April 4, 2017 8:21am

 

What's behind the push of  the button to BUY …?

 

In this market, algorithms might account for identifying patterns and/or anomalies in sector and market performance, but like ETFs, they can’t define the cause and effect of relationship between the key factors that might explain future outcomes!

Insight is about understanding perception

 

Pre-open indications:  seven (7) – 4 SELLS, 3 BUYS

 

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

 

Readership is a team sport, are you on it?

 

 

Expectation is 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 -0.36% and NASDAQ futures are DOWN -0.49%

 

U.S. stock index futures pointed to a lower open on Tuesday morning as traders eyed a potentially tense meeting between U.S. President Donald Trump and Chinese premier Xi Jinping later in the trading week.

European markets hovered around the flatline as investors also focused on the same meeting.

Asian markets were lower as Australian dollars slipped. Among major currency pairs, the yen strengthening against the dollar likely to pressure Japanese export stocks. Oil prices were also little changed on Tuesday during Asian hours, following an overnight decline. Markets in China and Taiwan remained shut on Tuesday for a public holiday.

 

Data docket: deficit data for February will be released at 8.30 a.m. ET. Economists expect it to have narrowed in February to $44.8 billion from a five-year high of $48.5 billion. These are not typical market-moving data, but market participants will keep an eye on them because of Trump's meeting with the Chinese premier. Also the factory order’s reportare scheduled at around 10 a.m. ET.

 

 

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

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

·         Monday closed NEGATIVE with 31 decliners, 11 advancers and 1 flat;

·         Friday closed POSITIVE with 15 decliners, 23 advancers and 5 flats;

·         Thursday closed NEGATIVE with 24 decliners, 18 advancers and 1 flat;

·         Wednesday closed POSITIVE with 14 decliners, 24 advancers and 5 flats

·         Last Tuesday closed POSITIVE with 19 decliners, 21 advancers and 3 flats;

 

 

 

Remembering Monday’s closing bell newsletter, “hitting the skids again. Investors were not looking for growth but, some sort of pricing sustainability. Another day of resistance …”

  • Reiterating, “The sector reminds me of the film titled "Sideways" because, to age properly, wine bottles must be laid on their side; analogous to the thought, companies stuck in a pre-clinical or P1 and even some P2s grow "sideways” but, need to change their ways to grow as a public company. 

My issue is share pricing as CEO salaries, bonuses and option awards are getting out of control as shareholder’s equity falls further and further!

 

Leadership is more than showing up, CEOs are judged by their share pricing!

  • Once we get through quarterly financial results <notice I didn’t say – earnings> season, it will be easier for investors to take a short -term view, but my fear is that the Q1 numbers aren't going to look much better than the Q4/16 numbers.

 

As the sector is what it is, until it isn’t and even then it doesn’t seem to be!

 

 

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  Monday down -0.78% and is DOWN -0.23%  in Tuesday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Monday down -1.49% and is DOWN -0.01% in in the aftermarket before Tuesday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.08% Monday and is DOWN -0.03% in Tuesday’s pre-open;

·         The iShares Russell 2000 (IWM) closed down -1.05% on Monday and was DOWN -0.39% in the after-market before Tuesday’s pre-open

                                                                                   

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed FLAT at $6.90 after Friday’s $6.90, Thursday’s $6.85, Wednesday’s $6.65 and last Tuesday’s $6.75 – the music stays on as the carousel spins. There is approximately $8.53 in cash per share with a solid partner in Biogen (BIIB). March began at $7.75, February from $7.20 and January’s $9.55 – Maintaining BUY

Athersys (ATHX) closed up +$0.05 to $1.76 following Friday’s $1.71 (-$0.19 following Thursday’s $1.90 ($0.46). As I had stated, I am NOT a fan, yet a research report initiated this upside surge and then a minor purge by day traders – another purge.  Check out the salaries, bonuses, attendance pay for the CEO’s own BOD meetings as applied to the breath of the stocks past two years’ runway. The aftermarket indication is a +$0.05 or +5.29% upside, so put those personal thoughts in your back pocket– Maintaining SELL;

Brainstorm Cell Therapy (BCLI) closed up +$0.46 to $4.71 after Friday’s $4.25 ($0.38). BCLI added “names” to its roster, completed a successful End-of-P2 Meeting with the FDA and reached a general agreement with the FDA to proceed to a P3 trial. Importantly, the FDA has accepted the key elements of the P3 program to support a Biologic License Application (BLA) for NurOwn.  The planned P3 clinical trial will be a randomized, double-blind, placebo-controlled multi-dose trial to be conducted at multiple sites in the U.S. and in Israel. That trial is expected to begin enrolling patients in the second quarter of 2017. But, will that keep the stock rising?  Sell into strength, BCLI doesn’t seem to have sustainability in its repertoire plus, it’s getting rich and a target for trading – Maintaining SELL;

Caladrius Biosciences (CLBS) closed down -$0.27 to $4.76 following Friday’s $5.03 (+$0.16). CLBS announced that four additional clinical sites. These sites will contribute to the continued enrollment of subjects in the trial to meet the total of 111. The study is evaluating CLBS03 (autologous expanded regulatory T cells, or Tregs) as a treatment for recent-onset type 1 diabetes (T1D). - Maintaining SELL;

Juno Therapeutics (JUNO) closed UP +$0.05 to $22.24 following Friday’s $22.19 (+$0.23) after Thursday’s $21.96 (+0.34) following Wednesday’s $21.62 (+$0.65). The roulette table is turning with an aftermarket indication that is a positive +$0.03 or +0.16%.  Maintaining BUY;

Kite Pharma (KITE) closed down -$0.27 to $78.22 after Thursday’s $78.49 (+$0.22). KITE completes the rolling submission with the FDA of the BLA for axicabtagene ciloleucel as a treatment for patients with relapsed or refractory aggressive non-Hodgkin lymphoma who are ineligible for autologous stem cell transplant. The aftermarket indication is positive +$1.75 or +2.24% - Maintaining BUY;

Pluristem (PSTI closed up +$0.12 to $1.25 with solid volume <1.231 M shares compared to 3 month average of 480.4 K share volume> on no news. That is a +9.76% upside coming from nowhere,  “watch your corridors, who and what is coming at you”;  every time it spurts, day traders clap with glea – trade it, and sell into strength– 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.