August 7, 2017 8:01am
As thirteen (13) sector companies announce Q2 results … with eight (8) completing the “process”
We’ve already heard the minimal and dismal developments but, what did they spend to get them?
Cash positions and “runways” will determine the outlook for a few quarters
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: 2 BUYs and 3 SELLs plus a weekly caveat and calendar of Q2 roll-outs
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 +0.09% and NASDAQ futures are UP +0.04%
U.S. stock index futures pointed to a higher open on Monday, as investors geared up for more earnings releases.
Europe traded mixed, failing to follow a rally seen in other global markets after a stronger-than-expected jobs report in the U.S. last week.
Asia markets closed mostly higher, with investors' risk sentiment likely improving from Friday's better-than-expected U.S. jobs number as they wait to hear Pyongyang's response to U.N. sanctions over the weekend.
Data docket: the consumer credit data is set to come out at 3.00 p.m. ET on Monday. Markets are also likely to get a boost in sentiment during trade, following Friday's stronger-than-expected jobs report.
The cell therapy sector closed POSITIVE on Friday and Thursday, NEGATIVE on Wednesday, Tuesday and last Monday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Friday closed POSITIVE with 15 decliners, 24 advancers and 4 flats;
· 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;
· Last Monday closed NEGATIVE with 31 decliners, 9 advancers and 3 flats;
As I had stated in Friday’s post, ” … The cell therapy … sector ended up for second session out of six closes - Loved the sector upside, but next week brings an onslaught of fifteen (15) Q2 financial results … Could be a dangerous week !”
- As I stated, “how many ways can I say it, the cell therapy sector is entering the usual weak seasonal period side-by-side with investor pessimistic views of quarterly financial results.”
August and September have had dismal records for stock returns over the past 20 years and with strategists warning that the market is overdue for a major correction, the next two months …could be … rough.
- It’s the alternating advance/decline lines, sputtering momentum and volume that worry … ME!
Runways are what they will be – it’s pre-ordained for a few stumbles however, the path of resistance will be higher unless REAL clinical data appears for many of the “usual suspects”!
Also be ready for a number of offerings or private placements to suddenly appear …!
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 up +0.33% on Friday and is up +0.14% in the aftermarket and is POSITIVE +0.14% in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Friday up +1.82% is down -0.25% in the aftermarket and is NOT indicating in Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.23% Friday, and is NOT indicating in Monday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +0.49% on Friday, and is indicating a POSITIVE pre-open of +0.13% on Monday
Q2/17 reporting for … eight (8) so far to date:
Tuesday (8/8) - 3:
- Bellicum Pharmaceuticals (BLCM)
- Kite Pharma (KITE)
- Regenxbio (RGNX)
Wednesday (8/9) - 5:
- Athersys (ATHX)
- Intrexon (XON)
- Fibrocell (FCSC)
- Organovo (ONVO)
- Vericel (VCEL)
Thursday (8/10) – 5:
- BioLife Solutions (BLFS)
- Caladrius Biosciences (CLBS)
- Capricor (CAPR)
- Cytori (CYTX)
- Histogenics (HSGX)
Companies in my headlights:
… I expect many of the thirteen (13) Q2 reporting companies to experience a downdraft pre announcement this on-going week … while
Athersys (ATHX) closed up +$0.01 to $1.47. The design of its P3 clinical study treating ischemic stroke with its proprietary MultiStem® cell therapy product (the “MASTERS-2” study) has received a Final Scientific Advice positive opinion from the European Medicines Agency (“EMA”). This represents EMA’s opinion that, upon success, the study should be sufficient to warrant approval for commercialization, which is in line with the U.S. Special Protocol Assessment and Fast Track Designation. In Japan, Athersys’ partner, HEALIOS K.K. is conducting the TREASURE study, evaluating MultiStem therapy for ischemic stroke, and has received a priority review designation under Sakigake from Japan’s Pharmaceutical and Medical Devices Agency. The results from the TREASURE study, if needed, are acceptable for supporting the applications for registration, along with the results from the MASTERS-2 study, in both the U.S. and Europe. Still going to need more cash i.e. offering to complete a P3 - The pre-market indication is a positive +$0.03 or +2.04% - BUY;
AxoGen (AXGN) closed down another -$0.25 to $14.65 after Thursday’s -$0.25 to $14.90, Wednesday’s $15.15 (-$0.50). OVERSOLD post Q2 results. - Maintaining BUY;
BioLife Solutions (BLFS) closed down -$0.137 to $3.74 after Thursday’s $3.88 (+$0.17). BLFS is getting too 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 +$1.65 to $95.05 after Thursday’s $93.40 (+$2.55) following Wednesday’s $90.85. The aftermarket indication is a negative -$0.20 or -0.21% - BUY to SELL;
Kite Pharma (KITE) closed up +$1.11 to $110.53. Q2 reporting day and questionable as the aftermarket indication is a negative -$0.58 or -0.52% - BUY to SELL on Q2 reporting;
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.