July 31, 2017 8:11am
And a dice games leaves the fate of it players completely and utterly up to chance
Good things could come but, how long can we wait and how much more can we lose in share pricing
Sentiment is not on our side and share pricing paranoia abounds
Pre-open indications: 4 BUYs and 6 SELLs
Critical indication ahead of “our” universe’s open!
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Who and what is the news purveyor – there isn’t one, don’t ignore this …
The battle of the oversold and the overbought continues but, who or what is making that determination – ETFs and algorithms. I will be the … disruptor!
Higher open expected
Dow futures are UP +0.26% and NASDAQ futures are UP +0.24%
U.S. stock index futures pointed to a slightly higher open on Monday as investors keep their focus on earnings reports.
European markets were higher as investors reacted to key economic data and digested earnings reports.
Asian markets closed mostly higher, as regional markets appeared to shrug off heightened geopolitical tensions in the Korean Peninsula and digested the release of China PMI data.
Data docket: Investors will be watching out for Chicago PMI numbers due at 0945 EST, pending home sales at 10 EST time and the Dallas Fed manufacturing figures at 1030 EST time.
Political consideration re markets: investors will also be assessing developments between Russia and the U.S. On Friday, the Kremlin told Washington it needs to cut 755 of its staff members in Russia and further measures could be taken as a result of new sanctions against Moscow. Investors remained wary of geopolitical uncertainty on Monday after North Korea conducted another missile test late on Friday. Pyongyang said it had proved its ability to strike the U.S. mainland, prompting Washington to respond by flying two bombers over the Korean peninsula on Sunday.
Interesting and related healthcare financial quarterly reporting: Sanofi
The cell therapy sector closed NEGATIVE on Friday and Thursday, POSITIVE on Wednesday, NEGATIVE on Tuesday and POSITIVE last Monday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Friday closed NEGATIVE with 25 decliners, 16 advancers and 3 flats;
· Thursday closed NEGATIVE with 31 decliners, 10 advancers and 2 flats;
· Wednesday closed POSITIVE with 18 decliners, 21 advancers and 4 flats;
· Tuesday closed NEGATIVE with 29 decliners, 10 advancers and 4 flats
· Last Monday closed POSITIVE with 18 decliners, 21 advancers and 4 flats;
Henry ’omics:
As I had stated in Friday night’s post, “the sector flip-flops as expected. The sector opened up, slid at mid-day and closed to the downside. Daily to-and-fro action has a downward tilt contributing to the more investor uncertainty.”
- Referencing the title, the good news is that an investor is never really out of the game in cell therapy investing, regardless of how depreciated stocks may seem.
Even as stocks tumble, and inevitability is questionable – investors could still be back in the game at any time as long as one keeps trading.
- Watch the patterns of the market, the sector news whether good or bad that same predictability – which is questionable can be a toss of the dice!
I am NOT one to sit there patiently and wait for the big loss to hit!
- Be aware of the factors and your stocks opponents – ETF exposure, algorithms and too many versions of the truth professed by some and unsubstantiated by many companies.
My roll of the dice (based on my factors, advance/decline lines, momentum and the count etc.> - a positive open!
The count:
Look at the differences in the spreads as percentages and the advance/decline lines migrate…
· Friday’s decliners ranged from -0.02% <CYTX> to -12,31% <CAPR> in 25 equities;
· Thursday’s decliners ranged from -0.45% <OPXA> to -29.15% <CUR> in 31 equities;
· 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 (%) …
· Friday’s gainers ranged from +0.27% <XON> to +11.92% <KOOL> in 16 equities;
· Thursday’s gainers ranged from +0.28% <FCSC> to +28.71% <CAPR> in 10 equities;
· 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 +0.63% on Friday and the aftermarket was a POSITIVE +0.56% and did NOT indicate in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Friday up +1.27%, with the pre-market indicating a POSITIVE +0.2% in Monday’s pre-open;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.50% Friday, and the aftermarket indicated a NEGATIVE -0.04% is NOT indicating a for Monday’s pre-open;
- The iShares Russell 2000 (IWM) closed down -0.27% on Friday with a POSITIVE aftermarket +0.09% in Monday’s and indicates a POSITIVE +0.11% at the pre-open
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed down another -$0.05 to $4.70 following Thursday’s to $4.75 (-$0.35). There is approximately $8.79 in cash in the company per share – OVERSOLD – BUY;
BioLife Solutions (BLFS) closed up +$0.08 to $3.49 with 77.4 K shares traded <3 month average = 64.8 K shares> following Thursday’s $3.42 (+$0.02)with 63.4 K shares traded following Wednesday’s $3.40 (+$0.12)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 post Q2 financial results – BUY on new clients;
Biostage (BSTG) closed down -$0.0164 to a measly $0.0.48 although it is up since a low of $0.23 on May 22. Regarding share holder communication – its radio silent, what is the status, of the IND, mentioned financing and change of shareholder rights to accomplish the offering? Is it a “DEAD MAN WALKING”; as BSTG’s attorneys have filed a dismissal to the wrongful death complaint/suit so BSTG doesn’t have to provide discovery (documents) to the plaintiff’s (suing) lawyers – it’s a VERY “dicey” proposition for the suit to be resting? BSTG supplied the materials, equipment, support and monies to Dr. Paola Macchiarini. If the plaintiff’s attorneys win … BSTG might as well FOLD the tent. We are just waiting for the judge’s ruling or outcome, another roll of the dice. Where is the cheering squad? - SELL;
Capricor (CAPR) closed down -$0.16 to $1.14 following Thursday’s $1.30 (+$0.29), Wednesday’s $1.01 (+$0.08). After a shooting star (+40.58%) shots, the gases burn-off for this equity. It’s time to take gains. The after-market indication is a negative -$0.04 or -3.51% - Maintaining SELL;
Cellectis SA (CLLS) closed down -$0.03 to $ following Thursday’s $25.21 (-$0.75), Wednesday’s $25.96, Tuesday’s $26.36 and Monday’s $28.62. They are about to receive the cash from their subs – Calyxt’s (IPO) offering. The aftermarket indication is a positive +$0.08 or +0.33% - Maintaining BUY;
Cesca Therapeutics (KOOL) closed up +$0.41 to $3.85 after a patent award following Thursday’s $3.44 (-$0.18) having started the week at $3.56. July started at $3.18, June at $3.07, May at $3.19 and April at $3.28. The price of admission is NOT worth the roller-coaster ride – from BUY on patent news to SELL on sustainability;
Juno Therapeutics (JUNO closed UP +$0.12 to $28.78 with 1.128 M shares traded <3 month average = 1.891 M shares>. Thursday traded at $28.66. Wednesday at $30.25, Tuesday at $30.02 and last Monday at $30.05 with the top holder in bailing in a big way, chopping his stake nearly in half. CL Alaska sold eight million shares of Juno (JUNO) on July 13 for $216 million. CL Alaska is an entity controlled by Douglas K. Bratton through Crestline Management. JUNO reports Q2 on 8/3 and investors’ focus will primarily be on the company’s cash burn and pipeline updates. In Q1 delivered a negative earnings surprise of 9.09%. Year to date, Juno’s shares have soared 58.9% while the industry recorded an increase of 12%. The aftermarket indication is to the downside -$0.62 or -0.22% - SELL;
Kite Pharma (KITE) closed up +$2.55 to $111.43 on very low volume of 523.5 K shares traded <3 month average = 1.27 M shares>. Thursday traded at $108.88, Wednesday at $111.24, Tuesday at $110.52 and last Monday at $112.98. The aftermarket indication is to the upside +0.17 or +0.15% - BUY;
Neuralstem (CUR) closed down -$0.09 to $1.66 after Thursday’s close at $1,75 and news of a proposed offering after plunging Wednesday to $2,47 from Tuesday’s $2.81 and on Monday’s $5,58 following news of a mid-stage clinical trial miss for its major depressive disorder drug. The drug, NSI-189, did not meet its primary endpoint. The aftermarket indication is to the downside -$0.05 or -3.01% - SELL;
Vericel (VCEL) closed down -$0.10 to $3.30 with 562.2 K shares traded <3 month average = 318.7 K shares>following Thursday’s flat $3.40 with 230.2 K shares traded. The downside effect of volume is taking its toll ahead of reporting Q2 on 8/9 – Maintaining 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.
