Indication intelligence, analysis and sector perception

Flat to higher open expected; the cell therapy and RegMed sector needs to tackle their most basic insecurity – cash positions!

October 9, 2015 7:54am

Amid the share pricing bust and short lived booms, there is hope for some companies with strong balance sheets. The continual issue is without capital market access, most if not all will wither on the vine as operating costs soar

Friday’s movers and shakers trading forecast; Subscription required: http://www.regmedinvestors.com/user/register

Make RegMed Investors your daily destination. We’ve gathered and sifted through news and share pricing data you need in one convenient spot.

DOW futures are UP +0.1% and NASDAQ futures are DOWN -0.0%

U.S. stock index futures indicated a flat to higher open on Friday, with traders set to continue digesting Thursday's release of the minutes from the U.S. FED's September meeting and looking to next week, when earnings season will begin in earnest.

European stocks traded higher with the pan-European Stoxx 600 index trading 0.4% higher with the majority of sectors trading in positive territory.

Asian stocks marched higher, following a positive lead from U.S> markets, fueled by dovish signals from the U.S. Federal Reserve minutes.

Data docket: Import prices released at 8:30am, with wholesale trade data due at 10:00am. Fed Vice Chair William Dudley is due to speak to CNBC today at 11:00am ET. Separately, the Atlanta Fed's Dennis Lockhart and the Chicago Fed's Charles Evans are also scheduled to speak.

The RegMed sector closed POSITIVE on Thursday and Wednesday, NEGATIVE on Tuesday following a POSITIVE close on Monday and last Friday.

The RegMed sector closed <so far this week>:

Thursday’s POSITIVE close with 19 decliners, 22 advancers, and 2 flats following
Wednesday ‘s POSITIVE close with 14 decliners, 26 advancers and 3 flats
Tuesday’s NEGATIVE close with 27 decliners, 14 advances and 2 flats
Monday’s POSITIVE close with 9 decliners, 33 advancers and 1 flat.

It's the perception that it might be easier to wait a week to look at a screen or open a brokerage statement than understand what seems to being priced into “our’ universe?

Avoid companies built on capital market’s access shell games!

Investors ask me all the time … what is the reason I get so contrarian on the stem, cell and gene therapy RegMed companies … their co-dependence on I-Banks continually fund their businesses and I am beginning to take a moral stance against hedge fund induced welfare.

It seems every publicly traded company in “our” universe has tripped the “green paper” flowered path to the capital markets to sustain their basic existence – some as many as four times in a three year period as spending has gotten … totally out-control!

The problem is to many need to run that “green paper” brick road again and again as then soon as possible!

“Our” universe’s day-to-day business is less about people who suffer from the lack of treatments but, those lucky enough to see those desired compounds in development … survive for the likelihood of patient populations having the capacity to pay for them.

G&A costs are driving the development pipeline not R&D!

Friday’s trading indications:

My caution remains as an old Wall Street saying is that a rising tide lifts all boats, but no matter which way the market is moving, there are stocks that will always go their own way;

The iShares Nasdaq Biotechnology ETF (IBB) closed DOWN -0.59 or -0.19% on Thursday following Wednesday’s advance of +5.88 or +1.95% following Tuesday decline of -11.29 or -3.60% after Monday’s -2.33 or -0.74%;

After the hop-scotch week, who is willing in their right mind to be LONG – the financial release boulders are weakening on “Sentiment Mountain”!

Applied Genetic Technologies (AGTC) is a “coiled spring” experiencing TOO much depreciation due to trading alacrity. Biogen’s BUY-IN of $20.62 is NOT being realized. The message is NOT strong enough! - Still a Strong BUY;

Bellicum Pharma (BLCM) closed DOWN -$1.19, October’s flip-flops have been weaned from September’s peaks. Yes it is a trading market but, inherent value needs to be NOTICED – BUY;

Blue bird bio (BLUE) closed DOWN -$5.80 to $88.50. Speculation and trading volatility is “restraining” its intermittent appreciation – Maintain SELL;

Capricor (CAPR) closed UP +$0.18 to $4.29. Do not be fooled by short term volume and price appreciation – it will be sold into. There are still “inside” issues in CAPR beyond filing for a $75 M mixed shelf and a pending offering - Maintaining SELL;

Caladrius Bioscience (CLBS) closed DOWN -$0.02 to a wholesome <sarcasm> $1.38. CLBS lost its newest CFO/President finally putting the right person in place! CLBS needs a finer tuning. So, yet again … what is the new of newest message of immediate exits – SELL;

Cellectis ADR (CLLS) closed DOWN -$0.48 to $26.77, someone has to be “sniffing” around on the depreciation based on past interest and inference – BUY;

Fate Therapeutics (FATE) closed DOWN -$0.23 to $5.50. Oversold, October hasn’t been a good month but, September had it appreciating as high as $7.03 following August’s high of $7.75 – Strong BUY;

Verastem (VSTM) closed DOWN -$0.14 <after being UP +$0.28> to $1.98 with 832.1 K shares traded. VSTM has $3.58 cash per share, no debt and $132.09 M in cash (6/30/15). The most recent news has VSTM cutting its workforce. It will be reduced by 50% to 20 FTEs (employees). A whole lot of cash that could be dealt to a prospective buyer or merger candidate!! Maintaining BUY yet, speculators will gobble from the upside;

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

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 qualitative 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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

Do you have an opinion you would like to share with us? We would like to hear from you.

Please e-mail us at hwm@regmedinvestors.com.

Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

RegMed Investors (RMi) or Regmedinvestors.com content is the intellectual property of Henry McCusker. Any copying, republication or redistribution of RMI’s content, including by framing or similar means, is expressly prohibited without the prior written consent of Scimitar; who also shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. For additional information on other Scimitar media services or reposting please email hwm@regmedinvestors.com.

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

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 qualitative 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.