October 4, 2017 7:32am

When there is a common cause between trades, then they will be connected to the up or downside!

 

Pre-open indications: 2 BUYs and 4 SELLs

 

What’s the gauge of pricing expectation? It’s called premium content for a reason: I report the truth in “our” universe!

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

 

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!  


 

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

 

 

Weak open expected

Dow futures are DOWN -0.04% (-9 points) and NASDAQ futures are DOWN -0.08% (-4.5 points)

 

U.S. stock index futures pointed to a down or lower open on Wednesday, as investors look to key data and a speech by a leading member of the U.S. central bank.

European equities turned lower as investors kept a close eye on events in Catalonia and digested new data releases

Asia markets traded mixed, even after U.S. equities closed higher overnight.

 

Data docket: the U.S.'s services Purchasing Managers' Index (PMI) is due out at 9:45 a.m. ET, followed by the ISM's non-manufacturing report on business, set to come out at 10:00 a.m. ET. Mortgage applications are also set to be released at 7:00 a.m. ET, while ADP National Employment report is due out at 8:15 a.m. ET.

Issues that will affect the trading day: Federal Reserve Chair Janet Yellen is expected to deliver opening remarks at the Community Banking in the 21st Century Research and Policy Conference; where investors will be watching closely for any indications as to how the U.S. economy is faring at present.

 

 

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

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

·         Tuesday closed NEGATIVE with 23 decliners, 18 advancers and 2 flats;

·         Monday closed POSITIVE with 14 decliners, 26 advancers and 3 flats;

·         Friday closed POSITIVE with 14 decliners, 23 advancers and 6 flats;

·         Thursday closed POSITIVE with 14 decliners, 24 advancers and 5 flats;

·         Last Wednesday closed POSITIVE with 13 decliners, 30 advancers and 0 flats;

 

 

Henry ’omics:

From Tuesday night’s closing bell post, “big dip after first hour of the session.”

Reiterating, “These are days when investors forget or don't appreciate the risks that the sector faces … Are investors chasing share pricing growth?”

Referencing the title, anytime you decide to make a trade, you’re making some assumptions about how equity will appreciate or depreciate or remain static. That is, you’re making assumptions about the underlying effects of possible actions.

The more I write about the sector watching the movement of equities, the more I realized the meagre state of knowledge on the sector.

 

 

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 -1.23% on Tuesday and is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Tuesday down -0.22% and is indicating a POSITIVE +0.48% in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +0.01% on Tuesday and is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) closed up +0.21% on Tuesday and is indicating a NEGATIVE -0.19% in Wednesday’s pre-open

 

 

Companies in my headlights:

Capricor (CAPR) closed down -$0.17 or 4.93% to $3.28 with 5.1 M shares traded <3 month average = 2.59 M shares>. CAPR in its presentation today at the 22nd Annual International Congress of the World Muscle Society, reported that teens and young men in the advanced stages of Duchenne muscular dystrophy (DMD) experienced meaningful improvements in cardiac and upper limb function after a single dose of Capricor's lead investigational product, CAP-1002. DMD is a rare, life-threatening genetic disorder for which treatment options are limited. The late breaking abstract and results presented at the late breaking poster session describe the first six months of follow-up data from the randomized 12-month PI/II HOPE clinical trial of CAP-1002. CAP-1002 is a cell-based therapeutic candidate and consists of allogeneic cardiosphere-derived cells, whose mechanism of action is immunomodulatory and anti-fibrotic, and which have been shown to generate new muscle cells in preclinical models. I still think the HYPE is overplayed but, the numbers speak for themselves. The aftermarket indication is a positive +$0.50 or +15.34%. Take the upside, and then be cautious not staying for long other than to harvest the new upside - BUY

Spark Therapeutics (ONCE) closed down -$1.19 to $88.18 with low volume of 301.5 K shares traded <3 month average = 510.3 K shares>. The aftermarket indication is a negative -$1.31 or -1.49% - SELL;

Cesca Therapeutics (KOOL) closed up +$1.22 or +33.98% to $4.81 with 3.8 M shares traded <3 month average = 91.8 K shares> after Monday’s +$0.03 to $3.60 with 2.7 K shares traded. The U.S. Patent and Trademark Office (USPTO) has issued a Notice of Allowance regarding the company’s pending application for a patent covering its proprietary method for separating rare, therapeutically critical target cells from blood, bone marrow, leukapheresis product, and other cell sources, while maintaining the viability of the cells under asceptic conditions. That was yesterday and with the Icarus stock movement – profiteering will be on the fingertips today – BUY to SELL;

Histogenics (HSGX) closed up +$0.05 to $2.03 with 128.4 K shares traded after being flat on Monday at $1.98 with 183.6 K shares traded <3 month average =74.9 K shares>. HSGX announced additional biomechanical data from human engineered cartilage testing: data demonstrates the importance of generating extracellular matrix during Ex-Vivo manufacturing of cartilage cell therapy – which may enable an earlier return to function after treatment and improve biomechanical competence of cartilage cell therapy compared to therapies with only cells and scaffolds.  UNDERVALUED- Maintaining BUY;

Sangamo Therapeutics (SGMO) closed up +$0.55 or +3.40% to $16.75 with 1.9 M shares traded <3 moth average = 1.58 M shares>. There is a $4.05 or +23.98% premiums in the share from the last six (6) sessions. October started at $16.20 while September at $14.25 and August at $8.45 with volume being strong as sentiment waned; it might be smart to lighten the load – SELL;

Vericel (VCEL) closed up +$0.10 to $5.95 with 1.26 M shares traded after Monday’s -$0.15 to $5.85 with 219.6 K shares traded following Friday’s+$0.40 or +7.14% to $6.00 with 2 M shares traded <3 month average = 545.1 K shares> September started at $4.35 with a low of $4.30 having hit $4.85 and $4.95, three (3) times each while August started at $3.13 with a low of $3.00 and a high of $4.30.  As Q2 ended, July started at $3.40 with a low of $3.10 and a high of $3.50. The upside was a little too swift and traders will take some profit. VCEL is going to NEED a financing ($14.04 M as of Q2’s end) especially with $10.16 M in debt on the books; while revenue has been strong – I wonder what the forthcoming Q will “show”? - Maintaining SELL;

Verastem (VSTM) closed up +$0.07 to $4.85. The aftermarket indication is a negative -$0.05 or -1.03% - 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.