March 22, 2017 7:52am
The witching expiration drove volatility causing downward pressure on the sector
As panic consumed the pricing sensitive sector
Critical information ahead of “our” universe’s open! I provide intelligence and analysis for short and near-term investment.
… Companies in my trading headlights: eight (8) – 4 BUY and 4 SELLS
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?
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 DOWN -0.018% and NASDAQ futures are DOWN -0.07%
U.S. stock index futures pointed to a lower open on Wednesday amid doubts U.S. President Donald Trump may not be able to deliver campaign pledges to lower taxes and boost investment.
European markets moved lower amid increasing concerns regarding U.S. President Donald Trump's economic growth agenda.
Asian markets ranged mixed to lower with a litany of reasons, North Korea’s failed missle shot, a Japanese sell-off, Australian banks were hit hard after losses in multiple sectors and Chinese composites and indexes finishing down.
Data docket: the Federal Housing Finance Agency will release January's home prices at 9 a.m. ET and later at 10 a.m. there will be existing home sales numbers.
The stem, cell, gene and regenerative therapy (SCG&RT) closed NEGATIVE on Tuesday and Monday, POSITIVE on Friday, Thursday and last Wednesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Tuesday closed NEGATIVE with 34 decliners, 8 advances and 1 flat;
· Monday closed NEGATIVE with 22 decliners, 16 advancers and 5 flats;
· Friday closed barely POSITIVE with 19 decliners, 21 advancers and 3 flat;
· Thursday closed POSITIVE with 12 decliners, 30 advancers and 1 flat;
· Last Wednesday closed POSITIVE with 8 decliners, 31 advances and 4 flat;
Remembering Tuesday’s closing bell newsletter, “The sector sheds its upside while sentiment exhibited a barnyard smell.”
- Reiterating, “Investor’s ownership has experienced a hack and slash of share pricing as related to development risk! My concern is about the outcome of a small population trial, which might NOT have enough or TOO small a patient count to measure true and sometimes unmeasurable protocol responses.”
In the sessions post two (2) down days and the alternating positive/negative market closes - some sector equities will spin to the upside while others spiral yet agin!
Keep you eyes on the exit door as many investors are feeling the pain of falling prices and afraid of future downfalls ...
Anything that is overbought WILL be sold while those of the oversold will get kicked - mostly down again.
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 down -1.97% and is NOT indicating in Wednesday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Tuesday down -4.88% and is NOT indicating in Wednesday’s after-market;
· The Health Care Select Sector SPDR ETF (XLV) closed down -0.77% Tuesday and is NOT indicating in Wednesday’s pre-market;
· The iShares Russell 2000 (IWM) closed down -2.74% on Tuesday and DOWN -0.25% in Wednesday’s pre-market
Companies in my headlights: short and sweet or hard with no fanfare …
Applied Genetic Technologies (AGTC) closed down -$0.50 to $6.70 after Monday’s $7.20 (-$0.15). AGTC still hasn’t gotten away from the roulette table - spinning, spinning watch the ball that’s why they call it a “casino” market, a form of legalized gambling. There is still approximately $8.53 per share in cash – Maintaining BUY;
Asterias Biotherapeutics (NYSEMKT: AST) closed up +$0.22 to $3.40. The aftermarket indication is a positive +$0.42 or +13.21% - Maintaining BUY;
Athersys (ATHX) closed up +$0.02 to $1.16 and is UP another $0.02 or +1.72% in the aftermarket – BUY;
BioTime (NYSEMKT: BTX) closed down -$0.21 to $3.25. The after market indication is a negative -$0.05 or -1.54% - Maintaining SELL;
Caladrius Biosciences (CLBS) closed up +$0.01 to $5.12. The after market indication was a positive +$0.09 or +1.76% after selling PCT to Hitachi Chemical. Investors should be buying for the cash position post the sale – BUY;
Fate Therapeutics (FATE) closed down -$0.27 to $4.72. The aftermarket indication is a negative -$0.03 or -0.66% - SELL;
Biostage (BSTG) closed barely +$0.0018 to a wholesome $0.364. Have you read the changes to the pospectus, are you ready for BSTG to execute a warrant exercise/sale at $0.40 – it’s trying to get close to raise another $8.5 M, but the kicker will be the potential increase to 58 M shares outstanding from the current 37.1 M. IS dilution the only solution while a reverse could be in the cards? WHY didn’t they raise money after the spinout when they had cash – Maintaining SELL;
Regenxbio (RGNX) closed DOWN -$1.73 to $22.38 following Monday’s $24.10 (+$2.00) after Friday’s $22.10, Thursday’s $19.70 following last Wednesday’s $20.60. Out of the blue, RGNX announced a $75 M offering with NO share amounts or pricing. The aftermarket indication is a negative -$2.10 or -9.5% – Maintaining 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.
