April 7, 2017 5:48pm

 

Low volume and volatility inconsistency

Sector seeks direction confirming caution reactions

 

Why is cell therapy always riding the coattails of biotech?

 

The key to making any money in this sector is selling into strength and buying on weakness

Pre-open indications:  2 hits and 3 miss                                                                   

 

I answer one question, in which company should investors commit and keep their money

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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,” What’s driving the sector – a case of the hiccups … Hopefully nothing substantial enough to inhibit a positive closing trend?”

  • Reiterating, “?”Windows of opportunity are born inside an indication … All we can do is wait ... which is the sector’s middle name.”

Why is cell therapy still riding the coattails of biotech?

  • The SCG&RT sector stocks on Friday switched between small gains and losses, as investors just can’t define the purpose of why companies are NOT supporting their shares by talking … TO investors !

Versus the usual … AT them!

  • Given the number of non- events, it’s luckily that the sector is not greater depreciated than it is!

“Our” universe’s best-case scenario is that management teams start opening their mouths and putting on a brave face, speak to those who have a voice in the market, smile for the cameras and then show that they can have a constructive <and truthful> discussion on their status on specific issues.

  • Investor’s frustrations, negatively impact sentiment, driving further losses!

There is a lack of real news that could affect any share pricing appreciation and sustainability.

 

The Bottom Line … company CEOs MIGHT be able to develop a therapy, but they CAN’T SELL the CONCEPT …

 

 

What analytics were there today and why it was important in today’s sector outcomes?

… The DOW closed down -6.85 or -0.03% to 20,656.10 while the NASDAQ closed down -1.14 or -0.02% to 5877.81 …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 12.75 following Thursday’s 12.1 after Wednesday’s 11 post Tuesday’s 12 subsequent to Monday’s 12.3 and last Friday’s 12.3

…The iShares Russell 2000 (IWM) indicated a positive +0.01% at the pre-open was and closed DOWN -0.04%;

… The iShares NASDAQ Biotechnology (IBB) did NOT indicate at the pre-open and closed UP +0.80%.

 

The advance/decline line scenario of 43 SCGT & RT covered companies:   

·         The opening bell was negative with an A/DL of 12/30 and 1 flat;

·         The mid-day stayed negative with an A/DL of 19/22 and 2 flats;

·         The close was positive with an A/DL of 21/19 and 3 flats;

 

… Decliners ranged from -0.30% <BTX> to -5.35% <ADRO> in 19 equities;

… Gainers ranged from +0.21% <CUR> to +4.17% <VTGN> in 21 equities;

 

Pre-open indications: 2 hits and 3 miss – the key to making any money in this sector is selling into strength and buying on weakness

  • Athersys (ATHX) closed down -$0.08 – miss;
  • Bellicum Pharmaceuticals (BLCM) closed up +$0.06 – miss;
  • Brainstorm Cell Therapy (BCLI) closed down -$0.05 – hit;
  • Kite Pharma (KITE) closed down -$1.15 – miss
  • Pluristem (PSTI) closed down -$0.03 – hit;

 

 

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.