March 17, 2017 6:02pm
Friday’s hoopla:
… Quadruple witching is when three related classes of options and futures contracts expire, along with the individual stock futures options.
… The iShares NASDAQ biotechnology ETF (IBB) traded - 1.1% lower.
… Pre-open indications: 4 hits and 3 miss
… Northwest Bio (NWBO) caters after announcing yet another RD offering
… Biostage (BSTG) fell -$0.02 to $0.38 as its new president took the helm
… Caladrius Biosciences (CLBS) sold PCT; has the cash, no pipeline that will work – how fast will the current fortune change, is their future troubled?
The sector is what it is, until it isn’t and even then it doesn’t seem to be…!
Readership is a team sport, are you on it?
RMi’s daily and continual “reads” of the goings-on of the SCG&RT sector can improve investor’s and trader’s odds - just because a stock underperforms the market doesn’t mean you have to lose money.
Henry’omics:
From the pre-open’s investor’s letter title, “
- As I had stated, “Which makes the sector susceptible to weakness as the weekend approaches; it always a question of being too long by a Friday’s close in these times”
The third Friday of March is quadruple "witching" - the expiration of three related classes of options and futures contracts, along with individual stock futures options. Friday is also St. Patrick's Day.
- Witching hours are usually used by traders to try to profit from the volatility in small cap stocks.
With all the activity of the contracts ending—most especially with triple and quadruple witching—and the reshuffling of market holding, the effect is usually a dramatic increase in trading volume and/or the number of shares bought and sold.
- The health care stock sector fell 1.1% for a weekly loss of nearly 1.8%.
Cell therapy (CT) equities suffered briefly from expiration so there's a still movement related to the upside trajectory and downside momentum of “our” universe’s small and micro-cap equities, which ... look pretty BAD i.e. related to the roller-coaster movement of share pricing!
Pre-open indications: 4 hit and 3 miss
- bluebird bio (BLUE) closed down -$0.35 – miss;
- Caladrius Biosciences (CLBS) closed up +$0.63 – hit;
- Capricor (CAPR) closed down -$0.06 – miss;
- Fate Therapeutics (FATE) closed up +$0.31 – hit;
- Juno Therapeutics (JUNO) closed down -$0.24 – miss;
- Regenxbio (RGNX) closed up +$2.40 – hit;
- Stemline (STML) closed down -$0.65 – hit;
What analytics were there today and why it was important in today’s sector outcomes?
…The NASDAQ closed UP +0.24 or +0.0% to 5901.00 and the DOW closed DOWN –19.93 or -0.10% to 20,914.62.
…The iShares Russell 2000 (IWM) indicated a positive +0.12% at the pre-open and closed UP +0.40%.
… The iShares NASDAQ Biotechnology (IBB) indicate positive +0.01% at the pre-open and closed DOWN -1.11%.
… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 11 after Thursday’s near 11.3 versus Wednesday’s 11.6.
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The opening bell was positive with an A/DL of 22/17 and 4 flats;
· The mid-day slipped negative with an A/DL of 20/22 and 1 flat;
· The close was positive with an A/DL of 21/19 and 3 flats;
… Decliners ranged from -0.38% <BLUE> to -33.68% <NWBO> in 19 equities;
… Gainers ranged from +0.47% <BCLI> to +15.81% <BTX> in 21 equities;
The upside …
- Regenxbio (RGNX) closed up +$2.40 after Thursday’s -$0.90 after Wednesday’s +$0.35;
- Caladrius Biosciences (CLBS) +$0.63;
- Bellicum Pharma (BLCM) +$0.49;
- BioTime (NYSEMKT: BTX) +$0.49;
- Fate Therapeutics (FATE) closed up +$0.31 after Thursday’s -$0.05
The downside:
- Stemline (STML) closed down -$0.65 after Thursday’s+$0.35;
- Intrexon (XON) -$0.39;
- Kite Pharma (KITE) closed down -$0.37 after Thursday’s +$0.79 after Wednesday’s -$0.33 to after Tuesday’s -$2.01 after Monday’s +$1.94 after last Friday’s +$2.19;
- Applied Genetic Technologies (AGTC) -$0.35;
- bluebird bio (BLUE) closed down -$0.35 after Thursday’s $5.25 after Wednesday’s +$5.85 after Tuesday’s +$1.50 after Monday’s +$1.95 after last Friday’s +$1.75;
Flat:
- Adverum (ADVM)
- Aduro Biotech (ADRO)
- Athersys (ATHX)
Q4/16 financial results:
Caladrius Biosciences (CLBS) …
The net loss attributable to Caladrius common stockholders for the three months ended December 31, 2016 Q4/16 as $6 million or $0.73 per share, compared to $33.2 million or $5.92 per share for same period in 2015.
Net loss for the fourth quarter of 2015 included the impairment of in-process R&D (IPR&D) valued at $34.3 million related to CLBS’ decision to discontinue its P3 study of CLBS20 in metastatic melanoma. This impairment was partially offset by the reversal of a related deferred tax liability and the reversal of a related contingent consideration milestone obligation. The net impact for these changes was a $24.7 million increase in net loss.
The net loss attributable to CLBS stockholders for 2016 was $32.7 million or $4.99 per share based on 6.5 million shares outstanding, compared to $80.9 million or $16.67 per share based on 4.9 million shares outstanding for 2015.
As of December 31, 2016, Caladrius had cash and cash equivalents of $14.7 million. The net cash used in operating activities for 2016 was $23.7 million. During 2016, the Company invested $2.8 million in capital expenditures primarily related to equipment and improvements for PCT’s Allendale, N.J. and Mountain View, CA manufacturing facilities.
Entered into a definitive agreement with Hitachi America whereby Hitachi America agreed to purchase Caladrius’ remaining 80.1% membership interest in PCT for $75 million, subject to potential adjustments, including based on PCT’s cash and outstanding indebtedness as of the closing of the sale, and a potential future milestone payment.
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.
