July 27, 2017 7:51am

 

Good news spells upside, and no news is considered bad news

 

Pre-open indications: 2 BUY and 5 SELLs

 

Critical indication ahead of “our” universe’s open!

 

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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!

 

 

Higher open expected

Dow futures are UP +0.11% and NASDAQ futures are UP +0.56%

 

 

U.S. stock index futures pointed to a slightly higher open on Thursday, as investors continued to wade through the busiest day of the earnings season.

European markets were slightly lower after the U.S. Federal Reserve kept interest rates unchanged and investors reacted to a slew of earnings reports.

Asia markets closed on a positive note as a slew of corporate earnings came through and as markets digested the Federal Reserve's decision to leave interest rates unchanged.

 

Data docket: at 8.30 a.m. ET, including jobless claims, durable goods orders, advance economic indicators and the Chicago Fed's National Activity Index.  The Kansas City Fed's manufacturing survey is set to follow that, slated to come out at 11.00 a.m. ET.  Meanwhile, investors are likely to still be digesting the statement made by the Federal Open Market Committee (FOMC).

 

Earnings impact to be aware of: MiMedx (MDXG) as the curtain is about to rise on cell therapy financial results

 

 

The cell therapy sector closed POSITIVE on Wednesday, NEGATIVE on Tuesday, POSITIVE on Monday, Friday and last Thursday.

The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):

·         Wednesday closed POSITIVE with 18 decliners, 21 advancers and 4 flats;

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

·         Monday closed POSITIVE with 18 decliners, 21 advancers and 4 flats;

·         Friday closed POSITIVE with 16 decliners, 26 advancers and 1 flats;

·         Last Thursday closed POSITIVE with 11 decliners, 26 advancers and 6 flats;

 

Henry ’omics:

What have I got to say today, do with the flow …

  • This will be the week to make it or break it to start the August ride.

The value of staying the course is an overworked belief in this world of high-frequency trading, ETF exposure and the summer doldrums.

 

Admittedly, every cell therapy investing group is more focused on the short term as the average holding period has shrunk from years, months to days or hours — the rewards of patience are declining by the minute.

 

 

The count:

Look at the differences in the spreads as percentages and the advance/decline lines migrate……….

·         Wednesday’s decliners ranged from -0.30% <XON> to -12.10% <CUR> in 18 equities;

·         Tuesday’s decliners ranged from -0.10% <JUNO> to -49.64% <CUR> in 29 equities;

·         Monday’s decliners ranged from -0.35% <BSTG> to -56.77% <CYTX> in 18 equities;

Versus

………… look at the declining percentage’s (%) …….

·         Wednesday’s gainers ranged from +0.28%  <VSTM> to +18.85% <ISCO> in 21 equities;

·         Tuesday’s gainers ranged from +0.56%  <XON> to +2.16% <NWBO> in 10 equities;

·         Monday’s gainers ranged from +0.61%  <ATHX> to +10.22% <NWBO> in 20 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? 

Watch list:

  • The iShares Nasdaq Biotechnology (IBB) closed up +0.65% on Wednesday and the aftermarket was a positive +0.19% with the pre-market … NOT indicating for Thursday’s pre-open;
  • The SPDR S&P Biotech ETF (XBI) closed Wednesday up +0.22%, and the aftermarket indicated a positive +0.04 % with the pre-market NOT indicating for Thursday’s pre-open;
  • The Health Care Select Sector SPDR ETF (XLV) closed down -0.34% Wednesday, and the aftermarket indicated a NEGATIVE -0.08% is NOT indicating for Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) closed down -0.57% on Wednesday and the aftermarket indication is indicating a positive +0.06% with a POSITIVE pre-market +0.20% in Thursday’s pre-open

 

 

Companies in my headlights:

 

Capricor (CAPR) closed up +$0.08 to $1.01. The FDA's accepted Capricor's proposal to use the Performance of the Upper Limb (PUL), an outcomes instrument that was specifically designed to assess upper limb function in ambulant and non-ambulant patients with DMD, as the basis for the primary efficacy endpoint for clinical studies intended to provide substantial evidence of effectiveness of CAP-1002 in support of a Biologics License Application (BLA); and, the sufficiency of the existing nonclinical safety and efficacy database to support submission of an Investigational New Drug application (IND) to clinically evaluate repeat intravenous administration of CAP-1002.  CAP-1002 has been generally safe and well-tolerated over the initial six-month follow-up period. The pre-market indication is a positive +$0.41 or +40.58% - BUY;

 

MiMedx (MDXG) closed DOWN -0.22 to $14.65. The aftermarket indication is a POSITIVE +$1.14 after posting Q2/17 highlights

·         Q2 2017 Revenue of $76.4 million exceeds MiMedx guidance range of $73.5 to $75 million

·         Q2 2017 Revenue grew 33% over Q2 2016 revenue

·         Wound Care revenue of $54.7 million grew 30% over Q2 2016

·         Surgical, Sports Medicine and Orthopedics (SSO) revenue of $21.7 million grew 42% over Q2 2016

·         25 of 26 quarters of meeting or exceeding revenue guidance

·         Gross profit margin of 89%

·         Net income of $8.1 million is a 309% increase over Q2 2016

·         Positive Net Cash Flow from Operations of $13.5 million compared to $7.3 million in Q2 2016

·         22nd consecutive quarter of positive Adjusted EBITDA*

·         Adjusted EBITDA* of $14.2 million is a 41% increase over Q2 2016  - BUY;

 

International Stem Cell (ISCO) closed up +$0.23 to $1.45 or +18.85% for what reason? Icarus flew to close to the sun and shooting stars burn out – SELL;

 

bluebird bio (BLUE) closed up +$0.70 to $99.50 (+0.71%). The five (5) day chart looks to be challenged and the aftermarket indication is a negative -$0.50 or -0.5%. As the month closes, caution becomes byline - SELL;

 

BioLife Solutions (BLFS) closed up +$0.12 to $3.40 on solid 73.4 K share volume <3 month average = 63.5 K shares>. After modifying their existing credit facility, a new client and another good quarter – watch for an OFFERING – SELL;

 

Spark Therapeutics (ONCE) closed up +$1.86 or +2.63% to $72.68. Getting a little too rich just before a summer weekend! The aftermarket indication is a negative -$1.68 or -2.31%, Safety is my middle name- SELL;

 

Neuralstem (CUR) closed down -$0.34 or -12.10% to $2.47. CUR proposed an (NO numbers)  offering and is down -$0.42 or -17% in the pre-market. Neuralstem was a big loser Tuesday, dropping as much as 61% in pre-market trading before bouncing back slightly. CUR missed its primary endpoint in its major depressive disorder drug NSI-189 mid-stage clinical trial. - SELL

 

 

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.