October 21, 2015 12:58pm

 

When lightning strikes, the hit sets a stock on fire with the share price descending rapidly, sector realities – “bite”!

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Stocks continued to struggle in mixed terrain at midday Wednesday.  The NASDAQ swayed back and forth between narrow gains and losses; the S&P 500 inched up 0.1% and the Dow was up 0.4% in the stock market today. Volume tracked higher than the same time Tuesday on both the NYSE and the NASDAQ exchanges.

The NASDAQ is UP +1.23 or +0.03% to 4,882.51 while the DOW is UP +90.09 or +0.52% to 17,307.20.

 

 

Pre-open:

 

 

Research notes:

 

 

 

 

A day in the life of the stem, cell and gene therapy RegMed sector:

The stem, cell, gene therapy and regenerative medicine (SCGT&RM) stocks opened higher and promptly slumped to the downside on Wednesday after Athersys (ATHX) disclosed the end of the Chugai’s “parting of ways”.

  • The SCGT & RM equities opened positive with an A/DL of 25/12 and 6 flats dropping to a precipitous negative first half hour A/DL’ of 13/25 and 5 flats keeping to a more negative first hour of an A/DL of 8/31 and 4 flats accentuating a mid-day A/DL of 8/31 and 4 flats. 

How does the old Ben Graham quote go? "In the short run, the market is a voting machine but in the long run it is a weighing machine"? Yeah, well, I think that applies nicely right now to our current situation.

  • Volume is still low in respect to the downdraft;
  • The iShares Biotechnology ETF (IBB) shed about 2%;
  • My fear index, the CBOE Volatility Index (VIX) traded near 15.

A domino effect, when speculators, investors and traders start selling stocks - the fall accentuates scaring “all” to sell even more shares, which further enhances the chain reaction!

 

 

Dosing the sector – 43 Patients:

  • Open: POSITIVE with 25 decliners, 12 advances and 6 flats;
  • 1st half-hour: NEGATIVE with 25 decliners, 13 advancers and 5 flats;
  • First full hour (10:30 am): NEGATIVE with 31 decliners, 8 advancers and 4 flats;
  • Second hour (11:30 am): NEGATIVE with 28 decliners, 9 advancers and 6 flat;
  • Mid-day (12:30 pm): NEGATIVE with 31 decliners, 8 advancers and 4 flats

 

 

Who is down – top 5?

  • Regenxbio (RGNX) is down -$1.32 to $16.15;
  • uniQure (QURE) -$0.68 to $17.10;
  • Intrexon (XON) -$0.495 to $31.505;
  • Fate Therapeutics (FATE) -$0.40 to $3.499;
  • Bellicum (BLCM) is down -$0.38 to $13.32

 

 

Who was UP?

  • Kite Pharma (KITE) is up +$0.71 to $67.78;
  • Spark Therapeutics (ONCE) +$0.66 to $54.98;
  • Northwest Bio (NWBO) +$0.471 to $5.15;
  • Sangamo (SGMO) +$0.09 to $6.38;
  • Opexa (OPXA) +$0.07 to $3.20;

 

 

Who is flat?

  • ReNeuron (RENE.L) at $3.875;
  • Histogenics (HSGX) at $4.48;
  • ImmunoCellular (NYSEMKT: IMUC) at $0.43;
  • BioLife Solutions (BLFS) at $2.34;

 

 

 

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

I also bring fresh perspectives that yield a whole that is greater than the sum of the parts as I convey a spectrum of factors that explain outcomes, analytical principles and analysis without the encumbrance of I-Banking.

 

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.