June 20, 2017 6:15pm

 

Even after a warning to not fly too low nor too high

Remember a complacency warning as feathered share pricing melt in proximity to a hot market

 

Pre-open indications re-cap: 1 hit and 3 miss; I always get “spooked” on some equities as to their direction and KITE, RGNX and SGMO were included. SGMO proposes offering and dives -8.54% to $7.50

 

Out and about:

  • Pluristem (PSTI) gets crushed (-5.3% or -$0.07)as Chinese based Innovative Medical walks away from $30 M investment that was supposed to fund late-stage trials
  • Biostage (BSTG) also crashed further -$0.02 or -7.32% on fears of the company’s viability under the cloud of a $100 M terminal death law suit

 

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

 

What have you missed, Tuesday’s results have implications to Wednesday'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 was neutral with an A/DL of 19/19 and 5 flats;

·         The mid-day was positive with an A/DL of 22/18 and 3 flat;

·         The close was barely negative with an A/DL of 20/21 and 2  flats;

 

 

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

  • Juno Therapeutics (JUNO) closed up +$0.46 – hit;
  • Kite Pharma (KITE) closed up +$3.92 – miss;
  • Regenxbio (RGNX) closed up +$0.45 – miss;
  • Sangamo Therapeutics (SGMO) closed up +$0.25 – miss, but they did announce an offering that dropped the stock -8.54% - as I stated I had a “feeling”;

 

 

Henry’omics:

From the pre-open’s investor’s newsletter … “how long … will the upside last?

  • Reiterating, “The upside floats like a butterfly but, the downside stings like a bee.”

 

Yesterday was a pivotal day for the cell therapy sector because the oversold were recognized and the dips were bought - that tells you that “our” universe is conflicted as to pricing and the algorithms are undergoing data assessment.

 

 

Out and about:

Pluristem Therapeutics (PSTI) gets dumped with $30 M Chinese Investment Terminated

·         Pluristem falls 5.3% post-market after saying a $30m equity investment pact from China-based Innovative Medical was terminated due to a new Chinese policy related to outbound investments by Chinese companies.

·         PSTI had signed a term sheet for $30m Equity on 10/25/16 as funds were to support late-stage pivotal trials

PSTI closed at $1.32 but the post market reflects a -$0.07 or -5.3% drop to $1.25, it will DROP further …

 

Biostage (BSTG) also crashed further -$0.02 or -7.32% on fears of the company’s viability under the cloud of a $100 M terminal death law suit …

·         BSTG still does NOT have a cleared IND nor a proof of concept peer reviewed article with its collaborator, Mayo Clinic after more than a year and a half.

·         Cash is getting short, a reverse is still unclear as to when or if and their NASDAQ listing is pending a hearing re delisting for the second time …

 

 

Daily analytics:

U.S. equities closed on Tuesday … with the DOW closing DOWN -0.29% (-61.85) as the NASDAQ closed DOWN -0.82% (-50.98) …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded again near 10.86 – UP +4.73% following …

·         Monday trading 10.24 down -1.35% following Friday trading near 10.4, Thursday’s near 11, Wednesday ‘s near 10.6 and last Tuesday’s near 10.6 …

 

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

… The iShares Russell 2000 (IWM) indicated a close of:

·         Tuesday traded DOWN -1.01%

·         Monday+0.74%

·         Friday -0.25%

·         Thursday -0.51%

·         Wednesday  -0.59%

·         Last Tuesday+0.51%,

… The iShares NASDAQ Biotechnology (IBB) indicated a close of:

·         Tuesday traded UP +1.27%

·         Monday +2.41%

·         Friday -0.36%

·         Thursday -0.77%

·         Wednesday +0.56%

·         Last Tuesday +0.41%

 

 

The count - decliners versus gainers:

……. look at the differences in the spreads as decliners jump and %’s migrate……….

·         Tuesday’s decliners ranged from -0.16% <BLCM> to -7.32% <BSTG> in  21 equities;

·         Monday’s decliners ranged from -0.47% <ADRO> to -8.33% <ISCO> in  7 equities;

·         Friday’s decliners ranged from -0.41% <NWBO> to -6.67% <CAPR> in  26 equities;

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

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

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

Versus

………… look at the percentage’s (%) and the trend …….

·         Tuesday’s gainers ranged from +0.31%  <BLUE> to +8.61% <NWBO> in 20 equities;

·         Monday’s gainers ranged from +0.20%  <QURE> to +13.92% <FCSC> in 35 equities;

·         Friday’s gainers ranged from +0.14%  <KITE> to +8.11% <BLCM> in 14 equities;

·         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;

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

 

 

Some of MY working trend lines or indications for Tuesday:

… The greatest volume to the downside:  BLCM, MDXG, XON, BTX and ADVM

… Upside volume was weighted to:  JUNO, NWBO, BLUE, KITE and ATHX

… Biggest $ downside:  CLLS, MDXG, FCSC, XON and BTX

… Largest $ upside: KITE, ONCE, JUNO, RGNX and BLUE               

… Flat: ONVO and PSTI 

 

 

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.