October 30, 2015 7:10am

 

Many sector “participants” have wasted many opportunities to communicate as investors aren’t afforded much of a chance to get answers about how their investment has been managed.

Henry’s Friday “9” picks.  Subscription required: http://www.regmedinvestors.com/user/register

 

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DOW futures and NASDAQ futures are UP +0.1%

 

U.S. stock index futures indicated a higher open on Friday as traders anticipated the release of a set of potentially key economic data.

European stocks were slightly lower pressured by weak corporate earnings.

Asian shares mostly regained their footing, following the Bank of Japan's (BOJ) decision to stand pat on monetary policy and as China's abolition of its one-child policy bolstered dairy and baby products makers.

 

Data docket: The employment cost index (ECI), personal income and spending data, and personal consumption expenditure prices (PCE) – the Fed's preferred inflation measure – are all set to be released at 8:30 a.m. ET. Consumer sentiment is set to follow at 10:00 a.m.

 

 

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

Thursday closed NEGATIVE with 27 decliners, 14 advancers and 2 flats following Wednesday’s POSITIVE close of 10 decliners, 30 advancers and 3 flats after Tuesday’s NEGATIVE close with 24 decliners, 18 advancers and 1 flat post Monday’s NEGATIVE close with 28 decliners, 14 advancers and 1 flat.

 

 

The stem, cell and gene therapy RegMed (SCGT&RM) sector is drifting with the trading breezes without reflecting any direction, rhyme or reason.

  • Name me a company or any sector “participant” that has the ability of capturing the interest of investors and communicating to their shareholders?

Who is … communicating other than when forced by quarterly filings anr still bandy with selective extrapolation of their financial metrics!

  • Second question, which CEO has positioned “his or her” company to the state-of-the-industry trends leveraging their strength and identifying their “softness” to position their platform and standing?

We live in an investing environment obsessed with the search for what is real.  

  • There should be a “razzy” for the worst and a badge for the best CEO communicator! Even if the news or story has been bad – at least it was communicated and could mollify investors.  Stakeholders understand that perfection resides in another world and trials do fail but, after multiple trips to the “well” … there needs to be an investor tribunal, that is probably what analysts should be doing!

I have many a story to tell, truth is stranger than fiction; however, regardless of the idiom that you choose, there’s no denying that it’s all about protecting the “rice bowl”.

  • Who is speaking-up for investors, for some BODs and managements, it seems all about what they “present” is how they think of each another!

I’ve said in the past that I feel like an ombudsman when it comes to coverage of “our” universe. 

 

 

Friday’s trading indications, stocks to watch:

  • Applied Genetic Technology (AGTC) closed UP +$0.01 to $12.20. Am I the only one to recognize the value as Biogen (BIIB) invested at $20.62? I will be proven right – Maintaining BUY;
  • Capricor (CAPR) closed DOWN -$0.01 <after Wednesday’s +$0.14 post Tuesday’s -$0.18 after Monday’s +$0.12> to $4.15 with volume of 44.8 K <3 month average = 22.4 K shares>. The “SELL”, I have been saying comes true time after time after time.  Be ready for a pending offering - Maintaining SELL;
  • Histogenics (HSGX) closed UP +$0.09 <after Wednesday’s +$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 to bet with all the comparables – Maintaining SELL;
  • Juno Therapeutics (JUNO) closed DOWN -$2.17 and is down -$0.62 in the aftermarket <after being up on Wednesday +$0.57> to $51.39. Another share price that has the force with them –BUY to SELL;
  • Ocata Therapeutics (OCATA) closed UP +$0.12 <after Wednesday’s +$0.24> to $4.43. OCAT has been being played as a trading vehicle but, its substance is expiring. Maintaining SELL;
  • MiMedx (MDXG) closed DOWN -$2.20 <after being UP on Wednesday+$0.40 at $9.49> to $7.29.Maintaining BUY <on any dips>;
  • Osiris (OSIR) closed DOWN -$1.86 to $16.43. Pre-earnings release “jitters”, undervalued - BUY on dips;
  • Sangamo (SGMO) closed UP +$0.55 <after Wednesday’s +$0.27> to $7.69 after reporting a loss of $9.2 M in Q3 and $0.13 per share. The results surpassed Wall Street expectations as 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 – Maintaining SELL;
  • Verastem (VSTM closed DOWN -$0.03 <after Wednesday’s -$0.03> to $1.83. Still undervalued in respect to its cash status, a trading vehicle lately – 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.