April 27, 2016 5:33pm

 

There may be good news in the downfall of “our” universe as it will start heading upward!

 

Do you care what happened today, you should … because it has implications to Thursday's sector activity?   

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There is one thing that everyone needs, and that's interpretation and translation of intelligence, not just news or information - we get too much!

  • To that end, I report a matrix of variables designed for investor’s consideration concerning the stem, cell and gene therapy regenerative medicine portfolio to track and monitor its pricing metric;

The takeaway is that investor need to decide what actions to take, or not take, based on their specific situation.

 

 

U.S. stocks closed mixed Wednesday. The Fed kept rates unchanged and continues to expect "only gradual increases" in the Fed funds rate.

The NASDAQ closed DOWN -25.14 or -0.51% to 4,863.14 and the DOW closed UP +51.23 or +0.28% to 18,041.55.

 

 

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.   Wednesday, the SCGT&RM sector:

  • Opened negative with an A/DL of 13/22 and 8 flats;

 

  • The mid-day slipped further negative with an A/DL of 15/27 with 2 flats;

 

  • The closing bell rang negative with A/DL of 13/28 with 2 flats

 

 

Henry’omics:

The stem, cell and gene therapy and regenerative medicine (SCGT&RM) sector suffers a lack of volume in most companies trading.

  • There may be good news in the downfall of “our” universe as it will start heading upward? Monday, Tuesday and Wednesday closed NEGATIVE after last Thursday and Friday closed POSITIVE followed by last Wednesday’s NEUTRAL close.

The bad news, after all these months we have not found a bottom! But the cost of those efforts has caused dissolution of sentiment and investor confidence!

  • While the NASDAQ is more than 7% below its 52-week intraday high, on Tuesday, the NASDAQ posted its first four-day losing streak since January.

Probably the biggest news overhanging the market is that investors are backing away from the sector and markets. According to Gallup, only 52% say they currently have money invested in the stock market, matching the lowest ownership rate in the poll’s 19-year history.

  • Drilling into the numbers reveals that middle-class Americans are the most skittish when it comes to the market. Almost three out of four of those with incomes ranging from $30,000 to $74,999 said they invested money in stocks in 2007. That number has dropped to half, which is a much more severe decline than in the other income brackets. <MarketWatch>

Another issue, the CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, climbed above 14.5 as the SCGT&RM sector volume stayed low and volatility high.

  • Investor psyches still have plenty of healing to do; want positive results right away, and have no stomach for a 10-20 year investment plan!

 

 

Out and about:

Biostage (BSTG) closed UP +$0.09 back to $1.88 on 120.6 K share volume. When everyone was silent, I kept saying – BUY; BSTG is a totally different company with date on the horizon – mid Q2/16. Maintaining BUY;

 

Cytori (CYTX) closed UP +$0.0127 to $0.35 from 4/1’s $0.21 and a number of news announcements about its Scleroderma trial but, it still resides in the day-trader basement toy-box. The key for real future appreciation will be a reverse, say 1 share for 100 <outstanding shares = 197.76 M and a float of 138.44 M shares>?

 

Intrexon (XON) closed UP +$0.32 to $27.24 after all the negativity by another SeekingAlpha anonymous hedge fund post <haven’t they learned from past mistakes>. WHO are you going to call to address the Zika virus, I don’t see many others making strides – Maintaining BUY;

 

Vericel (VCEL) financial results/earnings are set for May 16 at 8 am – could there be a desperation for an offering?

 

 

Review my fear gauge or the CBOE Volatility Index (VIX):

  • Wednesday traded at 14.5;
  • Tuesday traded below 14;
  • Monday traded near 14.3;
  • Friday traded above 13;
  • Thursday traded near 13.7;
  • Last, Wednesday traded near 12.7;

 

 

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

  • Aduro Biotech (ADRO) closed down -$1.10 to $13.66;
  • Kite Pharma (KITE) -$0.82 to $46.50;
  • Applied Genetic technologies (AGTC) -$0.72 to $16.09;
  • Spark Therapeutics (ONCE) -$0.53 to $37.06;
  • Juno Therapeutics (JUNO) closed down -$0.45 to $42.57

 

 

Who was UP – top 5:

  • bluebird bio (BLUE) closed up +$0.56 to $46.31;
  • ReNeuron (RENE.L) +$0.33 to $3.25;
  • Intrexon (XON) +0.32 to $27.24;
  • Stemline (STML) +$0.17 to $5.50;
  • Biostage (BSTG) closed up +$0.09 to $1.88

 

 

Most active sector stocks + and -:

  • Aduro Biotech (ADRO) -7.45%;
  • Avalanche (AAVL) -6.35%;
  • Applied Genetic Technologies  (AGTC) -4.28%;
  • Histogenics (HSGX) -3.43%;
  • Fibrocell (FCSC) -3.85%

Versus …

  • StemCells (STEM) +12.37%;
  • ReNeuron (RENE.L) +11.11%;
  • Biostage (BSTG) +5.24%;
  • Cytori (CYTX) +3.37%;
  • Stemline (STML) +3.19%

 

 

Who was FLAT?

  • BioTime (NYSEMKT: BTX) at $3.02;
  • 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.