December 12, 2017 5:11pm

As I had stated, “ASH giveth and taketh … away”

 

The sector dumped, the NASDAQ falls as bluebird bio (BLUE) proposes offering planning to sell $600 million worth of shares, with the possibility of increasing the size by up to 15%.

… BLUE is down -$10.85 or -5.38% to $190.975 as VistaGen (VTGN), Capricor (CAPR) and Fibrocell (FCSC) and the newest  offering proposal, FATE continue to show the need

 

Dependence on capital market funding is still a prop that drives investor’s negative vibes

 

Pre-open indications: 3 hits and 6 miss

Out and about: Spark Therapeutics (ONCE -$2.97) shares continue to fall -6.21%, to $44.76 after the gene-therapy company released results for its treatment for hemophilia A at the AHS … Oversold!

 

How right does one have to be? You could and should be reading this review of the day’s share pricing activity?

Is the truth so hard to fathom – that’s why my readership has grown exponentially!

 

Tuesday’s results have implications to Wednesday’s sector activity as a daily report may say little or a lot and it serves as insurance that all indications are being examined and evaluated!

 

 

Henry’omics:

From the pre-open’s newsletter, “…struggling for pricing position as I had stated, “the ASH data presentations raised more questions than answers”… Reiterating, “There is just TOO MUCH short-term thinking and pricing in these last weeks! What will or which upside will stick? Sustainability has to be more than a session … this will be the key to the sector!”

And we learned yesterday … “Don’t get too comfortable with a number of those equities with an upside; pessimism is a protective and profitable shroud!”

Some investors might love biotech stocks for their lottery ticket-like returns when a company strikes medical gold. A lottery ticket, however, costs only costs a buck or two, while getting a cell therapy company wrong can hurt a lot more than that.

Consider yesterday’s issue with JUNO and ONCE after presenting data while bluebird (BLUE) blew everyone away … while VSTM, SGMO and RGNX got dwarfed!

All I see is damage to the sector ... for ANY new money to flow into the sector!!

 

The advance/decline line scenario of 40 SCGT & RT covered companies:   

·         The open was negative with an A/DL of 14/21 and 5 flat ;

·         The mid-day was negative with an A/DL of 13/26 and 1 flats;

·         The close was negative with an A/DL of 11/27 and 2 flat;

 

Pre-open indications: 3 hits and 6 miss

  • Bellicum Pharmaceuticals (BLCM) closed down -$0.65 – miss;
  • bluebird bio (BLUE) closed down -$10.85 – hit;
  • Fate Therapeutics (FATE) closed up +$0.295 – hit;
  • Juno Therapeutics (JUNO) closed down -$4.49 - miss;
  • Pluristem (PSTI) closed down -$0.04 – miss;
  • uniQure (QURE) closed down -$0.23 – miss;
  • Regenxbio (RGNX) closed down -$2.35 – miss
  • Stemline Therapeutics (STML) closed up +$0.12 – miss;
  • Verastem (VSTM) closed up +$0.12 – hit;

 

Out and about:

Fate Therapeutics (FATE) Proposes offering … https://www.regmedinvestors.com/articles/10043

bluebird bio (BLUE) Proposes offering … https://www.regmedinvestors.com/articles/10040

 

 

MY working trend lines or indications:

… The greatest volume to the downside:  JUNO, ONCE, ONVO, IMUC and VTGN

… Upside volume was weighted to:  VSTM, MDXG, ADRO, SGMO and FATE

… Biggest $ downside: BLUE (-$10.85), JUNO (-$4.49), ONCE (-$2.97), RGNX (-$2.35) and CLLS (-$1.11)

… Largest $ upside:  MDXG (+$0.60), ADRO (+$0.40), FATE (+$0.295), SGMO (+0.25) and STML (+$0.12)

… Flat:  HSGX and BCLI

 

 

Daily analytics:

U.S. stocks advanced on Tuesday, putting the Dow industrials and the S&P 500 index on track to build on the prior session’s record close as the Federal Reserve kicks off its two-day meeting.

·         The S&P 500 SPX, +0.15% was up by 7 points, or 0.3%, to 2,667, trading in record territory, after setting an intraday all-time high.

·         The Dow advanced 145 points, or 0.6%, to 24,531, also trading in record territory.

·         The NASDAQ bucked the trend to slide 4 points to 6,870.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Tuesday traded at 9.92, up +6.21% …

  • Monday traded at 9.34, down -2.51% after Friday traded at 9.58, down -5.71% after Thursday traded at 10.22, down -7.26% after Wednesday traded at 11.02, down -2.74% and last Tuesday traded at 11.33, down -3% …

 

Welcome to another day of the sector’s roller coaster …

… The iShares Russell 2000 (IWM) indicated:

·         Tuesday was down -0.31%

·         Monday -0.05%

·         Friday +0.10%

·         Thursday +0.69%

·         Wednesday -0.48%

·         Last Tuesday -1%

 

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Tuesday was down -0.44%

·         Monday +0.15%

·         Friday +1.94%

·         Thursday +1.53%

·         Wednesday -0.73%

·         Last Tuesday -0.67%

 

 

The count - decliners versus gainers:

……. look at the differences in the spreads as decliners jump and %

·         Tuesday’s decliners ranged from -0.91% <IMUC -$0.0021> to -5.38% <BLUE -$10.85> in 27 equities;

·         Monday’s decliners ranged from -0.56% <MESO -$0.03> to -34.97% <ONCE -$25.66> in 27 equities;

·         Friday’s decliners ranged from -0.48% <FATE -$0.02> to -11.33% <VTGN -$0.23> in 19 equities;

·         Wednesday’s decliners ranged from -0.57% <BLFS -$0.03> to -34.95% <CUR -$1.08> in 29 equities;

·         Last Tuesday’s decliners ranged from -0.51% <HSGX -$0.01> to -19.23% <FCSC -$0.25> in 21 equities;

Versus

 

… Look at the percentage’s (%) and spreads …

·         Tuesday’s gainers ranged from +0.76% <CYTX +$0.00> to +5.15% <MDXG +$0.60> in 11 equities;

·         Monday’s gainers ranged from +0.88% <CLLS +$0.22> to +17.91% <BLUE +$30.65> in 12 equities;

·         Friday’s gainers ranged from +0.69% <CLLS +$0.17> to +9.07% <VSTM +$0.36> in 19 equities;

·         Thursday’s gainers ranged from +0.54% <ATHX +$0.01> to +13.47% <QURE +$2.02> in 24 equities;

·         Wednesday’s gainers ranged from +0.65% <AGTC +0.03> to +93.55% <VTGN +$0.87> in 7 equities;

·         Last Tuesday’s gainers ranged from +0.13% <QURE +$0.02> to +175.89% <CUR +$1.97> in 18 equities;

 

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.