May 13, 2016 5:38pm
WHY, management’s inability to recognize they're being manipulated by short-termism as buyers ran scared.
I lay a lot of the selling issues upon those who have taken the short cut of dependence on day traders and speculators share pricing thrusts not a longer road of building share value through attraction of stronger and safer “hands” for their shareholdings.
Dear managements – you bought the shovel, dug your own grave and are filling it upon yourself while you’re still alive!!!
Pre-open indications batting average: 1 hit and 2 miss
Do you care what happened today, you should … because it has implications to Monday'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 and 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 lower Friday, with the Dow Jones industrial average and S&P 500 closing below their 50-day moving averages and posting their first three-week losing streak since January.
The NASDAQ closed DOWN -19.66 or -0.41% to 4,717.68 and the DOW closed DOWN -185.18 or -1.05% to 17,535.32.
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.
- Opened positive with an A/DL of 26/16 and 1 flats;
- The mid-day stayed positive with an A/DL of 27/14 with 2 flats;
- The closing bell flipped to the negative with A/DL of 15/22 with 6 flats
Henry’omics:
Stocks opened positive, stayed positive to the mid-day and begrudgingly closed negative.
- Sentiment is killing “our” universe!
Option traders have been buying a lot of put options (a bet on falling prices). In general, that's a contrarian indicator.
- Volatility has borrowed deep and been residing in the SCGT&RM sector.
WHY, where is the belief in management’s ability to recognize their being manipulated by short-termism?
- I lay a lot of the selling issues upon those who have taken the short cut of dependence based on day traders and speculators share pricing thrusts not a longer road of building share price through attraction of stronger and safer “hands” for their shareholdings.
Dependence by those firms who “play” to “trigger finger” traders will bloody your share price – a prime example was shown this week by a number of companies.
- Dear managements – you bought the shovel, digging your own grave and filling it upon you while you’re still alive!!!
A pre-open indication batting stats – 1 hit and 2 miss:
- Biostage (BSTG) closed DOWN -$0.18 – miss;
- Cytori (CYTX) closed DOWN - $0.05 – hit;
- Kite Pharma (KITE) closed UP +$0.57 – miss;
My pet peeve:
- High-frequency trading accounted for 49% of May's daily trading volume of about 7.23 billion shares <TABB Group>.
The Bottom Line:
- Reiterating, “safer “hands” in shareholdings are the basis of upside movement”!
Review my fear gauge or the CBOE Volatility Index (VIX) - dropping:
- Friday closed near 14.5;
- Thursday near 14;
- Wednesday traded near 13.8;
- Tuesday traded below 14;
- Monday closed below 14.5;
- Last, Friday closed below 15;
Who was leading the declines – to of the bottom 5?
- Spark Therapeutics (ONCE) -$0.42 to $33.51;
- Adverum Biotech (formerly Avalanche) -$0.24 to $3.64;
- International Stem Cell (ISCO) -$0.22 to $2.51;
- Biostage (BSTG) -$0.18 to $1.71;
- AxoGen (AXGN) closed down -$0.17 to $5.32
Who was UP – top 5:
- bluebird bio (BLUE) closed up +$2.26 to $38.46;
- Applied Genetic Technologies (AGTC) +$0.92 to $14.64;
- Kite Pharma (KITE) +$0.57 to $42.64;
- uniQure (QURE) +40.50 to $12.21;
- Aduro Biotech (ADRO) closed up +$0.48 to $10.69
Who was flat?
- Organovo (ONVO) at $2.48;
- BioLife solutions (BLFS) at $1.68;
- Fate Therapeutics (FATE) at $1.59;
- Vericel (VCEL) at $2.93;
- ReNeuron (RENE.L) at $3.375;
Most active sector stocks + and -:
- Biostage (BSTG) -9.53%;
- International Stem cell (ISCO) -8.06;
- ImmunoCellular (NYSEMKT: IMUC) -6.83%
- Adverum Biotech (ADVM) -6.19%
- Capricor (CAPR) -4.19;
versus …
- Applied Genetic Technologies (AGTC) +6.71%
- bluebird bio (BLUE) +6.25%
- Aduro Biotech (ADRO)+4.70%;
- Histogenics (HSGX) +7.78%;
- uniQure (QURE) +4.27%;
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.
