RegMed Investors’ (RMi) closing bell, a two day recovery

June 3, 2017 1:11pm

… Momentum rehabilitates a relative strength drug and a sentiment therapy regenerates the sector

The oversold pricing healing was quite remarkable

The 6 W’s: Who, what, where, when, why and what of it

We don't always have to be a short-termist to make money; we do though have to watch momentum to make sense of volatility and ultimately a trade. 

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The RegMed sector suffers the tourist routine … most traders hear a piece of news, get excited or contemplate a pumping to decide to buy and or a dumping to sell.  

Purchasing and selling habits are more than often based on emotion, not sound investment strategies.

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

When you point one finger, there are three fingers pointing back at you?

That's why today's a good day for all who owned cell therapy equities to reassess. Ask yourself, do you know why you own it? What are the catalysts? What's the pipeline look like? Do you understand the CEO's vision and what has to go right and how many different “fallbacks” it has so if one goes wrong it's not the end of the world?

Henry’omics:

From the pre-open’s investor’s newsletter … “What’s supportable and sustainable?”

• Reiterating, “The pendulum swings both ways as speculation is the hope of gain with the risk of loss.”

U.S. stock-market indexes closed at records Friday, led by gains for technology shares as investors looked past a weaker-than-expected May jobs report.

• The Russell 2000, which tracks small cap stocks, rose 0.67% and was less than 2% away from a record high.

Buying stocks that are oversold stimulated this share pricing recovery—a foundation of trading —has worked this year, so far, but may no longer be a sound strategy due to shifts in how sector operates.

Reality will intrude as …

A cursory review of RegMed and cell therapy web pages shows companies not bothering to address trial recruitment, patient access, and investor relations vehicle up to date. 

• We’ve seen many whose news and media pages and/or investor relations content have not been updated for 6 months or more. 

Not a great strategy for keeping your most important asset excited and confident about its investment. 

• Build it and they will come.  Nurture it, and they will grow with you!

Next week’s trading sessions will be critical for the cell therapy and immuno-oncology sector which will establish whether market reaction to recent events is temporary and short-lived, or if this is the start of a more fundamental correction. 

Pricing has been percolating on the low end of the spectrum. Most of the RegMed, cell therapy equities are … way below I-Bank target … and they still haven’t readjusted.

What a rebound from Monday, Tuesday and Wednesday … and Friday was better than Thursday …

The cell therapy sector’s advance/decline record after the last 5 days (of 43 covered companies):

·         Friday closed POSITIVE with 11 decliners, 31 advancers and 1 flat;

·         Thursday closed POSITIVE with 10 decliners, 29 advancers and 4 flats;

·         Wednesday closed NEGATIVE with 24 decliners, 14 advancers and 5 flats;

·         Tuesday closed NEGATIVE with 29 decliners, 10 advancers and 4 flat;

·         Monday was Memorial Day and the U.S. markets were closed;

Daily analytics:

U.S. equities closed UP on Friday … with the DOW closing UP +0.29% (+62.11) as the NASDAQ also closed UP +0.94% (+58.97) …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 9.8 …

Thursday traded Thursday below 10, Wednesday near 10.8,Tuesday traded near 10.2 and last Friday traded near 9.8,

Welcome to another day of the sector’s roller coaster …

… The iShares Russell 2000 (IWM) indicated a positive +0.55% at the pre-open and traded

·         Friday traded +0.65%,

·         Thursday traded +1.93%,

·         Wednesday traded DOWN -0.10%

·         Tuesday traded  -0.77%

·         Monday was a holiday,

·         Friday DOWN -0.03%,

… The iShares NASDAQ Biotechnology (IBB) indicated a positive +0.34% in the pre-open and

·         Friday traded UP +1.68%

·         Thursday traded +1.80% …

·         Wednesday  traded +0.51%

·         Tuesday DOWN -1.36%

·         Monday was a holiday,

·         Last Friday DOWN -0.79%,

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

·         The open was positive with an A/DL of 28/10 and 5 flats;

·         The mid-day was positive with an A/DL of 29/14 and 0 flat;

·         The close was positive with an A/DL of 31/11 and 1  flat;

The count - decliners versus gainers:

……. look at the differences in the spreads ……….

·         Friday’s decliners ranged from -0.33% <ONCE> to -3.85% <ISCO> in 11 equities;

·         Thursday’s decliners ranged from -0.18% <QURE> to -3.17% <VTGN> in 10 equities;

·         Wednesday’s decliners ranged from -0.08% <KITE> to -15.24% <NWBO> in 24 equities;

·         Tuesday’s decliners ranged from -0.37% <XON> to -7.22% <RGNX> in 29 equities;

·         Monday was a holiday;

Versus

·         Friday’s gainers ranged from +0.46% <VSTM> to +6.98% <JUNO> in 31 equities;

·         Thursday’s gainers ranged from +0.66% <MDXG> to +18.18% <ISCO> in 29 equities;

·         Wednesday’s gainers ranged from +0.18% <QURE> to +4.94% <CUR> in 14 equities;

·         Tuesday’s gainers ranged from +0.04% <CLLS> to +14.86% <NWBO> in 10 equities;

·         Monday, the market was closed;

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.