Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) pre-open: this sector is short-term oriented

March 6, 2018 8:09am

What we invest in needs to be based on what we get from it

… So who is keeping you and your portfolio rich and replenished?

It is certainly NOT a long-term scenario

Q4 and FY17 results: RGNX and ADVM

Pre-open indications: 2 BUY and 2 SELLs

If you had been subscribing, today’s events would not have been a surprise …

Higher open expected

Dow futures are UP +0.60% (+150 points) and NASDAQ futures are +0.63% (+43 points)

U.S. stock index futures posted strong gains ahead of Tuesday's open after North Korea expressed a willingness to talk about denuclearization. Easing concerns surrounding a potential trade war also helped futures.

European markets higher despite Italy uncertainty

Asian stocks rallied as concerns over a potential trade war faded

Issues to be faced at the open: will “our” universe jump as the markets fly and will bluebird bio (BLUE) continue to appreciate?

Data docket: data on factory orders are due to come out at 10 a.m. ET.

Fed speakers are on the podium: a number of officials from the U.S. Federal Reserve are due to speak. New York Fed President William Dudley will be at a USVI Nonprofit Leaders Breakfast Roundtable, where he's set to talk on recovery efforts following Hurricane Irma and Maria. Fed Governor Lael Brainard is in New York at a Money Marketeers Forum, while Dallas Fed President Robert Kaplan will be at CERAWeek in Houston. Investors will be paying close attention to each person's comments, following Fed Chair Jerome Powell's remarks last week, which stated that the Fed could raise interest rates three or more times during 2018.

Been where, done what …

RegMed, stem, gene and cell therapy sector’s record over 5 sessions (of 40 covered companies):

Monday closed POSITIVE with 12 decliners, 27 advancers and 1 flat:
Friday closed POSITIVE with 7 decliners, 30 advancers and 3 flats;
Thursday closed NEGATIVE with 24 decliners, 14 advancers and 2 flats;
Wednesday closed NEGATIVE with 25 decliners, 14 advancers and 1 flat;
Last Tuesday closed NEGATIVE with 24 decliners, 15 advancers and 1 flat;

Henry’omics:

From last night’s newsletter, “…does volatility equate to optimism or are we valuing the oversold from last week? After one positive close (Friday) which followed three (3) negative sessions, is it a recovery or a set-up for a yet another correction?”

Volume is still low in 99% of the “usual suspects” today.

Be nervous …

Today’s indications:

The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.35% upside in Tuesday’s pre-market;
The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.04% upside in Tuesday’s pre-market;
The Health Care Select Sector SPDR ETF (XLV) is indicating a NEGATIVE -0.03% downside in Tuesday’s pre-open;
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.57% upside in Tuesday’s pre-open

Companies in my headlights:

Aduro Biotech (ADRO) closed up +$0.30 to $6.75 with a positive aftermarket indication of +$0.10 or +1.48% after announcing the earning of a $3 million development milestone payment under its worldwide licensing agreement with Merck (MSD) for the initiation of a Phase I clinical trial of its anti-CD27 antibody. The P1 trial is designed to evaluate the safety and pharmacokinetics of the anti-CD27 antibody when administered alone and in combination with pembrolizumab in adults with advanced solid tumors – BUY;

bluebird bio (BLUE) closed up +$9.40 to $215.50 with 627.7 K shares traded <3 month average = 587.4 K shares>. Four (4) sessions ago the share traded at $201.00, eight (8) sessions ago, the shares traded at $201.20 and seventeen (17) sessions ago, the shares trade d at $190.80 while on 1/16, it traded at $163.35 – love the upside but, trading is also greedy and there comes a day for a big profit to come back – Maintaining SELL;

Fate Therapeutics (FATE) closed up +$3.50 to $+$0.50 to $13.77 with 1.33 M shares traded <3 month average = 729.9 K shares traded> after Friday’s +$1.90 to $13.27 with 1.98 M shares traded after Thursday’s +$0.11 to $11.37, Wednesday’s -$0.24 to $11.26 and last Tuesday’s -$0.56 to $11.50. The pre-market indication is a positive +$0.13 or +0.94% – BUY;

Vericel (VCEL) closed up +$$0.30 to $11.85 with 9.56 M shares traded <3 month average = 685.4 K shares> after Friday’s $8.35. The aftermarket indicates a negative -$0.45 or -3.80% – be ready for an offering 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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

Do you have an opinion you would like to share with us? We would like to hear from you.

Please e-mail us at hwm@regmedinvestors.com.

Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

RegMed Investors (RMi) or Regmedinvestors.com content is the intellectual property of Henry McCusker. Any copying, republication or redistribution of RMI’s content, including by framing or similar means, is expressly prohibited without the prior written consent of Scimitar; who also shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. For additional information on other Scimitar media services or reposting please email hwm@regmedinvestors.com.

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.