Indication intelligence, analysis and sector perception

Higher open expected; RegMed Investors’ (RMi) pre-open, tear down the wall separating investors from full corporate disclosure

January 25, 2017 8:06am

More communication can juice share pricing or the usual response we have nothing to say about a stagnant or dwindling share price

“All the king's horses and men … and PR flacks and hacks still can't seem to put a “sustainable and appreciating” release together”

... If you retain and pay the "humps", expect a slump ...

Who is in today’s headlights – seven (7) 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

SELL: AST, BLFS, BSTG, IMUC, ONCE and VCEL

Indexes and ETFs: The IWM (+0.49%), IBB (+0.70%) and XBI (+0.82%) are UP while the XLV is NOT indicating

Dow futures are UP +0.38% and NASDAQ futures are UP +0.49%

U.S. stock index futures pointed to a higher open on Wednesday as traders eyed a deluge of earnings reports.

European markets were higher as investors took cues from overseas markets and digested fresh earnings reports.

Asia markets were higher as investors cheered better-than-expected Japanese exports data and South Korean GDP figures.

Data docket: the FHFA home price index report for November released at 9 a.m. ET.

The stem, cell, gene and regenerative therapy (SCG&RT) closed POSITIVE on Tuesday, NEGATIVE on Monday, Friday, Thursday and last Wednesday.

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

· Tuesday closed POSITIVE with 15 decliners, 26 advancers and 2 flats;

· Monday closed NEGATIVE with 25 decliners, 13 advancers and 5 flats;

· Friday closed NEGATIVE with 26 decliners, 15 advancers and 2 flats;

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

· Last Wednesday closed NEGATIVE with 22 decliners, 17 advancers and 4 flats;

Remembering Tuesday’s closing bell newsletter, “As volatility ruled the day as pricing and risk exposure remains high!”

Reiterating, “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?

“I always seem to have an answer but it enables a 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!”

Some want to build wall and they could be needed however, I want to … tear down the wall between investors and managements. Many of their hype creators and the lawyers who want to include themselves in every transaction need to be … billed if they contributed to a depreciating share pricing …

“Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king's horses and all the king's men … and PR flacks and hacks
Couldn't put Humpty together again”

Hype purveyors will NEED to register as an illegal entity to enter my building!

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 Tuesday down -0.84% and is UP +0.70% in Wednesday’s pre-market;

· The SPDR S&P Biotech ETF (XBI) closed Tuesday up +0.13% and is UP +0.82% in Wednesday’s after-market;

· The Health Care Select Sector SPDR ETF (XLV) closed down -0.69% Tuesday and is NOT indicating in Wednesday’s pre-market;

· The iShares Russell 2000 (IWM) closed up +1.53% on Tuesday and is UP +0.49% in Wednesday’s pre-market

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

Applied Genetic Technologies (AGTC) closed DOWN -$0.30 to $8.10. I heard news of entering into a strategic R&D collaboration with Bionic Sight, an innovator in the emerging field of optogenetics and retinal coding as both companies seek to develop a new optogenetic therapy that leverages AGTC's deep experience in gene therapy and ophthalmology and Bionic Sight's innovative neuro-prosthetic device and algorithm for retinal coding. There are days I question, why keep stepping into the abyss of a depreciating stock, but with the Biogen (BIIB) partner positives, no debt and cash position; it is in a better position than many in the sector. My concerns still are – why has management and there so called PR firm let the share pricing float lie a butterfly and sting shareholders yet, I hang on because of one member of the management team who is so honorable and believable – BUY;

Asterias Biosciences (NYSEMKT: AST) closed UP +$0.10 to $4.90 on positive efficacy results from the company's ongoing SCiStar P1/2a clinical trial news. However, news is fleeting and the aftermarket indication is a negative -$0.05 reversing the call from Monday’s BUY to - SELL

BioLife Solutions (BLFS) closed UP +$0.11 to $1.89. With all the debt with a 10% interest factor, very short cash position and a dependence on revenue only goes so far in protecting a lull in sales. A failed investment is now a joint venture seeking cash, too many “whirling dervishes” – SELL;

Biostage (BSTG) closed UP +$0.02 to $0.77. With an S-1 filed and a banker named, HC Wainright – it is only a matter of time for an offering’s downdraft and a sizeable discount and then the warrant overhang. What’s keeping it appreciating – day traders, they will desert in a micro second? – SELL;

ImmunoCellular (NYSEMKT: IMUC) closed UP +$0.368 to $2.68. I have NEVER been a fan, too volatile – SELL;

Spark Therapeutics (ONCE) closed UP +$0.76 to $58.39, after Monday’s +$0.39 after Friday’s +$1.23. There is $2.38 in the pot from the past three days. To make money in this sector, it’s all about trading even if you leave “some” on the table – SELL;

Vericel (VCEL) closed UP +$0.20 to $2.70 after fluctuating lower from 1/19’s $2.70, 1/18’s $2.85, 1/17’s $2.80 and 1/13’s $2.95. The ATM is overloading with heavy volume pick-ups <1.132 M and 1.5 M shares in two days – 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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.