Indication intelligence, analysis and sector perception

Strong open expected. RegMed’s pre-open, why do I say what I do, because no one else does or will

December 4, 2015 6:32am

Buy and hold investors are finding themselves left behind unless they know the back story and supporting information!

Today’s portfolios must be nimble and actively traded so investors can quickly take advantage of pending opportunities.

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Critical information ahead of “our” universe’s open!

DOW futures and NASDAQ futures are UP +0.03%

Wall Street showed signs of a slightly stronger open for Friday, rebounding from a sharp selloff, as investors were expected to take some cheer from jobs data later that may confirm a recovery story for the U.S. economy.

European markets traded slightly lower after investors were left disappointed by the measures announced by the European Central Bank (ECB).

Asian equities slumped to a three-week low, following a global sell-off overnight as investors digested comments from the Fed and the European Central Bank (ECB).

Data docket: Probably the biggest event for U.S. investors will be jobs data due at 8:30 a.m. ET. Economists polled are expecting November nonfarm payrolls to reflect a gain of 200,000 new jobs, following a 271,000 increase in October — the biggest of the year. The unemployment rate is seen unchanged at 5%. The trade deficit for October is coming at 8:30 a.m. as well.

Expectations for a strong jobs number, which will help cement the idea of a U.S. interest-rate hike this month, is helping to underpin stock futures this morning … or will it?

Three Fed speakers are scheduled to speak at a Philadelphia Fed police conference on Friday: Philadelphia Fed President Patrick Harker at 10:15 a.m. ET; St. Louis Fed President James Bullard with a speech at 3:45 p.m. ET; and Fed President Narayana Kocherlakota due to speak on monetary policy at 4:10 p.m. ET;

ECB President Mario Draghi will speak at the Economic Club of New York in New York at 11:45 a.m. ET.

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

Thursday closed NEGATIVE with 35 decliners, 7 advancers and 1 flat while Wednesday closed NEGATIVE with 22 decliners, 19 advancers and 2 flats after Tuesday closed NEGATIVE with 26 decliners, 15 advancers and 2 flats following Monday’s NEGATIVE close with 24 decliners, 15 advancers and 4 flats.

Referencing today, the only good day happened last week - we had lift-up!

I’ve told you once, I’ve told you a hundred times … portfolio creation should include more than buy and hold strategies.

A portfolio of stem, cell and gene therapy and regenerative medicine (SCGT&RM) companies must be balanced bit weighted toward active trading which more frequently results in a safer, more liquid, more diversified and less correlated approach especially when viewed on a risk-adjusted basis. The key to optimizing return is to know the whole story

You’ve got questions, I might have an answer; the sector needs to take advantage of opportunity rather than slog through the ups and downs of share pricing hoping to end with an up!

It also doesn’t help that some management teams are NOT interested in communicating – whether good or bad – many things NEED to be said, put to bed or brought to the forefront.

Investors want to be informed. To do this, they need the facts and to understand the fiction of “our “universe. CEOs need to stand-up and speak often and clearly, not following the herd that allows investors to be left behind. While the market misleads movement – it’s time for real leaders to drop the cue cards, handcuff the legal beagles and speak to their investors - not at them! Equally informed, reasonable investors, seldom disagree, the key is to be informed

I sound like a broken record but, I’d rather be transparent than be just another shrill, or at a minimum quiet and lose money!

Friday’s indications:

bluebird bio (BLUE) closed DOWN -$2.40 to $78.61 with 1.37 M share traded <3 month average = 1.424 M shares> after being UP on Wednesday +$0.67 having closed down on Tuesday -$8.41 with 3 m shares traded<following Monday’s -$3.85> to $80.34 with 1.194 M share traded <3 month average = 1.35 M shares>. Wednesday aftermarket reflects an upside of +$0.49 – I am not giving up or blowing out the flame, BLUE is up in the aftermarket +$0.39 –Maintaining BUY;

Intrexon (XON) closed DOWN -$3.26 <after Wednesday’s -$1.43> to $31.57 after two additional days of declines from $36.24 and $36.31- oversold and is UP +$0.07 in the aftermarket. I don’t like the formation of the new JV to produce 1.4-butanediol. XON formed Intrexon Energy Partners II (IEP II), a joint venture with a select group of external investors, to produce 1, 4-butanediol, a key chemical intermediate with a global market value exceeding $5 billion that is used to manufacture spandex, polyurethane, plastics, as well as polyester. Dropping coverage with a day’s – BUY;

Capricor (CAPR) closed DOWN -$0.17 on 32.8 K shares traded <after Wednesday’s +$0.08> to $3.80 having been down on Tuesday -$0.32 with 41 K shares traded following Monday’s -$0.12 to $3.90 with 41 K shares traded <3 month = 20.7 K shares>after being down -$0.16 on Friday. With a financing on the horizon, CAPR needs to show greater price sustainability. I do NOT think they have hit bottom yet – Maintaining SELL;

Harvard Apparatus RT (HART) closed UP +$0.04 on 738 K shares traded having been down on Wednesday down -$0.56 to $2.36 with 2.748 M shares traded following Tuesday’s decline of -$0.33 to $2.90 with 3.95 M shares traded after being up on Monday+$1.05 to $3.25 with 18.386 M shares traded. The revenge of the short-termers is starting to wane, Some stability is coming back, but we need to see some long-term investors step in! Stabilization and moderation will negate short-term volatility. Changing SELL to BUY;

Kite Pharma (KITE) closed DOWN -$0.12 <after Wednesday’s -$3.19 on Wednesday> to $72.74 having been down -$6.32 with 1.826 M shares traded on Tuesday and -$4.06 on Monday with 1 M shares traded <3 month =865.1 K shares>. We may be seeing a dip that can be taken advantage of -the aftermarket sparks a +$0.26 updraft -Maintaining BUY;

Northwest Bio (NWBO) closed DOWN -$0.24 <after being down on Wednesday -$0.15> to $4.51 on Wednesday having been up +$0.28 to $4.90 on Tuesday. The “issues” of irregularity has not been addressed, a newly designated director nay help in the long run but, has no effect in the short term. Maintaining SELL;

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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