January 30, 2017 7:45am
We haven’t even gotten to quarterly results which will show many of the “usual suspects” are soon to be broke
What and why are we buying from those who have only delivered losses and depreciated share pricing for years...
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: AGTC
SELL: BLUE, BSTG, CLBS and OSIR
Indexes and ETFs: The IWM (-.70%), IBB (-0.51%), XBI (0.97%) are DOWN while the XLV is NOT indicating
Dow futures are DOWN -0.22% and NASDAQ futures are DOWN -0.32%
U.S. stock index futures pointed to a lower open on Monday as traders eyed a batch of earnings and economic data.
Europe markets started the week on a negative footing with investors focused on corporate earnings and digesting international concerns over U.S President Donald Trump's introduction of a travel ban on refugees coming from seven Muslim-majority countries.
Asian shares were lower as investors eye the international backlash against U.S. President Donald Trump's immigration policy, which has added pressure on the dollar.
Data docket: will see personal income and consumer spending data for December released at 8.30 a.m ET. Pending home sales for December and Dallas Fed manufacturing for January are due to be released at 10 a.m ET and 10.30 a.m ET.
The stem, cell, gene and regenerative therapy (SCG&RT) closed POSITIVE on Friday, NEGATIVE on Thursday, POSITIVE on Wednesday and Tuesday as last Monday closed NEGATIVE.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Friday closed POSITIVE with 18 decliners, 23 advancers and 2 flats;
· 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;
· Last Monday closed NEGATIVE with 25 decliners, 13 advancers and 5 flats;
Henry'omics:
Remembering Friday’s closing bell newsletter, “the sector opened up, flipped down and regained ground at session’s end.”
- As I also stated, “However, fear and uncertainty were acerbated as Athersys’ (ATHX) public offering depreciated and discounted in a very dilutionary financing. There is a lesson to be understood for “others” in need and the stacked-up list of those desperately hoping to access capital markets.”
I have written before about the issues of some offerings which continue to trigger depreciation, discounts and dilution when companies induce investors to consider their current losses as a part of the journey when they can’t even say their therapy will “work” or even … when it will be available!
- As an “evaluator” who serves investors, I offer warning analysis, analysis of quarterly results that invariably crash under the strain of spending and attempts of some management teams to manipulate perception of development platforms!
And that’s not all…
- Even as state regulatory agencies and the SEC step-up its efforts to make companies produce terms and condition of offering … soon to be disclosed quarterly results <loss per share numbers> are NOT included – why, most of these companies will be “BROKE” soon.
Some companies are also ignoring the rules of disclosure, management “failures” of executive “actions and performance” thus affecting the way their platforms and pre-clinical results are presented!
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 up +0.88% is DOWN -0.51% in Monday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Friday up +1.26% and is DOWN -0.09% in Monday’s after-market;
· The Health Care Select Sector SPDR ETF (XLV) closed up +0.82% Friday and is NOT indicating in Monday’s pre-market;
· The iShares Russell 2000 (IWM) closed down -0.34% on Friday and is DOWN -0.70% in Monday’s pre-market
Companies in my headlights – short, sweet and some sour:
Applied Genetic Technologies (AGTC) closed FLAT at $8.15 following Thursday’s $8.10 (-$0.30). 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 solid <Q3’3 $166.8 M> 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 – Maintaining BUY;
Biostage (BSTG) closed DOWN -$0.0214 to $0.809 after Thursday’s $0.85 (+$0.04) 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. There is a lesson to be learned from Athersys’ (ATHX) offering – huge depreciation and discount also BSTG has a few more issues within their management teand BOD – Maintaining SELL;
bluebird bio (BLUE) closed UP +$2.65 to $71.10. January’s low was $65.000 and its high was $71.10 while December’s low was $61.70 and its high $78.95. BLUE is a neurotic stock or should I say – manic! Can you afford the ride? There is $4.15 in the profit “pot” – SELL;
Caladrius Biosciences (CLBS) closed UP +$0.51 to $4.46 following Thursday’s $3.98 (+$0.11), Wednesday’s $3.87 (+$0.20), Tuesday’s $3.67 (+$0.05) and last Monday’s $3.62 (+$0.03). January started at $3.07 as a low of $3.08 and a high of $4.46, December experienced a low of $2.77 and a high of $3.78 following November’s start of $3.87 and a low of $3.37 and a high of $4.21 the last time I saw $4.44 was 10/12/16. There is $2.07 in the profit “pot” and for CLBS that is quite a ride worth an exit. I’d also anticipate some sort of mixed offering with the stock jumping and an investor dropping its agreed upon investment– Maintaining SELL;
Osiris (OSIR) closed UP +$0.50 to $5.90 after Thursday’s $5.40 (-$0.11) following Wednesday’s $5.51 (+$0.23), Tuesday’s $5.28 and last Monday’s $5.13. January started at $4.779, December was priced at $5.61 and November’s $4.19. 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.
