November 17, 2015 6:34am

 

A lot of “dumb” money is chasing “some” sector participants that are going nowhere! Access insight into sector sentiment and share pricing.

Henry’s “6” Tuesday trading picks. Subscription required: http://www.regmedinvestors.com/create-account

 

I say today what others won't, so you can do what others can't!

 

 

DOW futures are UP +0.4% and NASDAQ futures are UP +0.5%

 

U.S. stock index futures pointed to a higher open on Tuesday, as investors wait for inflation data and some key earnings, after a strong close on Monday boosted by a sharp jump in oil prices.

European stocks leapt, with a climb in energy shares among those leading the region’s benchmark toward its biggest rise in nearly a month.

Asian shares advanced, with energy and airline counters leading the rebound, as investors took heart from the rally on Wall Street.

 

Data docket: A reading on consumer prices in October is due at 8:30 a.m. ET, where a 0.2% rise is expected, the same as for core inflation.  Industrial production and capacity utilization data for October are coming at 9:15 a.m. ET. At 10 a.m. ET, the National Association of Home Builders is due to release its November housing market index. Dallas Federal Reserve President Rob Kaplan will give his first major speech since taking the Fed role, on economic conditions and Fed policy at the University of Houston at noon ET. At 1:15 p.m. ET, Fed Gov. Jerome Powell will speak at the Clearing House annual conference in New York. Fed Gov. Daniel Tarullo will speak at a Brookings Institution conference at 3:30 p.m. ET.

 

 

The RegMed sector closed NEUTRAL on Monday, NEGATIVE on Friday, Thursday, Wednesday and last Tuesday.

Monday closed NEUTRAL with 20 decliners, 20 advancers and 3 flats following Friday’s NEGATIVE close with 26 decliners, 15 advancers and 2 flats;

 

 

I had hoped for stocks to be higher based on the weekly pattern on Monday but, settled for a NEUTRAL close and early in my prognostication!

  • The mood and sentiment last week … stunk, after the NASDAQ fell on Friday, Thursday, Wednesday, Tuesday and last Monday while indices and ETFs <the IBB, NBI, IWM and XBI> were mixed – rising and falling … alternating days.

Many investors, traders and the etcs seeing the oversold environment seem to be less concerned about the news of terrorist attacks and more about the market's losses last week as long as terrorist attacks remain an isolated event!

  • I had thought Monday’s sector moves would be more dominant but, am very willing to be early again, hoping Tuesday will rebound! A point of interest, I have been reasonably efficient in my rational definition of what’s on the horizon – at least I have NOT pandered to the trading dollars or banking fee disease syndrome!

 

Shares of Mesoblast (MESO -15.54% or -$1.26), Vericel (VCEL -8.29% or -$0.16), Regenxbio (RGNX -8.02% or -$1.86) and uniQure (QURE -7.43% or -$1.40) were savaged <Monday> which reflected a growing awareness of changing sentiment as investors in some cases sell into strength or just cut and run.

Better to be flat than be a splat – Neuralstem (CUR at $1.09), Ocata Therapeutics (OCAT at $8.46) and VistaGen *VSTA at $6.00).

Surprisingly Cesca Therapeutics (KOOL+11.13% or +$0.059), Juno Therapeutics (JUNO +6.94% or $3.47), MiMedx MDXG +6.19% or +$0.48) and Harvard Apparatus RM (HART +5.56% or +$0.07) rallied an average of more than 5-11%%, matched against those who feel an average -7%- 15.5%.

 

 

Out and about:

  • KOOL has withdrawn its application to the California Institute for Regenerative Medicine (CIRM) over doubts about its prospects. KOOL snapped back by announcing that Mavericks Capital, a boutique investment bank headquartered on the West Coast, will invest in accelerating its efforts to explore strategic partnerships and licensing arrangements given that KOOL is in the process of gearing up a significant number of sites to begin enrolling patients in a trial that would cost over $20 M to conduct;
  • Interesting, Neuralstem (CUR) has filed an 8-K to amend the company's standard indemnification agreement that CUR enters into with its officers, directors and certain employees. The amendment clarifies certain provisions relating to when notice is required to be given for the indemnification of a claim. Problems arising …?

 

 

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

  • Applied Genetics Technologies (AGTC) closed UP +$0.08 to $16.00 on 131.7 K share volume <3 month =135 K shares>. Do I feel some consistency of a slow spiral to the upside considering Biogen (BIIB) invested at 420.62 – how many times can one say it – AGTC is presenting at the Stifel conference in NYC on the 18th – Maintaining BUY;
  • Capricor (CAPR) closed UP +$0.05 at $4.02 with 5.4 K shares traded <3 month average = 21.1 K shares>.  So, why again is the chairman being paid so much ($10 K a month) to “manage” the CEO? I have been negative since March and more often correct about the inflation and deflation of the share pricing - time after time after time.  Be ready for an offering - Maintaining SELL;
  • Juno Therapeutics (JUNO) closed UP +$3.47 to $53.47. Reiterating, JUNO's cash position is one key financial figure that does matter to investors. At the end of Q3, cash, cash equivalents, and marketable securities totaled $1.27 billion. That's a big jump from the $313.4 M on hand on 6/30. JUNO reported cash burn of $45.7 M in Q3, of that, $14.2 M stemmed from the company's build-out of a manufacturing facility - Maintaining  BUY;
  • Osiris (OSIR) closed DOWN -$0.33 to $13.98, oversold, while MiMedx (MDXG) jumps +$0.48 to $8.23 – both are undervalued - BUY;
  • Spark Therapeutics (ONCE) closed DOWN -$3.94 to $52.00. Oversold – maintaining BUY;              
  • Verastem (VSTM) closed UP +$0.01 <after being down on Friday -$0.01 following Thursday -$0.07, after Wednesday’s -$0.06 after Tuesday’s -$0.02> to $1.98 with only 263.3 K shares traded <3 month average = 996.5 K shares> after reporting $120.5 M in cash. Total cash per share = $3.26 and a book value of per share of $3.04. 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.