May 22, 2017 7:28pm
The sector is what it is, until it isn’t and even then it doesn’t seem to be…
Pre-open indications: 2 hits and 0 miss
Out and about: Biostage (BSTG) received their third (3rd) written notice from the NASDAQ indicating that the BSTG no longer satisfied Nasdaq Listing Rule 5550(a)(2).Nasdaq had granted a grace period of 180 days, through 3/17/17, to regain compliance with the Bid Price Rule.
A few days late as the stock drops -$0.07 to $0.235 … compared to Q2/16’s – high of $2.86 and a low of $0.92
Who can believe a company that tries to hide (page 17 of 10-Q) one death disclosure, notifies investors five days later for another (de-listing) as it fights a legal complaint re a deceased and is running-out of cash as spending mounts and still NO IND!
Who is going to invest in a death spiral …?
As the leading voice of cell therapy investors; I am not always a doom and gloom reporter but a man who has been “there” with the gray hair and a readership following with real numbers to prove it!
I answer one question, in which company should investors commit and keep their money
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 newsletter … “after an alternating week … The sector is littered with a number of also rans and is vulnerable to more uncertainties than many sectors.”
- Reiterating, “Companies need to cross the Rubicon of considering their relationship with investors especially the retail contingent as many fund managers can’t make the investment, say $5.00 twice.”
On Monday, the week of volatility, stocks diving and jumping can’t be dismissed; we must remember that when Q1 quarterlies were initiated - the sector reacted, but the results ran down the sector with stocks selling- off.
The rough patch, "our" universe has been experiencing has happened again, and again - yet again - but, whar have we or can we as investors LEARN - when it works - stay and when there is massive slippage - RUN AWAY as fast as one can!
Is it time to BUY the dip - NOT if there are unresolved issues in a company or material events that lights the fuse to a blow-up!
Out and about:
BSTG by letter dated May 18, 2017, was notified that based upon the Company’s continued non-compliance with the Bid Price Rule as of May 17, 2017, as well as the Company’s non-compliance with the minimum $2.5 million stockholders equity requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(b) (1) as of 3/31/17
At least they let their investors know FIVE (5) days later …
BSTG plans to timely request a hearing before the Panel, which request will stay any delisting action by the Staff at least pending the issuance of the Panel’s decision following the hearing and the expiration of any extension period that may be granted by the Panel. The Panel has the discretion to grant the Company an extension through no later than November 14, 2017. The Company’s common stock will continue to trade on NASDAQ under the symbol “BSTG” at least pending the ultimate conclusion of the hearing process.
BIG issue: There can be no assurances that the panel will grant the Company’s request for continued listing or that the Company will be able to evidence compliance with all applicable requirements for continued listing on The Nasdaq Capital Market within any extension of time that may be granted by the Panel.
Pre-open indications: 2 hit and 0 miss
- uniQure (QURE) closed down -$0.07 – hit;
- Sangamo (SGMO) closed down -$0.35 – hit;
Daily analytics:
U.S. equities closed UP on Monday … with the DOW closing UP +0.43% (+89.99) as the NASDAQ also closed UP +0.82% (+49.92) …
… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded at 10.9.
· Friday’s 12.2 followed Thursday’s at 14.6 down -5.97% following Wednesday ‘s 15.59 – a 44% increase, Tuesday’s 10.56 and last Monday’s near 10.4;
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated a negative -0.02% at the pre-open and closed UP +0.30% after Friday’s +0.48%, Thursday +0.36, Wednesday’s -2.70%, Tuesday’s +0.04% and Last Monday’s +0.78%
… The iShares NASDAQ Biotechnology (IBB) indicate a negative -0.26% in the pre-open and closed UP +0.68 after Friday’s -0.62, Thursday’s +1.28, Wednesday -2.27%, Tuesday’s +0.40% and Monday’s +0.43%
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The open was positive with an A/DL of 2516 and 2 flats;
· The mid-day was negative with an A/DL of 19/22 and 2 flats;
· The close was negative with an A/DL of 19/21 and 3 flats;
The count - decliners versus gainers: look at the differences in the spreads and advance/decline lines:
· Monday’s decliners ranged from -0.45% <BLFS> to -21.67% <BSTG> in 21 equities;
· Friday’s decliners ranged from -0.17% <BSTG> to -6.78% <BLUE> in 15 equities;
· Thursday’s decliners ranged from -0.32% <KOOL> to -6.42% <AGTC> in 13 equities;
· Wednesday’s decliners ranged from -0.47% <BLFS> to -9.23% <OSIR> in 39 equities;
· Tuesday’s decliners ranged from -0.19% <ONCE> to -23.27% <IMUC> in 19 equities;
· Last Monday’s decliners ranged from -0.04% <KITE> to -4.41% <MESO> in 12 equities;
Versus
· Monday’s gainers ranged from +0.28% <RGNX> to +12.77% <OPXA> in 19 equities;
· Friday’s gainers ranged from +0.01% <HSGX> to +10.66% <QURE> in 26 equities;
· Thursday’s gainers ranged from +0.35% <MDXG> to +16.46% <CUR> in 25 equities;
· Wednesday’s gainers ranged from +0.72% <AXGN> to +6.83% <ISCO> in 4 equities;
· Tuesday’s gainers ranged from +0.06% <BLUE> to +10.33% <OPXA> in 23 equities;
· Last Monday’s gainers ranged from +0.19% <BSTG> to +9.50% <FCSC> in 27 equities;
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.
