Higher open expected, I don’t live in China, my rice bowl is here!

January 8, 2016 6:26am

It takes an iron stomach to buy stocks when “our” universe is falling but, I’m in!

Don’t you want to know Friday’s “8” trading indications? The time has come to SUBSCRIBE!  Can you afford not to?

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors before the sector and markets open.

DOW futures are UP +0.8% and NASDAQ futures are UP +1.0%

U.S. stock index futures indicated a higher open on Friday as traders reacted to continued volatility in Chinese markets and anticipated the monthly jobs report.

European markets traded slightly higher as Chinese stocks stabilized after authorities scrapped a market circuit-breaker.  The pan-European STOXX 600 was up over 0.3%.

Asian markets closed mixed on the last day of 2016's first trading week, after a wild ride that saw the Chinese market shut down prematurely twice to stem rapid selloffs, oil prices falling to 12-year lows and the persistent volatility across the region.

Data docket: Friday's jobs report, due at 8:30 a.m. ET, has also lost some power this month as a barometer for Fed policy, since the central bank is not expected to consider another rate hike until March. There will be two more employment reports and lots of other data before then.  Friday will also see wholesale trade released at 10:00 a.m., with consumer credit due at 3:00 p.m.

The stem, cell and gene therapy RegMed sector closed NEGATIVE on Thursday, Wednesday, Tuesday and Monday - last Friday was a holiday.

Past five (5) days:

·         Thursday closed NEGATIVE with 36 decliners, 7 advancers and 0 flat;

·         Wednesday closed NEGATIVE with 36 decliners, 5 advancers and 2 flats;

·         Tuesday closed NEGATIVE with 22 decliners, 19 advancers and 2 flats;

·         Monday closed NEGATIVE with 33 decliners, 7 advancers and 3 flats;

·         Last, Friday, the markets were closed;

The stem, cell and gene therapy RegMed (SCGT&RM) sector just isn’t feeling the LOVE!

• Do you have a chart, coordinates or a MapQuest response to the stem, cell and gene therapy RegMed sector – I DO!

Downside volatility caused by fear and uncertainty creates buying opportunities, in MY opinion for SELECTED sector “participants who understand how to spell guidance and governance!

• Reiterating, my advice to CEOs is IF you have a message or story to tell, you NEED to SELL it out by communicating to stakeholders!   And be straight about it … honor is a reputation that one is worthy of respect not always admired but, always known to be held to a high moral standard of behavior!

You have to accept the likelihood that there will be more uncertainty surrounding pricing behavior and that the New Year is all about “short-termism”

You’ve made it to the office, turned on the monitor having just gotten your coffee and it hits you - what are today’s trades? 

Investors have a new reason to hope that Friday’s jobs report is strong: It could help stop this week’s stock-market carnage. Friday’s indications are:

• Bellicum Pharma (BLCM) closed DOWN -$2.14 to $16.35 after Wednesday’s -$0.04 post Tuesday’s -$0.45 and Monday’s -$1.27. Oversold – BUY;

• BioTime (NYSEMKT: BTX) closed DOWN -$0.27 to $3.13 after Wednesday’s -$0.14 following Tuesday’s-$0.14 post Monday’s -$0.42. Oversold – BUY;

• Caladrius Biosciences (CLBS) closed DOWN -$0.36 to $0.70 after Wednesday’s -$0.01 after the jettison of the melanoma product, post the DOA of the cardiac program. The focus is now PCT which has a competitive burden along with an early P2 proof-of-concept clinical trial for a T regulatory cell therapy in type 1 diabetes. Beware, what has CEO Mazzo done for shareholders since his “anointment” by CLBS’ <then NeoStem’s (NBS)> BOD – the stock price was $3.77.  I could name 3-4 directors who should be held accountable for these misses especially one who should be held liable for most of these issues!  A $0.50 price target – Maintaining SELL;

• Capricor (CAPR) closed DOWN -$0.26 on Thursday <after Wednesday’s -$0.31 after Tuesday’s -$0.05 following Monday’s -$0.13> to $2.66. After a failed offering and small volume and pricing volatility reflecting a short-term trading opportunity – I haven’t been wrong – still a SELL;

• Fate Therapeutics (FATE) closed DOWN -$0.38 on Thursday following Wednesday’s -$0.08 after Tuesday’s +$0.02 following Monday’s -$0.08> to $3.23. Still oversold – BUY;

• Harvard Apparatus RT (HART) closed FLAT at $2.01 following Wednesday’s -$0.06 after Tuesday’s -$0.04 following Monday’s -$0.07. It pays to keep the “pumper” primed but, what happens when the ATM has to be settled.  – Maintaining HOLD;

• Juno Therapeutics (JUNO) closed DOWN -$3.56 following Wednesday’s $3.17 after Tuesday’s -$1.30 post Monday’s -$0.25> to $39.25. Still oversold– BUY;

• Verastem (VSTM) closed DOWN -$0.12 after Wednesday’s -$0.12 following Tuesday’s -$0.01 after Monday’s -$0.08> to $1.65. A traders delight with total cash per share of $3.26 <$120.47 M in cash with 36.93 M shares outstanding and 31.39 M share float –  Maintaining BUY;

And so it goes: news breaks, data is digested; but, beware of the window dressing presented by volatility!

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.