August 4, 2016 6:16pm

… Early gains were forfeited with the usual alternating volatility

It’s just the sector and market pattern at work after a day of ups

 

… Financial results/earnings take their toll on share pricing (BLUE, FCSC, SGMO, STML) versus an upside ring (AXGN and ADRO)

After the bell were CYTX, JUNO and Organovo

 

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 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.

 

 

Stocks closed mostly flat on Thursday, despite a rise in oil prices, as Wall Street looked ahead for Friday's jobs report.

The NASDAQ closed UP +5.51 or +0.13% to 5,166.25 and the DOW closed DOWN -2.95 or -0.02% to 18,352.95.

 

 

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 28/9 and 6 flats;
  • 10:30 am, the sector turned neutral with an A/DL of 20/20 and 3 flats;
  • 11:30 am, the sector then turned negative with an A/DL of 17/23 and 3 flats;
  • The mid-day continued negative with an A/DL of 18/21 and 4 flats;
  • The closing bell was negative with A/DL of 19/23 and 1 flat;

 

 

Henry’omics:

U.S. stocks relinquish modest gains to end mostly flat Thursday as investors await the closely watched jobs report due Friday.

  • Friday’s jobs report is likely to command more attention given the surprising readings from the two previous labor data.
  • A Labor Department report for June showed that a surprisingly strong 287,000 were created, following employment data for May that revealed a paltry 11,000 were created.
  • Economists surveyed by FactSet are projecting the U.S. economy to have added 185,000 jobs in July.

Many are divided on how big of an impact July nonfarm-payrolls will have on the Fed’s monetary policy, given that most other major central banks are in a dovish mode.

 

The stem, cell, gene and regenerative therapy (SCGT&RT) sector opened positive, bumped negative at the 10:30 am and 11:30 am timeframe, stayed negative at the mid-day with the sector closing negative.

  • The iShares Nasdaq Biotechnology NASDAQ GM (IBB) was DOWN -0.59% and the iShares Russell 2000 NYSE Arca (IWM) was also UP +0.09%.

Remember the redcoats are coming, the shots heard around the sector were multiple Q2 results and the “wounded” are lying where they fell.

  • Review the volume of the sector – it’s extremely LOW with volatility tremendously HIGH.

The pricing compass is eschewed …

  • Reiterating, August can be a tough month for stocks with a market that seems tired by the day.

 

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):

  • Thursday traded near 12.5;
  • Wednesday traded near 12.8;
  • Tuesday traded near 13.5;
  • Monday traded 12,63;
  • Friday traded 12.4;
  • Last Thursday traded near 12.6;

 

 

Today’s Bottom Line:

It happens every quarter – financial results/earnings are released and yet again share pricing depreciates …

 

 

Out and about:

Earnings season in the stem, cell, gene and regenerative therapy sector continues to wind upward and depreciate equities:

  • bluebird bio (BLUE),
  • Fibrocell (FCSC),
  • Sangamo (SGMO),
  • Stemline (STML)

Versus those appreciating:

  • AxoGen  (AXGN)
  • Aduro Biotech (ADRO)

Announcing after the bell rings:

  • Cytori (CYTX)
  • Juno Therapeutics (JUNO)
  • Organovo (NYSEMKT: ONVO)

 

Biostage (BSTG) closed at $1.15 with big <unusual> volume – 501,973 shares traded <3 month average = 201, 776 shares> - a +$0.08 upside.

  • Q2 results will be released, Thursday August 11.  
  • What do traders know that investors don’t?

 

 

Largest decliners:

  • Sangamo (SGMO) -28.95%;
  • Cesca Therapeutics (KOOL) -17.34% after Tuesday’s +21.80%;
  • ImmunoCellular (NYSEMKT: IMUC) -9.88%;
  • bluebird bio (BLUE) -9.43%;
  • Neuralstem (CUR) -4.45% after Tuesday’s -0.05%

 

Advancers:

  • AxoGen (AXGN) +16.57%;
  • Adverum (ADVM) +8.55% after Tuesday’s +22.32%;
  • Biostage (BSTG) +7.47$;
  • International Stem Cell (ISCO) +4.71% after Tuesday’s -3.54%;
  • Opexa (OPXA) +4.33%

 

Flat:                                                                                                                                      

  • 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.