April 12, 2017 6:23pm

 

… As volatility upticks

 

How do investors define this uncertainty – fear of holding-on too long, complacency and dependence on the market’s dependence on a passive investment model?

So, how do we include uncertainty in the pricing model?

 

Pre-open indications:  3 hits and 2 miss

 

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

Get breaking news and the sector’s daily interpretation in your email …

 

 

 

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, “Worries linger as to the sector’s reliance on financings. My worry is that recent offering discounts will affect future raises.”

  • Reiterating, “What did I see yesterday, <Tuesday> the sector’s buying and selling was managed through low volume except in a few cases. 

As I have stated, “In many cases, investors just can’t believe that some managements could lack judgement, be that stupid, lax or even that unknowledgeable to think they could cover-up issues … that’s where they go wrong. Better to STAY away from a FALSE narrative – because sooner rather than later; most secrets can’t be kept if they are known by two or more people!”

  • Sector equities closed lower on Wednesday as investors assessed the sentiment landscape and only found negativity.

Nothing is happening or seemingly going to happen as fast as investors would like it to happen!

  • The tension of the oversold and the overbought is like elastic that stretches and constricts!

 

Investors NEED a sense of the sector's priorities … other than depreciating and dilution financings …

 

 

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

… The DOW closed down -59.44 or -0.29% to 20,591.86 while the NASDAQ closed down -30.61 or -0.52% to 5836.16 …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 15.75 …

  • After Tuesday’s 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 -0.12% at the pre-open was and closed DOWN -1.36%;

… The iShares NASDAQ Biotechnology (IBB) did NOT indicate at the pre-open and closed UP +0.10%.

 

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

·         At 11 am, the sector was negative with an A/DL of 17/23 and 3 flats;

·         The mid-day stayed negative with an A/DL of 17/23 and 3 flats;

·         The close was negative with an A/DL of 17/21 and 5 flats;

 

… Decliners ranged from -0.04% <CLLS> to -6.90% <VSTM> in 28 equities;

… Gainers ranged from +0.63% <CUR> to +15.73% <OPXA> in 17 equities;

 

Pre-open indications:  3 hits and 2 miss:

  • Applied Genetic Technologies (AGTC) closed down -$0.25 – miss, there is approximately $8.53 in cash per share and no debt;
  • Organovo Holdings (ONVO) closed up +$0.20 – hit;
  • Biostage (BSTG) closed down -$0.012 – hit;
  • Mesoblast (MESO) closed down -$0.33 – hit;
  • Verastem (VSTM) closed down -$0.12 – miss, VSTM has $2.19 in cash per share and no debt thus trading below its cash value;

 

 

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.