January 23, 2017 7:20am
The oversold are begging for consideration …
Who is in today’s headlights – four (4) equities, are they a BUY or a SELL?
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 and VSTM
Indexes and ETFs: The XLV (-0.13%) and IWM (-0.34%) are DOWN while the IBB and XBI are NOT indicating
Dow futures are DOWN -0.05% and NASDAQ futures are DOWN -0.19%
U.S. stock index futures pointed to a lower open on Monday morning as traders paused for breath after the inauguration of President Donald Trump.
European markets were lower after U.S. President Donald Trump took office and promised to pursue a protectionist policy.
Asian markets were trading sideways, as investors looked past weekends dominated with Donald Trump inauguration headlines and await clarity on policies including plans to possibly renegotiate the North American Free Trade Agreement and abandon the Trans-Pacific Partnership (TPP) deal.
Data docket: None
The stem, cell, gene and regenerative therapy (SCG&RT) closed NEGATIVE on Friday, Thursday, Wednesday and Tuesday as last Monday was a holiday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Friday closed NEGATIVE with 26 decliners, 15 advancers and 2 flats;
· 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;
· Last Monday was a holiday;
Remembering Friday’s closing bell newsletter, “A new tide of shareholder populism is about to kick-off. CEOs have become too dismissive of stakeholders as their share pricing declines.”
- Reiterating, “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 …”
After wandering in the desert of unwanted and oversold or even ignopred ... the SCG&RT sector is a coiled spring or ready for a rebound!
We have been "at risk" for so L O N G ... it feels like it is time ... t least for a few days.
Put our universe ... FIRST!
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 Friday down -0.39% and is NOT indicating in Monday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Friday down -0.47% and is NOT indicating% in Monday’s after-market;
· The Health Care Select Sector SPDR ETF (XLV) closed down -0.26% Friday and is DOWN -0.13 in Monday’s pre-market;
· The iShares Russell 2000 (IWM) closed up +0.69% on Friday and is DOWN -0.34% in Monday’s pre-market
Companies in my headlights – short, sweet and some sour:
Applied Genetic Technologies (AGTC) closed DOWN -$0.25 to $8.50 following Thursday’s FLAT at $8.75 after Wednesday’s $8.75 (-$0.20) following Tuesday’s $8.95 (-0.45) after Friday’s $9.40 (+$0.15) as last Monday’s holiday. 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 -$0.13 to $12.55 following Thursday’s $12.68 (-$0.30) 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 still oversold – Maintaining BUY;
Organovo Holdings (ONVO) closed UP +$0.03 to $3.51 following Thursday’s $3.48 (-$0.07) 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;
Verastem (VSTM) closed DOWN -$0.02 to $1.13 following Thursday’s $1.15 (-$0.02). Very simple decision, there is $2.35 of cash in the share pricing – 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.
