RegMed investors’ closing bell analysis: another positive open and a negative close, the sector’s flashing caution

July 14, 2016 4:55pm

… How much can investors continue to lose?

Are there gains to be had?

Fundamentals and technical are weak, how much pain can we afford while the sector juggles the overbought and oversold ...

My pre-open indications – 1 hit (BLFS) and 3 miss (BLUE, CAPR and CLLS)

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

Where has today’s market gone – subscribe and find out. 

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. equities closed higher Thursday. The Dow closed 73% higher. The S&P 500 closed 0.5% higher and hit a fresh intraday high. The NASDAQ closed 0.57% higher.

The NASDAQ closed UP +28.33 or +0.57% to 5,034.06 and the DOW closed UP +134.29 or +0.73% to 18,506.41.

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 positive with an A/DL of 24/17 and 2 flats;
• The mid-day slid negative with an A/DL of 20/22 and 3 flat;
• The closing bell was negative with A/DL of 16/22 and 5 flat;

Henry’omics:

The SCGT&RT sector opened positive, slipped negative before the mid-day and closed negative.

• The open was positive with an A/DL of 24/17 but quickly slipped (but, still positive) at 10:30 am, the drip began as the A/DL sliced to 21/20 followed by 11:30’s 10/31 20/20 followed by the mid-day’s 20/22.

The iShares Nasdaq Biotechnology (IBB) closed UP +0.25% along with the iShares Russell 2000 ETF (IWM) also being UP +0.34%

• Regardless of whether you are a short-term trader, long-term investor or somewhere in between, investing is choosing equities to invest in, allocating among them, making ongoing decisions about those assets individually, all with constant awareness of how those decisions impact.

The question is what an acceptable range of outcomes in percentage term.

• Investors NEED a "risk tolerance" profile tool to define and refine their stress point of loss. It is a question of objectives. How many times can one survive the dips and slips?

My range would be 10% on the downside and 20% on the upside.

Out and about:

BrainStorm (BCLI) to announce top line results from the U.S. P2 Study of NurOwn in patients with Amyotrophic Lateral Sclerosis (ALS) on Monday, July 18

• A typical HYPE move which begets  whip-saw moves up and DOWN …
• SELL, run don’t walk …

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

• Thursday closed below 13;
• Wednesday traded near 13.4;
• Tuesday closed near 13.6;
• Monday traded near 13.5;
• Friday traded below 13.3;
• Last, Thursday traded near 15.89;

Today’s Bottom Line:

Back to a roller coaster ride, as Friday approaches who wants to be long?

My pre-open indications – 1 hit and 3 miss:

• BioLife Solutions (BLFS) closed DOWN -$0.14 – hit;
• bluebird bio (BLUE) closed DOWN -$0.14 – miss;
• Capricor (CAPR) closed UP +$0.18 – miss;
• Cellectis SA (CLLS) closed DOWN -$0.29 – miss;

Largest decliners:

• BioLife Solutions (BLFS) -6.22% after yesterday’s +8.70%;
• International Stem Cell (ISCO) -4.45% after yesterday’s +10%;
• Vericel (VCEL) -0.12%;
• Juno Therapeutics (JUNO) -5.43% after yesterday’s +9.46%;
• uniQure (QURE) -4.79%

Advancers:

• Brainstorm (BCLI) +32.84% or +$0.88 - SELL it tomorrow;
• ReNeuron (RENE.L) +4.55%;
• Biostage (BSTG) +0.06 or $0.06 – It will probably sell-off tomorrow;
• ImmunoCellular (NYSEMKT: IMUC) +2.87% or +$0.0067 – next joke;
• Capricor (CAPR) +4.46% - on 7,895 share volume, be prepared for a sell-off;

Flat:                                                                                                                                      

• Asterias Biotherapeutics (NYSEMKT: AST) at $2.81;
• BioTime (NYSEMKT: BTX) at $2.88;
• Cytori (CYTX) at $1.96;
• Fibrocell (FCSC) at $1.17;
• Organovo (ONVO) at $3.80;

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.