December 1, 2015 6:09pm

First trading day of the month shifted the conversation to aligning conviction over the ever fluctuating trading verdicts

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I say today what others won't, so you can do what others can't - access insight into sector sentiment and share pricing!

 

 

U.S. stocks closed near session highs Tuesday, the first trading day of December, shaking off intraday pressure from weak manufacturing data. Stocks rallied into the close to end up nearly 1% or higher. The S&P 500 topped the psychologically key level of 2,100 with health care leading all 10 sectors higher.

The NASDAQ closed UP +47.64 or +0.93% to 5,156.31 and the DOW closed UP +168.43 or +0.95% to 17,888.35.

 

 

Henry’omics:

The stem, cell and gene therapy RegMed sector stocks pared gains opening negative, stayed negative  at the mid-day to end negative at the close (of 43 covered companies).

  • Stocks came off session highs after the ISM U.S. November Manufacturing PMI came in at 48.6, in contraction territory and below the expected 50.5 read. The print was the worst since June 2009 and the first time the index fell below 50 in three years.

Volume was moderate except in specific cases of some appreciators and the fallen!

  • My fear gauge is static – The CBOE Volatility Index (VIX) traded Tuesday above 15 following Monday’s above 16 after Friday’s above 15!
  • Major U.S. benchmarks have flat lined in recent sessions, digesting last week’s respectable rally from past November lows. However, each benchmark’s tight range is near-term constructive, signaling selling pressure.

 

 

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 9/32 and 2 flats;
  • The mid-day strayed negative with an A/DL of 14/28 and 1 flat;
  • The closing bell rang negative to end Monday’s session with an A/DL of 15/26 and 2 flats.

 

 

Tuesday’s indications – 3 hits/ 2 miss:

  • Bluebird bio (BLUE) closed down -$8.41 – miss;
  • Capricor (CAPR) closed down -$0.32 – hit;
  • Harvard Apparatus RT (HART) closed down – hit;
  • Kite Pharma (KITE) closed down -$6.32 – miss;
  • uniQure (QURE) closed UP – hit;

 

 

Riding the indexes and ETFs roller-coaster:

  • The iShares Biotechnology Stocks ETF (IBB) closed Tuesday closed up +1.79 or +0.54% following Monday’s decline of -6.64 or -1.95%;
  • The NASDAQ Biotechnology index (NBI) closed on Tuesday up +18.82 or +0.54% following Monday’s decline of -67.62 or -1.90;
  • The Russell 2000 (IWM) closed Tuesday up +0.79 or +0.66% following Monday’s decline of -0.52 or -0.43%;
  • The SPDR SD&P Biotech ETF (XBI) closed Tuesday down -0.15 or -0.21% following Monday’s decline of -0.33 or -0.45%

 

 

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

  • Open: NEGATIVE with 32 decliners, 9 advances and 2 flats;             
  • Mid-day (1 pm): NEGATIVE with 28 decliners, 14 advancers and 1 flat;
  • Closing bell: NEGATIVE with 26 decliners, 15 advancers and 2 flats

 

 

Out and above:

Harvard Apparatus RT (HART) dumped -10.15% or -$0.33 to close at $2.92 …

  • Having jumped on Monday +47.73% or +$1.05 to $3.25 with 18.38 M shares traded in a day’s range of $2.06 to $3.47 after Friday’s +44% or +$0.45 from $1.76 to $2.20 with 2.973 M shares traded. 

As I had cautioned … in the pre-market post … TOO much <trading, volume and appreciation v- out of nowhere> in a short-term period sets off alarms about the context of its appreciation origination and ultimate end – a financing?

  • Profit takers will be like rats in a cage, they’ll cannibalize each other– HOLD as the peak protrudes and then SELL;
  • There are 13.45 M shares outstanding and a float of 11.79 M while shares short were 79.99 K versus the prior months of 71.73 K. I’d be jumping on that bandwagon!

It had scared me, when appreciation had jumped +91% over two days and volume has been more than … staggering since the financial results and PR release hit <since 11/11>.

  • I’ve cautioned that using “pumpers” to “fly “ company’s stock higher because it has its problems … Number #1 – the SEC is watching and Billy Galvin, the intrepid Secretary of State has long tentacles!

As I had stated, the problem will be reduced by profit-takers bursting the bubble and the specter of a company in transition that needs to access the capital markets!

  • Moderation and control is needed because when you let the pumpers off … the leash – trouble will be following you!
  • Disclosure, I personally like the CEO and “some” members of the corporate staff but, the facts must be placed in evidence!!

 

 

Who was UP – top 5:

  • uniQure (QURE) closed up +$1.02 to $19.80;
  • Sangamo (SGMO) +$0.94 to $9.22;
  • Northwest Bio (NWBO) +40.28 to $4.90 – quite a surprise;
  • Osiris (OSIR) +$0.26 to $10.52;
  • BioTime (NYSEMKT: BTX) closed up +$0.21 to $3.73 – on idle talk;

 

 

Who closed down – top 5:

  • bluebird bio (BLUE) closed down -$8.41 to $80.34;
  • Kite Pharma (KITE) -$6.32 to $76.05;
  • Aduro Biotech (ADRO) -$1.54 to $29.45;
  • Spark Therapeutics (ONCE) -$1.34 to $56.45 – on news of an offering;
  • Juno Therapeutics (JUNO) closed down -$0.82 to $55.47;

 

 

Flat:

  • AxoGen (AXGN) at $5.50;
  • ReNeuron (RENE.L0 at $3.00;

 

 

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.

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