January 27, 2017 7:50am

 

… Bottom feeders and warrant clippers

Do investors really know what they’re buying into and understand the relationship between CEO compensation that incrementally increases as share pricing decreases?

 

… Don’t fall for the hyperbole and amplifications bordering on stretching the facts

 

Who is in today’s headlights – five (5) 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 was wrong!

 

 


 

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

 

 

BUY: XON

SELL: ATHX, BSTG, CLBS and OSIR

 

Indexes and ETFs: The IWM (+0.12%) is UP, while the IBB, XBI and the the XLV are NOT indicating

Dow futures are UP at 0.02% and NASDAQ futures are UP +0.11%

 

U.S. stock index futures pointed to a mixed open on Friday as traders eyed several pieces of data and President Trump's meeting with U.K. Prime Minister May.

Europe markets were lower, after strong gains earlier this week, with investors digesting corporate earnings and fluctuations in currency markets.

Asian markets were mostly higher after Japan's inflation data showed improvement and markets stateside clocked new record highs, even as threats of a trade war with Mexico brew.

 

Data docket: Durable goods and GDP data are both due at 8:30 a.m. ET, with consumer sentiment set to come out at 10 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):

·         Thursday closed NEGATIVE with 24 decliners, 14 advancers and 5 flats;

·         Wednesday closed POSITIVE with 12 decliners, 28 advancers and 3 flats;

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

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

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

 

 

Henry'omics:

Remembering Thursday’s closing bell newsletter, “Pricing sustainability’s brawl continues. Lately, sector performance is just a matter of timing and the usual catch-up of advance/decline lines and alternating daily closes.”

  • The deluge of releases in the next weeks will confirm whether the follow-on months of 2017 will suffer a share pricing decline as the biggest issue is – LOW cash balances …”

As I also stated, “Cash positions are about to be on display … setting the expectation of the neediness of many a sector participant!

 

By the way, do you know why some companies are rushing out any iteration of a financing – they’re … BROKE … beyond Q1/17.

 

 

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  Thursday down -0.36% and NOT indicating in Friday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Thursday down -0.24% and is NOT indicating in Friday’s after-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.77% Thursday and is NOT indicating  in Friday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -0.40% on Thursday and is UP +0.12% in Friday’s pre-market

                                                                                   

 

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

Athersys (ATHX) closed FLAT at $1.52 and announced a proposed offering without any share amounts or pricing. These are difficult times in the sector and market for those with cash “needy”.  January ‘17 started at $1.54 with a low of $1.41 and December ‘16’s pricing which started at $1.56 and ranged to $1.53 (12/30) with a low of $1.50 and a high of $1.69.  Expect a depreciation and good size discount. The pre-market indication is -$0.36 or -23.68% – SELL;

Biostage (BSTG) closed UP +$0.04 to $0.85 following Wednesday’s $0.82 (+$0.046) after Tuesday’s $0.77 (+$0.02) post Monday’s $0.77. With an S-1 filed and a banker named, HC Wainright 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 – Maintaining SELL;

Caladrius Biosciences (CLBS) closed UP +$0.11 to $3.98 following Wednesday’s $3.87 (+$0.20), Tuesday’s $3.67 (+$0.05) and Monday’s $3.62 (+$0.03). Three new sites are enrolling subjects for its P2 clinical trial of CLBS03. The study is evaluating CLBS03 consisting of autologous expanded regulatory T cells, or Tregs) as a treatment for recent-onset type 1 diabetes (T1D).  After all the years of studies that have taken place in diabetes; CLBS is going to come up with a treatment – CLBS can’t even get their investors to pay-up for their investments while multiple reverses and offerings have taken place – who can believe anything – Maintaining SELL;

Intrexon (XON) closed DOWN -$0.36 to $20.78 after Wednesday’s $21.14 (-$0.51) after Tuesday’s $21.65) -$0.44 after Monday’s $22.09 (-$1.22) and last Friday’s $23.31 (-$0.20). January started at $24.81, December at $27.84 and November at $26.44 – it is all about dancing the “limbo” and straightens their backbone – BUY;

Osiris (OSIR) closed DOWN -$0.11 to $5.40 following Wednesday’s $5.51 (+$0.23). What’s with the upside after late or no 8-K, 10-Q, an SEC investigation, multiple CEOs, months and quarters without filings, new lawyers and accountants and fired employees? Nothing sticks – Maintaining 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.