April 2, 2018 8:16am

Is welcomed by many as the last weeks have been poisonous

Can we re-boot?

 

... In a new quarter, while Q1 financial results are still in the box waiting to be poured

Company in my headlights: 1 BUY

 

If you had been subscribing, you’d be aware of the issues affecting the upcoming session

 

Weak open expected

 

Dow futures are DOWN -0.53% (-127 points) and NASDAQ futures are DOWN -0.80% (-53 points)

 

Stocks set for a weak open as China slaps new tariffs on US goods

Most markets are closed for Easter holiday Monday

Asia markets lose steam to close lower as investors digest China tariffs

 

Today’s concern: An ongoing trade spat between the U.S. and China continued to develop, with China announcing overnight that it was implementing tariffs on 128 types of U.S. imports starting Monday.

Data docket:  a March manufacturing PMI is due to be released at 9:45 a.m. ET, while a March ISM manufacturing index and a February construction spending index are both set to be released at 10 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating 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 NOT indicating in Monday’s pre-open;
  • The iShares Russell 2000 (IWM) is a NEGATIVE -0.09% downside indicating in Monday’s pre-open

 

Henry’omics:

How had I closed-out the month and quarter with words:  “an overdue rally; I didn’t give up on the sector Thursday (with 22 advancers and 16 decliners); the last trading day of the month and the quarter, as stem, cell and gene therapy companies curbed steep declines.”

What to be on the look-out for … first, it was the market unrest for investors, who coped with President Trump announcing tariffs and suggesting other protectionist trade policies, and a controversy over how Facebook (FB) handles its user data, a scandal that sparked a huge exodus from the social-media giant’s stock which ended-up weighing on small-cap shares.

 

Review the last 5 session’s close (of 40 covered companies):

  • Friday was a market holiday;
  • Thursday closed POSITIVE with 16 decliners, 22 advancers and 2 flats;
  • Wednesday closed NEGATIVE with 26 decliners, 13 advancers and 1 flat;
  • Tuesday closed NEGATIVE with 35 decliners, 2 advancers and 3 flat;
  • Last Monday closed POSITIVE with 17 decliners, 21 advancers and 2 flats;

 

Volatility (the VIX) is still a big driver having been down -12.68% on Thursday  after Wednesday’s +0.76%, Tuesday’s +6.99% post last  Monday dropping -15.44%.

 

What I am “feeling” and seeing this a.m.: I waited to see the open and the 10:30 a.m. numbers … before I pushed any button!

 

A re-cap: “Equities have had a volatile quarter to start off 2018 and CEOs need to be judged by their underperformance by comparing clinical results and share pricing to the year’s open; herein lies the issue – communicated expectation or the lack of compounded by next-to-nothing guidance fosters pessimism.”

  • Thursday’s decliners ranged from -0.33% <VSTM -$0.01 > to -3.68% <SGMO -$0.73 > in 16 equities;
  • Thursday’s gainers ranged from +0.14% <AXGN +0.05> to +10.70% <BTX +$0.26> in 22 equities;

 

Consider the iShares NASDAQ Biotechnology (IBB) over the last ten (10) sessions is still down -6.54%:

  • Friday was a market holiday
  • Thursday was up +0.72%
  • Wednesday +0.82%
  • Tuesday -2.77%
  • Last Monday +2.68%...
  • Friday -2.63%
  • Thursday -2.30%
  • Wednesday -0.98%
  • Tuesday +0.02%
  • The previous Monday -2%

 

My evaluation: investors SHOULD have fear of getting caught on the wrong side of the sector as Q1 results will identify spending versus development and cash positions.

 

Company in my headlights:

 

BioLife Solutions (BLFS) closed up on Thursday +$0.03 to $5.11 with low 31.5 K shares traded <3 month average = 60.2K shares>. BLFS announced preliminary revenue for the three months ended March 31, 2018. Q1/17’s preliminary revenue from sales of  proprietary CryoStor® and HypoThermosol® bio-preservation media products reached $3.8 million, the 11th consecutive quarter of record revenue. This represents 61% growth over Q1/17 and 22% sequential growth over Q4/17 - 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.