April 10, 2017 5:57pm

 

The oversold get valued …

While the weak get even more fragile

 

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

Pre-open indications:  5 hits and 3 miss <even cash per share values are discarded?>   

 

Financing: Cytori (CYTX) proposes offering after BARDA news, is dilution the only solution. The BIG question how much of the offering will be BOUGHT by the over- compensated management?

 

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 the scenario for the month, the sector is “confused” with no clear indication whether it is headed up or down … Even technicals are sending garbled messages.”

  • Reiterating,” Many investors are becoming increasingly cautious amid signs that the sector’s inertia and fluctuation have caused many companies to - NOT live up to expectations which increases the sector short fuse to sell off!”

Investors hold the key to momentum yet, many sector companies have ignored this population by their non-communication!

  • What if more investors desert the sector leaving it to traders to exact their damaged and fluctuation?

Just as another financing drop – the sector feels the pain of depreciating share pricing.

 

Is DILUTION the ONLY solution; the question WILL be how much of the offering management will BUY with their OVERSIZED compensation???

 

Q1/17 financial results are set to beginning on May 9th as Athersys (ATHX) releases its development status, spending and promise – if any.

 

 

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

… The DOW closed up +1.92 or +0.01% to 20,658.02 while the NASDAQ closed up +3.11 or +0.05% to 5880.93 …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 13.6 after Friday’s 12.75 following Thursday’s 12.1 after Wednesday’s 11 post Tuesday’s 12 subsequent to last Monday’s 12.3

…The iShares Russell 2000 (IWM) indicated a positive +0.01% at the pre-open was and closed UP +0.22%;

… The iShares NASDAQ Biotechnology (IBB) did NOT indicate at the pre-open and closed DOWN -0.39%.

 

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

·         The opening bell was positive with an A/DL of 27/13 and 3 flats;

·         The mid-day stayed positive with an A/DL of 24/15 and 4 flats;

·         The close was positive with an A/DL of 23/18 and 2 flats;

 

… Decliners ranged from -0.09% <BLFS> to -4.73% <ATHX> in 18 equities;

… Gainers ranged from +0.47% <CLLS> to +25.55% <CYTX> in 23 equities;

 

 

Pre-open indications: 5 hits and 3 miss – the key to making any money in this sector is selling into strength and buying on weakness

  • Applied Genetic Technologies (AGTC) closed down -$0.20 – miss;
  • Athersys (ATHX) closed down -$0.07 – hit;
  • AxoGen (AXGN) closed down -$0.10 – hit;
  • Cytori (CYTX) closed up +$0.35 – hit;
  • Fibrocell (FCSC) closed down -$0.03 – hit;
  • Mesoblast (MESO) closed up +$0.64 – hit;
  • Spark Therapeutics (ONCE) closed down -$0.95 – miss;
  • Verastem (VSTM) closed down -$0.04 – miss;

 

 

Out and about:

Cytori (CYTX) proposes offering after stock jumps on BARDA news

After a 25.55% (+$0.35) advance, CYTX launched a secondary offering. The size of the sale isn't disclosed as the shares -20.35% (-$0.35) after hours

  • CYTX secured approval from the U.S. FDA for an Investigational Device Exemption (IDE) for a pilot clinical trial to evaluate its Cytori Cell Therapy in patients with thermal burn injury.
  • With only two (2) quarters of cash left (spending $4.2 M a quarter) – it was a MUST.
  • The last offering, a rights offering at $2.55 raised $17.6 M and was priced at $2.77 – ten (10) months ago …

Waiting for the amount of shares and pricing?

​Sell, sell and (emphatic) SELL ..

 

 

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.