January 9, 2018 7:48am

How long will it take to cook and what will it taste like when it’s done?

 

The old recipe book that’s behind the content and mixing has its pages ripped-out

It’s still all in the timing and one’s appetite …

 

Since we are speaking about the healthcare companies appearing at SF conferences, the privates could end up being the headliners!

By the way, where is the buzz from the conferences, maybe today will be better?

 

The IBB (+0.32) and XBI (+0.26) are up

Pre-open indications: 4 SELLs and 3 BUYs

Higher open expected

Dow futures are UP +0.17% (+43 points) and NASDAQ futures are UP +0.08% (+5.25 points)

 

U.S. stock index futures pointed to a higher open on Tuesday, boosted by the positive trading sentiment seen from international markets.

European markets were higher, as investors reacted to better-than-expected economic data and shrugged off a tech wobble in Asia.

Asian markets closed mostly higher. Investors in the region also digested earnings guidance from tech heavyweight Samsung Electronics and kept an eye on developments from inter-Korea talks.

 

Issues that will affect the trading day: JP Morgan and the ancillary, surrounding conferences and mini meetings if SF

Data docket: The National Federation of Independent Business (NFIB) Small Business Index is expected to come out at 6 a.m. ET, followed by the Job Openings and Labor Turnover Survey (JOLTS), set to come out at 10 a.m. ET.

Issues on the political front: geopolitics is set to rumble on, as tensions between North Korea and the West continue to put investors on edge.

 

Henry’omics:

From Monday night’s closing bell post, “…what happened to the healthcare conference’s jump start of the sector? 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.”

I also said, “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.”

 

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

 

 

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

·         Monday closed NEGATIVE with 26 decliners, 13 advancers and 1 flat;

·         Friday closed barely NEGATIVE with 20 decliners, 18 advancers and 2 flats;

·         Thursday closed barely POSITIVE with 19 decliners, 21 advancers and 0 flats;

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

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

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.32% in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.26% in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.07% in Tuesday’s pre-open

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed up again +$0.05 to $4.35 after Friday’s +$0.20 to $4.30 with 112.1 K shares traded <3 month average = 110.5 K shares>after Thursday’s +$0.20 to $4.10 with 191.9 K shares traded. The three (3) sessions of the 2018 have been good as the previous Friday (12/29) closed at $3.67 having been down from Thursday’s $3.67. There is $0.75 in the “till” or an upside of +17.2% which in its history is usually NOT sustainable. AGTC has clinical trial timing issues and spending woes – Maintaining SELL;

bluebird bio (BLUE) closed down -$4.90 to $170.10 with 675.1 K shares traded <3 month average = 888.9 K shares>. BLUE has issued an additional 277,109 shares of common stock at the public offering price of $185 per share, for total gross proceeds of approximately $51.3 million, pursuant to the partial exercise of the underwriters’ over-allotment option in connection with the offering of common stock. After giving effect to this exercise of the over-allotment option, the total number of shares sold by BLUE in the public offering was 3,520,353 and gross proceeds of the offering were approximately $651.3 million – BUY:

Capricor (CAPR) closed up +$0.06 to $1.67 with 347.3 K shares traded <3 month average = 800.8 K shares>. Cash is getting low and CAPR NEEDS to finance. It’s up from $1.57 in five (5) sessions; mark my words, the trigger will be pulled soon – Maintaining SELL;

Cesca Therapeutics (KOOL) closed up +$0.14 to $3.35 with 121.1 K shares traded <3 month average = 78.8 K shares. The aftermarket indication is a negative -$0.04 or -1.19%, it never holds for long; 12/27/17 the share price was $2.80 – SELL;

Osiris Therapeutics (OSIR) closed up +$0.31 to $6.70 with 87.5 K shares traded <3 month average = 21.6 K shares>. On 12/27/17, the price was $5.77, the question I ask is which of their former executives will go to jail and when will their past due filings be applied – other than the, it’s pure speculation – Maintaining SELL;

Pluristem (PSIT) closed up +$0.03 to $1.47. The U.SFDA has cleared PSTI’s Expanded Access Program (EAP) for the use of its PLX-PAD cell treatment in patients with Critical Limb Ischemia (CLI). EAP allows the use of an investigational medical product outside of clinical trials and is usually granted in cases where patients are unsuitable for inclusion under the study protocol and the patient’s condition is life-threatening with an unmet medical need. As part of the program, PSTI’s PLX-PAD cell therapy will be made available to a limited number of Rutherford Category 5 CLI patients in the U.S. who are unsuitable for revascularization and cannot take part in the ongoing P3 clinical study, which is currently enrolling patients in the U.S. and Europe. The PLX-PAD program had already been selected for accelerated approval pathways in both regions, including the FDA’s Fast Track Designation and the European Medicines Agency’s (EMA) Adaptive Pathways program – BUY;

Verastem (VSTM) closed down again on Monday -$0.05 to $2.92 following Friday’s -$0.08 to $2.97 with 1.62 M shares traded<3 month average = 863 K shares> after Thursday’s -$0.09 to $3.05 with 833.2 K shares traded  after Wednesday’s $3.14, Tuesday’s $3.21 and the previous Friday’s (12/29) $3.07 after Thursday’s $3.20. VSTM amended its Loan and Security Agreement with Hercules Capital increasing its existing borrowing limit under the loan facility from $25 million to up to $50 million in financing.  VSTM had received the first $15 million of financing under the original Loan and Security Agreement. Additional tranches of up to $35 million in aggregate will be available to VSTM to drawdown subject to certain conditions – it’s better (cheaper)than an offering, although it still costs stock and warrants – Maintaining BUY;

 

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.