Indication intelligence, analysis and sector perception

Lower open expected. RegMed’s pre-open, a number of companies are trapped in a financing conundrum

October 29, 2015 6:26am

The stem, cell and gene therapy RegMed sector is dependent on equity financing and caught between a rock and a hard place. “Our” universe has entered a period where winning is now about being able to jump through an “iffy” open financing window.

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DOW futures are DOWN -0.4% and NASDAQ futures are DOWN -0.5%

Stock futures pointed to opening losses on Thursday, ahead of gross domestic product data, which have taken on more importance as the FED left open the possibility of an interest-rate hike in December at its latest meeting.

European markets were mixed in morning trade amid a busy day for corporate earnings and following a rate decision by the U.S. Federal Reserve.

Asian stocks outside China and Japan declined after the FED kept interest rates unchanged but signaled that a December rate hike was still on the table.

Data docket: GDP numbers coming at 8:30 a.m. ET. Economists are expecting a 1.8% rise, after a 3.9% gain in Q2. Weekly jobless claims are coming at 8:30 a.m. Eastern, ET at 10 a.m., the pending home-sales index for September.

The RegMed sector closed POSITIVE on Wednesday, NEGATIVE on Tuesday and Monday, POSITIVE on Friday following NEGATIVE closes on Thursday and last Wednesday of my 43 coverage universe.

Tuesday closed POSITIVE on Wednesday with 10 decliners, 30 advancers and 3 flats following Tuesday’s NEGATIVE close with 24 decliners, 18 advancers and 1 flat after Monday’s NEGATIVE close with 28 decliners, 14 advancers and 1 flat.

The stem, cell and gene therapy RegMed (SCGT&RM) has another hurdle of measurement and it revolves around who has raised money in the last two years and can they do it again in this market and to the short-term future? I wouldn’t be holding my breath.

The problem facing the SCGT&RM sector is the year’s history of pricing volatility, appreciation and deprecation based on clinical initiatives and disappointing results.

How many companies have declared a “raise” victory in the past and then moved to an even lower level as their shares prices remain stagnant and undervalued!

The SCGT&RM sector has been taking massive flak in the form of trading rather than investing with non-communicating managements leave investors more confused by their lack of interaction other than the kumbaya conferences where they listen to themselves with a false sense of achievement.

The countdown to price appreciation is not with those companies who need to finance - development platforms without clinical standing and data won’t sell!

Thursday’s trading indications, stocks to watch:

Capricor (CAPR) closed UP +$0.14 <after Tuesday’s -$0.18> to $4.16 with volume of 13.6 K <3 month average = 22.5 K shares>. The “SELL”, I have been saying comes true time after time after time. Be ready for a pending offering - Maintaining SELL;

Fate Therapeutics (FATE) closed UP +$0.74 <after Tuesday’s +$0.03> to $4.31. The force <momentum> is with them!– BUY;

Intrexon (XON) closed UP +$1.84 <after Tuesday’s+$1.21> to $35.81. Speculators will “nibble” – Maintaining SELL;

Histogenics (HSGX) closed UP +$0.20 <after Tuesday’s +$0.19 and Monday’s -$0.74>. The problem is that the company is a one trick pony, that’s spending too much with one clinical trial that is the be all or end all and it’s too close for comfort with to bet with all the comparables – SELL;

Juno Therapeutics (JUNO) closed UP +$0.57 to $53.56. Another share price that has the force with them – Maintaining BUY;

Ocata Therapeutics (OCATA) closed UP +$0.24 to $4.31. OCAT has been being played as a trading vehicle but, is its substance expiring? SELL;

MiMedx (MDXG) closed UP +$0.40 to $9.49. The firm has earnings coming up soon, and events are shaping up quite nicely for their report – BUY;

Northwest Bio (NWBO) closed UP +$0.27 to $4.99. Who can believe anything from this company – Maintaining SELL;

Sangamo (SGMO) closed UP +$0.27 to $7.14, reporting a loss of $9.2 M in Q3 and a loss of $0.13 per share. The results surpassed Wall Street expectations. SGMO posted revenue of $8.6 M missing street forecasts. Sangamo expects full-year revenue in the range of $35 to $40 M. Sangamo shares have fallen –53% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $7.14, a drop of -43% in the last 12 months – SELL;

Verastem (VSTM closed -$0.03 to $1.86. Still undervalued in respect to its cash status – 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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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.