March 1, 2016 6:32pm

 

It’s not totally an "all’s clear" message with volume being weak but, the sector closed up on much of nothing … reversing the "curse" post earnings reporting

 

Ranking Tuesday’s end-of-day pre-open indications – 2 hits and 3 misses.

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Investors suffer from the paradox of information overload. If you have a smartphone in your pocket, you can access more information about the financial markets than the world's top hedge funds did 20 years ago. Yet, I bet your investment returns have not improved one iota as a result.

·         But, who is interpreting that information … get it here!

 

 

U.S. stocks kicked off March on a solid note Tuesday as the major averages closed more than 2% higher, helped by a rise in oil prices and a better-than-expected ISM manufacturing report. The Dow traded more than 300 points higher to hit its highest level since Jan. 7.

The NASDAQ closed UP +131.65 or +2.89% to 4,689.60 and the DOW closed UP +348.58 or +2.11% to 16,865.08.

 

 

A day in the life of the stem, cell and gene therapy RegMed (SCGT & RM) sector – the advance/decline line scenario of our 43 covered companies.

  • Tuesday, the stem, cell and gene therapy RegMed sector opened positive with an A/DL of 21/18 and 4 flats;
  • The mid-day stayed positive with an A/DL of 28/12 and 3 flats;
  • The closing bell rang positive with A/DL of 26/14 and 3 flats

 

 

Henry’omics:

The stem, cell and gene therapy RegMed (SCGT&RM) sector opened positive, stayed positive at the mid-day  and closed positive (of 43 covered companies).

  • Good news, the CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, fell more than 10% in intraday trade to hit 18, its lowest since 12/31/15.

Better news, the iShares Nasdaq Biotechnology ETF (IBB) also rose more than 3% after falling 2.8% on Monday.

  • The SCGT&RM sector stocks look and feel fatigued and in MOST cases, injured but, not beyond repair!

Since1/4/16, “our” universe has rambled back and forth with declining advancers and advancing declines putting a historical context in jeopardy suggesting that investors are wise to play it safe rather than putting too much at risk in the short and near-term.

  • These multiple carousel riding advance/decline lines and closing patterns don't imply that the SCGT&RM sector lacks opportunity - it's actually quite the contrary but, we do need clarity to the near to long-term!

Don't invest in this rally … with expectations other than a multiple day lurch!

  • A respite rally, which is sort of what this, is … an “ambiguity rally” lasts for a very short time before profit taking kicks in … again, and I expect the same thing to happen here.

 

 

Out and about;

  • Asterias Therapeutics (NYSEMKT: AST) jumped +18.8% or +$0.81 <after yesterday’s +$0.65> to $5.11 after announcing a new CEO and board member. The shares climbed yesterday to $4.29 from $3.64. Trading volume was 344.2 K shares with a 3 month average of 76.2 K. New names SELL;
  • BioLife Solutions (BLFS) is jumping over the past days post the “earnings” call which illuminated a cash position of $3.8 M and an immediate resigning CFO – my question – is it on the block for sale (?);
  • Bellicum Pharma (BLCM) is holding in there advancing +$0.67 or +$7.43% to $9.69. It certainly needs to retrace its most recent pricing history;
  • bluebird bio (BLUE) is re-gaining altitude jumping +$4.29 or +9.28% to $50.51, I am still a fan but, these past months have been more than hard for the believers;
  • Caladrius Biosciences (CLBS) continues to implode, down -$0.01 to $0.57, and what has this BOD and CEO done to articulate value beyond the current price – NOTHING;
  • Capricor (CAPR) is back to being the target of “downside divers” as it plunges -$0.35 to $2.11. Investors and traders COULD be getting smarter (?) as CAPR has just about ten (10) months of cash and the offering window is barely open.  Northwest Bio (NWBO) just initiated a registered direct offering with an extreme pricing discount, onerous warrant coverage and ugly dilution for a measly $10 M in cash – if they get it. CAPR WILL be in the SAME position the longer they go without a financing – be READY!
  • Juno Therapeutics (JUNO) jumped +13.51% or +$4.75 to $39.92 after announcing its Q4/15 loss per share; what moved the stock up – its cash position of $1.22 Billion, no problems with a “runway” here. Talk about reversing the curse of the post earnings announcement!
  • Kite Pharma (KITE) stock rose 14.49% or +$6.48 to $51.29.  The shares had dropped to $44.72 from $47.37 in the previous session. Trading volume was 2.674 M shares with a 3 month average being 1.23 M shares. The cash position yesterday was reported to be $614.7 M – another “runway” positive! Another reversing the curse of the post earnings announcement!

 

 

Tuesday’s handicapping the sector pre-open indications – 2 hits and 3 miss: 

  • Athersys (ATHX) closed UP – hit;
  • AxoGen (AXGN) closed DOWN – miss;
  • Juno therapeutics (JUNO) closed UP – miss;
  • Kite Pharma (KITE) closed UP – miss;
  • Intrexon (XON) closed UP – hit;

 

 

Dosing the sector – what a day for the 43 Patients:

  • The market opened: POSITIVE with 18 decliners, 21 advancers and 4 flats;
  • The mid-day (12:30 pm: POSITIVE with 12 decliners, 28 advancers and 3 flats;
  • Closing bell: POSITIVE with 26 decliners, 14 advancers and 3 flats

 

 

Review my fear gauge or the CBOE Volatility Index (VIX) which can be scary:

·         Tuesday traded near 18 – 10% decrease;

·         Monday traded below 20;

·         Friday traded near 19.8;

·         Thursday traded near 20;

·         Wednesday traded at 20.5;

·         Last, Tuesday traded above 20;

 

 

Riding the indexes and ETFs roller-coaster:

The iShares Biotechnology Stocks ETF (IBB) closed UP on Tuesday +11.18 or +4.40%

·         Monday -7.40 or -2.83%

·         Friday +2.17 or +0.84%

The NASDAQ Biotechnology index (NBI) closed UP on Tuesday +114.28 or +4.30%

·         Monday -73.30 or -2.68%

·         Friday +21.34 or +0.79%

The Russell 2000 (IWM) closed UP on Tuesday +2.21 or +2.15%

·         Monday -0.46 or -0.45%

·         Friday +8.65 or +0.63%

The SPDR SD&P Biotech ETF (XBI) closed UP on Tuesday +2.31 or +4.82%

·         Monday -1.50 or -3.04%

·         Friday +0.85 or +1.75%

 

 

Who was leading the declines – to of the bottom 5?

  • Capricor (CAPR) closed down -$0.35 to $2.10;
  • AxoGen (AXGN) -$0.16 to $5.04;
  • Stemline (STML) -$0.16 to $4.65;
  • Northwest Bio (NWBO) -$0.11 to $1.73;
  • Fate therapeutics (FATE) closed down -$0.07 to $1.69

 

 

Who was UP – top 5:

  • Kite Pharma (KITE) closed up +$6.48 to $51.20;
  • Juno Therapeutics (JUNO) +$4.75 to $39.92;
  • bluebird bio (BLUE) +$4.29 to $50.51;
  • Intrexon (XON) +$2.78 to $33.73;
  • Spark therapeutics (ONCE) closed up +42.01 to $33.87

 

 

Who was FLAT?

  • Neuralstem (CUR) at $1.00;
  • ReNeuron (RENE.L) at $2.875;
  • VistaGen (VSTA) at $8.00                                    

 

 

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.  All investments are subject to risks. Investors should consider investment objectives.

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