July 19, 2016 4:54pm

… While stock pricing is under extreme pressure as volume dips

The iShares Nasdaq Biotechnology (IBB) closed DOWN -1.28% along with the iShares Russell 2000 ETF (IWM) dropping -0.50% while the SPDR S&P Biotech ETF (XBI) is also DOWN -1.98%

 

… I am concerned about excessive leverage, which in the past year has been driven by ATM usage and lack of capital market access  

My pre-open indications – 2 hit (BLCM and JUNO) and 0 miss

 

Do you care what happened today, you should … because it has implications to Wednesday'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.

 

 

Wall Street closed mixed Tuesday after weeks of record highs for stocks, as investors digested second-quarter earnings.

The NASDAQ closed DOWN -19.41 or -0.38% to 5,036.37 and the DOW closed UP +25.96 or +0.14% to 18,559.01.

 

 

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 21/216 and 6 flats;
  • 10:30 am set a negative tone as the A/DL dropped to 12/31 and 0 flats;
  • The mid-day fell further negative with an A/DL of 7/34 and 2 flats;
  • The closing bell was negative with A/DL of 7/34 and 2 flats;

 

 

Henry’omics:

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

  • The inconsistent strength of this market is the strength of “our” universe is in a constant state of flux.

When stem, cell, gene and regenerative therapy sector stocks brings back the revolving door and negative sentiment which boil beneath the surface of the indexes, ETFs and algorithms; share pricing health takes a turn for the worse, usually leading to a correction and outright declines.

  • This shrinkage in volatility and dry up in NASDAQ volume these two (2) days and most of last week indicated a measure of profit-taking

Reiterating from yesterday, despite all the common fears and expectations to the contrary, investors need to view the "realities" of stem and cell therapy as not supportive of further highs in this market.

  • More reality is coming – Q2 results and spending on development platforms that won’t provide support for expectations.

Where that leaves me right now is very cautious …

 

 

Out and about:

Biostage (BSTG) closed DOWN -$0.06 to $1.08 …

  • Essentially a venture stage company with a public listing

 

Brainstorm (BCLI) closed DOWN -$0.12 to $2.59 …

  • They made their own bed in trying to “play” the market

 

Capricor (CAPR) closed DOWN -$0.07 to $4.18 …

  • On small volume, 14,900 shares  - be prepared for spending figures and run-way timing to needed financing

 

Cytori (CYTX) closed UP +$0.055 to $2.10 …

  • Announced another P1 for Maxillofacial Bone Regeneration,
  • What about U.S. STAR P3 trial and BARDA??

 

Juno Therapeutics (JUNO) closed DOWN -0.97 to $27.55 …

  • Still reeling but, do I see light in the tunnel with some slow upside – the aftermarket is positive +$0.07

 

Mesoblast (MESO) closed DOWN -$0.11 to $4.15 …

  • I wouldn’t be giving UP too soon, more of a comeback “kid” than more sector participants

 

 

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

  • Tuesday near 12.6;
  • Monday traded near 12.4;
  • Friday closed near 13;
  • Thursday closed below 13;
  • Wednesday traded near 13.4;
  • Last, Tuesday closed near 13.6;

 

 

Today’s Bottom Line:

Investors and traders are at the point where a lot of companies are showing signs of being stomped. The issue will be how they come back …

 

 

My pre-open indications – 2 hits and 0 miss:

  • Bellicum Pharma (BLCM) closed DOWN -$0.755 – hit;
  • Juno Therapeutics (JUNO) closed DOWN -$1.04 – hit;

 

 

Largest decliners:

  • Intrexon (XON) -9.31% after Monday’s+3.67%;
  • Fibrocell (FCSC) -6.56%;
  • UniQure (QURE) -6.19%;
  • Sangamo (SGMO) -5.89%;
  • VistaGen (VSTA) -5.39%;
  • Bellicum (BLCM) -5.37%
  • Biostage (BSTG) -5.22%;
  • Aduro Biotech (ADRO) -5.01%;
  • BioLife Solutions (BLFS) -4.85%;
  • Regenxbio (RGNX) -4.56%

 

Advancers:

  • International Stem Cell (ISC) +11.43% on 4,508 share volume;
  • Cytori (CYTX) +2.69%
  • Neuralstem (CUR) +2.06% or $0.0056;
  • Stemline (STML) 2.23%;
  • Cesca Therapeutics (KOOL) +0.96%;
  • Verastem (VSTM) +0.75%;
  • Pluristem (PSTI) +0.74%;

 

Flat:                                                                                                                                      

  • BioTime (NYSEMKT: BTX) at $2.92
  • ReNeuron (RENE.L) at $3.00;

 

 

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.