March 7, 2018 7:49am

Another risk-off day of the “usual suspects”

Risk is a “situation” which involves hazards

The issue is the susceptibility of pricing and the degree of lost value

 

Pre-open indications: 3 weakened with upside and 9 suspects to take a hit – just might be a day to lighten the load, make a “buck” or come back and even buy a dip

 

Out and about: Mesoblast Limited (ASX:MSB) (MESO) has entered into a US$75 million ATM, a non-dilutive, four(4) year credit/debt facility with Hercules Capital, Inc. (HTGC), a specialty finance company … more

 

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

Lower open expected

 

Dow futures are DOWN -0.97% (-242 points) and NASDAQ futures are DOWN -0.57% (-40 points)

 

US stocks expected to tumble at the open after Cohn resigns

European markets edge lower

Asian shares slide on trade fears after Cohn resignation

 

Issues to be faced at the open: political developments within the U.S. administration unnerved markets worldwide.

Data docket: ADP employment is due out at 8:15 a.m. ET, followed by international trade and productivity & costs data at 8:30 a.m. ET. The Fed's latest Beige Book is set to be published at 2 p.m. ET, while consumer credit is due out at 3 p.m. ET. Mortgage Applications will come out at 7 a.m. ET.

Fed speakers are on the podium: Atlanta Fed President Raphael Bostic will be in Fort Lauderdale, Florida, speaking at a Broward Workshop event. Meantime, New York Fed President William Dudley will be in Puerto Rico where he is expected to talk about restoration efforts after the hurricane season in 2017.

 

 

Been where, done what …

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

  • Tuesday closed POSITIVE with 13 decliners, 22 advancers and 5 flats;
  • 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;
  • Last Wednesday closed NEGATIVE with 25 decliners, 14 advancers and 1 flat;

 

 

Henry’omics:

From last night’s newsletter, “… flickering as the sector opened up, slipped at 11 a.m. resumed to the up-side at the mid-day as the 1:30 p.m. mark flickered again to closed positive. Uncertainty is in the air.”

Reiterating, “Volume is still low in 99% of the “usual suspects” today. Be nervous …?

I don’t see a correction but, a “bleed” of some value to those who have seen and felt the upside in the last three (3) sessions!

I expect some of the usual over-reaction but, that is all it is …

 

Out and about:

Mesoblast Limited (ASX: MSB) (MESO) has entered into a US$75 million ATM. A non-dilutive, four-year credit/debt facility with Hercules Capital, Inc. (HTGC), a leading specialty finance company … MESO drew the first tranche of US$35 million on closing. An additional US$15 million may be drawn on or before Q4 FY2018, and a further US$25 million may be drawn on or before Q3 CY2019, in each case as certain milestones are met.  Interest on the facility will accrue at a rate of 9.45% per annum with the interest only period lasting up to 30 months upon the satisfaction of certain conditions.

 

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a NEGATIVE -1.23% downside in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.82% downside in Wednesday’s pre-open

 

 

Companies in my headlights:

Susceptible to a correct seeking sector/market:

  • Applied Genetic Technologies (AGTC)
  • bluebird bio (BLUE) – time to lighten and take a profit
  • Caladrius Biosciences (CLBS)
  • Cellectis SA (CLLS)
  • MiMedx (MDXG)
  • Osiris (OSIR)
  • Sangamo (SGMO)
  • Vericel (VCEL)
  • VistaGen (VTGN)

 

Seeking upside:

  • Regenxbio (RGNX)
  • uniQure (QURE)
  • Fate Therapeutics (FATE)

 

 

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.