Higher open expected, this pundit has a shelf life long beyond the daily articles

January 13, 2016 6:29am

RegMed Investors will always step-into deducing turbulent times, when sector investors and traders are most tempted to panic

Don’t you want to know Wednesday’s “6” trading indications?  If it is vigilance, investors need – find it here, 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 +0.7% and NASDAQ futures are UP 0.8%

U.S. stock futures on Wednesday pointed to a higher open, putting the market on track to rally for a third straight day and recover a little more from its worst five-day start to a year ever.

European markets extended gains despite continued wariness about low oil prices and China's economic slowdown.

Asia markets closed mostly higher, with some of the major indexes rebounding, in a sign of returning stability even in the face of lingering worries about China and falling commodity prices.  Chinese indexes, however, bucked the trend, falling more than 2% in another late session sell-off.

Data docket: Investors at 2 p.m. ET are due to take in the Federal Reserve’s Beige Book report, which features anecdotal evidence on economic conditions.  Boston Fed President Eric Rosengren is expected to speak in Boston on the economic outlook at 7:45 a.m. ET, while Chicago Fed President Charles Evans is slated to give an economic forecast in Cedar Rapids, Iowa, at 1 p.m.

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

Past five (5) days:

·         Tuesday closed NEGATIVE with 23 decliners, 19 advancers and 1 flat;

·         Monday closed NEGATIVE with 34 decliners, 7 advancers and 2 flats;

·         Friday closed NEGATIVE with 25 decliners, 17 advancers and 1 flat;

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

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

The stem, cell and gene therapy RegMed (SCGT&RM) sector is finding a BOTTOM as decliners slow and advancers increase!

• Reiterating, even JP Morgan healthcare conference has NOT allayed fear of the risk!  I think the selling is overdone but, the best of the best “BS” is on parade this week …

Remember, this New Year - 2016 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?  Wednesday’s indications are:

• Applied Genetic Technologies (AGTC) closed DOWN -$0.17 to $15.84 after Monday’s -$1.00 after Friday’s -$0.41 after Thursday’s -$1.81 following Wednesday’s -$0.60 after last Tuesday’s +$0.03. I ‘m NOT giving up standing on my bully pulpit – Maintaining BUY;

• BioLife Solutions (BLFS) closed DOWN -$0.22 or -11% to $1.77 after all the downside fluctuation from 1/4/16. Post the filing of a mixed shelf of a $20 M offering, cash is down to $5.25 M as of 9/30/15 with total operating expense of $2.269 M per quarter and an operating loss of 1.296 M. Funny, how BLFS has hidden <almost didn’t find them> all financials and filings from the website – hiding something or many issues? A $120 K a year full-time Chairman, a $500 K a year CEO, a $400 K CTO and a $300 CFO;  too many cooks in the kitchen for a $1.77 share price. Offering pending, SELL;

• BioTime (NYSEMKT: BTX) closed DOWN again -$0.06 to $2.79 after Monday’s -$0.14 following Friday’s -$0.14 after Thursday’s -$0.27 to $3.13 after Wednesday’s -$0.14 following last Tuesday’s-$0.14 post the previous Monday’s -$0.42. The question you have to ask – will Neil B <major shareholder> be averaging down?  Oversold – Maintaining BUY;

• Capricor (CAPR) closed DOWN another -$0.06 to $2.16 after Monday’s -$0.22 after Friday’s +$0.02 after Thursday’s -$0.26 after last Wednesday’s -$0.31 after the previous Tuesday’s -$0.05 following last Monday’s -$0.13>. A failed offering, small volume and pricing volatility reflect a short-term trading opportunity.  CAPR, answer me one (1) question, what is the patent position of their research into Exosomes?  – Maintaining SELL;

• Harvard Apparatus RT (HART) closed DOWN -$0.24 to $2.10 following Monday’s +$0.09 after Friday’s +$0.25 after Thursday’s FLAT following Wednesday’s -$0.06 after last Tuesday’s -$0.04. It might be time for investors to read further into their newest filings:  an 8-k and the newest prospectus <424B3 re registration effectiveness> in relation to their ATM – the outstanding shares <14 M to 18 M>just dramatically expanded the float 11.8 M to almost 15 M>.  On 12/15/15, HART entered a $15 M common stock purchase agreement with Aspire Capital – those shares had to come from somewhere!  The ATM will keep it “stationary” - SELL to HOLD;

• Verastem (VSTM) closed UP +$0.01 to $1.46 after Monday’s -$0.13 to $1.45 after Friday’s UP +$0.05 after Thursday’s -$0.12 after Wednesday’s -$0.12 following last Tuesday’s -$0.01 after the previous Monday’s -$0.08>. 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.