March 28, 2017 6:00pm
What is the foundation of sector pricing with a neutral open, a negative mid-day and a barely positive close?
Selling too early might cut your short-term performance but it does protect yor sanity and emotional health
Stick with me for the daily transaction analysis ...
Q4 and FY16 financial results: Asterias Biotherapeutics (NYSEMKT: AST) and Opexa Therapeutics (OPXA)
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 - 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,” volatility has its consequences. Do you really want to depend on ETFs and algorithms for an upside?”
- Reiterating, “Monday reaped the upside from volatility and the classic battle of the overbought to cruel oversold as investor complacency enjoyed a premium.”
One good thing about me, IF I don't know - I will say so as I did this a.m. re pre-open indications ...
I don't fudge the narrative as the facts and ... the truth will set you free"
Lately, facts do NOT support the narrative in some company's releases - it's not FAKE news but the facts are more than a bit SHY!
What analytics were there today and why it was important in today’s sector outcomes?
The DOW closed up +150.52 or +0.73% to 20,701.50 while the NASDAQ closed up +34.77 or +0.60% to 5875.14 …
… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 11.5 after Monday’s 13.3 as compared to Friday’s 13.3
…The iShares Russell 2000 (IWM) was up +0.19% at the pre-open was and closed UP +0.78%;
… The iShares NASDAQ Biotechnology (IBB) was up +0.08% at the pre-open and closed DOWN -0.39%.
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The opening bell was neutral with an A/DL of 20/20 and 3 flats;
· The mid-day was negative with an A/DL of 20/21 and 2 flats;
· The close was barely positive with an A/DL of 21/19 and 3 flats;
… Decliners ranged from -0.35% <XON> to -4.55% <FATE> in 19 equities;
… Gainers ranged from +0.23% <CLLS> to +19.75% <OSIR> in 21 equities;
Financial results:
Asterias Biotherapeutics (NYSEMKT: AST)
AST reported a Q4/16 loss of $9.3 million or $0.20 per share. Losses, adjusted for non-recurring costs, were $0.18 per share. The results fell short of “Street” expectations. The average estimate was for a loss of $0.17 per share.
AST posted revenue of $1.8 million in the period, also falling short of “Street” forecasts of the expected $2.8 million.
For FY16, AST reported that its loss widened to $35.5 million, or $0.83 per share. Revenue was reported as $7 million.
Key achievement: Presented positive early efficacy data from the first cohort of the SCiStar study testing a dose of AST-OPC1 within the predicted efficacious dose range. In this cohort, 10 million AST-OPC1 cells were delivered to patients with neurologically complete (AIS-A 10) cervical injuries. Patients from this cohort showed improvement in upper extremity motor function at 3-months following administration of AST-OPC1. Asterias subsequently reported efficacy results for five patients from this cohort that showed additional motor function improvement at 6-months and 9-months following administration of AST-OPC1. Earlier this month, Asterias reported that the sixth, and final, patient in this cohort showed additional motor function improvement at 6-months following administration of AST-OPC1.
The results suggest a meaningful and favorable difference to date in recovery of arm, hand and finger function in patients treated with the 10 million cell dose of AST-OPC1 versus the level of expected rates of spontaneous recovery shown from historical control data of a closely matched patient population.
AST ended Q4/16 with $19.9 in cash
Opexa Therapeutics (OPXA) …
OPXA had a net loss for the year ended December 31, 2016 of $7,980,114, or $1.13 per share (basic and diluted), compared with a net loss of $12,019,278, or $2.05 per share (basic and diluted), for the year ended December 31, 2015.
OPXA is conducting a review of its other R&D programs, including its preclinical program for OPX-212 for the treatment of neuromyelitis optica (NMO), to assess the viability of continuing to pursue one or more of these programs.
OPXA is also exploring any strategic alternatives.
On February 1, 2017, Opexa entered into an assignment and assumption of lease with KBI Biopharma, Inc. for Opexa's 10,200 square foot corporate headquarters facility located in The Woodlands, Texas, and a related assignment of a lease on a major piece of equipment. Opexa also sold certain furniture, fixtures and equipment, as well as its laboratory supplies, located at its corporate headquarters to KBI for a lump sum cash consideration.
On November 2, 2016, Opexa announced a reduction in workforce of 40% of the Company's then 20 full-time employees while the Company evaluated its programs and various strategic alternatives. OPXA incurred incremental aggregate cash charges of approximately $95,000 associated with this workforce reduction. Additionally, on January 31, 2017, Opexa further reduced its workforce by terminating the employment of seven full-time employees, incurring additional costs of approximately $219,000 associated with this workforce reduction.
Cash and cash equivalents were $3,444,952 as of December 31, 2016, compared to $12,583,764 as of December 31, 2015.
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.
