RegMed investors’ closing bell analysis: blips and flips

August 1, 2016 5:38pm

… What a difference a new day, week and month make

The iShares Nasdaq Biotechnology ETF traded up +1.60%, its highest level in more than six months

… What’s changed, the pricing pattern is still the oversold being headed to be overbought

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

Do you care what happened today, you should … because it has implications to Tuesday'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 mixed in choppy trade on Monday, the first day of the month, amid falling oil prices while investors digested economic data.

The NASDAQ closed UP +22.07 or +0.43% to 5,184.20 and the DOW closed DOWN -27.73 or -0.15% to 18,404.51.

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 22/15 and 5 flats;
• The mid-day stayed positive with an A/DL of 21/18 and 4 flats;
• The closing bell was positive with A/DL of 21/19 and 3 flats;

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector opened positive, stayed positive at the mid-day with the sector closing positive.

• Notice the pattern from the pre-open post; we were DUE for an UP day …

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;

Investors now have the forthcoming financial results/earnings confronting us!

• Most of “our” universe’s “stories” haven’t changed other than sticking to a lot of past possibilities which still need validation and verification.

Like messengers to the unfaithful, most equities in the sector have risen, sputtered, fallen to rise again – for how long?

• Is it really that simple? Just wait for a whiff of spending, ATM usage post release of Q2 results, I’d front run it the downside of most and make a quarter and maybe a dollar?

Explain it to me, what happens when no one trusts the bi-weekly upside anymore?

Call me cantankerous, contrarian or even a curmudgeon but at last I get it right …

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

• Monday traded 12,63;
• Friday traded 12.4;
• Thursday traded near 12.6;
• Wednesday traded below 13;
• Tuesday traded above 13;
• Last Monday traded above 13;

Today’s Bottom Line:

I’m happy, not crying as the sector “ricochets” from the last two sessions as momentum excites trading to the upside and money is being made.

• Check the low volume and divide by two yet, I remain skeptical about sustainability …

My pre-open indications – 2 hit and 4 miss yet, traders are making money from the upside misses:

• Applied Genetics Technologies (AGTC) closed UP +$0.22 in a day’s range of $15.02 to $15.51 – miss;
• Caladrius Biosciences (CLBS) closed UP +$0.16 in a day’s range of $5.48 to $6.15 – miss;
• Cellectis SA (CLLS) closed UP +$0.91 in a day’s range of $29.95 to $27.46 – miss;
• Juno Therapeutics (JUNO) closed DOWN -$0.07 in a day’s range of $30.49 to $31.47 – hit;
• Spark Therapeutics (ONCE) closed UP +$0.93 in a day’s range of $57.96 to $60.24 – miss;
• Verastem (VSTM) closed DOWN -$0.03 in a day’s range of $1.37 to $1.45 – hit;

Largest decliners:

• VistaGen (VTGN) -13.90%;
• Fibrocell (FCSC) -6.42% after being FLAT on Friday;
• BioLife Solutions (BLFS) -5.34%;
• Northwest Bio (NWBO) -4.86%;
• International Stem Cell (ISCO) -4.27% after being FLAT on Friday

Advancers:

• ImmunoCellular (NYSEMKT: IMUC) +8.67% or +$0.0167 after Friday’s-5.95% after Thursday’s-3.89%;
• Intrexon (XON) +8.09%;
• Cesca Therapeutics (KOOL) +6.94%;
• Sangamo (SGMO) +4.42%;
• Histogenics (HSGX) +4.36%

Flat:                                                                                                                                      

• Cytori )CYTX) at $2.17;
• Stemline (STML) at $7.40;
• 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.