June 10, 2016 5:02pm

 

… Risky equities are dropping like flies with low volume along with OSIR’s newest CEO

Pre-market indications – 4 hits and 0 miss

 

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

 

 

There are two things that investors need - interpretation of news and translation of related market metrics concerning the stem, cell and gene therapy and regenerative medicine sector to substantiate share pricing.

 

 

U.S. stocks closed lower Friday, weighed by renewed global growth concerns from record lows in benchmark yields and concerns ahead of the U.K. vote on whether to leave the European Union.

The NASDAQ closed DOWN -64.07 or -1.29% to 4,894.55 and the DOW closed DOWN -119.85 or -0.67% to 17,865.34.

 

 

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.   

  • The open was negative with an A/DL of 8/29 and 6 flats;

 

  • The mid-day stayed negative  with an A/DL of 8/33 with 2 flats;

 

  • The closing bell stayed negative  with A/DL of 7/35 with 1 flat

 

 

Henry’omics:

The SCGT&RM sector opened negative, stayed negative at the mid-day and closed negative Friday, on track for a fourth (4th) day of losses, as investors sold risky assets.

  • The iShares Nasdaq Biotechnology ETF (IBB) closed lower -2.28%.

The Health Care Select Sector SPDR ETF (XLV) is down -0.94% and the iShares Trust - iShares Russell 2000 ETF (IWM) was down -1.40%.

  • What is there to say after this week – “our” universe pooped the bed!

 

 

Pet-peeve:

High-frequency trading accounted for 49% of June's daily trading volume of about 6.52 billion shares, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61% of 9.8 billion of average daily shares traded were executed by high-frequency traders.

 

 

Pre-market indications – 3 hits and 1 miss

  • Biostage (BSTG) closed DOWN -$0.03 – hit;
  • Bellicum (BLCM) closed DOWN -$0.03 – miss;
  • Cesca Therapeutics (KOOL) closed DOWN -$0.17 – hit;
  • Kite (PHARMA) closed DOWN -$2.12 – hit;

 

 

Out and about

Capricor (CAPR) closed DOWN -$0.28 or -7.98% to $3.23 after closing DOWN -$0.24 after being UP +$0.46. June has seen appreciation <$3.11, $3.12, $3.23 and $3.23> but, has the pricing gotten ahead of itself – what has been the driving force?

  • A financing is needed and what of the Jansen <J&J> option? I have been a critic and I won’t change;
  • CAPR is a helium filled balloon deflating and true to form - I have maintaining a SELL;

 

Osiris Therapeutics (OSIR) closed DOWN -$0.07 to $4.93 after announcing the resignation of Dwayne Montgomery as its President and Chief Executive Officer and a director effective June 9, 2016. Mr. Montgomery resigned for medical reasons …??

  • On June 10, 2016, OSIR announced that its Board of Directors had appointed David A. Dresner, age 68, to serve as Interim President and Chief Executive Officer, effective June 9, 2016, and is expected to serve in that capacity until the Board completes its search for a permanent Chief Executive Officer. Mr. Dresner is Co-Founder and Chief Financial Officer of the Dresner Group, an information technology consulting firm, and has been engaged by the Company in a consulting capacity focusing on accounting and finance matters since April of this year. He began his career at Price Waterhouse Coopers where he served for 20 years in various capacities, including audit partner and managing partner of the firm's Baltimore office. After leaving PWC, Mr. Dresner served in senior management capacities for a several commercial enterprises, including Statoil Energy, Inc. for which he was President and Chief Executive Officer, and as CFO for a coronary stent developer, Micell Technologies, which received regulatory approval for its first biomedical device and commercially launched in Europe last year.
  • More BIG issues for OSIR, as the SEC also takes a HARD look!

 

Vericel (VCEL) closed at $2.43, DOWN -$0.07 or -2.80%;

  • Is VCEL on a road show with a possible “run” to a public offering with meetings scheduled in Boston, San Francisco and Dallas?

 

 

Today’s Bottom Line:

Resistance is a chart point or range that caps ANY increase in the level of a stock over a period of time. An area of resistance or resistance level indicates that the stock is finding it DIFFICULT to break through it, and may head lower in the short term.

  • The more times that the stock or index has tried unsuccessfully to break through the resistance level, the more formidable that area of resistance becomes.

 

 

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

  • Friday traded at 16;
  • Thursday traded near 14.4
  • Wednesday traded 14;
  • Tuesday traded near 13.7;
  • Monday traded near 13.5;
  • Last, Friday traded at 13.4;

 

 

Most active sector stocks + and -:

  • bluebird bio (BLUE) -8.61%;
  • Capricor (CAPR) -7.98%
  • Stemline (STML) -6.60%;
  • Fibrocell (FCSC) -5.65%;
  • Juno Therapeutics (JUNO) -5.60%

versus:

  • Organovo (ONVO) +8.39%;
  • Opexa (OPXA) +6.54%;
  • Asterias (NYSEMKT: AST) +2.39%;
  • Athersys (ATHX) +1.06%;
  • BioLife Solutions (BLFS) +0.63%

 

 

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.