June 15, 2017 6:18pm

 

As the sector continues to tumble

… I believe company PR messaging is totally broken as reflected by share pricing

 

The glimmer has faded and valuations bleached

 … New executive order sparks fear in drug pricing, a long term negative

 

Pre-open indications re-cap: 3 hit and 1 miss,

 

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

What have you missed, Thursday’s results have implications to Friday's sector activity.  

 

 

 

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

 

 

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

·         The open number  was negative with an A/DL of 13/24 and 6 flats;

·         The mid-day was negative with an A/DL of 16/26 and 1 flat;

·         The close was negative with an A/DL of 10/31 and 2  flat;

 

 

Pre-open indications re-cap:  3 hit and 1 miss …

  • bluebird bio (BLUE) closed down -$1.55 – hit;
  • Juno Therapeutics (JUNO) closed down -$0.61 – hit;
  • Kite Therapeutics (KITE) closed down -$1.98 – hit;

 

 

Henry’omics:

From the pre-open’s investor’s newsletter … “ambivalence, I have mixed feelings about this market and am unable to choose between opposing actions.”

  • Reiterating, “Investing in this market will never be safer as I see an emphasis on short-term holding!”

We’re seeing traders fleeing and … investors – just taking the hit and retreat the sector for longer periods!

  • The question is – will they come back …??

Breadth indicators are down and diving …

 

The cell therapy sector NEEDS to be repackaged, as the PR messaging has lost its appeal as

·         Past message have gotten moldy

·         Management teams – NO longer share ANY risk <review their salary and bonus packages as compared to their personal holdings>.

·         Who do you trust – those that are abundantly overweighed by their personal holdings …

 

CEOs should ask me – I have the … EAR of the sector daily, weekly monthly and quarterly!

 

Let’s not forget that on Friday – options expire.

 

 

Daily analytics:

U.S. equities closed DOWN on Thursday … with the DOW closing DOWN -0.07% (-14.06) as the NASDAQ closed DOWN -0.47% (-29.39) …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded again near 11 …

·         Wednesday traded near 10.6, Tuesday’s near 10.6, Monday traded 11.48 – up +7.29%, Friday traded near 10.6 and last Thursday’s near 10.2 … 1.5% lower …

 

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

… The iShares Russell 2000 (IWM) indicated a positive +0.29% at the pre-open and closed

·         Thursday traded DOWN -0.51%

·         Wednesday  -0.59%

·         Tuesday+0.51%,

·         Monday -0.16%,

·         Friday+0.52%

·         Last Thursday +1.34%

… The iShares NASDAQ Biotechnology (IBB) indicated a positive +0.26% in the pre-open and closed

·         Thursday traded DOWN -0.77%

·         Wednesday +0.56%

·         Tuesday +0.41%

·         Monday -0.30%,

·         Friday  -0.22%

·         Last Thursday +0.63%

·          

 

The count - decliners versus gainers:

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

·         Thursday’s decliners ranged from -0.60% <HSGX> to -9.67% <CAPR> in  31 equities;

·         Wednesday’s decliners ranged from -0.09% <BSTG> to -16.83% <IMUC> in  19 equities;

·         Tuesday’s decliners ranged from -0.61% <BLCM> to -9.82% <IMUC> in  13 equities;

·         Monday’s decliners ranged from -0.31% <BTX> to -7.83% <ISCO> in  22 equities;

·         Friday’s decliners ranged from -0.39% <QURE> to -8.68% <MESO> in  29 equities;

·         Last Thursday’s decliners ranged from -0.30% <FATE> to -8.33% <ISCO> in 12 equities;

Versus

·         Thursday’s gainers ranged from +0.19%  <CUR> to +4.69% <AST> in 10 equities;

·         Wednesday’s gainers ranged from +0.40%  <KITE> to +5.14% <FCSC> in 18 equities;

·         Tuesday’s gainers ranged from +0.26%  <CLLS> to +12.70% <AST> in 26 equities;

·         Monday’s gainers ranged from +0.13%  <ONCE> to +15.20% <FCSC> in 15 equities;

·         Friday’s gainers ranged from +0.63%  <BTX> to +5% <AGTC> in 13 equities;

·         Last Thursday’s gainers ranged from +0.12%  <CLLS> to +7.26% <MESO> in 30 equities;

 

 

Some of MY working trend lines or indications for tomorrow:

… The greatest volume to the downside:  RENE.L, NWBO, KITE, JUNO, and SGMO

… Upside volume was weighted to:  MDXG, BLCM, BSTG (+0.004), STML and FATE

… Biggest $ downside:  KITE, BLUE, ONCE, XON and JUNO

… Largest $ upside: MDXG, AST, BLCM, BCLI and STML                 

… Flats:  CYTX and RENE.L           

 

 

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.