August 1, 2016 7:36am

 

… Low volume, summer doldrums and a trading market misleads indexes and ETFs

Contrarianism reverberates

… First they tell me that I’m wrong and they can prove it. Then they tell I’m right again, but to me it’s relevance that matters

 

I answer one question; in which company should investors put, keep and commit their money!

 

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Where do investors turn for insight and perspective - I say truthfully what others won't, so you can do what others can't!

 

 

Companies in my headlights: AGTC, CLLS, JUNO, ONCE and VSTM  

Indexes and ETFs: The IBB (+0.06%), XLV (+0.11%), XBI (+0.69%) and IWM (+0.19) are UP

Dow futures are UP +0.10% and NASDAQ futures are UP 0.03%

 

U.S. stock index futures indicated a higher open Monday as investors reacted to fresh data from China and volatile banking stocks over in Europe.

European stocks reversed gains to trade lower as investors reacted to European banking stress tests and new Chinese data which showed its official manufacturing gauge unexpectedly slumped in July.

Asia marketsclosed mostly higher, as traders shrugged off a slowdown in manufacturing activity among large enterprises in China, though Chinese shares slipped to a near one-month low.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Friday and Thursday, POSITIVE on Wednesday and Tuesday and NEGATIVE last Monday.

The SCG&RT sector’s record after the last 5 days (of 43 covered companies):

  • Friday closed NEGATIVE with 20 decliners, 18 advancers and 5 flats;
  • Thursday closed NEGATIVE with 22 decliners, 15 advancers and 6 flats;
  • Wednesday closed POSITIVE with 15 decliners, 27 advancers and 1 flat
  • Tuesday closed POSITIVE with 13 decliners, 28 advancers and 2 flats;
  • Last Monday closed NEGATIVE with 25 decliners, 15 advancers and 3 flats;

 

 

Remembering Friday’s post, “Hazard flags are raised … is it dangerous for investors? Shark sightings are increasing with the high availability of “upside” fare.  Enjoy the beach while you can; exit the water calmly when the red flags of financial results/earnings are raised.  Don’t be mistaken for a seal!

  • Common sense and patterns say that some sector “participants” are a ticking time bomb – it’s all about the ability to raise capital to fund development.

Probably, just another reason that my basic contrarianism is earning me at a wave of criticism which is about to be … on target.

 

 

You’ve made it to the office, turned on the monitor, having just gotten your coffee and it hits you - what could be today’s trades? 


Watch list:

  • The iShares Nasdaq Biotechnology (IBB) closed Friday up +0.61% and is UP +0.06% in Monday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Friday up +1.26% and is UP +0.69% in Monday’s  pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up Friday +0.20% and is UP +0.11% in Monday’s pre-market;
  • The iShares Russell 2000 (IWM) closed up +0.23% on Friday and is UP +0.25% in Monday’s pre-market.

 

 

Companies in my spotlight:

Applied Genetics Technologies (AGTC) closed DOWN -$0.15 to $15.03 and the aftermarket indication is -$0.43 or -2.86%. AGTC bounces with the sector; while the institutional holdings remain strong, the retail holdings bounces like tennis balls – SELL;

Caladrius Biosciences (CLBS) closed UP +$0.08 to $5.54 after Thursday’s $5.48 (+$4.96) after a 1 for 10 reverse split. Historically “reverses” have a negative downside effect especially if there is more to the share pricing than a NASDAQ listing. Don’t be fooled by share movements followed by press release – its how to mitigated downfalls but, also be prepared for an offering – Maintaining SELL:

Cellectis SA (CLLS) closed UP +$0.27 to $26.37. After a good week of positive closes, Monday’s $25.25, $25.39, $26.01, and Thursday’s $26.10 – traders will be “eyeing” the $1.09 upside.  The aftermarket indication is -$0.07 – SELL;

Juno Therapeutics (JUNO) closed UP +$1.02 to $30.93. Juno announced that three patients in its CAR-T trial for ALL died from cerebral edema (brain swelling) following the trial. That trial included a pre-conditioning regimen employing familiar chemotherapy agent’s fludarabine and cyclophosphamide to suppress the immune system before infusing the engineered T cells. JUNO later revealed that a fourth patient had died from the same cause in a separate CAR-T trial. The publicity surrounding the trial deaths and FDA hold has brought new scrutiny to CAR-T and the potential toxicities of this vaunted new cancer treatment. I’d be “playing” the share price as the next month evolves. The aftermarket is negative -$0.46 – SELL;

Spark Therapeutics (ONCE) closed UP +$2.55. Monday’s $53.50, after Tuesday’s $54.11, Wednesday’s $53.99 and Thursday’s $55.39 - good week, moving stock but, a target on its $7.30 appreciation’s back. In this market, at this time, I’d be “antsy” – take the profit and come-back another session - SELL

Verastem (VSTM) closed DOWN -$0.08 to $1.40. The aftermarket indication is negative -$0.04 after Thursday’s $1.48 (+$0.18) on high volume – 2.715 M shares traded <3 month average = 332,594 shares>. Last week started at $1.29, slipped to $1.27 skipping to $1.30 – each with small volume. As I had stated I’m NOT a “truster”, skim the “vig” <it happened> and come back after earning’s release when it’s solid - Maintaining SELL

 

 

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.