Indication intelligence, analysis and sector perception

Lower open expected; RegMed sector, another nudge toward contracting valuations

March 24, 2016 6:26am

The end of this short week is near … and my Easter basket awaits.

Thursday’s four (4) pre-open indications – is it time for safety or risks?

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Dow futures are DOWN -0.33% and NASDAQ futures are DOWN -0.43 %

U.S. stock market futures indicated lower open on Thursday.

European markets traded lower and appeared poised for a negative end to the shorter Easter trading week which saw markets shaken by a terrorist attack in Belgium and fresh concerns over U.S. interest rate hikes.

Asia markets ended lower amid fresh declines in oil prices and concerns the U.S. Federal Reserve may hike interest rates sooner than expected.

Data docket: initial claims and durable goods are set to be released at 8:30 a.m. ET, with Markit Services PMI due at 9:45 a.m.

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

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

Wednesday closed NEGATIVE with 38 decliners, 4 advancers and 1 flat;
Tuesday closed POSITIVE with 15 decliners, 26 advancers and 2 flats;
Monday closed POSITIVE with 10 decliners, 31 advancers and 2 flats;
Friday closed POSITIVE with 17 decliners, 22 advancers and 4 flats;
Last, Thursday closed POSITIVE with 18 decliners, 21 advancers and 4 flats;

The stem, cell and gene therapy regenerative medicine (SCGT&RM) sector opened neutral, strayed negative at the mid-day and closed to the downside on Wednesday after four up days.

Still wearing last night’s hat …” As I had stated … short-term deterioration is in the wind and ready to blow-down some appreciation!”

Once this correction plays out, “our” universe should start to rebound as cash from selling works itself back into the sector.

We should hopefully get at least a partial recovery of the ground lost <next week> but, with fewer highs than we have seen!

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

Capricor (CAPR) closed FLAT at $2.95 with 25.6 K share volume <3 month average = 24.1 K shares> after Tuesday’s +$0.20 following Monday’s +$0.15 behind Friday’s -$0.09 post Thursday’s +$0.19. The recent registered direct offering adds 1.692 M shares to the float of 7.14 M shares and the outstanding <17.95 M shares>. As CAPR looks to base its future on the next generation of exosomes research, what is their patent position? Based on the past week’s appreciation, traders SHOULD be taking advantage of some of the “ups” – Maintaining SELL;

Osiris (OSIR) closed DOWN -$0.70 to $5.01 after being up Tuesday at +$0.21. After having more than its share of trouble - accounting and SEC issues and upheaval begetting the CEO and CFO to leave., OSIR received a letter from The NASDAQ notifying it is not in compliance because it had not filed its 10K on a timely basis with the SEC. OSIR has time to submit a plan within 60 days to regain compliance with NASDAQ's filing requirements for continued listing. OSIR intends to file its Form 10-K as soon as “practicable”. Wednesday’s after-market’s indication was -$0.11 - BUY to SELL;

Verastem (VSTM) closed DOWN -$0.10 to $1.37. Back to the trading game, total cash per share is $3.26 – Maintaining BUY;

Vericel (VCEL) closed DOWN -$0.11 to $2.56 after Tuesday’s+$0.08 post Monday’s+$0.68 following Friday’s +$0.21. Is there a peak after the news and appreciation – an offering? News is great and welcomed but, I believe that VCEL does not have the ability to fund the ischemic dilated cardiomyopathy program without a partner or another offering which I also believe is desperately needed to fund MACI™. VCEL shouldn’t depend on a $10 M credit facility and $5 M term loan agreement with Silicon Valley Bank. Don’t be surprised by an offering appearing in the short-term. Traders’ trade and investors get nervous over strength and rapid run-up which tend to dissipate – maybe not today but, soon – Maintaining 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.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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