February 7, 2020 8:43am

I saw it yesterday, as the cell and gene therapy sector declined and today is U.S. nonfarm payrolls announcement which added 225 K jobs in January versus 158 K expected

News: Applied Genetic Technologies Corporation (AGTC) priced its offering of 6.5 M shares at $5.00 per share and granted an overallotment option of 975 K shares. The gross proceeds of $32.5 M before deducting underwriting discounts and commissions and estimated offering expenses are expected.

Pre-open indications:  never sell into a decline only strength

Who is defining the metrics for individual investors? Spare the SELL or BUY call, underfund the portfolio – SUBSCRIBE!

 

Dow future are DOWN -0.16% (-46 points), S&P futures are DOWN -0.11% (-4 points) and NASDAQ futures are DOWN -0.15% (-14 points)

 

U.S. stock index futures fell on Friday, erasing some gains following a four-session winning streak;

European markets declined as the pan-European Stoxx 600 slipped 0.2% below the flatline in early trade;

Asia Pacific markets mostly fell as investors waited for the release of China’s January trade numbers. China’s trade data for January, that was supposed to be released at 11.00 a.m. on Friday, will be combined with February’s trade data, according to the country’s customs office. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.69% in the afternoon;

 

Data Docket: U.S. nonfarm payrolls announced adding 225 K jobs in January versus the 158 K expected. Economic data placed some downward pressure on markets after German industrial production plunged in December. The Federal Statistics Office said Friday morning that total industrial output, comprising manufacturing, energy and construction, fell 3.5% from November in calendar-adjusted terms, well below the 0.1% rise forecast by economists. French industrial output also fell further than expected in December, tumbling 2.8% against an expectation of -0.4%.

 

Henry’omics:

In compiling my indication signals, I draw on logic, historical precedents, specific knowledge of the sector and its practices as to lessons learned.  It’s important for investors to identify and determine which indication is actual performance based.

Investors keep watching for the signs of economic deterioration of the coronavirus.

 

It’s a … SHAME … that Applied Genetic Technologies Corporation’s (AGTC) offering is priced at $5.00 for the 6.5 M share offering after the stock tanked again on Thursday (-$1.40 or -18.54% to $5.71) after Wednesday’s notice of an offering and the stock is down pre-open  -$0.41 or -8.06% to $5.25.

Should have PULLED the offering and waited …but, it is better, if AGTC can … build on new money to diversify their platform, collaborators and seek new partners.

 

The RegMed sector suffers the tourist routine … traders hear a piece of news, get excited or contemplate a pumping to decide to buy and then dumping to sell.  These same trading -buyers/sellers can also be very fickle as their purchasing habits are often based on emotion, not sound investment strategies.

What am I doing today – sitting and watching!

I am not lazy in defining downside; everyone needs a break and a day off from a capricious market.

 

Thursday night’s post’s title: “don’t chase short-term momentum; I kept saying, trim the risk from portfolio and today’s Advance/Decline (A/D) line 0f 12/23 proved it.”

·         The NASDAQ closed UP +63.47 points (+0.67%);

·         The IBB closed up +0.91% and XBI closed up +0.10%;

·         The range of the 12 upside was +0.30% (ALNY) to +756.86% (BLCM – on reverse) while the 23 downside ranged from -0.29% (VCEL) to -18.54% (AGTC); 

·         4 out of the 12 upside had higher than the 3-month average volume;

·         4 out of the 23 downside had higher than the 3-month average volume;

 

Q1:

February registered 1 negative and 3 positive closes – so far.

January registered 10 positive, 9 negative closes and 2 holidays.

Q4:

·         December register 11 negative and 10 positive closes

·         November registered 1 holiday, 12 positive and 8 negative close;

·         October registered 10 positive, 1 neutral and 14 negative closes;

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Pre-open indications:  don’t sell into a decline … buy into bottoms ... if percieved. never forget we are diving into Q4 earnings season.

 

 

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.