June 27, 2016 4:48pm

The pricing elevator goes down quickly, while walking up the appreciation stairs will be harder and take longer after big market moves

… Rebuilding value muscle takes constant exercise and attention to investor relationships

 

“Take your time in a hurry or slow is smooth … smooth is fast” where investing is “desirable” in respect to risk in your portfolio.

… My message, develop a shopping list!

 

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

 

 

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

 

 

U.S. stocks closed lower Monday, with materials lagging, extending Friday's declines after the Brexit surprise.

The major indexes came off session lows as the close neared. Traders said there were more buy orders at the close when some had expected to see selling. They also said the market was lifted by investors buying stock to cover short positions.

The NASDAQ closed DOWN -113.54 or -2.41% to 4,594.44 and the DOW closed DOWN -260.51 or -1.50% to 17,140.24.

 

 

A day in the life of the stem, cell, gene and regenerative therapy (SCGT & RT) sector – the advance/decline line scenario of our 43 covered companies:    

  • The open was negative with an A/DL of 9/33 and 1 flat;
  • The mid-day stayed negative with an A/DL of 4/38 and 1 flat;
  • The closing bell was negative  with A/DL of 6/36 and 1 flat;

 

 

Henry’omics:

The title re investing in the throes of the sell-off: the "slow is smooth, smooth is fast" saying has its origins in the military. With that context the meaning is fairly obvious: moving fast, or rushing it, is … careless!

  • If you move slowly, carefully and deliberately, you're actually moving as fast as you can without needlessly increasing the risk in your portfolio.

The SCGT&RT sector opened negative, stayed negative at the mid-day and closed negative.

  • U.S. stocks traded lower Monday, with the Dow and S&P breaking below key technical levels as the post-Brexit sell-off continued.

Unfortunately (it's) not a one-day event, a two-day event, but presents significant uncertainties not only for the UK and US’ markets but how “our” universe will be impacted going forward.

  • Among the stocks showing upside volume is Fibrocell (FCSC) with 7.657 M shares, AxoGen (AXGN) Cesca Therapeutics (KOOL) and Brainstorm (BCLI)
  • Shares leading downside volume were Intrexon (XON), Juno Therapeutics (JUNO), bluebird bio (BLUE), Organovo (ONVO), Kite Pharma (KITE) and Sangamo (SGMO)
  • Running flat but with huge volume was ReNeuron (RENE.L) with 3.377 M shares traded <a UK company>.

 

 

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

  • Monday traded below 24;
  • Friday traded above 23;
  • Thursday traded 17.4;
  • Wednesday topped 21;
  • Tuesday traded near 18.2;
  • Last, Monday traded near 18;

 

 

The Bottom Line:

Wait for the <trading> range to be clear on the true downside and the real upside!

 

 

Most depressed sector stocks:

  • Northwest Bio (NWBO) -11.24% - few cards left, Linda Powers “bluffed” too long on company’s reality;
  • Fate Therapeutics (FATE) -8.47% - we loved it with news and will like it again;
  • Regenxbio (RGNX) -11.11% - deep and deeper cuts in value, a rebounder;
  • bluebird bio (BLUE) -10.07% - just when you though all was lost, it climbs;
  • Asterias Biosciences (NYSEMKT: AST)-11.97% – trading on perception, throw-out the bathwater;
  • Bellicum Pharma (BLCM) -7.09% - find this baby as the bathwater is spilled;
  • Juno Therapeutics (JUNO) -7.47% - this “teen” will outgrow its present clothes;
  • Mesoblast (MESO) -6.84% - a deal will be done, it just takes time but a $100 M in cash and a huge credit line says a lot;
  • Applied Genetic Technologies (AGTC)  -4.99% - Biogen (BIB) partnership and cash positions keeps the lights on;
  • Kite Pharma (KITE) -2.65% - I’d be “flying” this kite

Versus those with upside, today:

  • Fibrocell (FCSC) +33.01% - I’d be tripping over myself to sell, technicals can say whatever, but, a flawed platform will be its demise;
  • Brainstorm (BCLI) +3.11% - can’t believe anything …;
  • BioLife Solutions (BLFS) +2.48% or +$0.04 at $1.61 – TOO dependent on sector and low and lowering cash position;
  • Neuralstem (CUR) +1.92% - next joke, walking dead;
  • AxoGen (AXGN) +1.06% - Russell 2000 rebalance candidate but, watch the volume and trading range;
  • Spark Therapeutics (ONCE) +0.74% - on my “like” list this am amongst the debris, proven right;

Flat:

  • ReNeuron (RENE.L) at $2.875

 

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.