Indication intelligence, analysis and sector perception

Lower open expected; RegMed pre-open, good news, bad news - share prices are undervalued

October 14, 2015 6:45am

The good news, share pricing is due for a rebound from its extremely oversold condition. The bad news is that selling pressures have initiated a short term scenario that provides an open window for greater speculation.

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

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DOW futures are DOWN - 0.1% and NASDAQ futures are DOWN -0.2 %

U.S. stock index futures pointed to a slightly lower open on Wednesday ahead of earnings from big name financial companies and some top-tier data releases that will be closely watched by investors for hints on the strength of the U.S. economy.

European equities opened lower, following a jittery lead set in Asia overnight concerns over the Chinese economy continue to weigh on markets.

Asian shares declined after data showed consumer inflation in China cooled more than expected last month, adding to concerns about the health of the world's second-biggest economy.

Data docket: September's retail sales figures due at 8:30 a.m. ET, which are expected to post a gain of 0.2%, the same rate as the previous month, with the rate of growth in sales ex-auto and gasoline remaining unchanged at 0.3% according to economist at Daiwa Capital Markets, Emily Nicol.

The September retail sales number could be especially key for markets, as traders continue to contemplate the economic reports that could influence the Fed's decision on rates after September's surprisingly weak jobs report. Other data releases include producer price inflation figures are also due at 8:30 a.m., followed by August business inventories data at 10:00 a.m. and the U.S. Federal Reserve's latest Beige Book at 2:00 p.m.

Chinese inflation data, released overnight also weighed on sentiment, cooling more than expected last month, adding to concerns about the health of the world's second-biggest economy.

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

The RegMed sector closed NEGATIVE on Tuesday with 32 decliners, 11 advances and 0 flats following Monday’s NEGATIVE close with 32 decliners, 9 advancers and 2 flats.

From my perspective, current trends indicate that “negativity” is a condition of the stem, cell and gene therapy RegMed (SCGT&RM) sector and it is is due for a rebound from its extremely oversold condition.

There are plenty of reasons to dislike “our” universe right now, but the quantitative depiction suggests that the drip of depreciation may … almost be over!

Once SCGT&RM stocks do find a bottom, I expect a slow and moderate upward trend because there are a number of companies with “fleas” that are holding back many of those who should be appreciating.

Wednesday’s trading indications:

Applied Genetic Technologies (AGTC) closed DOWN -$0.40 to $12.74, a “coiled spring” experiencing TOO much depreciation becoming an any strength trading “vehicle”; Biogen’s BUY-IN at $20.62 is NOT even considered. The message is NOT strong enough! Strong BUY;

Capricor (CAPR) closed UP +$0.18 to $4.55 in a day’s trading range of $4.29 to $4.60. 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;

Cellectis ADR (CLLS) closed DOWN -$2.41 to $23.68, someone has to be “sniffing” around on the depreciation based on past interest and inference – Maintaining BUY;

Fate Therapeutics (FATE) closed DOWN -$0.36 to $4.78, oversold – BUY;

Harvard Apparatus RM (HART) closed DOWN -$0.11 to $0.68, oversold. No news keeps the opportunity under wraps – BUY;

Intrexon (XON) closed DOWN -$4.20 to $32.05, oversold – BUY;

Kite Pharma (KITE) closed DOWN -$2.27 to $59.44, oversold – Maintaining BUY;

Spark Therapeutics (ONCE) closed UP +$0.79 to $48.04 – trading stock – Maintain SELL;

Verastem (VSTM) closed DOWN -$0.04 to $1.84, after all the costs of a cut-back have been subtracted from the cash position of $132 M <6/30/15>, there is still $3.25 +/- of cash related to the current share price – Maintaining BUY;

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.

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

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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.

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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.