RegMed’s close: one word, headwinds - a source of resistance

November 9, 2015 8:05pm

Performance divergence is continuing, favoring the upside. End-of-year volatility is very likely, so keep an eye on pricing

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U.S. equities closed lower Monday as investors weighed a possible Federal Reserve rate hike in December. U.S. stocks had opened lower and soon proceeded to extend losses, with the Dow falling as much as 242.55 points at its session lows before paring gains slightly ahead of the close.

The NASDAQ closed DOWN -51.82 or -1.01% to 5,147.12 and the DOW or -179.85 or -1% to 17,770.48.

Henry’omics:

• The stem, cell and gene therapy RegMed sector opened - negative as the Advance/Decline Line notched to the upside in the first hour, slipped in the second at the second hour, jumping positive at the mid-day staying there at the 3 pm hour to close in positive territory;

• My fear gauge – The CBOE Volatility Index (VIX) fell below 15 following Friday’s above 16.

Earnings:

• Most would agree the fundamental situation has not changed much, with exception of a handful of “so-so” received financial results/earnings reports, which is different than the previous quarter:

• Avalanche Biotechnologies (AAVL) reported <11/9> a Q3/15 net loss of -$14.1 M or -$0.55 per share with $268.9 M in cash AAVL closed +$0.04 to $9.36;

• Asterias (NYSEMKT: AST) reported <11/9> a Q3/15 net loss of -$3.5 M or -$0.09 per share with $12.6 M in cash AST closed -$0.12 to $5.16;

• Bellicum Pharmaceuticals (BLCM) reported <11/9> a net loss of $13.4 M or -$0.51 per share and $163.2 M in cash and closed UP +$0.37 to $16.76;

• Intrexon (XON) reported <11/9> a net loss of $38.2 M or -$0.34 per share and $352.6 M in cash and closed UP +$0.78 to $39.78;

• Ocata Therapeutics (OCAT) reported <11/9> a Q3/15 net loss of -$3.8 M or -$0.09 per share with $32.1 M in cash, OCAT closed DOWN -$0.29 to $4.46;

• Neuralstem (CUR) reported <11/9> a Q3/15 net loss of -$5.6 M or -$0.06 per share with $18.1 M in cash, CUR closed UP +$0.05 to $1.21;

• Verastem (VSTM) reported <11/9> a Q3/15 net loss of -$15.54 M or -$0.42 per share with $120.5 M in cash, VSTM closed FLAT at $2.13;

A day in the life of the stem, cell and gene therapy RegMed (SCGT & RM) sector:

Volatility has again been seemingly multi directional — meaning that the “our” universe’s low volume added to volatile spikes enhancing retracement of many equities.

• The SCGT & RM equities opened negative with an Advance/Decline line (A/DL) of 17/23 and 3 flats;

• The mid-day concluded positive with an A/DL of 23/18 and 2 flats;

• The closing bell rang positive to end the session with an A/DL of 26/15 and 2 flats.

Monday’s trading indications:  3 hits/ 2 miss

• bluebird bio (BLUE) closed UP – hit;
• Capricor (CAPR) closed UP – miss;
• Cellectis S.A.  ADR (CLLS) closed DOWN – miss;
• Northwest Bio (NWBO) closed DOWN – hit;
• Osiris (OSIR) closed UP – hit;

Riding the indexes and ETFs roller-coaster:

• The iShares Biotechnology Stocks ETF (IBB) closed UP on Monday +0.34 or +0.10% after Friday’s decline of -0.90 or -0.27%;

• The NASDAQ Biotechnology index (NBI) closed UP on Monday +2.30 or +0.07% after Friday’s decline of -12.79 or -0.37%;

• The Russell 2000 (IWM) closed DOWN -1.40 or -1.17% after Friday’s advance of +0.84 or 0.71% on Friday;

• The SPDR SD&P Biotech ETF (XBI) closed UP on Monday +0.63 or +0.89% after Friday’s decline of -0.04 or -0.06%;

Dosing the sector – what a day for the 43 Patients:

• Open: NEGATIVE with 23 decliners, 17 advances and 3 flats;

• Mid-day (1 pm): POSITIVE with 18 decliners, 23 advancers and 2 flats;

• Closing bell: POSITIVE with 15 decliner, 26 advancers and 2 flats

Who was UP – top 5:

• Spark Therapeutics (ONCE) closed up +$3.91 to $59.98;
• Kite Pharma (KITE) +$3.72 to $77.49;
• Bluebird bio (BLUE) +$2.45 to $76.09;
• Juno Therapeutics (JUNO) +$2.21 to $51.90;
• Aduro Biotech (ADRO) closed up +$1.13 to $29.53

Who closed down – top 5:

• Cellectis ADR (CLLS) closed down -$2.13 to $40.01;
• MiMedx (MDXG) -$0.50 to $7.34;
• BioTime (NYSEMKT: BTX) -$0.29 to $3.55;
• Northwest Bio (NWBO) -$0.29 to $4.98;
• Ocata Therapeutics (OCATA) closed down -$0.29 to $4.46

Flat:

• Mesoblast ADR (USOTC: MBLTY) at $12.33;
• Verastem (VSTM at $2.13;

All investments are subject to risks. Investors should consider investment objectives. The information included above as well as individual companies and/or securities mentioned should only construed as an indication from any 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 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.