November 29, 2017 7:50am

Looking for some upside as volatility has been killing the sector and retail investors are less motivated,  questioning its outlook which has moved many to exit…

 

Lately risk has no reward

 

Pre-open indications: 3 BUYs and 3 SELLs

Out and about: Cesca Therapeutics (KOOL) proposes offering

 

Can’t read because of no subscription rights - you’re missing situational awareness and the most trustworthy source of independent insight!


 

Higher open expected

Dow futures are UP +0.31% (+74 points) and NASDAQ futures are UP +0.10% (+6.5 points)

 

U.S. stock index futures pointed to a slightly higher open Wednesday, as a strong performance from Wall Street in the previous session lifted sentiment, while geopolitical concerns weighed it down.

European stocks were higher after signs of progress with U.S. tax cuts and Brexit negotiations.

Asian markets closed mostly higher as investors mostly shrugged off North Korea's latest missile launch.

 

Issues that will affect the trading day: the Senate’s next steps towards passing a bill aimed at reforming the U.S. tax code.

Data docket: At 7 a.m. ET, mortgage applications are due out, followed by the all-important GDP data for the U.S., which is set to be released at 8:30 a.m. The pending homes sales index is then due to be released at 10 a.m. ET, while the U.S. central bank's Beige Book is expected at 2 p.m. ET.

Issues on the political front:  North Korea firing a missile that landed into the Sea of Japan

 

 

Henry’omics:

From Tuesday night’s closing bell post, “the sector ignored the market’s rise. Risk, sentiment, a clinical data void and the dependence on capital market access hinders upside as investors scratch their heads about who’s next to finance i.e. depreciate and dilute or have trouble populating their trials.”

One example which could multiply:

Aratana Therapeutics (PETX) canceled plans for a stock offering Tuesday afternoon, one day after it announced the equity issuance and saw its share price plunge in response. The pet-medicine company said in a news release late Tuesday that it was canceling the offering because "current market conditions are not conducive for an offering." After announcing plans to sell at least $35 million in fresh shares Monday evening, PETX’s stock plunged 19% in Tuesday's regular trading session to close at $5.86. The stock rebounded after the offering was canceled Tuesday, gaining more than 10% to hit $6.50 in after-hours trading.

Lately, investors are beyond caring as the sector senses the year end while searching for any upside to profit or even exit

 

In the RegMed and cell therapy sector, Tuesday and Monday closed NEGATIVE, Friday closed POSITIVE, Thursday was a holiday and last Wednesday closed POSITIVE.

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

·         Tuesday closed NEGATIVE with 23 decliners, 15 advancers and 5 flats;

·         Monday closed NEGATIVE with 29 decliners, 11 advancers and 3 flats;

·         Friday closed POSITIVE with 15 decliners, 24 advancers and 4 flats;

·         Thursday was Thanksgiving, markets in U.S. were closed;;

·         Last Wednesday closed POSITIVE with 16 decliners, 26 advancers and 1 flat;

 

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) is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.18% in Wednesday’s pre-open

 

 

Companies in my headlights:

BioLife Solutions (BLFS) closed down -$0.17 to $5.54.  News is always a driver of share pricing; BLFS has executed a new confidential agreement to supply its proprietary CryoStor® cell freeze media to a leading T cell therapy customer – BUY;

bluebird bio (BLUE) closed down -$1.30 or -0.77% to $166.45 with low volume of 441.1 K shares traded <3 moth average = 905.7 K shares>. The aftermarket indication is a NEGATIVE -$0.55 or -0.33% - SELL;

Capricor (CAPR) closed down -$0.07 to $1.92 with a pre-market indication of +$0.36 or +18.75% based on a filing that the FDA has cleared for its IND application to conduct a new clinical trial of CAP-1002, its lead investigational therapy, in boys and young men in advanced stages of Duchenne muscular dystrophy, a fatal genetic disorder for which there are limited treatment options. CAPR still NEEDS to raise cash with its outstanding S-1 with HC Wainwrights – BUY;

Cesca Therapeutics (KOOL) proposes offering. KOOL closed down -$0.36 or -10.29% to $3.14 with an aftermarket downside -$0.10 or -3.18%.  Dawson James Securities, Inc. is acting as exclusive placement agent for the offering. As of the last reporting quarter, KOOL had $3.86 M in cash – they’re desperate – Maintaining SELL;

Juno Therapeutics (JUNO) closed down -$4.19 to $56.99 with a NEGATIVE aftermarket indication of -$0.39 or -0.68% - SELL

Pluristem (PSTI) closed down -$0.06 to $1.52. But there is news; PSTI announced the publication of a peer-reviewed article in Cytotherapy, the official journal of the International Society for Cellular Therapy, titled, “Placenta-Derived PLX-PAD Mesenchymal-Like Stromal Cells are Efficacious in Rescuing Blood Flow in Hind Limb Ischemia Mouse Model by a Dose- and Site-Dependent Mechanism of Action (MOA).” The article is based on the Company’s preclinical findings and will be published in the December 2017 issue of Cytotherapy. Another … early … animal model but, news – BUY;

 

I am staying put as the month ends as I have pneumonia, I feel like the sector – kicked all over!

 

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.