February 15, 2017 5:51pm

 

While speculation has driven the sector higher        

 

What happened, what did it all mean and why was it important in today’s sector outcomes …?

 

Five (5) positive closes in a row – a new record.

Out and about: Closing offerings BioTime (NYSEMKT: BTX) – a solid with an aftermarket upside versus Biostage (BSTG) – an investor rip-off

Volume and volatility have been increasing from low levels

Pre-open indication tally, 1 hit and 4 miss: my clients sold into strength and made money as pennies were on the table

 

This rally has produced overbought conditions and other stresses in the sector

 

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

 


 

RMi’s daily and continual “reads” of the goings-on of the SCG&RT sector can improve investor’s and trader’s odds, and just because a stock underperforms the market doesn’t mean you have to lose money.

 

 

U.S. stocks climbed to new highs on Wednesday …

The NASDAQ closed UP +36.87 or +0.64% to 5819.44 and the DOW closed UP +99.48 or +0.49% to 20,603.89.

 

 

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 negative with an A/DL of 10/28 and 5 flats;
  • 2:30 pm, the sector swung positive with an A/DL of 25/17 and 1 flat
  • The close stayed positive with an A/DL of 26/14 and 3 flats;

 

 

Henry’omics:

From the pre-open’s investor’s letter title, “Risk by definition is uncontrollable and what rights do investors have – the ability to sell!”

  • Reiterating, “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.”

As the sector trades today, investors can see that the picture is changing as sentiment has picked and pecked many of the “usual suspects”.

  • There is a huge lack of clinical data telling us how much and why investors are NOT willing to dig deep into their pockets and how confident they are in any buying outlook.

Where should the sector and shareholder focus be – cash positions

 

The market jumped to new highs and where is the sector – jiving up on speculation or diving on sentiment; reason reliability of on-going financings to credible development advances.

 

 

 

Indexes, the ebb and flow:

  • The iShares Russell 2000 (IWM) indicated a positive +0.01% in the pre- open and closed UP +0.58% after Tuesday’s +0.33%.
  • The iShares NASDAQ Biotechnology (IBB) did NOT indicate in the pre-open and closed UP +1.78% after Tuesday’s 1.22%.

 

 

Pre-open indication tally, 1 hit and 4 miss:

  • Applied Genetic Technologies (AGTC) closed UP +$0.05 – miss;
  • Capricor (CAPR) closed UP +$0.16 – miss;
  • ImmunoCellular Therapeutics (NYSEMKT: IMUC) closed DOWN -$0.03 – hit;
  • Mesoblast (MESO) closed UP +$0.06 – miss;
  • Sangamo Therapeutics (SGMO) closed UP +$0.15 – miss;

 

 

Out and about:

BioTime (NYSEMKT: BTX) closed its offering of 7.453 M shares at $2.70 with proceeds of $20.1 M. BTX ended the session at $2.90 and is UP +$0.10 in the aftermarket

… while …

Biostage (BSTG) closed its offering with $8 M in proceeds with NO notice of the number of shares (press release) sold and is trading DOWN -$0.003 to $0.318 after a $0.40 offering (the prospectus stated 20 M share 100% warrant coverage and 2000 shares of a convertible (?)

 

 

The downside shows a pricing trend of:

  • Wednesday’s decliners ranged from -0.06% <BLUE> to -6.54% <ISCO> in 14 equities;
  • Tuesday’s decliners ranged from -0.01% <ISCO> to -13.06% <VTGN> in 20 equities;
  • Monday’s decliners ranged from -0.14% <ONCE> to -5.91% <QURE> in 15 equities;
  • Friday’s decliners ranged from -0.07% <BLUE> to -40.68% <BSTG> in 15 equities;
  • Thursday’s decliners ranged from -0.31% <BCLI> to -18.87% <BSTG> in 11 equities;
  • Last Wednesday’s decliners ranged from -0.14% <BLUE> to -12.56% <BSTG> in 29 equities;

 

The upside shows a pricing trend of:

  • Wednesday’s gainers ranged from +0.31% <FATE> to +6.32% <JUNO> in 25 equities;
  • Tuesday’s gainers ranged from +0.61% <BCLI> to +22.31% <IMUC> in 21 equities;
  • Monday’s gainers ranged from +0.61% <BCLI> to +6.82% <CAPR> in 25 equities;
  • Friday’s gainers ranged from +0.34% <OSIR> to +22.39% <BLFS> in 24 equities;
  • Thursday’s gainers ranged from +0.34% <KOOL> to +19.67% <CLBS> in 28 equities;
  • Last Wednesday’s gainers ranged from +0.27% <ONVO> to +7.26% <STML> in 10 equities;

 

 

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

·         Wednesday traded near 11.6 – 8% higher;

·         Tuesday traded near 10.89;

·         Monday traded near 11.2;

·         Friday traded near 10.88;

·         Wednesday closed near 11.4;

·         Last Thursday traded near 11;

                                                                                                                                                                               

 

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.