February 23, 2017 7:43am

 

Current performance is no guarantee for any future results

I get tired of being contrarian but, reality and the state of the sector is what it is and I haven’t been wrong!

 

Anyone who reads my posts, knows that I am about making money, no matter what happens in the sector

Money ball:  2 buys and 2 sells

 

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 the soon to be exposed concerns will be the subject of investing decisions through this year 2017.

 

 

Today’s headlights: Dow futures are UP +0.04% and NASDAQ futures are UP +0.03%

Indexes and ETFs: The IWM (-0.01%) is DOWN, the IBB, XBI and XLV are NOT indicating

 

U.S. stock index futures pointed to a flat-to-higher open on Thursday as traders digested remarks from new Treasury Secretary, Steve Mnuchin.

European markets were mixed during lunchtime trade as investors eyed a further raft of corporate earnings reports.

Asian markets were mostly lower, following a mixed close in U.S. equities overnight as minutes from the Federal Reserve's previous meeting hinted that a rate hike is coming "fairly soon."

Data docket: initial jobless claims are set to come out at 8:30 a.m. ET, with the FHFA (Federal Housing Finance Agency) home price index set to be released at 9:00 a.m. Thursday will also see the auction of $28 billion in 7-year notes.

 

Companies in my headlights:  

BUY: AGTC, BCLI, ONVO and VSTM

SELL:  BSTG

 

 

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

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

·         Wednesday closed NEGATIVE with 27 decliners, 14 advancers and 2 flats;

·         Tuesday closed NEGATIVE with 21 decliners, 17 advancers and 5 flats;

·         Monday, the market was closed;

·         Friday closed POSITIVE with 17 decliners, 21 advancers and 5 flats;

·         Last Thursday closed NEGATIVE with 26 decliners, 16 advancers and 1 flat;

 

 

Remembering Wednesday’s closing bell newsletter, “The sector fell on the sidewalk again. What are investors waiting for, Godot? Trading has even taken the bench away. While management teams’ stay on the sidelines with impunity - which I call in some cases fiduciary negligence, leaving investor’s portfolios to shrivel in the sun!”

  • Reiterating, “This sector is paused by pessimism, followed by growing sceptics and flagellated by complacency!”

It’s late and later but the cell therapy sector seems to reside in a long period of discontent.

  • Fundamentals and technicals are still askew and all that is needed is the market’s blessing in the form of a pricing getaway.

And, the reality of a sustainable breakout is beyond my comprehension – I see a couple of folds or outright bankruptcies.

 

Are you ready for the 2017 list – it’s coming with the reasons why!

But, we can ALWAYS hope for an upside party that I more than probably won’t be invited to …

 

 

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  Wednesday down -0.85% and is NOT indicating in Thursday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Wednesday down -1.77% and is NOT indicating in Thursday’s after-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.15% Wednesday and is NOT indicating in Thursday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -0.44% on Wednesday and is DOWN -0.01% in Thursday’s pre-market

                                                                                   

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed DOWN -$0.40 to $7.50. Up, down, round and down with Tuesday’s $7.90, Friday’s $8.10 and last Thursday’s $7.95. There is $159.1 M in the “till” as of 12/31/16 and $8.65 in cash per diluted sharethe, a Biogen (BIB) partnership, revenue and net income in the last quarter. I believe an industry leader  - Maintaining BUY;

Brainstorm Cell Therapeutics (BCLI) closed UP +$0.57 to $4.51 and the aftermarket is positive +$0.21. Even if an ALS early drug approval in Canada for for its adult stem-cell therapy NurOwn, before late-stage clinical trials are completed;  I still DON’T trust – SELL into strength;

Organovo Holdings (ONVO) closed DOWN -$0.03 to $2.97 after Tuesday’s $3.00 (+$0.03) after Friday’s $2.97 (-$0.12). ONVO published data demonstrating that 3D bioprinted human kidney tissue has great potential to assess the toxic effects of compounds and the development and progression of complex, multicellular processes such as fibrosis. If cures are not in the mix,  utilization of tissues to test toxicity is the answer – Maintaining BUY;

Verastem (VSTM) closed DOWN -$0.04 to $1.21 following Tuesday’s $1.25 (+$0.02) following Friday’s $1.23 and last Thursday’s $1.23. There is $86.88 M in cash in the till with total cash per share of $2.35 as of 9/31/16 – Maintaining BUY;

 

 

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.