May 9, 2018 8:02am

The IBB is pitching a +0.46% upside

 

Today sets the tone for tomorrow’s batch of quarterly releases

 

Pre-open indications: 2 SELL

Financing: AxoGen (AXGN) prices upsized 3 M share offering at $41.00

Q1/18 releases Wednesday:  (5/9): ADVM, AST, BOLD and STML

 

I produce content for both up- and down markets. This newsletter satisfies these dual criteria, for reasonable returns and articulating the definition of risks. Anxious investors need to understand that return on an investment is achieved in the short-term (in “our” universe) which impacts your portfolio justifying the tender of your capital.

The understanding of indications sheds light on share pricing!

 

Higher open expected

Dow futures are UP +0.45% (+110 points) and NASDAQ futures UP +0.29%% (+20 points)

 

U.S. stock index futures ticked higher ahead of Wednesday's open, as markets reacted to Donald Trump's decision to pull out of the nuclear deal with Iran.

European markets higher

Asian markets closed slightly lower on Wednesday.

 

Data docket: Mortgage applications are due out at 7 a.m. ET, followed by producer price index (PPI) data at 8:30 a.m. ET and wholesale trade figures at 10 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating an upside of +0.46% in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating 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 an upside of +0.46% in Wednesday’s pre-open

 

Henry’omics:

Today’s moves:  U.S. stock index futures ticked higher ahead of Wednesday's open, as markets reacted to President Donald Trump's decision to pull out of the nuclear deal with Iran.

From Tuesday’s night’s newsletter: “the sector is poorer with quarterly results; LPS (loss-per-share) numbers were on display with a net income by Regenxbio (RGNX).”

I also stated that, “… retail trading has had a bigger impact on overall trading, which contributed to the market’s volatility with … retail investors reducing positions as well as broad equity market exposure. SO, sector executives had BETTER get-on-the-stick and start RE-COURTING investors to SPUR momentum!”

 

Review the past 5 session of 45 covered companies:

  • Tuesday closed NEGATIVE with 28 decliners, 16 advancers and 1 flat;
  • 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;
  • Last Wednesday closed POSITIVE with 15 decliners, 22 advancers and 8 flats;

 

A re-cap:

  • A new month to measure … in the second week’s sessions in May, three (3) positive and two (2) 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 -1.62% after Tuesday’s -0.57%, Monday’s +0.64%,  Friday’s +1.06%, Thursday’s -1.36% and last Wednesday’s -1.32%;
  • Tuesday’s decliners ranged from -0.18% <BMRN -$0.16 > to -9.85% <SGMO -$1.60 > in 28 equities;
  • Tuesday’s gainers ranged from +0.11% <XON +$0.02 > to +7.96% <GBT +$3.60 > in 16 equities;

 

 

Quarterly releases, this week:

Wednesday (5/9): ADVM, AST, BOLD and STML

Thursday (5/10): ATHX, BLFS, BSTG, CLBS, FATE, HSGX, BTX and XON

 

My daily evaluation: caution persuades me to pay attention to those reporting Q1 LPS (loss-per-share) earnings on Thursday.

 

Company in my headlights:

Applied Genetic technologies (AGTC) closed down -$0.15 to $4.85 following Monday’s $5.05 after reporting a loss of $8.1 million or -$0.45 per share in Q3 release. The results did not meet “street” expectations of a loss of $0.25 per share after posting revenue of $3.6 million. A year ago, they were trading at $5.85. The aftermarket indication is a downside -$0.05 or -1.03% - SELL;

AxoGen (AXGN) closed up +$0.20 to $43.35 after Monday’s +$0.65 to $43.15 and is down -$1.25 or -2.90% after proposing an offering of 2 M share offering which has been upsized to 3 M shares with an overallotment of an additional 450,000 shares (a 150 K shares upsize) priced at $41.00. AXGN had 34.68 M shares outstanding and a float of 27.82 M. r … 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.