May 10, 2016 6:38am

The indexes and ETFs are trending to the upside

Companies mentioned: AGTC, CAPR, CLLS, JUNO, KITE and NWBO,

Earnings this week:   3 today, 8 remain this week, do you know who, read the list here!

 

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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 UP +0.58% and NASDAQ futures are UP +0.57%

 

 

U.S. stock futures on Tuesday pointed to a higher open, with a turn higher in oil prices coming ahead of a fresh reading on the U.S. labor market.

European stocks extended gains amid a bounce back in the oil price and some positive earnings from the likes of Credit Suisse.

Asia markets closed mixed, with the Japanese benchmark index leading gains in the region.

Data docket: At 6 a.m. ET, an April figure for a small-business optimism index is expected to hit.  The Labor Department’s Job Openings and Labor Turnover Survey for March are slated to arrive at 10 a.m. ET, and a March reading on wholesale inventories is due at that same time.

 

 

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

 

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

  • Monday closed POSITIVE with 14 decliners, 26 advancers and 3 advancers:
  • Friday closed NEGATIVE with 25 decliners, 16 advancers and 2 flats;
  • Thursday closed NEGATIVE with 31 decliners, 10 advancers and 2 flats;
  • Wednesday closed NEGATIVE with 36 decliners, 6 advancers and 1 flat;
  • Last, Tuesday closed NEGATIVE with 31 decliners, 9 advancers and 3 flats;

 

 

A reminder from Monday’s closing post, “The iShares Nasdaq Biotechnology ETF (IBB) closed nearly 2.6% higher for its best day since April 21.”

  • Reiterating, the balance of Q2/16 is going to sink or swim depending how Q1/16 financial results/earnings come in!

 

 

 

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 Monday UP +2.59% and is UP +0.53% in Tuesday’s pre-market;

 

  • The SPDR S&P Biotech ETF (XBI) closed Monday up +3.69%  and is UP +0.73% in Tuesday’s  pre-market;

 

  • NASDAQ Biotechnology (NBI) closed up Monday +2.45%;

 

  • The Health Care Select Sector SPDR ETF (XLV) closed Monday up +1.14% and is DOWN -1.72% in Tuesday’s pre-market;

 

  • The iShares Russell 2000 (IWM) closed Monday up +0.29% and is UP +0.73% in Tuesday’s pre-market.

 

 

Financial results/earnings today:

Cytori (CYTX), Intrexon (XON), and Opexa (OPXA)

 

 

Financial results/earnings in the week to come:

  • BioTime (NYSEMKT: BTX) Wednesday, May 11;
  • International Stem Cell (ISC) on Wednesday, May 11;

 

  • BioLife Solutions (BLFS) Thursday, May 12;
  • Biostage (BSTG) on Thursday, May 12;
  • Brainstem (BCLI) Thursday, May 12;
  • Capricor (CAPR) Thursday, May 12;
  • Vericel (VCEL Thursday, May 12;
  • Histogenics (HSGX) Thursday, May 12;

 

 

Company in the spotlight:

  • Applied Genetic Technologies (AGTC) closed DOWN -$0.06 to $14.20. AGTC reported Q3/16 net income of $2 M, after reporting a loss in the same period a year earlier. On a per-share basis, AGTC had net income of $0.11 per share. The results topped “street” expectations which were for earnings of $0.04. AGTC posted revenue of $12 M, which fell short of “street” forecasts of  $13.4 M. Applied Genetic Technologies shares have declined 30% since the beginning of the year. At March 31, AGTC's cash, cash equivalents and investments amounted to $180.5 M, which include payments previously received under their collaboration with Biogen (BIIB). AGTC expects that as of June 30, 2016, its cash, cash equivalents and investments will be between $163 M and $173 M. In the final minutes of trading on Monday, shares hit $14.20, a drop of 22% in the last 12 months. Compared with other earning’s release, AGTC showed some fortitude – BUY;

 

  • Capricor (CAPR) closed DOWN -$0.06 to $3.56. May’s range has run $3.86 to $3.62 while April has seen a range of $2.61 to $3.94. Over bought through low volume and overvalued by the lack of true realization of the vulnerabilities of their pipeline. Financial results/earnings are scheduled for Thursday May 12th. Still needs a financing – SELL;

 

  • Cellectis SA (CLLS) closed UP +$2.46 to $33.38. The past five (5) sessions have been bumpy having started the May at $27.66, while April began the month at $27.95 and ended at $27.21 – an uneven run. Although the after-market indication is +$0.12; I’d be a seller, risk is a four letter word alongside luck - SELL;

 

  • Juno Therapeutics (JUNO) closed UP +$1.32 to $38.49. JUNO widened its Q1 loss year-over-year, from $65 M to $71.1 M burning through more cash and recording a bigger loss than it did this time last year’s $26.4 M in Q1/15. JUNO still has a “strong” cash position with $1.13 billion on hand as of 3/31. JUNO reported $9.8 M in Q1 revenue, which included $5.8 M in milestone payments from Novartis and $3.8 M from Celgene as part of its agreement with those companies. In after-hours trading, JUNO’s stock priced dipped nearly 4%, to $37 a share. The after-market indication is -$1.16 - SELL;

 

  • Kite Pharma (KITE) closed UP +$1.15 to $45.80. KITE reported a loss of $43.9 M or a per share loss of $0.90. Losses, adjusted for stock option expense, came to $0.60 per share. The results beat “street” expectations which forecasted a loss of $1.22 per share. KITE posted revenue of $5.1 M in the period, which also topped “street” forecasts which had been expected at $4.8 M. As of March 31, KITE had $577.4 M in cash, cash equivalents, and marketable securities.  KITE continues to expect the full year 2016 net cash burn to be $235 to $250 M, which includes approximately $20 M in capital expenditures, but excludes any inflows or outflows from business development activities. The estimated full year 2016 net cash burn is primarily driven by an estimated net loss of $295 to $310 M, which includes an estimated $80 M of non-cash stock-based compensation expense.  Kite Pharma shares have declined 26% since the beginning of the year. Shares have decreased 18% in the last 12 months. The after-market indication is +$0.95 – BUY;

 

  • Northwest Bio (NWBO) closed UP +$0.19 to $1.26. NWBO had announced an operations update in regard to its P1 and P2 trials, Scientific Advisory Board and NASDAQ compliance. Northwest has reached conceptual agreement with three third parties to conduct three different P2 combination trials for the treatment of three different cancers. We have seen a low of $1.07 and a high of $3.06 over the last 3 months and 2 weeks.  The after-market indication is +$0.03 – 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.