July 17, 2017 7:09am
With the NASDAQ up all of the five (5) sessions last week and the IBB closing flat after 4 up days …
I’m nervous especially with forethcoming Q2 financial results, spending and cash positions
Investors should not dismiss the deviations of many pricing moves - we are always ready for the expected sector decline when this market “peters-out” which many expect.
A critical indication ahead of “our” universe’s open!
Pre-open indication: seven (7) with 5 BUY and 2 SELLs
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Don’t ignore this …
I know what a company is supposed to look like, be like, and smell like to succeed! Unless you know what happened last week; it is hard to formulate a perspective … for the new day!
Lower open expected
Dow futures are DOWN -0.01% and NASDAQ futures are UP +0.02%
U.S. stock index futures pointed to a lower to flat open on Monday, as investors turned their attention to corporate earnings results.
European bourses edged lower, as investors reacted to robust economic growth data in China and monitored the second round of formal Brexit talks in Brussels.
Asia markets closed mixed following the release of better-than-expected China second-quarter GDP. China Q2 GDP rose 6.9% compared to the 6.8% forecast
Data docket: the Empire State Manufacturing survey, slated to come out at 8.30 a.m. ET.
The cell therapy sector closed POSITIVE on Friday, Negative on Thursday, POSITIVE on Wednesday following a NEGATIVE on Tuesday and last Monday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Friday closed POSITIVE with 16 decliners, 20 advancers and 7 flats;
· Thursday closed NEGATIVE with 20 decliners, 18 advancers and 5 flats;
· Wednesday closed POSITIVE with 13 decliners, 27 advancers and 3 flats;
· Tuesday closed NEGATIVE with 20 decliners, 19 advancers and 4 flats;
· Last Monday closed NEGATIVE with 29 decliners, 11 advancers and 3 flats;
As I had stated Friday, “momentum was up with sluggish volume. “and, ‘our’ universe has evolved to the point that some of the old investment “truths” are decidedly less “true” then they were. And all of this makes the “art” of hype a lot harder – to support!”
Is weaknes about to squander any upsides in "our" universe?
“Volume has been a bit larger than it has been in several weeks but, is still all over the map; which seems high in buying yet lower in selling!”
Just when you think ... all is clear - the "it" hits! Watch out for falling debris!
The iShares Nasdaq Biotechnology ETF (IBB):
… Ready for another reaction … can it last?
· Friday was flat at 0.00%;
· Thursday was up +0.76%
· Wednesday closed up +0.64% …
· Tuesday closed up +0.67% …
· Last Monday closed down -0.81%
What did I see last week?
· Friday, the NASDAQ was up +0.61%%;
· Thursday, the NASDAQ closed up +0.2%;
· Wednesday, the NASDAQ rose 1.1%, to 6,261.17, for a fourth straight day of gains;
· Tuesday, the NASDAQ extending its winning streak to a third session as a pair of political developments dominated the news cycle. The NASDAQ rose +0.27%;
· Last Monday, the NASDAQ also finished higher
Review “the count” - decliners versus gainers:
……. look at the differences in the spreads as decliners jump and percentages migrate……….
· Friday’s decliners ranged from -0.21% <BLUE> to -9.83% <VSTM> in 16 equities;
· Thursday’s decliners ranged from -0.37% <ONVO> to -8.73% <ISCO> in 20 equities;
· Wednesday’s decliners ranged from -0.13% <MESO> to -10.89% <ONCE> in 13 equities;
· Tuesday’s decliners ranged from -0.18% <BLCM> to -7.29% <VTGN> in 20 equities;
· Last Monday’s decliners ranged from -0.25% <RGNX> to -23.57% <IMUC> in 29 equities
………… look at the positive percentage’s (%) …….
· Friday’s gainers ranged from +0.79% <ASRO> to +13.73% <NWBO> in 20 equities;
· Thursday’s gainers ranged from +0.11% <JUNO> to +1.96% <ADVM> in 18 equities;
· Wednesday’s gainers ranged from +0.50% <JUNO> to +10.75% <NWBO> in 27 equities;
· Tuesday’s gainers ranged from +0.23% <ONCE> to +16.23% <VSTM> in 19 equities;
· Monday’s gainers ranged from +0.67% <BCLI> to +16.92% <KOOL> in 11 equities;
You’ve made it to the office, turned on the monitor, having just gotten your coffee and it hits you - what could be today’s trades?
- The iShares Nasdaq Biotechnology (IBB) closed flat 0.00% on Friday, and is indicating a POSITIVE +0.12% in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Friday down -0.13%, and is indicating a NEGATIVE -0.09% in Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.68% Friday, and is NOT indicating in Monday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +0.17% on Friday, and is indicating a POSITIVE +0.018% in Monday’s pre-open
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed flat at $4.90. The cash position at the end of Q1 was $159.10 with shares outstanding = 18.1 M with NO debt and … $8.79 per share in cash. The shares are trading at a … SEVERE discount due to the early stage of their platform and slowness in clinical trial enrollment which has been corrected. A partner has stood behind the company to date. I’ve had a mixed reaction to the company but, have come to believe that the company is on-track and undervalued. There is a time element to clinical progress by mid-2017 and clinical data by the end of 2017. Stay the course – BUY;
Bellicum Pharmaceuticals (BLCM) closed down -$0.25 to $12.01 following Thursday’s $12.26 (+$0.51) after Wednesday’s $11.75 (+$0.38), Tuesday’s $11.37 and last Monday’s $11.39. July started at $11.70, June at $10.93 with a monthly high of $13.98 , May at $13.75 with a high of $13.75, April at $12.73 and a high of $13.98, March at $12.66 and a high of $15.27, February at $12.86 with a high of $13.70 and January at $13.89 with a high of $14.56 – Maintaining BUY;
bluebird bio (BLUE) closed down -$0.20 to $95.80 with moderate volume of 751.4 K shares traded <3 month average = 1 M shares> following Thursday’s $96.00 (+$0.60) with 729.6 K share volume following Wednesday’s $95.70 (+$0.85)with 740.9 K shares traded, Tuesday’s $94.85 (+$0.85) on moderate volume of 848.5 K and Monday’s $94.00 (-$5.80) on large volume of 1.726 M shares . The aftermarket indication is a positive +$0.65 or +0.68% - BUY;
Intrexon (XON) closed down -$0.99 to $23.13 with 947.1 K shares traded <3 month average = 995.3 K shares> following Thursday’s $24.12 (+$0.57) with 598 K shares traded, Wednesday’s $23.55, Tuesday’s $23.14 and last Monday’s $23.50. July has traded in a range of $23.13 to $25.13 while June started at $21.83 and saw a high of $25.38 and ended the month at $24.09. The aftermarket indication is positive +$0.46 or +1.64% and the pre-market is a positive +$0.07 or +0.3% - SELL to BUY;
Juno Therapeutics (JUNO) closed down -$0.80 to $27.26 with 2.4 M shares traded <3 month average = 1.85 M shares> after Thursday’s $28.06 (+$0.03) with 1.84 M shares traded following Wednesday’s $28.03 (+$0.14) with huge volume of 2.3 M shares following Tuesday’s $27.89 (-$0.26) with moderate volume of 1.567 M shares following last Monday’s $28.15 (-$0.96) with some big volume of 1.452 M shares traded. The aftermarket indication is positive +$0.10 or +0.37% - Maintaining BUY;
Sangamo Therapeutics (SGMO) closed up +$0.60 to $10.10 after Thursday’s $9.50 (+$0.25) with 1.774 M share traded <3 month average = 1.54 M shares>. Sangamo (SGMO) shares rose as metabolic drugs were given FDA fast-track status SB-318 is meant to treat Mucopolysaccharidosis Type I and SB-913 Mucopolysaccharidosis Type II. The stock is getting TOO rich. The aftermarket indication is a negative -0.105 or -1.04% - Maintaining SELL;
Verastem (VSTM) closed down -$0.405 to $3.715 following Thursday’s $4.12 (+$0.03) with 1.924 M shares traded <3 month average = 879 K shares> following Wednesday’s $4.09 (+$0.08), Tuesday’s $3.45 (-$0.17), Monday’s $3.45 (-$0.17) after last Friday’s $3.62 (+$0.17) after a push by Raymond James. VSTM has had some big moves, as the company saw its shares jump (two weeks ago) almost 42%. The move came on solid volume with far more shares changing hands than in a normal session. This continues the recent uptrend for the company as the stock is now up over 62% in the past one-month time frame. However, July started at $2.10, June started at $2.18, May at $2.16, April at $2.04, March at $1.15, February at $1.28 and January at $1.15 -- what about all those investors who HAD hung on and were unhappy for many months. The aftermarket indication is a NEGATIVE -$0.035 or -0.94% – yet, I’m feeling a SELL mode;
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
Henry’s comments are for informational purposes only and are not a substitute for personalized advice. Consult your advisor about what is best for you.