November 12, 2015 5:40pm

 

Thursday’s volatility is all about struggling perception post financial results.

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Interest-rate jitters and another unsettling drop in oil prices had markets in a bad mood Thursday as major averages ended sharply lower. The Dow and S&P 500 slumped 1.4%. The NASDAQ lost 1.2%.  Preliminary data showed volume on the NYSE and NASDAQ coming in higher than Wednesday's levels.  On the NYSE, decliners outnumbered advancers by more than 4-to-1. The ratio was more than 3-to-1 on the NASDAQ.

The NASDAQ closed DOWN -61.94 or -1.22% to 5,005.08 and the DOW or -254.15 or -1.44% to 17,448.07.

 

 

Henry’omics:

The stem, cell and gene therapy RegMed (SCGT&RM) sector opened negative and stayed there (of 43 covered companies) to close in negative territory!

  • The SCGT&RM sector doesn’t sell off on anything that’s telegraphed and if you look at daily session listing, skepticism is high and marginal financial results and the development highlights set a newer set probability to clinical initiatives.

The selloff is mostly due to weakness in guidance!

  • My fear gauge – The CBOE Volatility Index (VIX) closed Thursday near 17 following Wednesday’s near 16 having barely moved on Tuesday to near 15 from Monday’s below 15 following Friday’s above 16.

 

 

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

  • The SCGT & RM equities opened negative with an Advance/Decline line (A/DL) of 6/32 and 5 flats;
  • The mid-day popped to a negative A/DL of 18/20 and 5 flats;
  • The closing bell rang negative to end the session with an A/DL of 11/30 and 2 flats.

 

 

Thursday’s trading indications:  4 hits/ 3 miss

  • Spark Therapeutics (ONCE) closed DOWN – miss;
  • Capricor (CAPR) closed DOWN – hit;
  • Bellicum Pharma (BLCM) closed UP – hit;
  • Juno Therapeutics (JUNO) closed DOWN – miss;
  • Harvard Apparatus RM (HART) closed UP - hit;
  • Opexa (OPXA) closed UP – hit;
  • Verastem (VSTM) closed DOWN – miss,

 

 

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:

  • BioLife Solutions (BLFS) reported <11/12> a Q3/15 net loss of -$1.1 M or -$0.09 per share with $5.3 M in cash. BLFS closed DOWN -$0.11 to $2.36;
  • Capricor (CAPR) reported <11/12> a Q3/15 net loss of $2.9 M or -$0.18 per share with $17.2 M in cash. CAPR closed DOWN -$0.27 to $3.97;
  • Harvard Apparatus RM (HART) reported <11/12> a Q3/15 net loss of -$2.3 M or -$0.19 per share with $8.2 M in cash HART closed UP +$0.74 to $1.37;
  • Kite Pharma (KITE) reported <11/12> a Q3/15 net loss of -$27.4 M or -$0.63 per share with $367 M in cash. KITE closed DOWN -$1.83 to $79.81;

 

 

Riding the indexes and ETFs roller-coaster:

  • The iShares Biotechnology Stocks ETF (IBB) closed Thursday down -6.74 or -2.06% following Wednesday’s decline of -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 Thursday down -72.39 or -2.12% following Wednesday’s decline of -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 Thursday 2.24 or -1.91% following Wednesday’s -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 Thursday down -1.42 or -2.03% following Wednesday’s decline of -1.20 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%;

 

 

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

  • Open: NEGATIVE with 32 decliners, 6 advances and 5 flats;
  • Mid-day (1 pm): NEGATIVE with 20 decliners, 18 advancers and 5 flats;
  • Closing bell: NEGATIVE with 30 decliner, 11 advancers and 2 flats

 

 

Who was UP – top 5:

  • Bellicum Pharma (BLCM) closed up +$1.00 to $20.86;
  • Harvard Apparatus RM (HART) +$0.74 to $1.37;
  • Applied Genetic Technologies (AGTC) +$0.30 to $15.35;
  • Aduro Biotech (ARDO) +$0.20 to $28.46;
  • Regenxbio (RGNX) closed UP +$0.10 to $23.08

 

 

Who closed down – top 5:

  • Spark Therapeutics (ONCE) +$4.13 to $56.13;
  • Intrexon (XON) -$3.04 to $38.72;
  • Juno Therapeutics (JUNO) -$2.39 to $49.89;
  • Bluebird bio (BLUE) -$2.01 to $72.79;
  • Kite Pharma (KITE) closed down -$1.83 to $79.81

 

 

Flat:

  • Mesoblast ADR (USOTC: MBLTY) at $12.33;
  • ReNeuron (RENE.L)

 

 

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.  All investments are subject to risks. Investors should consider investment objectives. 

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.