February 15, 2017 7:46am
Risk by definition is uncontrollable
And what rights do investors have – the ability to sell!
Anyone who reads my posts, knows that I am about making money, no matter what happens in the sector
Today’s headlights: five (5) equities
I write in every line that investors need to avoid risks as if I were the first to be hurt if I was wrong!
Critical information ahead of “our” universe’s open! I provide intelligence and analysis for short and near-term investment.
Expectation will be the word for 2017 – meeting the unknowns with soon to be uncovered will be the subject of investing decisions through this year 2017.
BUY: AGTC
SELL: CAPR, IMUC, MESO and SGMO,
Indexes and ETFs: The IWM (+0.01%) is UP and the IBB, XBI and XLV are NOT indicating
Dow futures are DOWN UP +0.11% and NASDAQ futures are UP +0.01%
U.S. stock index futures pointed to a mixed open on Wednesday as traders eyed further comments from the Federal Reserve as well as a host or earnings reports and economic data.
European markets were higher in morning trade after the chair of the U.S. Fed Yellen, hinted at a possible rate hike next month.
Asian markets traded mixed, despite U.S. gains following remarks from Janet Yellen. Shares of Toshiba tumbled.
Data docket: consumer price index (CPI) and retail sales to be released at 8.30 ET. Industrial production and capacity utilization scheduled for 9.15 ET and business inventories as well as the national association of home buyers (NAHB) survey released at 10 a.m ET.
The stem, cell, gene and regenerative therapy (SCG&RT) closed POSITIVE on Tuesday, Monday, Friday and Thursday and NEGATIVE last Wednesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Tuesday closed POSITIVE with 20 decliners, 21 advancers and 2 flats;
· Monday closed POSITIVE with 15 decliners, 24 advancers and 4 flats;
· Friday closed POSITIVE with 15 decliners, 24 advancers and 4 flats;
· Thursday closed POSITIVE with 28 decliners, 11 advancers and 4 flats;
· Last Wednesday closed NEGATIVE with 29 decliners, 10 advancers and 4 flats;
Remembering Tuesday’s closing bell newsletter, “The sector closed up barely.”
- Reiterating, CEOs are more removed from their stakeholders and shareholders. What reasons can they explain the current state of share pricing depreciation and what are they doing about it? It’s not about the end game in a ten year development cycle but, an erosion of current trust!”
With a lot of competition in the equities marketplace, stem, cell, gene and regenerative therapies have cratered leaving many to say – WHY am I even invested when these same companies will be back in the market next year.
After four up sessions following three down closes; as weekly history tells us - caution should be ruling the focus.
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 up +1.22% is NOT indicating in Wednesday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Tuesday up +1.51% and is NOT indicating in Wednesday’s pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed up +0.79% Tuesday and is NOT indicating in Wednesday’s pre-market;
· The iShares Russell 2000 (IWM) closed up +0.33% on Tuesday and is UP +0.01% in Wednesday’s pre-market
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed UP +$0.05 to $7.20 following Monday’s $7.15, Friday’s $7.30 and Thursday’s $6.85 (+$0.45) after last Wednesday’s $6.40 (-$0.05. AGTC reported FY Q2/17 profit of $2.1 M and $0.11 per share. The results exceeded street expectations. The average estimate was for earnings of $0.03 per share. AGTC posted revenue of $10.9 M in the period, which also beat Street forecasts. Expectation was for $7.2 M. Also AGTC’s shares have decreased 32 % since the beginning of the year. The shares have dropped 51% in the last 12 months and should jump higher. The pre-quarterly earnings jitters as well as a comparables “hit” were the downdraft issues. Thus, I will keep “flying” this flag - Maintaining BUY;
Capricor (CAPR) closed UP +$0.16 to $2.98 with 89.7 K shares traded <3 month average = 50 K>. After a presentation at 2017 BIO CEO and Investor Conference CAPR’s CFO made an impression, notice that the CEO was not the presenter but, that shouldn’t remind us that a short-term “flash” will be the topic of interest of traders who bid it up in the first place. February 6, the stock traded at $2.40, January 30/16 the stock traded at $2.18 as the year (January/3/17) started at $2.55. Not for the faint hearted, strength is usually sold into - SELL
ImmunoCellular Therapeutics (NYSEMKT: IMUC) closed UP +$0.54 to $2.96. Volume was huge <1.915 M shares> compared to the 3 month average 12.6 K shares> - what’s with the kick? I’m not a risk taker; I seea short-term apparition - SELL;
Mesoblast (MESO) closed UP +$0.16 to $6.11. Love the company but, when the whiff of profit-taking arises after 2/7’s $5.54, 2/8’s $5.57, 2/9’s $5.81, 2/10’s $5.90, 2/13’s $5.95 - $0.57 in the profit pot. A cheap thrill however, after four up sector days – I get nervous that traders will be circling – SELL;
Sangamo Therapeutics (SGMO) closed UP +$0.30 to $4.05 with 560.8 K shares traded <3 month average = 867.1 K shares>. Not a bad transition in five sessions, $4.05, $3.75, $3.85, $3.75 and 1/8’s $3.60. There is some frosting on the cake if one only wants a taste without devouring any cake - 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.
