March 10, 2017 7:50am

 

Quarterly releases just might be the oil to calm volatility, the timing of trades and share amounts traded

Critical information ahead of “our” universe’s open! I provide intelligence and analysis for short and near-term investment.

 

Investors need to gauge whether any advances are just speculation

 


 

Expectation will be the word for 2017 – meeting the unknowns with the soon to be exposed concerns will be the subject of investing decisions throughout this year.

 

 

Dow futures are UP +0.32% and NASDAQ futures are UP +0.31%

 

U.S. stock index futures pointed to a higher open on Friday as traders eyed a crucial jobs report ahead of a probable U.S. interest rate hike next week.

European markets were trading in positive territory as investors turned their attention to the release of nonfarm payrolls in the U.S.

Asian markets were mixed with Chinese markets down, Japanese equities were up as Australia finished in positive territory and South Korean equities rose slightly.

 

Data docket: nonfarm payrolls, unemployment rate and average hourly wages for February released at 8.30 a.m ET with the Federal budget scheduled at 2.00 p.m ET.

 

 

Companies in my trading headlights: eight (8)

 

 

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

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

·         Thursday closed POSITIVE with 16 decliners, 24 advancers and 3 flats;

·         Wednesday closed POSITIVE with 7 decliners, 35 advancers and 1 flat;

·         Tuesday closed NEGATIVE with 28 decliners, 15 advancers and 0 flats;

·         Monday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats;

·         Last Friday closed barely POSITIVE with 19 decliners, 20 advancers and 4 flats;

 

 

Remembering Thursday’s closing bell newsletter, “Financial results cloud the present while shareholder’s involvement in share pricing is becoming more questionable.  Funds, ETFs, pools and algorithms enhance speculation managing share pricing but, are they aligned with shareholder interests?”

  • Reiterating, “Clinical trial and data outcomes are becoming less and less favorable ... yet companies are still increasing spending; NOT understanding the cost size and/or duration over the next years to commercialization!”

 

Speculation has run roughshod on share pricing, but now with many companies announcing their losses, spending, cash positions and development prospects – volatility should ease for some!

 

 

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 up +0.36% and is NOT indicating in Friday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Thursday up +0.50% and is NOT indicating in Friday’s after-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.54% Thursday and is NOT indicating in Friday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -0.40% on Thursday and is UP +0.52% in Friday’s pre-market

                                                                                   

 

Companies in my headlights:

Understanding the tone of the sector is paramount – watch the trends <volume, advance/decline lines, momentum and relative strength etc.>, the peaks and valleys as well as the hesitancy of flats!

Keep your eyes open, ears flapping and your trading fingers limber:  

 

BUY -

BioLife Solutions (BLFS) after release of financial results has an aftermarket upside of +$0.10. BLFS closed up +$0.03 ($2.21) after Tuesday’s $2.18, Monday’s $2.25, Friday’s $2.12 and last Thursday’s $2.01 – BUY;

Juno Therapeutics (JUNO) closed up +$0.59 to $22.43. JUNO has an aftermarket upside of +$0.26. Could there be a bargain basement here - BUY;

Kite Pharma (KITE) closed up +$6.01 to $81.79 and has an aftermarket upside of +$0.70. A true comeback kid – BUY;

 

SELL –

Athersys (ATHX) after release of financial results showed decrease in revenue, increase in net loss and has $44.7 M in cash – SELL;

Biostage (BSTG) after release of financial results reported a net loss of $3.34 million, or a net loss per diluted share of $0.20. BSTG stated it ended the year with approximately $2.94 million of cash. Based on management's current projections, it believes it has sufficient cash on hand to fund operations through the third quarter of 2017. However, was the end of the year cash position – real, as BSTG accumulated $1.406 M by NOT paying 2016 bills to fortify their cash position? The monies NEED to be paid which reduces that $2.94 number to $1.55 M! – SELL;

Cellectis SA (CLLS) closed up +$0.44 to $23.09. The week has been good following tWednesday’s $22.65, Tuesday’s $21.43 and Monday’s $22.26 – time to lighten the load and come back another day – SELL;

Fibrocell (FCSC) closed down -$0.019 to $0.82. Fibrocell used $29.4 million in cash for operations during the twelve months ended 12/31/16 for what (?) an $0.82 stock price. Who is kidding whom – re development of azficel-T for vocal cord scarring (?)- SELL;

Neuralstem (CUR) closed up +$0.87 to $5.30, after Wednesday’s $4.43, Tuesday’s $4.29, Monday’s $4.27, last Friday’s $4.26 and the previous Thursday’s $4.16 – time to take some profit – 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.