January 8, 2018 5:20pm

This a.m.’s headline says it all; for all the grandstanding by the traveling “pundits” they haven’t had much of anything to report

 

As the IBB (-1.33%), XLV (-0.36%) and XBI (-1.99%) were down

 

Shouldn’t the fact that sector management’s increased G&A spending with minimal results factor into the SELL calculation

 

Pre-open indications: 4 hits and 2 miss (by pennies)

Out and about: The Biostage (BSTG -$0.06) chronicles …

Monday’s results have implications to Tuesday’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, “JP Morgan welcomes the chosen fewer, presentations aside – stand in line and wait for the stock ride as few or as many as they might be. Novelty might meet money at SF’s mini and ancillary conferences; but, then there is the comparison of 2016’s share pricing versus milestones as compared to past, current and future spending … What will initiate a “relationship” if there is a short or near term “hook-up”  for being long is very gone … Beyond the crisis in confidence when fundamentals and facts are bent around share pricing’s “fiction”, the predictable result is investor polarization … My newest thematic (polarity), the contrast between the corporate belief, investor opinion and their contradictions!”

As I had stated, “Wait and listen – stand in corners and push through hallways – to meet your break-out “dates”. The quiet time to get-it-started is over a cocktail or a quiet room! Remember you’re not buying a pair of shoes – or are you (?) to keep walking into the New Year!”

The bell weather, “Celgene (CELG -$1.09) shares shed 1.05% on Monday, after the company released preliminary Q4 and 2017 earnings results, which are expected to beat Wall Street expectations, and its plans for a $1.1 billion upfront acquisition of the biotech Impact Biomedicines.

CELG also expects revenue of $14.4 billion to $14.8 billion in 2018, compared with the FactSet consensus of $14.8 billion, which could explain the stock decline "as the midpoint would be slightly lighter than consensus. Celgene expects to launch 10 potential blockbuster drugs in the next several years, according to a company presentation, naming such therapies as ozanimod, fedratinib, JCAR017 and luspatercept, among others. Celgene shares have dropped 26% over the last three months, compared with a 7.6% rise in the S&P 500 SPX, +0.13% and a 10.9% rise in the Dow’s -0.04%.” <ECourt, MarketWatch>

Do we have some catch-up potential ... YES!

Despite the sector lows notched on Monday, the major averages traded in a tight range.

 

Many thought the sector would come out of the gate that quickly but, they got a scratch!

The sector is oversold which might just get the heat UP in SF as the rain dampened expectation – which I thought was LOW!

Like I alluded to there is a lot of FICTION to be read from these presentations.

Where are all the MACRO views of the sector from the “pundits” – they’re all headed to the free drink cocktail bars to drown their sorrows.

 

 

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

·         The open was negative with an A/DL of 17/22 and 1 flat ;

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

·         The close was negative with an A/DL of 13/26 and 1 flat;

 

 

MY working trend lines or indications:

… The greatest volume to the downside:  CYTX, RENE.L, XON, SGMO and VSTM

… Upside volume was weighted to:  MDXG, NWBO, JUNO, ATHX and BTX

… Biggest $ downside: BLUE (-$4.90), AXGN (-$1.65), QURE (-$1.35), RGNX (-$1.30) and STML (-$0.75)

… Largest $ upside:  JUNO (+$1.35), OSIR (+$0.31), MDXG (+$0.23), BTX (+$0.23) and VCEL (+$0.20)

… Flat: ISCO

 

Pre-open indications:

  • Adverum (ADVM) closed down -$0.20 – hit;
  • Applied Genetic Technologies (AGTC) closed up +$0.05 – miss, be ready for a slam down;
  • Asterias Biotherapeutics (NYSEMKT: AST) closed down -$0.15 – hit;
  • Cytori Therapeutics (CYTX) closed down -$0.13 – hit;
  • MiMedx Group (MDXG) closed up +$0.23 – hit;
  • Verastem (VSTM) closed down -$0.05 – miss;

 

Out and about:

Biostage (BSTGD) This management team WIPED OUT 20 M of shareholders holdings and investment!

Opened at $2.07 (previous closed $2.04) then declined -$0.06 or -3.01% to close DOWN at $1.98 in a day’s range of $1.66 to $2.07 with 14,038 shares traded; the share price had been down as much as -$0.32.  This follows the projected $1.32 post the 1-to-20 reverse split – a $4 M in-flow just followed a $30 M investment loss incurring a $47 M deficit!

Day trading takes its toll.

NO scientists, a CEO, CFO and 2 accountants don’t make a company who couldn’t pay their rent or communicate their issues to past “fleeced” shareholders …

I am NOT “eating” my negative declarations, my OPINION is still “FRAUD” and “COVER UP of MISDEEDS “by this management team!

 

 

Daily analytics:

U.S. stock-market indexes ended mostly higher, with the S&P 500 and NASDAQ scoring their fifth consecutive record close in 2018.

·         The S&P 500 SPX, +0.17% gained 4.55 points, or 0.2%, to 2,747.70.

·         The NASDAQ advanced by 20.83 points, or 0.3%, to 7,157.39.

·         The Dow slipped 12.94 points, or less than 0.1%, to 25,282.93.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, Monday traded at 9.52, up +3.25% …

  • Friday traded at 9.22, flat at 0.00% after Thursday traded at 9.22, up +0.77% after Wednesday traded at 9.15, down -6.35% after Tuesday traded at 9.77, down -11.50% as last Monday was New Year’s day …

 

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

… The iShares Russell 2000 (IWM) indicated:

·         Monday was up +0.17%

·         Friday was up +0.21%

·         Thursday was up +0.24%

·         Wednesday was up +0.12%

·         Tuesday was up +0.92%

·         Last Monday was New Year’s Day

 

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Monday was down -1.33%

·         Friday was down -0.13%

·         Thursday was down -0.82%

·         Wednesday was up +1.41%

·         Tuesday was up +2.41%

·         Last Monday was New Year’s Day

 

 

The count - decliners versus gainers:

……. look at the differences in decliners:

·         Monday’s decliners ranged from -0.11%% <BLCM -$0.01> to -27.19% <CYTX -$0.13> in 26 equities;

·         Friday’s decliners ranged from -0.28% <BCLI -$0.01> to -20.88% <RGNX -$7.35> in 20 equities;

·         Thursday’s decliners ranged from -0.70% <PSTI -$0.01> to -8.45% <XON -$1.19> in 19 equities;

·         Wednesday’s decliners ranged from -0.62% <MDXG -$0.08> to -5.42% <CUR -$0.11> in 15 equities;

·         Tuesday’s decliners ranged from -0.63% <CAPR -$0.01> to -% <BCLI -$0.27> in 7 equities;

·         Last Monday was a holiday

Versus

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

·         Monday’s gainers ranged from +0.08% <ONCE +$0.04> to +9.16% <BTX +$0.23> in 13 equities;

·         Friday’s gainers ranged from +0.61% <JUNO +$0.29> to +73.75% <CYTX +$0.20> in 18 equities;

·         Thursday’s gainers ranged from +0.45% <QURE +$0.09> to +13.95% <AST +$0.30> in 21 equities;

·         Wednesday’s gainers ranged from +0.32% <KOOL +$0.01> to +17.81% <ADVM +$0.65> in 23 equities

·         Tuesday’s gainers ranged from +0.32% <STML +$0.05> to +18.02% <CUR +$0.31> in 31 equities

·         Last Monday was a holiday

 

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.