January 4, 2018 7:25am

The first week of the year has already shown 2018 to be beneficial for “our” universe

Yet volume is still on the low side

 

As we meander through the maze of fundamentals and facts – visible or obscured

 

Pre-open indications: 5 SELLs and 1 BUYs

Higher open expected

Dow futures are UP +0.34% (+84 points) and NASDAQ futures are UP +23% (+15.25 points)

 

U.S. stock index futures pointed to a higher open on Thursday.

European markets were higher, following a rally in Asian shares overnight, while oil prices hovered around two-and-a-half year highs amid unrest in Iran.

Asian markets closed mostly higher, on the back of the stronger lead from Wall Street following positive economic data. Markets in Japan finished their first day of trade in the new year with strong gains while South Korean stocks were weaker than their regional peers.

 

Issues that will affect the trading day: investors are likely to be digesting the latest minutes from the Federal Open Market Committee (FOMC). On Wednesday, the U.S. central bank's minutes revealed that the final interest rate hike of Janet Yellen's era as Fed chair was met by a divided central bank; however, the scales are now tipped towards the more hawkish voices.

Data docket: At 8:15 a.m. ET, the ADP national employment report is set to come out, followed by jobless claims at 8:30 a.m. ET.  Services purchasing managers' index (PMI) data will then come out at 9:45 a.m. ET; all before the all-important nonfarm payrolls data, due out Friday.

Issues on the political front: Geopolitics continues to linger at the back of investors' minds, as rising tensions between the U.S. and North Korea continue to put global markets on edge.

 

Henry’omics:

From Wednesday night’s closing bell post, “… another day of satisfaction as the sector advances with increasing decliners as the NASDAQ jumped 0.8% to a record. Reiterating, “Two (2) words – patience and discipline in stepping into the New Year as to momentum!”.

Say less, mean more ...

As I had stated, “Always be prepared for adversity in the sector … and the market! I haven’t heard much of any new data releases – other than a treatment pricing.”

And we have seen two (2) positives closes with highs but decliners are edging up from 7 to fifteen and a major snow storm could tlter the markets – yet wait and see!

 

The cell therapy sector’s record over 5 sessions (of 40 covered companies): The RegMed and cell therapy sector closed POSITIVE on Wednesday and Tuesday, a New Year holiday on Monday, NEGATIVE on Friday and last Thursday:

·         Wednesday closed POSITIVE with 15 decliners, 23 advancers and 2 flats;

·         Tuesday closed POSITIVE with 7 decliners, 31 advancers and 2 flats;

·         Monday was NEW Year’s day;

·         Friday closed NEGATIVE with 25 decliners, 14 advancers and 1 flat;

·         Last Thursday closed NEGATIVE with 20 decliners, 15 advancers and 5 flats;

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.27% in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating NOT in Thursday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.311% in Thursday’s pre-open

 

Companies in my headlights:

Adverum (ADVM) closed up +$0.65 or $17.81% to $4.30 with 1.53 M shares traded <3 month average = 415.1 K shares>.  Meets my 15% threshold, December started at $3.05, November at $3.15 and October at $3.90 while September began at $2.80;  and time to – SELL;

BioLife (BLFS) closed down -$0.17 to $5.79. Preliminary revenue for the fourth quarter of 2017 was $3.1 million, a 39% increase over the prior-year period. For the full year 2017, preliminary revenue was $11 million, a 34% increase from 2016. The growth was driven by increased sales to customers in the regenerative medicine segment and our worldwide distributors. They’re still selling juice but, it looks like an extract – BUY;

Biostage (BSTGD) post a 1-for-20 reverse closed up +$0.55 to $1.75 after Tuesday’s $0.33 to $1.22. What are day traders betting on? There are no scientists, only a CEO, CFO and 2 accountants left in a building they have paid rent on. Won’t it be interesting on the announced and soon to be conference call as the CEO explains, doesn’t and obfuscates the facts of the past year and its effect upon the previous and disenfranchised shareholders. Also it meets my 15% threshold – Maintaining SELL;

Cellectis SA (CLLS) closed down -$0.19 to $29.90 after Tuesday’s +$0.94 or +3.22% to $30.09. Last time, I saw $35.01 was on 10/31/16. The aftermarket indication is a negative -$0.24 or -0.79% - Maintaining SELL;

Intrexon (XON) closed up +$0.61 to $14.08 after Tuesday’s +$1.95 or +16.93% to $13.47 with 3.847 M shares traded <3 month average = 1.421 M shares>. Overbought, also my 15% threshold was met. The last I saw 12/1’s pricing was $13.55 which also dropped to $13.42 on 12/4 and was $12.94 on 12/5. The aftermarket indication is a negative -$0.19 or -1.35% – Maintaining SELL;

Sangamo Therapeutics (SGMO) closed down -$0.15 to $17.40 after Tuesday’s  +$1.15 to $17.55. The aftermarket indication is a negative -$0.10 or -0.57% after news of the company's $12 million collaboration with Pfizer Inc. on a gene therapy for two neurodegenerative disorders, amyotrophic lateral sclerosis and frontotemporal lobar degeneration. Many were selling into news – BUY to 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.