January 11, 2018 6:11pm
The sector opened down, flipped barely up and closed to the upside with an advance/decline line of 22/15 and 3 flat (of 40 covered)
While the NASDAQ (+0.81%), IBB (+0.29%), XBI (+0.60%), XLV (+0.43%) and IWM (+1.69%) were up
Where are the headlines from the SF conference?
The question is also (?), where are funds investing their risk dollars - not in the sector as many are just staying where they are “Waiting for Godot”
I do NOT want to come across as a pessimist but, the reality of the sector NEEDS to be understood!
Pre-open indications: 4 hits and 2 miss (by pennies)
Out and about: The Biostage (BSTG +$0.09) chronicles …
Thursday’s results have implications to Friday’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!
From the pre-open’s newsletter, “show me the ROI. Dear CEO, 2017 is over, what is your company going to do for investors in 2018 or did you forget it is their company as well? Companies if they’re going to keep investors in the fold, better be prepared to guide, beat expectation and be more transparent. Investors were sacrificed for the needs of the business continuance (financing, dilution and depreciation); they better be ready to make it right! You want a multiple, enlighten the polarized …”
A buy that worked last year, won't or isn't the same even ... though there are MANY oversold; the aspect of risk is still problematic.
The RegMed and cell therapy sector rebounded from losses posted in the previous session - minimally.
Remember, we are coming into the Q4/17 reporting season and how much cash was spent as compared to development results and then factor in share price as the ice cream melts with a number of financings are desperately needed.
Many companies will extend their ATMs but, sooner than later the depreciation and dilution will take its toll (don’t forget there is a stock component attached to these deals and warrant coverage)!
I do NOT want to come across as a pessimist but, reality of the sector NEEDS to be understood and KNOWN!
The advance/decline line scenario of 40 SCGT & RT covered companies:
· The open was negative with an A/DL of 13/26 and 1 flat ;
· The mid-day was negative with an A/DL of 18/19 and 3 flat;
· The close was positive with an A/DL of 22/15 and 3 flat;
MY working trend lines or indications:
… The greatest volume to the downside: RENE.L, MDXG, NWBO, ADVM and XON
… Upside volume was weighted to: CYTX, CUR, JUNO, CAPR and VTGN
… Biggest $ downside: CLLS (-$0.70), MDXG (-$0.38), QURE (-$0.31), BLUE (-$0.30) and ADVM (-$0.28)
… Largest $ upside: RGNX (+$1.90), ONCE (+$1.21), JUNO (+$1.15), AXGN (+$0.45) and OSIR (+0.27)
… Flat: STML, VCEL and AGTC
- Applied Genetic Technologies (AGTC) closed $0.00 – hit;
- Capricor (CAPR) closed up +$0.10 – miss; NEEDS to finance!
- Cesca Therapeutics (KOOL) closed down -$0.08 – hit;
- Intrexon (XON) closed down -$0.17 – hit;
- Osiris Therapeutics (OSIR) closed up +$0.32 – miss; too many criminals!
- Verastem (VSTM) closed up +$0.05 – hit;
Out and about:
Biostage (BSTGD) This management team WIPED OUT 20 M of holder’s shares and investment!
Opened at $1.82 (previous closed $1.91) closed +$0.09 or +4.71% in a day’s range of $1.81 to $1.94 with low 3,538 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!
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 declaration, my OPINION is still “COVER UP of male and female harassment and corporate MISDEEDS “by members of management team!
What did happen to (reasons) and the story “around” the IND NOT being filed and the cmo and president leaving the company?
Watch the stock the day’s range is slipping with volume every day even though it is up and down day traders will cause its downfall!
U.S. stock-market indexes closed at records on Thursday, driven by a rally in energy and materials sectors, which followed rising oil prices higher.
· The S&P 500 SPX, +0.70% gained 19.33 points, or 0.7%, to 2,767.56.
· The NASDAQ advanced by 58.21 points, or 0.8%, to 7,211.78.
· The Dow rose 205.60 points, or 0.8%, to 25,574.73.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, Thursday traded at9.87, up +0.51% …
- Wednesday traded at 9.82, down -2.58% after Tuesday traded at 10.08, up +5.88% after Monday traded at 9.52, up +3.25%, Friday traded at 9.22, flat at 0.00% and last Thursday traded at 9.22, up +0.77% …
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Thursday was up +1.69%
· Wednesday was up +0.01%
· Tuesday was down -0.14%
· Monday was up +0.17%
· Friday was up +0.21%
· Last Thursday was up +0.24%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Thursday was up +0.29%
· Wednesday was up +0.45%
· Tuesday was up +1.88%
· Monday was down -1.33%
· Friday was down -0.13%
· Last Thursday was down -0.82%
The count - decliners versus gainers:
……. look at the differences in decliners:
· Thursday’s decliners ranged from -0.17% <BLUE -$0.30> to -6.47% <ADVM -$0.009> in 15 equities;
· Wednesday’s decliners ranged from -0.17% <BLFS -$0.01> to -13.23% <KOOL -$0.50 > in 18 equities;
· Tuesday’s decliners ranged from -0.28% <JUNO -$0.14> to -5.84% < BLCM -$0.55> in 18 equities;
· 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;
· Last Thursday’s decliners ranged from -0.70% <PSTI -$0.01> to -8.45% <XON -$1.19> in 19 equities;
… Look at the percentage’s (%) and spreads …
· Thursday’s gainers ranged from +0.34% <BLCM +$0.03> to +12.67% <ISCO +$0.19> in 22 equities;
· Wednesday’s gainers ranged from +0.11% <BLCM +$0.01> to +10.12% <NWBO +$0.031> in 20 equities;
· Tuesday’s gainers ranged from +0.68% <VSTM +$0.02> to +12.84% <KOOL +$0.43> in 22 equities;
· 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;
· Last Thursday’s gainers ranged from +0.45% <QURE +$0.09> to +13.95% <AST +$0.30> in 21 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.