January 19, 2016 6:29am

The stem, cell and gene therapy RegMed (SCGT&RM) sector has a “For Sale” sign” on equities with substantial discounts involved but, check the plumbing before the share price tag …

Sentiment isn't the only issue the sector is encountering – it’s credibility!

 

The U.S. stock market and RegMed sector face a crucial tests on Tuesday after the long weekend. To know WHY … 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.   But, who is interpreting that information … get it here!   

 

 

Last week, growing fears about the health of the global economy sent the Dow to its worst ever two week start to a new year. The S&P 500 index was left dangling near its lowest level in more than a year. On Monday, Nasdaq 100 futures rose 0.2%; however the U.S. stock and bond markets were closed Monday for the Martin Luther King Jr. holiday. European stocks switched between gains and losses Monday while China shares edged up Monday following a roller-coaster week, reflecting moves by Chinese authorities to stabilize the yuan and bargain hunting by investors.The pre-opwn step up came as Asian and European stocks gained,  on reports of Chinese economic growth spurring stimulus hopes and comforting investors who had feared ... the worse.

 

 

DOW futures are UP +1.5 % and NASDAQ futures are UP +1.7%

 

U.S. stock futures pointed to a higher open Tuesday, putting the market on track to rebound a little from its worst 10-session start to a year ever.

European stocks traded sharply higher, following gains seen in Asia after a raft of data out of China came out in line with analyst expectations.

Asian equities bounced back in afternoon trade after having a mixed but volatile reaction to a slew of key Chinese data, even though the numbers were mostly in line with expectations.

 

Data docket: Includes the NAHB housing index at 10:00 a.m. ET.  China’s government said the nation’s growth rate moderated to 6.8% for Q4 and 6.9% for 2015. The annual pace was the weakest in 25 years, and the quarterly level missed expectations. But analysts said investors now hope Beijing will ramp up stimulus and noted that Chinese markets have already sold off sharply this year.

 

 

 

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

 

Past five (5) days:

·         Monday was the Martin Luther King Jr.  holiday;

·         Friday closed NEGATIVE with 33 decliners, 8 advancers and 1 flat;

·         Thursday closed POSITIVE with 13 decliners and 30 advancers;

·         Wednesday closed NEGATIVE with 41 decliners, 2 advancers and o flat;

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

 

 

The key to buying real estate in the stem, cell and gene therapy RegMed (SCGT&RM) sector is location, location i.e. disease state.

  • Many of the positive factors that made the SCGT&RM sector interesting are now its worst enemy - the sale of delivering hope!  Execution certainly did NOT help the SCGT&RM sector last year.

Share statistics together with fundamentals are in the spotlight to provide the tone for future appreciation.

  • How many companies in their present form might not be around later in 2016, with a number of them are the better merged or sold-off which is the defensive bet in 2016.

This is warning investors to be judicious when deciding where and how to invest!

 

 

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?   

 

 

It’s a crap shoot today after damaging weeks … as the stem, cell and gene therapy RegMed sector has experienced shocking depreciation, some of it deserved!

  • Why, we still have to deal with Q4 results and financing issues which could magnify deficiencies that might out-weigh and have wiped-out the plusses of “our” universe.

Forget the headlines; there will be greater reductions in risk appetites.

  • The sector has also been paying the price for liquidity in the sector with selling heaviest in companies where <I believe> insider ownership is not connected by managements with stakeholders.

As a solid advocate of the sector, I point-out that truth is stranger than fiction but, regardless of the idiom - “our” universe should be bracing for a grim financial reporting season, notice I didn’t say -earnings. 

 

Remember, the perils of confusing correlation and causation!

 

 

Opinions expressed are those of the author and are subject to change, and are 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.