Indication intelligence, analysis and sector perception

Mixed open expected; RegMed sector is still oversold

April 21, 2016 6:56am

For some equities get me a truck to load and for a few, find me a shovel to bury …

Don’t miss access to timely and actionable information.

Subscription sign-up … http://www.regmedinvestors.com/create-account

Companies mentioned: BLUE, JUNO and XON

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 …

Where are today’s markets going; Dow futures are UP +0.3% and NASDAQ futures are DOWN -0.4%

Stocks looked set to pause their march upward Thursday, as the oil rally took a breather and a European Central Bank meeting loomed for later.

European equities experienced a choppy session, as a disappointing set of earnings put investors on edge, ahead of a closely watched monetary policy decision from the European Central Bank (ECB).

Most major Asian markets advanced, taking cues from overnight gains in U.S. equities that followed a rise in oil prices, but Chinese stocks fell behind their regional peers and extended losses from the previous session.

Data docket: weekly initial jobless claims, the Philadelphia Fed Index, the FHFA Housing Price Index and the Conference Board's Leading Economic Index for March.

The stem, cell and gene therapy regenerative medicine (SCGT&RM) sector closed NEUTRAL on Wednesday, NEGATIVE on Tuesday, POSITIVE on Monday, NEGATIVE on Friday and POSITIVE last Thursday.

The stem, cell and gene therapy regenerative medicine sector’s record after the last 5 days (of 43 covered companies):

Wednesday closed NEUTRAL with 21 decliners, 21 advances and 1 flat;
Tuesday closed NEGATIVE with 33 decliners, 9 advancers and 1 flat;
Monday closed POSITIVE with 17 decliners, 25 advancers and 1 flat;
Friday closed barely NEGATIVE with 20 decliners, 19 advancers and 4 flats;
Last, Thursday closed POSITIVE with 16 decliners, 25 advancers and 2 flats;

A reminder from Wednesday’s closing post, “Every time I try to argue that the current sector/market environment is being influenced by the other, I am reminded that they alternate with strength and weakness. The latest evidence is that it’s time for more offense than defense in these short- term swings in the risk-on and off scenarios!”

We are approaching May – should we sell and go away?

I’d be tentative until after Q1/16 financial results are delivered. It's about sustained appreciation, and making money has been tough for most stem, cell and gene therapy and regenerative medicine sector investors this year.

The IBB went down 40% from peak to trough in the last few months, and we haven’t even seen a real correction in the broader market. In fact,

We have finally entered what may be a new leg – a recovery from the lows.

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

Watch, wait and listen list:

The iShares Nasdaq Biotechnology (IBB) closed Wednesday down –0.04% and is FLAT in Thursday’s pre-market;

The SPDR S&P Biotech ETF (XBI) closed UP +0.09% and is DOWN -0.05% in Thursday’s pre-market;

NASDAQ Biotechnology (NBI) closed up +0.05%;

The Health Care Select Sector SPDR ETF (XLV) closed up +0.54% on Wednesday and is UP +0.56% in the pre-market ;

The iShares Russell 2000 (IWM) closed UP +0.15% on Wednesday and is DOWN -0.15% in Thursday’s pre-market.

Some specifics for the morning:

bluebird bio (BLUE) closed DOWN -$3.41 to $44.31 after Tuesday’s -$3.10 after being up +$0.44 on Monday. The after-market indication is +$0.37. Oversold – Maintaining BUY;

Juno Therapeutics (JUNO) closed DOWN -$0.32 to $42.86 after Tuesday’s $43.18 after Monday’s $44.46. The after-market indication is +$0.69 - BUY;

Intrexon (XON) closed UP +$1.07 to $36.83. …… The after-market indication is +$0.47 – Maintaining 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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

Do you have an opinion you would like to share with us? We would like to hear from you.

Please e-mail us at hwm@regmedinvestors.com.

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.

RegMed Investors (RMi) or Regmedinvestors.com content is the intellectual property of Henry McCusker. Any copying, republication or redistribution of RMI’s content, including by framing or similar means, is expressly prohibited without the prior written consent of Scimitar; who also shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. For additional information on other Scimitar media services or reposting please email hwm@regmedinvestors.com.

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

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