September 22, 2017 7:45am

How many investors, traders, ETFs and algorithms really comprehend risk in the sector

It’s cause and effect …

 

Preview RMi's morning call. You’d be reading this if you were a SUBSCRIBER!

 

Pre-open indications: 1 BUY and 4 SELLs

Out and about: Juno Therapeutics (JUNO) priced its 6.1 M share and $250 M follow-on offering at $41.00 per share

 

If you had been right as many times as I have been in these many months of 2017 as a SUBSCRIBER you would know when to get in and out or get back in again! 

It’s called premium content for a reason: I report the truth in this sector!

 

A critical pre-market indication ahead of “our” universe’s open!

 

Lower open expected

Dow futures are DOWN -0.05% (-11 points) and NASDAQ futures are DOWN -0.17% (-10.25 points)

 

 

U.S. stock index futures pointed to a lower open on Friday morning, as fresh threats from North Korea revived geopolitical tensions.

European stocks were slightly lower, amid geopolitical concerns and as investors awaited a key speech from the U.K.'s prime minister.

Most Asian markets closed lower after North Korea threatened it could consider testing a nuclear weapon in the Pacific.

 

Data docket: NONE

Issues that affect the trading day: North Korean leader Kim Jong Un said Thursday that he was considering the "highest level of hard-liner countermeasure" in response to Trump's warning the U.S. would be prepared to "totally destroy" Pyongyang if forced to defend itself or its allies.

 

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

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

·         Thursday closed NEGATIVE with 21 decliners, 16 advancers and 6 flats;

·         Wednesday closed NEGATIVE with 23 decliners, 19 advancers and 1 flat;

·         Tuesday closed NEGATIVE with 21 decliners, 19 advancers and 3 slats;

·         Monday closed POSITIVE with 11 decliners, 28 advancers and 4 flats;

·         Last Friday closed POSITIVE with 19 decliners, 23 advancers and 1 flat;

 

 

Henry ’omics:

From Thursday night’s closing bell post “ …bowling for strikes, it’s all in the approach. Bowling strikes: CLLS, SGMO, RGNX and QURE as compared to those who can’t keep away the gutter balls: AGTC, BSTG, CAPR, NWBO."

 

 

It’s just a merry-go-round of share pricing – get on and when the music changes get off – to get back on when the tune changes …"

 

 

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 -0.44% on Thursday with a NEGATIVE aftermarket indication of -0.05% and is NOT indicating in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Thursday down -0.70% and is indicating a NEGATIVE -0.08% aftermarket and NOT indicating in Friday’s pre-market%;
  • The Health Care Select Sector SPDR ETF (XLV) closed down -0.51% on Thursday and is indicating in the aftermarket a NEGATIVE -0.21% and NOT indicating  in Friday’s pre-open;
  • The iShares Russell 2000 (IWM) closed down -0.10% on Thursday and is indicating a POSITIVE +0.08% in Friday’s pre-open

 

 

Companies in my headlights – my five (5):

Athersys (ATHX) closed up +$0.04 to $2.47 with 1.297 M shares traded <3 month average = 938.6 K shares>. September started at $1.75 with a low of $1.75 and a high of $2.55. I am NOT a believer and ATHX is overbought on what basis; they also can’t replicate a manufacturing bath for clinical trial proof of concept – Maintaining SELL;

Biostage (BSTG) closed up +$0.0027, basically flat. One word summarizes BSTG – DOUBT. With $30 M down the drain in what, 5 financings, NO IND anymore which was promised for three (3) years, NO peer reviewed article from “FORMER” collaborator Mayo Clinic and one wonders about the basis of believing in going forward. Remind me again, why a president and CMO is needed with a CEO with only what, 20 employees left and the question of both reporting to the BOD. WHAT happened to the compassionate use patient – the SILENCE is deafening. WHY hasn’t there been more about their NEWEST target, I wonder? What is the status of the terminal death suit, a judge has NOT ruled yet and then. One final thought, how much of their spending are they going to “push-off” into Q4 – it’s been a practice to “pump the cash position for a number of quarters … Maintaining SELL;

Capricor (CAPR) closed down -$0.03 to $2.00 with 2.736 M shares traded <3 month average = 2 M shares>after Wednesday’s -$0.22 to $2.03 with 6.256 M shares traded after Tuesday’s $2.25 (+$0.93) with 33.3 M shares traded. All I can see is Icarus flying too close to the sun. I have also awarded CEO Linda Marban, the designation or moniker of a “rocket woman” CEO who will lead CAPR to destruction. The aftermarket indication is a negative -$0.08 or -3.94% – Maintaining SELL;

BioLife Solutions (BLFS) closed up +$0.07 to $5.09 with 81.4 K shares traded after Wednesday’s -$0.13 to $5.02 with 183 K shares traded <3 month average = 169.1 K shares>. September started at $4.86 with a low of $4.72 and a high of $5.29. An aftermarket quote rendered a negative -$0.21 or -4.18%. What is the strategy here and the stop-gap tactic to keep the share sustainable or is it just a free floating rubber duck in an equity pool ready to dip in any wave  t over and over again – a traders play thing. The aftermarket indication is a negative -$0.21 or -4.18% - Maintaining SELL;

Spark therapeutics (ONCE) closed down -$0.89 to $87.10 with 528.7 K shares traded <3 month average = 500 K shares>. September started at $82.16 with a low of $80.51 and a high of $87.99.  The aftermarket indication is a positive +0.26 or +0.3%. Oversold - BUY

 

 

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.