RegMed Investors’ (RMi) closing bell analysis, as the day evolves, the sector made a come back

January 24, 2017 5:37pm

… As volatility ruled the day as pricing as risk exposure remains high!

Pre-open indication’s tally:  4 hits (AST, BLCM, ONVO and VSTM) and 1 miss (AGTC)

Out and about: Intrexon (XON) has entered into a definitive agreement to acquire GenVec (GNVC) in the development of AdenoVerse™ gene delivery technology.

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

… As I focus on the facts in evidence …

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 Tuesday on the back of more executive orders from President Donald Trump.

The NASDAQ closed UP +48.01 or +0.86% to 5,600.96 and the DOW closed UP +112.86 or +0.57% to 19,912.71.

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 24/18 and 1 flat;
• The mid-day slipped negative with an A/DL of 19/23 and 1 flat;
• The closing bell flipped positive with A/DL of 26/15 and 2 flats;

Henry’omics:

From the mid-day’s investor’s letter, “Shock and awe at downside explosion as any news is sold into. Sentiment and yet again “status” believability drive trading.”

• As I stated, “The words of the day, NO relief as share pricing pessimism needs to dissipate before we <the sector> goes up.”

Many SCG&RM investors are crying with a few drinks to drown the sorrow about many shares sub-par performance.

• All this leads to the question of the day: why does the SCG&RT sector depreciate worse than biotech which seems to hang in there with valuations under fire?

Believability of their status and their management’s ability to migrate sentiment and risk!

• I always seem to have an answer and get to the follow-up question: what, if anything, can investors do about it?

VOTE with their shares – in other words ignore BUYING “certain” companies blandishments by … SELLING or NOT participating in ... some offerings!

ALWAYS have an exit strategy …!

The CBOE Market Volatility Index, a measure of fear in the market, is trading at a subdued level that is more symptomatic of a “troubled” market.

• But the mood on “street” is anything but, suggesting that the VIX’ volatility index’s foray below 20 may be a sign of turmoil ahead.

The so-called fear index hovered at 11.4 on Tuesday, down more than 2% from 11.8 on Monday. The VIX measures market expectations for volatility over the next 30 days; it’s calculated from the implied volatilities of S&P 500 index options. A low reading indicates traders anticipate a placid market while a higher number suggests elevated uncertainty.

• It may also be worth noting that the VIX <-3.06%> is below the average low of 12.2 for January <MarketWatch>.

Indexes, the ebb and flow:

• The iShares Russell 2000 (IWM) indicated a negative -0.34% in the pre- open and closed UP +1.53%.
• The iShares NASDAQ Biotechnology (IBB) did NOT indicate in the pre-open and closed DOWN -0.84%

Pre-open indication’s tally:  4 hit (AST, BLCM, ONVO and VSTM) and 1 miss (AGTC)

• Applied Genetic Technologies (AGTC) closed DOWN -$0.30 – miss;
• Asterias Biosciences (NYSEMKT: AST) closed UP +$0.10 – hit;
• Bellicum Pharma (BLCM) closed UP +$0.10 – hit;
• Organovo Holdings (ONVO) closed UP +$0.04 – hit;  
• Verastem (VSTM) closed UP +$0.15 – hit;

Out and about:

Intrexon (XON) closed DOWN -$0.56 to $21.53

• XON has entered into a definitive agreement to acquire GenVec, Inc. (GNVC), a clinical-stage company and pioneer in the development of AdenoVerse™ gene delivery technology;
• XON intends to integrate and expand upon GenVec's expertise in adenoviral vectors and cGMP drug product manufacturing to enhance its broad gene transfer capabilities that encompass multiple viral and non-viral platforms. 

Today’s 5 top dollar gainers included:

• Kite (KITE) +2.25 after Monday’s -$1.30 after Friday’s -$0.42 after Thursday’s +$0.05;
• Kite Pharma (KITE) +$2.07;
• Spark Therapeutics (ONCE) +$0.76 after Monday’s +$0.39 after Friday’s +$1.23;
• ImmunoCellular (NYSEMKT: IMUC) +$0.368;
• Juno Therapeutics (JUNO) +0.22

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

• Cellectis SA (CLLS) -$0.44 after Monday’s +$0.57;
• Intrexon (XON) -$0.44 after Monday’s -$1.22;
• Applied Genetic technologies (AGTC) -$0.30;
• MiMedx (MDXG) -$0.205;
• Regenxbio (RGNX) -$0.20;

Flat:

• AxoGen (AXGN) at $10.10;
• ReNeuron (RENE.L) at $2.65;

The downside trend reflects a pricing trend range of:

• Tuesday’s decliners ranged from -0.44% <CAPR> to -3.57% <AGTC> in 15 equities;
• 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;
• Last Tuesday’s decliners ranged from -0.10% <OPXA> to -8.53% <CUR> in 38 equities;

The upside shows a pricing trend range of:

• Tuesday’s gainers ranged from +0.35% <KOOL> to +14.78% <IMUC> in 26 equities;
• 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;
• Last Tuesday’s gainers ranged from +0.33% <KOOL> to +4.07% <MBOT> in 4 equities;

The week’s beginning:

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

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

·         Tuesday traded near 11.4;

·         Monday traded near 12.2;

·         Friday traded near 12.3;

·         Thursday traded near 12.4;

·         Wednesday traded near 12.44;

·         Last Tuesday traded near 11.8;

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.