November 12, 2015 7:14am

 

Meek earnings in some cases expose underlying corporate problems. But, diagnoses of a problem need examination of the symptoms!

Henry’s “7” Thursday trading picks. Subscription required: http://www.regmedinvestors.com/user/register

 

Make RegMed Investors your daily destination. We’ve gathered and sifted through news and share pricing data you need in one convenient spot.

 

 

DOW futures are DOWN -0.1% and NASDAQ futures are FLAT at 0.0%

 

U.S. stock index futures indicated a lower open on Thursday as traders anticipated the release of jobs data as well as comments from a range of Federal Reserve speakers.

European equities turned lower again, giving up modest gains seen after European Central Bank President Mario Draghi hinted at more monetary easing, while engine maker Rolls-Royce saw severe declines after a profit warning.

Asian equities outside Hong Kong were lackluster, with weakening commodity prices, concerns over a slower-growing China and a looming U.S. rate hike pressurizing markets across the region.

 

Data docket:  Initial claims are due at 8:30 a.m. ET, with JOLTS – or job opening and turnover data, a number watched by the Fed – following on at 10:00 a.m. ET.

 

Fed Chair Janet Yellen will make welcoming remarks at a Fed conference on post-crisis monetary policy in Washington at 9:30 a.m. ET.

  • Although the official who might make more news is New York Fed President William Dudley. He will speak on the economic outlook at the New York Economics Club at midday and will be taking questions from the group. Fed officials have talked up the central bank's intention to raise interest rates in December if economic data are strong enough, and last week's monthly employment report gave them another shot of confidence;
  • Fed Vice Chair Stanley Fischer also speaks at 6 p.m. ET at the Fed conference on monetary policy. His topic is the transmission of exchange rate changes to output and inflation;
  • Other Fed speakers on Thursday include St. Louis Fed President James Bullard, who will speak on the economy and policy at 9:05 a.m. ET at the Cato Institute's annual monetary conference. Ed Richmond Fed President Jeffrey Lacker will also speak at Cato at 9:45 a.m. Chicago Fed President Charles Evans speaks at 10:15 a.m. at a National Communities Council conference.

 

 

The RegMed sector closed NEGATIVE on Wednesday and Tuesday following POSITIVE close on Monday and a NEGATIVE close on last Thursday.

Wednesday closed NEGATIVE with 24 decliners, 17 advancers and 2 flats as Tuesday closed NEGATIVE with 27 decliners, 14 advancers and 2 flats following Monday’s POSITIVE close with 15 decliners, 26 advancers and 2 flats.

 

 

What moves the stem, cell and gene therapy regenerative medicine (SCGT&RM) sector? There are various forces, but the four (4) main sector movers are:

  •  Buyers versus sellers
  • Technicals
  • Sentiment
  • Seasonality & tax selling

The question is … can buying initiatives sustain or outweigh the pile-in or ups and outs of traders, speculators and the “robot” programs?

 

The closing patterns and ETF/Indexes are also at ODDS:

·         Four (4) ETFs and indexes don’t look or feel good – 1 session down, 2 days up so far this week and a split decision ;

·         The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Wednesday -5.11 or -1.54% after Tuesday’s +1.38 or +0.42% following Monday’s advance of +0.34 or +0.10%;

·         The NASDAQ Biotechnology index (NBI) closed DOWN -49.32 or -1.42% after Tuesday‘s advance of 13.99 or +0.40% following Monday’s advance of +2.30 or +0.07%;

·         The Russell 2000 (IWM) closed DOWN on Wednesday -1.03 or -0.87% after Tuesday’s +0.35 or +0.30% following Monday’s decline of -1.40 or -1.17%;

·         The SPDR SD&P Biotech ETF (XBI) closed DOWN -.20 or -1.69% on Wednesday after Tuesday’s decline of  -0.25 or -0.35% following Monday’s advance of +0.63 or +0.89%;

 

 

Thursday’s --- trading indications, stocks to watch:

  • Spark Therapeutics (ONCE) closed +$0.55 to $60.26.  ONCE unveils its first gene therapy program targeting a disease of the central nervous system.  Findings published in the current issue of Science Translational Medicine provide preclinical proof of concept for Spark's SPK-TPP1 program. The study demonstrates the potential of a one-time administration of Spark's gene therapy to delay onset and progression of a form of Batten disease, a fatal neurological disorder that begins in early childhood. The preclinical model described in this study was also used in an enzyme replacement therapy program currently in development by another company for the same form of Batten disease. That program subsequently demonstrated initial clinical proof of concept in early stage human clinical trials.  Based on these results, Spark plans to initiate IND-enabling studies this year – BUY;
  • Capricor (CAPR) closed UP +$0.04 to $4.24 with 3601 shares traded. Another reckoning day as they “shovel out” some innocuous data at the Heart Association Scientific sessions. I have been negative since March and more often correct about the inflation and deflation of the share pricing - time after time after time.  There is just TOO much fluctuation with small volume. Be ready for an offering - Maintaining SELL;
  • Bellicum Pharma (BLCM) closed UP +$0.02 to $19.86 <after yesterday’s+$3.08 <$18.38%> to $19.84>. BLCM reported a net loss of $13.4 M or -$0.51 per share with basic and diluted shares of 26.37 M and cash of $163.2 M with a float of 18.98 M shares. Although losses are increasing, investors are focusing more on BLCM's drug pipeline progress, and fortunately, there was plenty of good news on that front. BLCM reported that four children with beta thalassemia receiving hematopoietic stem cell transplant and Bellicum's BPX-501 have become transfusion independent. Additionally, Bellicum announced progress on its engineered T-cell research programs, including BPX-601, which is slated to begin human clinical trials in pancreatic cancer soon. Cash position of $1.63.2 billion buys a lot of goodwill, FTEs and pipettes –BUY;
  • Juno Therapeutics (JUNO) closed UP +$0.45 to $52.28 but, is DOWN in the aftermarket -$0.12 or -0.23%. Expectation and market forces motivate <me> on this one -SELL;
  • Harvard Apparatus RM (HART) closed UP +$0.02 to $0.63 will release financial results today and has shaken a few tree branches - Dr. Joseph P. Vacanti Agrees to Chair New Scientific Advisory Board for Bioengineered Organ Developer HART; as one of the world's most accomplished and respected physicians in the field of tissue engineering and regenerative medicine, Dr. Vacanti is a tremendous addition to the leadership of its Scientific Advisory Board. Boston Business Journal sprung with an article about how HART’s plan to announce that it is expanding its regenerated trachea technology into two new organs — the bronchus and esophagus. HART researchers were able to regenerate an entire esophagus in just two weeks. “It’s groundbreaking — it’s regeneration of an organ,” the new <ish> CEO Jim McGorry said in an interview. “I want to regenerate the esophagus and stock price at the same time. “HART will start expanded preclinical trials at the Mayo Clinic in December on all three organs, with hopes to file for FDA permission next year to begin human trials with the esophagus. With so much existing need, McGorry said he expects to have discussions with the FDA about using the technology for compassionate use cases as early as next year. Put or push the financial results/loss per share earnings out of the way, there is a future – BUY;
  • Opexa (OPXA) closed UP +$0.10 to $3.36 <after being DOWN -$0.01> after reporting <11/9> a Q3/15 net loss of -$2.8 M or -$0.42 per share with $15.59 M in cash. Opexa had released results of a pre-clinical study, which show that T-cell immunotherapy with attenuated antigen-specific T-cells suppress the T-cell response to Aquaporin-4 (AQP4) in a dose-dependent manner, compared to vehicle control, as measured by reduction in both Aquaporin-4 reactive T-cell (ARTC) proliferation and associated cytokine activity. The results were statistically significant. Huh (?), personalized T-cell immunotherapy may target the root cause of neuromyelitis optica (NMO). It’s a shot pre-clinically but, a good one - Aquaporin-4 reactive T-cells support pathogenic autoantibody production from B-cells in NMO, but also drive the T-cell mediated cytokine signaling and infiltration of inflammatory cells that also contribute to disease pathology. OPX-212 aims to restore immune tolerance in NMO patients by specifically targeting ARTC while leaving the rest of the patient’s immune system intact.  In the aftermarket, OPXA is up +$0.30 or +9.20% to $3.56 – Maintaining BUY;
  • Verastem (VSTM) closed DOWN -$0.06 to $2.05 <after being DOWN -$0.02> with only 316 K shares traded <3 month average = 1 M shares> after reporting <11/9> a Q3/15 net loss of -$15.54 M or -$0.42 per share with $120.5 M in cash. Oversold, Maintaining BUY;

 

 

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

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

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.