May 8, 2018 8:18am
My word is short-coming in regard to quarterly results
Watch total operating expense and SG&A expense as conditions of net loss
Pre-open indications: 1 BUY and 1 SELL
Q1/18 releases Tuesday: (5/8): AGTC, BLCM, CRSP, VCEL, SGMO, ONCE and RGNX
I produce performance in both up- and down markets. This newsletter satisfies these dual criteria, with both reasonable returns articulating the definition of risks. Anxious investors need to understand that return on an investment is achieved short-term (in “our” universe and in this market) which will impact your portfolio to justify the utilization of your earned dollars!
The understanding of indications sheds light on share pricing!
A sliding open expected
Dow futures are DOWN -0.25% (-60 points) and NASDAQ futures DOWN -0.35% (-24 points)
U.S. stock index futures slipped ahead of Tuesday's open, as markets around the world turned their attention to the U.S. administration and the future of the country's involvement in the 2015 nuclear accord with Iran.
European markets edged higher
Asian stocks closed higher
Data docket: the NFIB Small Business Optimism Index is scheduled to be released at 6 a.m. ET, followed by the Job Openings and Labor Turnover Survey (JOLTS) at 10 a.m. ET.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Tuesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is NOT indicating in Tuesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.28% downside in Tuesday’s pre-open
Henry’omics:
Today’s moves: The moves in premarket trade come as global markets remain on edge, awaiting an announcement by President Donald Trump on the future of an international nuclear agreement.
I'm into short time horizons … maybe it's ADD, or as I call it - PSTD due to the froth of battle of the oversold versus the overbought ...
“Street” analysts base their ratings of stocks on price targets their I-Bank “bosses” dictate. The ratings are buy, sell and hold, or, alternatively, outperform, underperform and neutral, or overweight, underweight and equal weight. Nearly all analysts provide 12-month price targets.
However, owning a stock for a single year is fraught with risk. Even steady performers can post losses at any given time.
So why do analysts keep 12-month price targets?
I don’t …
From Monday’s night’s newsletter: yippee-yi-yo-ki-yay, the sector got on the horse. One pattern of Q1 “earnings”, lucky to being announced; expectations have seen pricing “fall” in the period from a day or two before the release to jumping two days.”
I also stated, “Consensus is about to be a smack to pricing as LPS (loss-per-share) of the smaller-caps. I believe there is more to cash positions than ever before.”
Could be a flip side day in the sector; Q1 results are going to drag down, shove or be pulled but, you’re still going down!
Review the past session of 45 covered companies – new batting line-up:
- Monday closed POSITIVE with 15 decliners, 29 advancers and 1 flat;
- Friday closed POSITIVE with 8 decliners, 34 advancers and 3 flat
- Thursday closed NEGATIVE with 29 decliners, 11 advancers and 5 flats;
- Wednesday closed POSITIVE with 15 decliners, 22 advancers and 8 flats;
- Last Tuesday closed POSITIVE with 15 decliners, 25 advancers and 5 flats;
A re-cap:
- A new month to measure … in the second week’s sessions in May, four (4) positive and one (1) negative closes;
- In the last five (5) sessions, the iShares NASDAQ Biotechnology (IBB) was down in three (3) and up in two (2) session for an aggregate of negative -2.16% ,
- Monday’s gainers ranged from +0.17% <BLUE +$0.30 > to +7.85% <BCLI +$0.27 > in 29 equities;
- Monday’s decliners ranged from -0.25% < RGNX -$0.10> to -5.67% <SLDB -$1.07 > in 15 equities;
Out and about: quarterly releases, this week:
Tuesday (5/8): AGTC, BLCM, CRSP, VCEL, SGMO, ONCE and RGNX
Wednesday (5/9): BOLD
Thursday (5/10): ATHX, BLFS, BSTG, CAPR, CLBS, FATE, HSGX, and BTX
My daily evaluation: in relation to quarterly results AKA, earnings - also watch the stock-based compensation “numbers” and losses due to warrants
Company in my headlights:
AxoGen (AXGN) closed up +$0.65 to $43.15 and is down -$1.25 or -2.90% after proposes an offering of 2 M share offering with an overallotment of an additional 300,000 shares. AXGN had 34.68 M shares outstanding and a float of 27.82 M. In the aftermarket AXGN was down -$1.25 or -2.90% so far … SELL;
Ultragenyx Pharmaceuticals (RARE) closed up +$3.46 to $57.96 with 671.8 K shares traded after Q1 results with an aftermarket indication of an upside +$1.54 or +2.66%. Net income was $30.3 million, or $0.63 per basic share and $0.62 per diluted share, compared with a net loss for Q1/17 of $68.3 million, or $1.63 per share, basic and diluted. Cash, cash equivalents, and investments were $571.3 million as of 3/31/18. The results beat “street” expectations of $0.60 per share while posting revenue of $10.7 million in Q1, which did not meet “street” forecast of $53.4 million. RARE shares have increased 25% since the beginning of the year. In the final minutes of trading on Monday, shares hit $57.96, a fall of 5% in the last 12 months – 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.
