Lower open expected. RegMed’s pre-open, we’re ready for an upside

October 26, 2015 6:49am

We’ve were down most of last week and it looks to go up to me

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

U.S. stock futures were pointing to a slight pullback at the start on Monday, as investors take a breather ahead of a Federal Open Market Committee meeting later this week and a crop of important earnings.

European stocks are lower from the two-month high they hit Friday after China cut interest rates and the European Central Bank signaled more stimulus.

Most shares in Asia rally after Chinese authorities unleashed their latest round of easing measures, although Hong Kong and Australia give up earlier gains, amid lingering worries over China’s slowing growth.

Data docket: New-home sales for September are due at 10 a.m. ET, followed by a reading for the Dallas Fed manufacturing index at 10:30 a.m. But much attention will focus this week on the two-day Fed meeting that ends on Wednesday.

The RegMed sector closed POSITIVE on Friday following NEGATIVE closes on Thursday, Wednesday and Tuesday and last Monday’s NEUTRAL close.

The stem, cell and gene therapy RegMed week that was:

·         Friday’s POSITIVE close with 12 decliners, 29 advancers and 2 flat;

·         Thursday’s NEGATIVE close with 27 decliners, 13 advancers and 3 flats;

·         Wednesday’s NEGATIVE close with 31 decliners, 11 advancers and 1 flat;

·         Tuesday’s NEGATIVE close with 28 decliners, 10 advances and 5 flats;  

·         Monday’s NEUTRAL close with 20 decliners, 20 advancers and 3 flats.

The carousel effect was a definitive share mover with the disconcerting music for the week – unquestionably a Rogers and Hammerstein musical!

• That “carousel” story revolves around carousel barker Billy Bigelow, whose romance with millworker Julie Jordan comes at the price of both their jobs. He attempts a robbery to provide for Julie and their unborn child; after it goes wrong, he is given a chance to make things right. A secondary plot line deals with millworker Carrie Pipperidge and her romance with ambitious fisherman Enoch Snow.

Have we seen a bromance of momentum and volatility coming at the price of robbing from any upside? A secondary plot is the role of speculators and traders in creating a trading impetus for the next week!

• Risks remain high in the stem, cell and gene therapy RegMed sector, but the key to managing expectation is recognizing that probabilities change daily, sometimes hourly as news froths to the daylight.

Monday’s trading indications:

• Applied Genetic Technologies (AGTC) closed DOWN -$0.04 to $12.52. I still wait for the “coiled spring”. AGTC is experiencing TOO much depreciation due to trading alacrity. Biogen’s BUY-IN of $20.62 is NOT being realized. Strong BUY;

• Capricor (CAPR) closed DOWN -$0.10 to $4.08. The “SELL”, I have been saying comes true time after time after time.  Be ready for a pending offering - Maintaining SELL;

• Caladrius Biosciences (formerly NeoStem (NBS) closed DOWN -$0.05 to $1.21. September and October haven’t been good to “them”; they just can’t find the “gear shift” but, still undervalued and oversold – BUY;

• Intrexon (XON) closed UP +$1.95 to $32.93. Speculators will “nibble” on strength – SELL;

• Juno Therapeutics (JUNO) closed UP +$1.82 to $49.22. Strength will be sold into - Maintaining SELL;

• Kite Pharma (KITE) closed UP +$2.80 to $70.61, speculators will “nibble’ the strength - SELL;

• Sangamo Biosciences (SGMO) closed UP +$0.76 to $7.19, after excruciating weeks of “flux”, the upside comes due – BUY:

• Spark Therapeutics (ONCE) closed UP +$2.85 to $61.81. Speculators will “nibble” on ten (10) days of upside strength - Maintaining SELL;

• uniQure (QURE) closed UP +$0.76 to $17.96. The month of October hasn’t been good, oversold and undervalued –even with Friday’s up-draft – BUY;

• Verastem (VSTM) closed DOWN -$0.13 to $1.81. 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.