RegMed Investors’ (RMi) closing bell analysis, why isn’t the sector moving up?

January 23, 2017 5:20pm

It’s a slug fest around pricing’s trading, legitimacy and today about whether to “catch falling knives”

My response – wear gloves!

Pre-open indication’s tally:  1 hit (VSTM) and 3 miss (AGTC, BLCM and ONVO)

Out and about: Northwest Bio (NWBO), delay in releasing DCVax study data … holidays, flu, did they forget, their dog ate the data

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

As I focus on the facts in evidence … by saying less and meaning more!

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 fell on Monday, but closed off session lows

The NASDAQ closed DOWN -2.39 or -0.04% to 5,552.94 and the DOW closed DOWN -27.40 or -0.14% to 19,799.85.

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 21/19 and 2 flats;
• 10:30 am, the sector tripped negative with an A/DL of 15/26 and 2 flats;
• 11:30 am, the sector continued to slide with an A/DL of 10/32 and 1 flat;             
• The mid-day stayed negative with an A/DL of 9/30 and 4 flats;
• The closing bell stayed negative with A/DL of 13/25 and 5 flats;

Henry’omics:

From this morning’s investor’s letter, “The oversold are begging for consideration …”

• SCG&RT stocks started positive but the sector was drained of any upside around the first hour of trading …

Sector stocks more than dipped on Monday as investors wrestled with trading, algorithms and dark pools that reinforced uncertainty over the believability of sustainable pricing as Q4/16 financial results are being codified.

• We as investors have been absented by even “sound bites” from corporate managements – especially those who are in or about to fall in the “needy” category to raise money in this “rough and tumble” market.

Which will beget some onerous share depreciations upon announcement, serious discounts and overhanging warrant coverage … producing the question – What consideration is there for stakeholders?

• President Trump's vow to "repeal and replace" the Affordable Care Act has created uncertainty in the health-care sector which is “trumping” the potential and realities of the passed 21st Century Cures Act.

We will be in uncharted territory … until political parties agree to make constructive change … together for the insured and uninsured populace!

Indexes, the ebb and flow:

• The iShares Russell 2000 (IWM) indicated a negative -0.34% in the pre- open and closed DOWN -0.42%.
• The iShares NASDAQ Biotechnology (IBB) did NOT indicate in the pre-open and closed DOWN -0.94%

Pre-open indication’s tally:  1 hit (VSTM) and 3 miss (AGTC, BLCM and ONVO)

• Applied Genetic Technologies (AGTC) closed DOWN -$0.10 – miss;
• Bellicum Pharma (BLCM) closed DOWN -$0.19 – miss;
• Organovo Holdings (ONVO) closed DOWN -$0.06 – miss;            
• Verastem (VSTM) closed UP +$0.02 – hit;

Out and about:

Northwest Bio (NWBO) delay in releasing DCVax study data … holidays, flu, did they forget, their dog ate the data

·         In response to a question received from a shareholder … since the company was supposed to receive updates from external parties in mid-December per the company's 12/8 press release. According to ClinicalTrials.gov, the estimated study completion date was November 2016;

·         NWBO -3.7% filed an 8-K as an update on its planned data release from its P3 clinical trial assessing DCVax in glioblastoma;

·         NWBO said it received some, but not all, of the information before activity "shut down" for the holidays. A "major case of the flu" struck "key management" for several weeks contributing to the lack of action. It says the team is "now getting back into operation" and an announcement should be ready soon.

Today’s 5 top dollar gainers included:

• Cellectis SA (CLLS) +$0.57;
• Spark Therapeutics (ONCE) +$0.39 after Friday’s +$1.23;
• AxoGen (AGXN) +$0.30;
• Cesca Therapeutics (KOOL) +$0.14 after Friday’s -$0.27;
• Asterias Biotherapeutics (NYSEMKT: AST) +$0.125 after Friday’s +$0.20;

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

• Kite (KITE) -$1.30 after Friday’s -$0.42 after Thursday’s +$0.05;
• Intrexon (XON) -$1.22;
• Neuralstem (CUR) -$0.34;
• Fate Therapeutics (FATE) -$0.32;
• VistaGen (VTGN) -0.23
• Sangamo (SGMO) -$0.30;

Flat:

• Caladrius Biosciences (CLBS) at $3.62;
• Cytori (CYTX) at $1.55;
• Regenxbio (RGNX) at $19.90;
• ReNeuron (RENE.L) at $2.65;
• Stemline (STML) closed FLAT at $10.40 after Friday’s -$0.60 after Thursday’s -$0.70 after Wednesday’s -$0.40 after Tuesday’s -$0.85 after last Monday’s holiday;                   

The downside trend reflects a pricing trend range of:

• Monday’s decliners ranged from -0.08% <BLUE> to -10.46% <FATE> in 25 equities;
• 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;
• Last Monday was a holiday;

The upside shows a pricing trend range of:

• Monday’s gainers ranged from +0.55% <ONCE> to +5.07% <KOOL> in 13 equities;
• 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;
• Last Monday was a holiday;

The week’s beginning:

• Monday’s 13 gainers followed Friday’s 15, Thursday’s 8, Wednesday’s 17, Tuesday’s 4 and last Monday’s holiday
• Monday’s 25 decliners followed Friday’s 26, Thursday’s 32, Wednesday’s 22, Tuesday’s 38 and last Monday’s holiday

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

·         Monday traded near 12.2;

·         Friday traded near 12.3;

·         Thursday traded near 12.4;

·         Wednesday traded near 12.44;

·         Tuesday traded near 11.8;

·         Last Monday was a holiday;

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.