March 2, 2016 6:37am

 

We've observed too many short term upsides and pull-backs in the sector these past months …

Lately, positive trends usually turn neutral-to-negative, at best. 

 

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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 -0.3% and NASDAQ futures are also DOWN -0.2%                                                                                                                                                                                                                                           

 

U.S. stock index futures indicated a narrowly lower open on Wednesday as investors digested a global rally in risk assets and a big night for U.S. politics.

European markets traded higher, tracking gains in the U.S. and Asia overnight. The pan-European STOXX 600 was up 0.6%.

Asian markets rose with China leading advances after a strong finish on Wall Street overnight.

 

Data docket: Investors will also be watching for more hints on future policy at the U.S. Federal Reserve and whether it will continue its tightening process this year. San Francisco Fed President John Williams is due to speak at 11 a.m. ET.

 

 

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

 

Past five (5) days (of 43 covered companies):

·         Tuesday closed POSITIVE with 14 decliners, 26 advances and 3 flats

·         Monday closed NEGATIVE with 24 decliners, 16 advancers and 2 flats;

·         Friday closed POSITIVE with 9 decliners, 32 advancers and 2 flats;

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

·         Last, Wednesday closed POSITIVE with 17 decliners, 23 advancers and 3 flats;

 

 

The stem, cell and gene therapy regenerative medicine (SCGT&RM) opened and stayed positive on Tuesday!

  • Always the contrarian, consider yourself lucky that the SCGT&RM sector produced yesterday’s mini-rally, providing you with an opportunity to exit at higher prices!

As I stated last night in the closing bell post, the SCGT&RM sector stocks look and feel fatigue and in this case are injured but not beyond repair!

  • We've been there before, if you’ve made money, there's nothing wrong with exiting and missing further appreciation.

You can always buy another day … if you sold the upside, you’ll have money for the next sell-off.

 

 

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

  • Applied Genetic Technologies (AGTC) closed UP +$0.70 to $13.97 on higher than usual volume 281.2 k shares <3 month average = 178.3 K share volume>. I like the company’s Biogen (BIIB) partnership and some of its officers but, the daily and weekly stock pricing is so erratic and susceptible to profit taking – SELL;
  • ASTERIAS Biotherapeutics (NYSEMKT: AST) closed UP +$0.81 to $5.10 after being up +$0.65 on Monday on news of a new CEO and an additional board member; but, is it enough of a foundation by position and name changes? Another history lesson, didn’t AST put together an unfulfilled filling to spin themselves out from BioTime (NYSEMKT: BTX) into a separate company, watch for the move as the stock spins upward - SELL;
  • Athersys (ATHX) closed UP +$0.09 to $1.87 after Monday’s +$0.04 after being down -$0.22 on Friday. Share volume was lower at 543.4 K shares <3 month average = 698.8 K share volume>. 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 +$0.04 – Maintaining HOLD;
  • Cellectis ADR (CLLS) closed UP +$1.33 to $25.14. However, Tuesday’s after-market indication is -$1.38 or -5.50%. WHY, I don’t know but, the trade speaks volume most of the time – SELL;
  • Juno therapeutics (JUNO) closed UP +$4.75 to $39.92 after being down -$1.50 with 2.254 M shares traded <3 month average = 1.39 M share volume>. After a big jump, traders will “nibble” the edges of appreciation– Maintaining SELL;
  • Kite Pharma (KITE) closed UP +$6.48 to $51.20 after being down -$2.65. After the share price jumped through the “hoop” post the earnings and the cash position of $614.7 M, the after-market indication is +$0.55 - SELL to BUY;
  • Intrexon (XON) closed UP +$2.78 to $33.73 after being down -$2.81 to $30.95. It’s still about the curse of the upside and traders selling into any strength. SELL to BUY;
  • Mesoblast (MESO) closed UP +$1.30 to $7.84 after Monday’s +$0.48. Traders will get greedy after the latest swing so, I will be a contrarian and say – BUY

 

 

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.