Indication intelligence, analysis and sector perception

Higher open expected; RegMed sector, the fallen - don’t blame gravity

May 12, 2016 6:30am

Sentiment and investor conviction need to improve

Companies mentioned: BSTG, CAPR

Earnings this week: BioLife Solutions (BLFS); Biostage (BSTG); Capricor (CAPR); Histogenics (HSGX) and Opexa (OPXA)

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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 +0.30% and NASDAQ futures are UP +0.52%

U.S. stock index futures were higher on Thursday morning, as traders eyed the release of another batch of data and some earnings in the retail sector.

European markets reversed losses, as the oil price continued its march higher, despite some disappointing earnings from major corporates.

Major Asian stock indexes dropped modestly Thursday, taking cues from declines in U.S. stocks after a string of top-flight retail companies released disappointing earnings.

Data docket: Initial jobless claims and import prices are out at 8:30 a.m. ET.

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

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

Wednesday closed NEGATIVE with 30 decliners, 11 advancers and 2 flats;
Tuesday closed NEGATIVE with22 decliners, 18 advancers and 3 flats;
Monday closed POSITIVE with 14 decliners, 26 advancers and 3 flats:
Friday closed NEGATIVE with 25 decliners, 16 advancers and 2 flats;
Last, Thursday closed NEGATIVE with 31 decliners, 10 advancers and 2 flats;

A reminder from Wednesday’s closing post, “The SCGT&RM sector flickers and fizzles to fit with its definition, to burn unsteadily or shine with a wavering light! There is significance to momentum-based speculation. The short-term trend has drawn too much attention to speculation.”

The action of some of “our” universe’s leading stocks leaves something to be desired.

The immediate issue is trader’s appetite for risk or it’s just the algorithms at work!

There is a general suspicion among investors concerning management’s respect for them. The level of “BS” press releases versus 8-K filings tenders a response <many times> of what the heck does that mean?

My issue points to the variation from daily and weekly market cycles as compared to the previous weeks.

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 -3.01% and is DOWN -0.01% in Thursday’s pre-market;

The SPDR S&P Biotech ETF (XBI) closed Wednesday down -3.45% and is DOWN -0.04% in Thursday’s pre-market;

NASDAQ Biotechnology (NBI) closed down Wednesday -3.08%;

The Health Care Select Sector SPDR ETF (XLV) closed Wednesday down -1.20% and is FLAT in Thursday’s pre-market;

The iShares Russell 2000 (IWM) closed Wednesday down -1.24% and is UP +0.23% in Thursday’s pre-market.

Company in the spotlight:

Biostage (BSTG) closed DOWN -$0.05 to $2.24 after Tuesday’s +$0.01 and Monday’s close of$2.28. BSTG, the bioengineered organ implant developer will host its pre-clinical research update and Q1 Call on Thursday, May 12th at 9:00 am ET. It’s been an interesting May so far as the shares have held up pretty well in the range of $2.22 to a high of $2.50 during the past seven (7) sessions. April was a disappointing month for most companies, the share price ranged from a low of $1.67 to $2.13 … especially in the face of a name and symbol change. The title of the announcing Q1 call and pre-clinical update could only mean – that good news is “in the oven” – Maintaining BUY;

Capricor (CAPR) closed UP +$0.08 to $3.36 following Tuesday’s -$0.28 to $3.28 after Monday’s -$0.06. May’s range has run from $3.86 to $3.62 while April saw a range of $2.61 to $3.94. It is overvalued because of the lack of true understanding of the vulnerabilities of their pipeline. Financial results/earnings are scheduled for Thursday May 12^th. Still needs a financing – 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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

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

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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.