April 6, 2017 8:05am

 

I compiled the answer to recent questions about the cell therapy sector…

And, the response was … who cares?

The worst case, have we reached the point where if one can’t say anything good, why think anything at all?

 

After three (3) negative sessions, could there be a rebound for the oversold?

 

Pre-open indications:  six (6) – 4 SELLS, 2 BUY

 

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 UP +0.15% and NASDAQ futures are UP +0.14%

 

U.S. stock index futures pointed to a higher open on Thursday after minutes from the U.S. Federal Reserve's March meeting showed officials want to unwind the bank's $4.5 trillion balance sheet.

European markets were lower following indications by the U.S. Federal Reserve that it wants to pare back its balance sheet and dovish comments from ECB President Mario Draghi.

Asian markets were mostly lower, as traders focused on a meeting between U.S. President Donald Trump and Chinese President Xi Jinping later in the day.

 

Data docket: initial jobless claims released at 8:30 a.m. ET.

 

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

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

·         Wednesday closed NEGATIVE with 31 decliners, 8 advancers and 4 flats;

·         Tuesday closed NEGATIVE with 30 decliners, 12 advancers and 1 flat;

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

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

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

 

 

Remembering Wednesday’s closing bell newsletter, “it’s a stampede, as the sector panics. Fear and reason are diametrically opposed as the sector closes grossly down versus its positive open. What’s the “noise” behind the movement – algorithms, ETFs and dark pools?

  • Reiterating, “as I had stated, “SCG&RT companies NEED to refine their message – NOW companies MUST totally REORGANIZE and UPGRADE their outreach!  Companies who want to BEAT the “machines” have to constantly UPSET the RULES within the algorithms!”

After three (3) days of negative sector sessions, it’s time for an up day … IF there is recognition of the oversold.

  • But, how do we make that judgement? Oversold, overbought or flat as a pancake – is a question of trading value NOT the hard or true value of these entities. And the second how, define pricing behind trading value!

We NEED some positive news to provide some or any sustainability to share pricing.

​

Then we get some news and it's about a pre-clinical mish-mash - Biostage (BSTG) "dropped a nickel" which is OLD pre-clicinical "flag waving" - meaning the company is is still ALIVE!

 

 

 

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  wednesday down -1.37% and is NOT indicating in Thursday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Wednesday down -2.06% and is NOT indicating in in the aftermarket before Thursday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.31% Wednesday and is DOWN -0.18% in Thursday’s pre-open;

·         The iShares Russell 2000 (IWM) closed down -1.13% on Wednesday and was DOWN -0.07% in Thursday’s pre-open

                                                                                   

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed FLAT at $6.65. The pre-market indication is a negative -$0.15 or -2.26% - BUY to SELL;

Biostage (BSTG) closed FLAT at $0.00 and is UP +$0.0413 or +12.59% to a wholesome $0.369 on news that Sherif Soliman, PhD, Head of Biostage's Material Science Laboratory, presented BSTG's preclinical data in an abstract entitled, "Cell-Seeded Synthetic Scaffold for Esophageal Regeneration," in an oral presentation as part of the Biomaterials Technology in Industry session, on April 5, 2017. The preclinical study was designed to evaluate BSTG's Cellspan Esophageal Implant as an alternative conduit for patients with esophageal diseases that require resection of the damaged portion.  In the preclinical model, autologous adipose-derived mesenchymal stem cells were isolated, expanded and seeded onto a tubular synthetic scaffold created with electrospun polycarbonate based polyurethane. Scaffolds were then incubated in a disposable bioreactor for 7 days to obtain an autologous combination construct, and were then implanted in large animals after a full circumferential resection of the esophagus.  I have a few words – In a pig’s eye as this pre-clinical news might have an effect on the day traders but, still hasn’t explained WHY the peer reviewed publication with the Mayo Clinic has NOT appeared. A flash in the pan that day traders will gouge and leave – on the numbers. Also,  notice how the volume spiked yesterday, someone should question ANY pre-release information, who is talking to whom? Last question, WHY is the chief scientific officer (CSO) not making the presentation – he is also GONE from the company.  – BUY and be ready to sell into strength;

Brainstorm Cell Therapy (BCLI) closed UP +$0.03 to $4.50 after Tuesday’s $4.47 (-$0.24) following Monday’s $4.71 (+$0.46) after Friday’s $4.25 ($0.38). Too rich for me and the aftermarket indication is a negative -$0.15 or -3.33% –Maintaining SELL;

Kite Pharma (KITE) closed down -$1.33 to $74.57 following Tuesday’s $75.90 (-$2.32) following Monday’s $78.22 (-$0.27), Friday’s $78.49 after last Thursday’s $78.27. KITE had completed its 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 negative -$0.07 or -0.09% - Maintaining SELL;

Mesoblast (MESO) closed down -$0.74 to $9.64. As the contrarian, MESO has more action in the works, and the pre-market indication is a positive +$0.05 or +0.48% - BUY;

VistaGen (VTGN) closed FLAT at $1.95. The aftermarket indication is a negative -$0.15 or -7.69% - 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.