September 23, 2015 6:29am
“Our’ universe faces a period of strong headwinds related to rebalanced pricing, opinion and conviction. There will be no quick bounce-back! Review the morning “5”
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Stocks mentioned in the pre-open report: bluebird bio (BLUE), Capricor (CAPR), Harvard Apparatus RM (HART), Intrexon (XON) and Organovo (ONVO)
DOW futures are UP +0.2% % and NASDAQ futures are UP +0.3%
U.S. stocks were expected to open higher on Wednesday, with a rally in Europe acting as buffer to further signs of weakness in China's economy.
European markets reversed early fall to trade higher in morning London trade.
Asian shares skidded deeper into negative territory following preliminary China manufacturing purchasing managers' index data, with the benchmark Shanghai Composite stock index closing more than 2% lower. Japanese markets were closed for a holiday.
Data docket: In addition to the China PMI data, markets also digest PMI readings from Europe and the September U.S. flash manufacturing PMI at 09:45 a.m. ET.
The RegMed sector closed NEGATIVE on Tuesday and Monday followed POSITIVE closes on Friday, Thursday and last Wednesday.
The RegMed sector closed NEGATIVE on Tuesday with 33 decliners, 7 advancers and 3 flats following Monday’s NEGATIVE close with 36 decliners, 6 advancers and 1 flat of the 43 companies followed.
Against the backdrop of the past two (2) days, I think investors will now focus on identifying forward value with the understanding that even with news flow; any perception of strength is to be sold into!
- It’s still about sentiment and some but, not all sector “participants”; still aren’t aligned with investor expectation as investors are very nervous and are looking for any reason to de-risk.
Between seasonality and concerns about upcoming earning’s <LPS - loss per share>releases> September and October are going to be tough. The sector is primed for a repricing, unless there is another negative catalyst that could take it lower.
Wednesday’s trading indications:
- bluebird bio (BLUE) closed DOWN -$7.60, oversold. BLUE seems to be always a target of “profiteering” related to investors' jitters over the run up since shares have more than doubled since they started the year. Three trials are expected to produce data later this year. There will be down days – Maintaining BUY;
- Capricor (CAPR) closed UP +$0.10 with 22.6 K (3 month average = 27.7 K shares)>. Another day of cross-current selling – the pattern has seen small volumes, up <less frequently> and down pressure since March; there are up days where speculators push and pull but, ultimately the share pricing just incrementally moves - Maintaining SELL;
- Harvard Apparatus RM (HART) closed DOWN -$0.17 on 165.3 K shares <3 month average = 153.8 K shares> and is oversold – Maintaining BUY
- Intrexon (XON) closed DOWN -$1.40, oversold –Maintaining BUY;
- Organovo (ONVO) closed UP +$0.13 on 1.7 M share <3 month average = 1.663 M shares>. Maintaining BUY;
The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
