Indication intelligence, analysis and sector perception

Lower expected. RegMed’s pre-open, the sector may look tempting, but there are multiple risks

October 19, 2015 6:32am

The problem is “momentum” names reflect weakness more often with rug-pulling surprises!

Monday’s “10”! 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 DOWN -0.1% and NASDAQ futures are also DOWN at-0.1%

U.S. stock index futures indicated a slightly lower open on Monday, as investors digested the latest economic data from China, ahead of some more major Q3 earnings.

European markets opened flat but quickly moved higher after Chinese growth figures confirmed slowing growth in the world's second-largest economy.

Asian shares were mixed amid choppy trade after China's gross domestic product (GDP) showed the world's second-biggest economy cooled lesser than expected. A string of monthly indicators released alongside the GDP data hinted at lingering weakness in the economy.

Data docket: Housing market indicators, kicking off on Monday with October's NAHB housing index at 10 a.m. ET. Additionally, there are a number of Fed speakers in action this week, with Federal Reserve Governor Lael Brainard speaking on regulatory burden at 10 a.m. and Richmond Fed President Jeffrey Lacker due to speak at noon.

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

The RegMed sector closed NEGATIVE on Friday with 30 decliners, 12 advancers and 1 flat following

Thursday’s POSITIVE close on with 1 decliner, 37 advancers and 5 flats;

Wednesday’s NEGATIVE close with 23 decliners, 17 advancers and 3 flats ;

Tuesday’s NEGATIVE close of 32 decliners, 11 advances and 0 flats;

Last, Monday’s NEGATIVE close with 32 decliners, 9 advancers and 2 flats.

Share pricing is going to be continuously pressured by volatility and the lack of volume!

Who is scared more right now – investors re upcoming financial results or traders hoping for the usual ripe condition for speculation?

The answer will be – the path of least resistance is downward!

_{^{As stocks regained some of the ground lost in their recent swoons and short lived booms - more volatility may lie ahead.}}

Monday’s trading indications:

Applied Genetic Technologies (AGTC) close DOWN-$0.15 to $13.07 on 187.4 K share volume <3 month average = 124.7 K shares> Maintaining BUY;

Bluebird bio (BLUE) closed DOWN -0.26 to $85.57, has seen better days. It’s time for a comeback – oversold – BUY;

Capricor (CAPR) closed UP +$0.06 to $4.57 on 7.9 K share volume <3 month average = 23.3 K shares>. Be ready for a pending offering - Maintaining SELL;

Caladrius (CLBS) has seen very few good days since the new management team of Mazzo (CEO) and Vaters (CFO/President) appeared on the scene. Vaters is gone (immediately) with a “package “, is it now time to quiet the discontent and blame the dysfunctional BOD for side-lining former CEO Robin Smith, MD - SELL;

Juno therapeutics (JUNO) closed DOWN -0.62 to %0.21 to 5.649 M share volume <3 month average = 1.5 M shares>.– Maintaining SELL;

Intrexon (XON closed DOWN -$0.41 to $33.07, oversold – BUY;

MiMedx (MDXG) closed DOWN -$0.06 after Thursday’s UP +$0.43 after Wednesday’s decline of -$0.49 post Tuesday’s drop of-$1.40. 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 – Maintaining BUY;

Osiris (OSIR) closed UP +$0.02 after Thursday’s -$0.34 following Wednesday’s decline of -$0.32 after Tuesday’s -$0.45, oversold. Be ready for a positive Q3 – Maintaining BUY;

Spark Therapeutics (ONCE) closed UP +$0.31 after Thursday’s +$1.60 after Wednesday’s +$2.86 following Tuesday’s +$0.79> to $50.50. It seems ONCE has become a trading vehicle for speculators – Maintaining SELL;

Verastem (VSTM) closed DOWN -$0.03 $2.13; 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.

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.