November 19, 2015 6:31am

 

While speculators tease and toy with “our” universe, the lack of sector headlines trigger investor restlessness.

Henry’s “5” Thursday 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 and NASDAQ futures are UP +0.4%

 

U.S. stock index futures indicated a higher open on Thursday as traders anticipated a host of speakers from the U.S. Federal Reserve, who could shed further light on what was discussed at its last meeting: Economic conditions that could lead to a December rate hike.

European stocks pushed higher, after the U.S. Federal Reserve indicated the world’s largest economy looks healthy enough to withstand a modest rise in borrowing rates.  Stocks were coming back from losses Wednesday, pulled down by declines in travel shares as French police carried out anti-terror raids in Paris.

Asian equities closed higher, boosted by a positive reaction from Wall Street overnight to the release of Federal Reserve's October meeting minutes that signaled a likely interest rate hike in December.

 

Data docket: Reports on weekly jobless claims and the Philadelphia region’s business conditions reading for November are due at 8:30 a.m. ET.  In terms of fresh talk by central bankers, Atlanta Fed President Dennis Lockhart is due to speak about the U.S. economy at 12:30 p.m. ET, addressing the DeKalb Chamber of Commerce in the Atlanta area. Fed Vice Chairman Stanley Fischer will speak in San Francisco about Asia’s transitions, starting at 4:45 p.m. ET.

 

 

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

Wednesday closed POSITIVE with 12 decliners, 26 advancers and 2 flats following Tuesday’s NEGATIVE close of 23 decliners, 18 advancers and 2 flats after Monday’s NEUTRAL close with 20 decliners, 20 advancers and 3 flats in relation to RMi’s coverage universe of 43 companies.

 

 

The clock is always ticking on those who depend on day-traders and speculators to subsidize their appreciation!

  • Any huge move to new highs is suspect as shooting stars burn-out and that class of “buyers” will dump stock on the slightest weakness or even a hint of a financing!

The time between a momentum peak and a bottom in share pricing varies from one session to another and then the next.

  • Momentum divergence exists within the stem, cell and gene therapy RegMed sector (SCGT&RM) sector participants it’s either all in or some out.

While the iShares Trust - iShares Nasdaq Biotechnology ETF (IBB) and the small-stock Russell 2000 deviations began several quarters ago!

  • Investors should be studying the Advance/Decline lines (A/DL) and the Price-Volume behavior in accord with three (3) month averages of sector <participant> stocks, the indexes as well as the ETFs and their relationship to the NASDAQ.

 

 

Feeling the pain on Wednesday were shares:

  • Histogenics (HSGX -7.14% or -$0.25 to $3.25 after Tuesday’s -6.42% or -$0.24), Cytori (CYTX -5.74% or -0.02 to 0.329), Cesca Therapeutics (KOOL-5% or -0.015 to $0.285 after Tuesday’s -48.97% or -$0.29), Osiris (OSIR -3.92% or -0.43 to $10.54 after Tuesday’s -21.53% or -$3.01), Caladrius Bioscience (CLBS -3.42% or -$0.04 to $1.13) were mauled <Wednesday> which reflected a growing lack of investor interest as well as changing “conviction”;

 

Better to be flat than be a splat, VistaGen (VSTA at $6.00) and ReNeuron (RENE.L at $3.12) cruised on Wednesday.

 

Reiterating, an old Wall Street adage states that a rising tide lifts all boats, but no matter which way the market is moving, there are stocks that will always go their own way. Listed are stocks worth watching regardless of current sector trends:

  • Vericel (VCEL +14.04% or 0.24 after Tuesday’s -3.39% or -0.06) but, are they on a roadshow for an offering?  Avalanche Biotech (+8.77% or +0.68), Kite Pharma (KITE +8.71% or +$6.96), Spark Therapeutics (ONCE +7.40% or +$3.84) as well as bluebird bio (BLUE +6.26% or +$4.98) <after Tuesday’s +6.93% or +$5.16> were UP with significant volume

 

 

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

  • Capricor (CAPR) closed UP +$0.13 to $3.99 with 4.8 K shares traded <3 month average = 20.9 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 share pricing - time after time after time. Never give up the conviction - be ready for an offering - Maintaining SELL;
  • Harvard Apparatus RT (HART) closed UP +$0.04 <after Tuesday’s +$0.14 and Monday’s +$0.07> to $1.51. HART has been on a roll since issuing a flutter of announcements pre the financial results aka –LPS (loss per share) earnings call. The same questions persist:  how long can the appreciation last, what follow-on news will sustain the momentum, how strong is the “push-pull” to finance and finally is there a “back” story to the cash burn?  The status of the cash position begets a definitive need for an offering which, if attempted needs, to be well above the last financing at $1.75!  The pre-market indication is +$0.37 to $1.88 - Maintaining HOLD;
  • Juno Therapeutics (JUNO) closed UP +$1.07 after being DOWN -$0.34 <after Monday’s +$3.47>. Shares had bounced from their September lows, and investors who got in at Juno's IPO are currently sitting on a strong 42% gain. JUNO’s shares are likely to remain extremely volatile until the end of the year, so investors should be prepared for more volatility - SELL;
  • Regenxbio (RGNX) closed UP +$0.50 to $22.76 <after Tuesday’s +$0.92 following Monday’s -$1.86> – which I still believe is fodder for trading – SELL;
  • Verastem (VSTM) closed UP +$0.08 <after Tuesday’s -$0.06 following Monday’s +$0.01 > to $2.00 with only 362.2 K shares traded <3 month average = 999.2 K shares>.  VSTM reported $120.5 M in cash and 36.93 M share outstanding and a float of 31.22 m shares. Total cash per share = $3.26 and a book value of per share of $3.04. After-market reports a +$0.05 advance, 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.