dilution and increasing management compensation!

Indexes, the ebb and flow:

• The iShares Russell 2000 (IWM) indicated a negative -0.29% in the pre- open and closed UP +0.52%.
• The iShares NASDAQ Biotechnology (IBB) did NOT indicate in the pre-open and closed DOWN -0.39%

Pre-open indication’s tally:  3 hit (ONVO, STML and PSTI) and 2 miss (AGTC and BLCM)

• Applied Genetic Technologies (AGTC) closed DOWN -$0.25 – miss;
• Bellicum Pharma (BLCM) closed DOWN -$0.13 – miss;
• Organovo Holdings (ONVO) closed UP +$0.03 – hit;
• Pluristem (PSTI) closed DOWN -$0.25 – hit;
• Stemline Therapeutics (STML) closed DOWN -$0.60 – hit;

Today’s 5 top dollar gainers included:

• Spark Therapeutics (ONCE) +$1.23;
• Asterias Biotherapeutics (NYSEMKT: AST) +$0.20;
• International Stem Cell (ISCO) +$0.14 after Thursday’s +$0.08;
• Osiris (OSIR) +$0.13;
• BioTime (NYSEMKT: BTX) +$0.11;

Today’s 5 largest dollar losers of the session were:

• bluebird bio (BLUE) -$1.05 after Thursday’s -$1.15 after Wednesday’s+$2.60 after Tuesday’s-$1.75 after last Friday’s +$0.55;
• Stemline (STML) -$0.60 after Thursday’s -$0.70 after Wednesday’s -$0.40 after Tuesday’s -$0.85 after last Friday’s -$0.30;
• Kite (KITE) -$0.42 after Thursday’s +$0.05;
• Sangamo (SGMO) -$0.30;
• Cesca Therapeutics (KOOL) -$0.27;

Flat:

• Adverum (ADVM) at $2.95;
• ReNeuron (RENE.L) at $2.65;

The downside trend reflects a pricing trend range of:

• Friday’s decliners ranged from -0.25% <MDXG> to -17.86% <PSTI> in 26 equities;
• Thursday’s decliners ranged from -0.20% <OSIR> to -6.71% <HSGX> in 32 equities;
• Wednesday’s decliners ranged from -0.01% <BSTG> to -7.99% <ISCO> in 22 equities;
• Tuesday’s decliners ranged from -0.10% <OPXA> to -8.53% <CUR> in 38 equities;
• Monday was a holiday;
• Last Friday’s decliners ranged from -0.28% <ONCE> to -16.43% <OPXA> in 14 equities;

The upside shows a pricing trend range of:

• Friday’s gainers ranged from +0.31% <CAPR> to +14% <ISCO> in 15 equities;
• Thursday’s gainers ranged from +0.11% <KITE> to +8.68% <ISCO> in 8 equities;
• Wednesday’s gainers ranged from +0.06% <CLLS> to +10.74% <NWBO> in 17 equities;
• Tuesday’s gainers ranged from +0.33% <KOOL> to +4.07% <MBOT> in 4 equities;
• Monday was a holiday;
• Last Friday’s gainers ranged from +0.22% <KITE> to +11.39% <SGMO> in 27 equities;

The week’s beginning:

• Friday’s 15 gainers followed Thursday’s 8, Wednesday’s 17, Tuesday’s 4, Monday’s holiday and last Friday’s 27
• Friday’s 26 decliners followed Thursday’s 32, Wednesday’s 22, Tuesday’s 38, Monday’s holiday and last Friday’s 14

Review my fear gauge or the CBOE Volatility Index (VIX):

·         Friday traded near 12.3;

·         Thursday traded near 12.4;

·         Wednesday traded near 12.44;

·         Tuesday traded near 11.8;

·         Monday was a holiday;

·         Last Friday traded near 11.3;

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.