April 11, 2017 5:55pm

 

I think this is a reminder of how onerous an offering can be; as stakeholder dilution tops 36.5%

Underscoring the degree of separation of investors and institutions

Punishing individual investors will injure retail momentum needed later

 

Pre-open indications:  2 hits and 4 miss

Out and about: Organovo (ONVO) announced that Keith Murphy will be stepping down as CEO to pursue entrepreneurial opportunities effective April 21.  One of MY favorite people and friend

 

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 trick to secondary investing, picking through the prospectus’ pages? Measure the CEO compensation history and the BOD’s personal holdings as every anomaly will dictate its investable ranking.  Bye and bye, also read the press release about how much the CEOs and their BOD are BUYING in their latest offering? NEVER going to happen – another rip-off!

  • Reiterating, “Remember dilution is NOT the only solution … or is it?”

Unlike the United Airline, investors aren’t getting paid as their holdings are dumped by yet another offering - ten (10) months ago was the last one - a rights offering. What right did investors get in this offering - a right to be depreciated and NEVER come back!

  • There also isn’t a voucher for getting a stake holder screw job!

Cytori (CYTX)  continues to weather a decline brought on by the past and current practices of their CEO – it’s time he went but, this BOD rewards and bringing into question the policy of maintaining the status quo and their BOD meeting payments. He is NOT worth the $574 K if he can't gather shareholders to STAY ...!

 

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 down -6.72 or -0.03% to 20,651.30 while the NASDAQ closed down -14.15 or -0.24% to 5866.77 …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 15.14, +7% higher having been as high as +10% …

·         following Monday’s 13.6 after Friday’s 12.75 following Thursday’s 12.1 after Wednesday’s 11 post last Tuesday’s 12

…The iShares Russell 2000 (IWM) indicated a negative -0.27% at the pre-open was and closed UP +0.80%;

… The iShares NASDAQ Biotechnology (IBB) did NOT indicate at the pre-open and closed DOWN -0.35%.

 

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

·         The opening bell was negative with an A/DL of 15/23 and 5 flats;

·         The mid-day stayed negative with an A/DL of 12/25 and 6 flats;

·         The close was negative with an A/DL of 13/28 and 2 flats;

 

… Decliners ranged from -0.23% <KOOL> to -34.88% <CYTX> in 28 equities;

… Gainers ranged from +0.18% <QURE> to +8.73% <MESO> in 13 equities;

 

 

Pre-open indications:  2 hits and 4 miss – the key to making any money in this sector is selling into strength and buying on weakness

  • AxoGen (AXGN) closed up +$0.15 – miss;
  • Biostage (BSTG) closed at $0.01 – miss – biggest joke I’ve heard;
  • Cytori (CYTX) closed down -$0.60 – hit;
  • Juno Therapeutics (JUNO) closed down -$1.19 – hit;
  • Mesoblast (MESO) closed up +$0.89 – miss;
  • Verastem (VSTM) closed down -$0.05 - VSTM has $2.19 in cash per share and no debt– miss;

 

 

Out and about:

Organovo (ONVO) announced that Keith Murphy will be stepping down as CEO to pursue entrepreneurial opportunities effective April 21.

One of MY favorite people and friend …

Organovo's board of directors has appointed Taylor J. Crouch, previously CEO of eStudySite, a leading investigative clinical research company, to succeed Mr. Murphy as CEO.

Mr. Murphy will remain chairman of the board, and will serve as an advisor to the Company to ensure a seamless transition and offer his counsel and expertise.

 

 

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.