RegMed Investors’ (RMi) pre-open: this week's who, when and what

March 12, 2018 7:49am

Q4 and FY17 results this week: ATHX, IMUC, BLCM, CAPR, BTX, HSGX and AST

Twenty-one (21) sector companies have released “earnings” with only one (1) having a Q4/17 net income (VCEL with $300 K or +$0.01 per share and their stock has fallen)

Losses are expanding as spending increases but, what’s sustainable it is certainly not share pricing

The question is, who needs to finance after ATM dependence which decrees further selling into any strength and what will be the drivers of fundamentals?

Companies in my headlights: 5 SELLs and 0 BUY

Q4 and FY17 results, this week: ATHX, IMUC, BLCM, CLLS, CAPR, BTX, HSGX and AST

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Higher open expected

Every day, I “make my bones”; it’s time for you to step-up for continued access to what one industry CEO calls the “bible” for smart investing in the RegMed, gene and cell therapy. 

Dow futures are UP +0.35% (+89 points) and NASDAQ futures are UP +0.51% (+36 points)

Stock futures point to strong gains at the open after jobs report

Europe shares higher

Asian stocks rise

Issues to be faced at the open: the latest jobs report muted concerns over inflation and the prospect of faster rate hikes.

Data docket: the U.S. is set to release its monthly budget statement for February at around 2 p.m. ET. Market expectations are pricing in a -$216 billion deficit for the federal government's operating budget.

Been where, done what …

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

• Friday closed POSITIVE with 17 decliners, 21 advancers and 2 flats;
• Thursday closed NEGATIVE with 22 decliners, 17 advancers and 1 flat;
• Wednesday closed POSITIVE with 9 decliners, 29 advancers and 2 flats;
• Tuesday closed POSITIVE with 13 decliners, 22 advancers and 5 flats;
• Last Monday closed POSITIVE with 12 decliners, 27 advancers and 1 flat:

Henry’omics:

From last night’s newsletter, “What is the accurate perception of sector realities; depends on the session, the market and their sensitivities that’s called sentiment. It reminds me that truth is still caught in the rhetoric of which version is malleable in these times. Never believe in what others think, until you understand where the facts begin and end. Be accountable …

Today’s indications:

• The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.12% upside in Monday’s pre-market;
• The SPDR S&P Biotech ETF (XBI) is NOT indicating in Monday’s pre-market;
• The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +0.16% upside in Monday’s pre-open;
• The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.17% upside in Monday’s pre-open

Companies in my headlights: 

Athersys (ATHX) closed up +$0.03 to $1.56 with 361.4 K shares traded <3 month average = 634.1 K shares>. March initiated at $1.34 with a high of $1.61, February started at $1.76 with a low of $1.37 while January initiated at $1.81 with a low of $1.75 and a high of $2.03. Too erratic in a deprecating concentration – Q4 and FY 17 results are coming on Tuesday – SELL;

bluebird bio (BLUE) closed up +$6.00 to $231.95, will the juggernaut ever cease to appreciate? There has to be a slow-down. During February, we saw a start at $205.25, a low of $190.80 and a high of $207.40 while March initiated at $203.15 considering that January opened at $179.75.  Is everyone afraid to get off the bus, and miss the upside scenario - the overloaded “bus” has to stop sometime – Maintaining SELL;

Biostage (BSTG) continues to pull the wool over investor’s eyes after “killing their long suffering” investors in a 1-for-20 reverse split of shares.  March started out at $3.18 and closed 3/9 at $3.21, with February initiating at $3.31 after January’s $1.20. This management team “blew” $30 M and created a $47 M deficit without an explanation to sell for the shortest of dollars ($4 M) to replenish their salary continuance. What are the milestones and catalysts for 2018 – if you’re lucky there is one, on a hot day in Siberia? Control is now extremely limited to very small number of Chinese investors and dependence on day traders for volume. The issues of what this management team did and didn’t do through their 3 year tenure will follow them forever, so what about those missing surgical results, peer reviewed papers, IND filing and “harassment” issues – male and female that were kept “quiet”?, management escaped to spend another day and I am NOT the only one with that opinion! – Maintaining SELL;

Stemline Therapeutics (STML) closed up +$0.90 to $18.50 with 284. # K shares traded <3 month average = 287.4 K shares>. March initiated at $16.75, February at $15.85 with a low of $15.27 and a high of $17.75 while January started at $15.65 and a low of $13.40.  The chart looks a little “peaky” – SELL;  

Vericel (VCEL) closed down -$0.25 to $11.55 after Thursday’s $11.80, Wednesday’s $12.30, Tuesday’s $11.70 and last Monday’s $11.85. VCEL had a net income of $300 K and +$0.01 in Q4 although the FY17 net loss missed expectation. Too much dependence on an ATM for cash; needs a financing – Maintaining 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.