October 15, 2015 6:27am

 

The stem cell and gene therapy sector is so oversold, why haven’t we seen CEOs, BODs, management teams and insiders buying in?

If “they” are not willing to bet on a rebound, why should investors? Thursday’s “10” movers and shakers trading forecast; Subscription required: http://www.regmedinvestors.com/user/register

 

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DOW futures are UP +0.7% and NASDAQ futures are UP +0.9 %

 

U.S. stocks poised for firm gains ahead of trio of Fed speakers setting-up  for a rebound on Thursday, with stock futures keying off gains in Asia and moving sharply higher ahead of a raft of economic data and a trio of Federal Reserve speakers

European equities are higher after three sessions of declines, but a tumble in shares of Burberry highlights investor concerns about China’s cooling economy.

Asian stocks marched higher, with beaten-down commodity plays stabilizing after weak U.S. data overnight heightened expectations that the Federal Reserve will hold off raising interest rates.

 

Data docket: Three readings are released at 8:30 a.m. ET on Thursday:

  • Weekly jobless claims are forecast to have risen to 270,000 from 263,000 last week;
  • Inflation for September is expected to have slipped to negative 0.2%, down from negative 0.1% in August;
  • The Empire State manufacturing index for October is forecast to improve to negative 8.3 from negative 14.7 last month;
  • At 10 a.m. ET, the Philadelphia Fed manufacturing index for October is due, projected to climb to negative 1 from negative 6 in September;
  • St. Louis Fed President James Bullard gives the opening remarks at a conference in St. Louis at 8 a.m. ET.  Bullard is not a voting member of the central bank’s policy setting committee this year.  New York Fed President William Dudley, who is a voting member, will give a speech in Washington at 10:30 a.m. ET.

 

 

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

 

The RegMed sector closed NEGATIVE on Wednesday with 23 decliners, 17 advancers and 3 flats following Tuesday’s close of 32 decliners, 11 advances and 0 flats following Monday’s NEGATIVE close with 32 decliners, 9 advancers and 2 flats.

 

 

From the title, a  Form 4 is a statement of changes of beneficial ownership of securities.

Corporate insiders – meaning a company's officers and directors, and any beneficial owners of more than ten percent (10%) of a class of the company's equity securities registered under Section 12 of the Securities Exchange Act of 1934 – must file with the SEC a statement of ownership regarding those securities. Changes in ownership are reported on Form 4 and must be reported to the SEC within two business days.

Why have we not seen a dramatic inflow of SEC Form 4’s from CEOs and company insiders?  Is it the pain of depreciated share pricing in the stem, cell and gene therapy regenerative medicine (SCGT&RM) sector that’s causing “insiders” to not validate their ownership in company roles to support their stakeholders.

Current oversold and always undervalued trends indicate that “negativity” is a condition of the SCGT&RM sector; which should put in focus any and all insider support <purchases>!

Yesterday’s, last week’s or last month’s sell-offs  show it’s not easy to get out of a position without a big loss even when selling into relative strength but, it’s even harder to determine when it’s time to get back in.

Another reiteration, 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.

 

 

Thursday’s trading indications:

  • Applied Genetic Technologies (AGTC) closed UP +$0.04 <after being down Tuesday -$0.40> to $12.78. AGTC has been experiencing TOO much depreciation, it has become a trading “vehicle” even with Biogen’s BUY-IN at $20.62. Messaging is NOT strong enough!  Maintaining BUY;
  • Asterias (NYSEMKT: AST) closed UP +$0.04 with Wednesday trading range of $4.33 to $5.18 <after Tuesday’s -$0.27> - BUY;
  • Bellicum Pharma (BLCM closed DOWN -$0.71 to $13.28, oversold – BUY;
  • Capricor (CAPR) closed DOWN -$0.04 to $4.46 on small volume <2646 shares>. When one is right seven (7) out of ten (10) times, investors need to balance their perspective - be ready for a pending offering - Maintaining SELL;
  • Fate Therapeutics (FATE) closed DOWN -$0.47 <after Tuesday’s -$0.36> to $4.31, oversold – BUY;
  • Harvard Apparatus RM (HART) closed UP +$0.03 <after Tuesday’s -$0.11> to $0.71, oversold. No news keeps the opportunity under wraps – BUY;
  • Intrexon (XON) closed UP +$0.95 <after Tuesday’s -$4.20> to $33.00, still oversold – BUY;
  • MiMedx (MDXG) closed DOWN -$0.49 to $7.95. After reporting preliminary Q3/15 results and offering up guidance below expectations, shares in MiMedx Group (MDXG) dropped -$1.40 to $8.44 or - 14.23%, Tuesday. The drop in MDXG's shares would seem to indicate a lackluster quarter for the company, but Q3/15 results outpaced analyst estimates on the top line – BUY;
  • Osiris (OSIR) closed DOWN -$0.32 <after Tuesday’s -$0.45>, oversold.  Be ready for a positive Q3;  OSIR went ex-dividend yesterday - BUY;
  • Spark Therapeutics (ONCE) closed UP +$2.86 <after Tuesday’s +$0.79> to $50.90. It seems ONCE has become a trading vehicle for speculators – Maintaining SELL;

 

 

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.