RegMed Investors’ (RMi) pre-open: today April ends, it came and we are glad it’s going

April 30, 2018 7:54am

The IBB (+1.39) is up, a good indication while futures are higher and fluctuating

This brings us to May, quarterly results i.e. earnings season and a scramble to access capital markets for the cash deprived

Never forget, there is always a “carve up or out” in the sector and market …

Pre-open indications: 5 BUY

Where the understanding of the indications sheds light on share pricing!

Higher open expected

Dow futures are UP +0.42% (+103 points) and NASDAQ futures UP +0.43% (+29 points)

U.S. stock index futures posted solid gains ahead of Monday's open, as investors prepare for more economic data and corporate earnings.

European equities hovered around the flat-line, the last trading day of the month, as investors digested merger news and focused on earnings.

• The retail sector was marginally higher in mid-morning deals, following news that Asda and Sainsbury's will merge in a roughly £15 billion ($20.67 billion) deal.

Asian stocks closed higher on the last trading day of the month, as investors focused on a mix of ebbing geopolitical tensions,

Data docket: personal income and outlays are due out at 8:30 a.m. ET, followed by Chicago purchasing manager index (PMI) at 9:45 a.m., pending home sales for March at 10 a.m. and the Dallas Fed manufacturing survey at 10:30 a.m. ET <Eastern Time>.

Today’s indications:

• The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +1.39% 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 +0.13% upside in Monday’s pre-open;
• The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.32% upside in Monday’s pre-open

Henry’omics:

Today’s moves:  The moves in premarket trade came as markets overseas ticked higher. In Asia, stocks finished trade positively as investors watched for political news coming out of the Koreas. In Europe, equities attempted to post gains as merger news and earnings kept market participants busy. <CNBC>

What do we have to look forward to “May is typically a mixed month for the major indexes, and the results are particularly bad in mid-term (election) years?”

From Friday’s night’s newsletter: “…enough of being oversold. The sector is preparing to end on a positive note but volatile month of April.”

I am still on the side of recognizing NEWS as a contribution to value … however, after a big jump in the A/DL (advance/decline line), low volume, weakened technicals, dramatic upside volatility, questionable relative strength – have I listed enough – I’d be ... skimming and taking some profit (from peaks) from many of the upsides.”

Review the 6 sessions of 40 covered companies:

• Friday closed POSITIVE with 10 decliners, 27 advancers and 3 flats;
• Thursday closed POSITIVE with 18 decliners, 21 advancers and 1 flat;
• Wednesday closed NEGATIVE with 22 decliners, 15 advancers and 3 flats;
• Tuesday closed NEGATIVE with 25 decliners, 9 advancers and 6 flats;
• Monday closed NEGATIVE with 28 decliners, 7 advancers and 5 flat;
• Last Friday closed NEGATIVE with 22 decliners, 12 advancers and 6 flat;

A re-cap:

• There have been 20 sessions in April,  there have been eleven (11) negative closes,  eight (8) positive closes and one (1) neutral close (of 40 covered companies);
• In the last six (6) sessions, the iShares NASDAQ Biotechnology (IBB) was down in four (4) and up in two (2) session for an aggregate of positive +0.81% after Friday’s +0.29%, Thursday’s +1. 98%, Wednesday’s -0.01%, Tuesday’s -1.445%, Monday (-0.16%) and last Friday’s (-0.88%);
• Friday’s decliners ranged from -0.4% <RGNX -$0.15> to -3.7% <AST -$0.05 > in 10 equities;
• Friday’s gainers ranged from +0.45% < ONCE +$0.35 > to +20.09% <NWB) +$0.035 > in 27 equities;

My daily evaluation:  A good day to revel in the UPSIDE while it lasts – BUY on news yet, be ready to take profit!

Company in my headlights:

Capricor (CAPR) closed up +$0.02 to $1.35 on Friday and is up +$0.08 or +5.93% on news of an approval of an IND for the HOPE-2 clinical trial at UC Davis Medical Center. The trial will test the safety and efficacy of CAPR’s cellular therapy, CAP-1002, in boys and young men with Duchenne muscular dystrophy, a devastating and fatal genetic disorder with limited treatment options and no cure. The question will be, is the CIRM funding the successor trials for cash is getting SHORT and a financing is desperately NEEDED. On news – BUY;

MiMedx Group (MDXG) closed down -$0.10 to $7.82 with 1 M shares traded after Thursday’s -$0.32 to $7.92 with 2.9 M shares traded<3 month average = 3.49 M>.  +$0.81 to $8.24 (+10.90% increase) with 4.73 M shares traded. Q1/18 earnings were approximated to be good and the shares were down as I am remembering 1/29/18’s pricing $17.96 – Maintaining BUY:

Pluristem (PSTI) closed flat at $1.24 and is UP +$0.17 or +13.71% on news of an IND being cleared by the FDA to imitate the treatment of acute radiation syndrome (ARS). The IND allows Pluristem to treat victims who may have been acutely exposed to high dose radiation due to nuclear attack or accident. With this IND in place, PSTI will now start the necessary preparations in order to keep an emergency stock of PLX-R18 on hand for use in such events. In the treatment of acute radiation syndrome (ARS); the IND allows treatment of victims who may have been acutely exposed to high dose radiation due to nuclear attack or accident. With this IND in place, PSTI will now start the necessary preparations in order to keep an emergency stock of PLX-R18 on hand for use in such events – BUY;

Sangamo Therapeutics (SGMO) closed up +$0.50 to $16.75 with 2.19 M shares traded ,3 month average = 2.3 M shares> announced the California Institute for Regenerative Medicine (CIRM) has awarded an $8 million grant to evaluate ST-400, a gene-edited cell therapy candidate for people with transfusion-dependent beta-thalassemia and their $200 M 12.3 M share offering closed priced at $16.25  – BUY;

Spark Therapeutics (ONCE) closed up +$0.35 to $77.47 and should be up upon having entered into an agreement to sell its rare pediatric disease priority review voucher (PRV). The PRV was received when LUXTURNATM (voretigene neparvovec-rzyl) was approved by the U.S. FDA. Under the PRV program, a sponsor who receives FDA approval for a rare pediatric disease drug or biologic may qualify for a voucher to be redeemed at a future time for priority review of a subsequent marketing application for a different product. The sale of our PRV will provide an influx of capital to reinvest back into the research and development of our robust pipeline of investigational gene therapies that may provide benefits for people with limited treatment options. Per the terms of the agreement with Jazz Pharmaceuticals (JAZZ); ONCE will receive $110 million upon closing of the transaction – 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.