February 29, 2016 7:21am
But, they have been covering their short positions…
This scenario is NOT just associated with scoundrels, but more and more investors are initiating more ETF <exchange-traded fund> trading strategies - the pressures on the SCGT&RM sector will generate more volatile share pricing.
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I say today what others won't, so you can do what others can't; whether information or intelligence is good, bad or somewhere in between – it defines the who, when, where, which and what of it …
Dow futures are DOWN -0.2 % and NASDAQ futures are DOWN -0.4%
U.S. stock futures pointed to a lower open Monday, joining in a global slump and making it tougher for the market to stay in the green for February.
European equities moved off their sessions lows after China's central bank announced further stimulus measures.
Asian markets in China, Japan and Hong Kong tumbled with renewed concerns over China's economic fundamentals and the deluge of economic data due this week dragging stocks.
Data docket: A January reading for U.S. pending home sales is scheduled to come at 10 a.m. ET. Economists expect a rise of 0.5%. New York Fed President William Dudley is slated to speak in Shanghai at 11:30 p.m. ET about the economic outlook and monetary policy.
The stem, cell and gene therapy RegMed sector closed POSITIVE on Friday, NEGATIVE on Thursday, POSITIVE on Wednesday, NEGATIVE on Tuesday and POSITIVE on last Monday.
Past five (5) days (of 43 covered companies):
· Friday closed POSITIVE with 9 decliners, 32 advancers and 2 flats;
· Thursday closed NEGATIVE with 23 decliners, 19 advancers and 1 flat;
· Wednesday closed POSITIVE with 17 decliners, 23 advancers and 3 flats;
· Tuesday closed NEGATIVE with 33 decliners, 8 advancers and 2 flats;
· Last, Monday closed POSITIVE with 8 decliners, 32 advancers and 3 flats
The stem, cell and gene therapy regenerative medicine (SCGT&RM) finished the weekly relay race with a strong baton pass and an anchor finish!
- But … WHY?
After last week’s <see above list of closes>; it is evident that the SCGT&RM sector is just stuck in a cyclical morass of immolation and value destruction as we are engulfed by confusion as to the real value of equities!
- Regardless of whether stocks are trading with gains/losses, you will probably need to cover your positions at some point.
The Q4/14 results announcements are not over and we do not have all the variables of “how long the runways are and what are the totals of ATM usage that are supplementing the lack of capital market access.
- The on-coming “March Madness” of the Q4/15 LPS <loss-per-share> announcement cycle will illustrate its meaning.
When there is a great deal of short covering occurring in a stock, it may be result in a “short squeeze,” wherein these <share borrowing> liquidations will contribute to share price appreciation.
- Investors need to accept the viewpoint that stocks are in for a rocky road.
You’ve made it to the office, turned on the monitor having just gotten your coffee and it hits you - what could be Monday’s trades?
- Athersys (ATHX) closed DOWN -$0.22 to $1.74. ATHX shares had a mixed week <Thursday’s $1.96, Wednesday’s $1.83, Tuesday’s $1.73 and Monday’s $1.78 – all coming with solid volume, Friday = 1.3 M shares, Thursday = 1.477 M shares and Wednesday = 941.8 K shares <3 month average = 698.8 K share volume>. This continues the recent uptrend for the company as the stock is now up 63.3% in the past one-month time frame. My problem is that I DON’T believe the “spin” of the data from the Athersys stem-cell therapy MultiStem, however, the after-market indication is +$0.05 – SELL to HOLD;
- BioLife Solutions (BLFS) closed DOWN -$0.0031 to $1.746 or -0.18%. Trouble in Bothwell (?) as Daphne Taylor its finance chief, resigned, effective immediately! She had served as CFO since 2011. Most recently, the COO resigned – what other issues are out there? Michael Rice, BLFS’s CFO takes over her duties, another why – it’s TROUBLE when a CEO is also a CFO? – Maintaining SELL;
- Capricor (CAPR) closed DOWN -$0.22 to $2.30 after being +$0.16 on Thursday. After announcing a new CFO, be ready for an OFFERING - the most recent attempt was a total failure, so much for the choices this CEO makes! CAPR will be Out-of-CASH” by years-end – Maintaining SELL;
- Caladrius Bioscience (CLBS) closed UP +$0.0002 to $0.59. WHY did an 8-K go out instead of a press release LATE on a Friday night? CLBS received written notice from the NASDAQ Stock Market LLC notifying CLBS that for the preceding 30 consecutive business days, the common stock did NOT maintain a minimum closing bid price of $1.00 per share as required by NASDAQ Listing Rule 5550(a) (2). CLBS has a grace period of 180 calendar days, or until August 23, 2016 to comply – are we just waiting for a reverse followed by some sort of capital raise? With all the ATM usage – what will be left to finance? When a company seems to HIDE an issue, one knows there is more BEHIND the story – SELL;
- Juno therapeutics (JUNO) closed UP +$2.76 to $36.67. JUNO will be reporting Q4/15 and 2015 results on Monday, 2/29, after the market closes. JUNO, which started trading in December 2014 has a mixed record with the company posting a positive surprise in one (1) Q, in-line results in another and missing expectations in the remaining two (2) Qs. JUNO’s Q3/15 loss was wider than expected. JUNO’s Friday after-market indication was -$0.53– SELL;
- Kite Pharma (KITE) closed UP +$2.26 to $47.37 after being up +0.14. KITE is scheduled to report Q4/15 results on Monday, 2/29, after the market closes. KITE has been trading since Jun 2014, posting negative earnings surprises in the three of the last four trailing quarters. Overall, the company posted an average negative earnings surprise of 60.16% over the past four (4) quarters. Maintaining SELL;
- Intrexon (XON) closed UP +$2.21 to $33.76. XON is set to report Q4/15 results on 2/29. XON has a mixed earnings track record so far. Intrexon delivered positive earnings surprises in three (3) of the four (4) trailing quarters. XON has an after-market indication post Friday’s close of -$0.36 – SELL;
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.
