August 4, 2017 7:58am
Factor investing …
Companies need to consider how they can perform without headwinds
Tell-tale factors suggest that cheap value and the risk versus reward ratio speak to chase fewer stocks but, understand the macros and micros of our universe
Critical indication ahead of “our” universe’s open!
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Do you know who should be up or down – I say …
Pre-open indications: 5 BUYs and 3 SELLs
The battle of the oversold and the overbought continues but, who or what is making that determination – ETFs and algorithms.
Higher open expected
Dow futures are up +0.27% and NASDAQ futures are UP +0.16%
U.S. stock index futures pointed to a higher open on Friday after a report on the Russia investigation sent equities mostly lower in the previous session.
European markets moved slightly higher, as investors monitored earnings reports and reacted to further political uncertainty at the White House.
Asian markets wavered, after U.S. stocks were dented overnight by a report that the special counsel investigation into Trump and his campaign was intensifying.
Data docket: The U.S. Labor Department is scheduled to release jobs growth data at 8:30 a.m. in New York. The U.S. economy is expected to have added 183,000 jobs last month, according to economists polled by Reuters. This will be a key indicator to understand the chances of further interest rate hikes by the U.S. Federal Reserve. There will also be international trade figures at 0830 EST time and oil rig count figures at 1300 EST time.
The cell therapy sector closed POSITIVE on Thursday, NEGATIVE on Wednesday, Tuesday, Monday, and last Friday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Thursday closed barely POSITIVE with 18 decliners, 20 advancers and 5 flats;
· Wednesday closed NEGATIVE with 28 decliners, 14 advancers and 1 flat;
· Tuesday closed NEGATIVE with 31 decliners, 8 advancers and 4 flats;
· Monday closed NEGATIVE with 31 decliners, 9 advancers and 3 flats;
· Last Friday closed NEGATIVE with 25 decliners, 16 advancers and 3 flats;
Henry ’omics:
As I had stated in last night’s post, “, the sector is turning after a slim positive close of the advance/decline lines. However, I see no end to these choppy trading ranges.”
Reiterating, “This market has not been good to the cell therapy sector but, low and bottom pricing could have its reward … for some equities once we get beyond Q2 financial results! There is an upside to this bottom which involves positive clinical (data) results, guidance and transparency!”
Historically, the period from August through October has seen stocks struggle and a period when corrections have tended to occur more than often.
The summer weekend is upon us, bolt early, take some profit to fund more than many G&Ts and come back to more LPS <loss per share> financial results ...!
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 down -0.79% on Thursday and was up +0.14% in the aftermarket and is NOT indicating in Friday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Thursday up +0.12% was down -0.25% in the aftermarket and is NOT indicating in Friday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.19% Thursday, and is indicating a POSITIVE +0.16% in Friday’s pre-open;
- The iShares Russell 2000 (IWM) closed down -0.51% on Thursday, and is indicating a POSITIVE pre-open of +0.29% on Friday
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed down -$0.15 to $4.50. OVERSOLD. July started at $4.60. June at $5.10 and May at $5.80. The cash position is strong, the partnership with Biogen (BIIB) is viable and a few new bodies – a CFO and general counsel should balance the team. Also, the FDA has granted an orphan drug designation for its gene therapy product candidate for the treatment of X-linked retinitis pigmentosa (XLRP) caused by mutations in the RPGR gene. In June 2016, AGTC announced that the European Commission (EC) granted orphan medicinal product designation for the same indication. The aftermarket indication is a positive +$0.05 or +1.11% - BUY;
AxoGen (AXGN) closed down -$0.25 to $14.90 following Wednesday’s $15.15 (-$0.50). AXGN, post Q2 financial results was OVERSOLD. AxoGen shares have climbed 68% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $15.15, more than doubling in the last 12 months. The aftermarket indication was a positive +$1.10 or +7.26% - Maintaining BUY;
BioLife Solutions (BLFS) closed up +$0.17 to $3.88. BLFS is getting RICH, having started the week at $3.45, the month at $2.62, June at $2.15 and May at $2.02. BLFS restructured its debt and will report Q2 financial results on 8/10. Be prepared for an OFFERING – Maintaining SELL;
bluebird bio (BLUE) closed up $2.55 to $93.40 following Wednesday’s $90.85. The aftermarket indication is a positive +$0.35 or +0.37% - BUY;
Cellectis SA (CLLS) closed down -$0.62 to $23.04. CLLS is taking a hit after reporting Q2 financial results and the aftermarket indication is a negative -$0.29 or -1.26% - BUY to SELL;
Juno Therapeutics (JUNO) closed up +$0.07 to $29.07 following Wednesday’s $28.98 ($0.71). Juno reported adjusted losses of $0.74 per share on $21.3 million in sales. Losses missed analyst views by $0.01 and widened from a $0.64 loss in the year-earlier period. Sales fell 22.8%, but topped forecasts for $17 million. Juno also reaffirmed its full-year guidance for $270 million to $300 million in adjusted cash burn, operating burn of $245 million to $275 million, and capital expenditures of $22 million to $27 million. The aftermarket indication is a negative -$0.31 or -1.07% - BUY to SELL;
Kite Pharma (KITE) closed up +$1.11 to $110.53. The aftermarket indication is a positive +$0.28 or 0.25% - BUY;
Spark Therapeutics (ONCE) closed down -$2.87 to $76.85 after Wednesday’s $79.72 (+$13.13) with an aftermarket indication of +$0.15 or +0.20%. ONCE has commenced an underwritten public offering of $350 M of 4.605 M shares pricing at $76.00– SOLD on offering news, BUY on discounted raise;
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.
