August 5, 2016 7:29am
Depreciating financial results/earnings
… As investors wrestle with pricing melt-downs
Indexes, stock futures and ETFs are UP
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: ADVM, AXGN, BSTG, JUNO, KOOL and XON
Indexes and ETFs: The IBB (+0.34%), IWM (+0.28%) and the XBI (+0.09%) are UP and the XLV is NOT indicating
Dow futures are UP +0.17% and NASDAQ futures are UP +0.19%
U.S. stock index futures indicated a higher open on Friday as traders eyed the release of non-farm payrolls.
European stocks were higher after the Bank of England (BoE) unleashed a fresh stimulus package, but some caution remains ahead of U.S. jobs numbers later in the day.
Asia markets closed mixed, as traders trimmed holdings ahead of the key July non-farm payroll report in the U.S., due later Friday.
Data docket: Economists expect a solid 180,000 jobs were created in July and that wages rose modestly, following two months this spring where it looked as though hiring went from bust to boom. The unemployment rate is expected to fall to 4.8% from 4.9% <Reuters>. Also will be seen is trade deficit data being released at 8:30 a.m. ET, with consumer credit set to come out at 3 p.m.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Thursday, POSITIVE on Wednesday, NEGATIVE on Tuesday, POSITIVE on Monday and NEGATIVE on last Friday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Thursday closed NEGATIVE with 23 decliners, 19 advancers and 1 flat;
- Wednesday closed POSITIVE with 7 decliners, 33 advancers and 3 flats;
- Tuesday closed NEGATIVE with 26 decliners, 15 advancers and 2 flats;
- Monday closed POSITIVE with 19 decliners, 21 advancers and 3 flats;
- Last Friday closed NEGATIVE with 20 decliners, 18 advancers and 5 flats;
Remembering Thursday’s post, “Remember the redcoats are coming, the shots heard around the sector were multiple Q2 results and the “wounded” are lying where they fell.”
- Reiterating, August can be a tough month for stocks.
And, it is an August Friday; traders want to escape the market for a less tense weekend!
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 Thursday down -0.59% and is UP +0.34% in Friday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Thursday down -1.37% and is UP +0.09% in Friday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down Thursday -0.15% and is NOT indicating in Friday’s pre-market;
- The iShares Russell 2000 (IWM) closed up +0.09% on Thursday and is UP +0.28% in Friday’s pre-market.
Companies in my headlights:
Adverum (ADVM) closed UP +$0.37 to $4.70 on huge volume of 1.170 M shares <3 month average = 291,135 shares>. Why the huge volume? Another target, as Wednesday’s 2.92 M shares traded generated $4.33 following Tuesday’s $3.54, Monday’s $3.49 and last Friday’s $3.62 – SELL;
AxoGen (AXGN) closed UP +$1.19 to $8.37. AXGN reported a loss of $2.8 M and $0.09 per share in Q2/16. AXGN also posted revenue of $10.4 M. A good week of Wednesday’s $7.18, $6.69, Monday’s $5.64 and last Friday’s $6.72. A target for depreciation, AxoGen shares have climbed 44% since the beginning of the year – SELL;
Biostage (BSTG) closed UP +$0.08 to $1.15 on big volume of 501.9 K <3 month average = 201.7 K shares>. The day trading ownership dependence never fails to “skim” the upside. BSTG has more than enough issues of having to raise capital in the next months or at least begin to – SELL;
Cesca Therapeutics (KOOL) closed DOWN -$0.94 to $4.48 after announcing a registered direct offering of 600, 000 shares at $4.10. The sale was expected to close by 8/9. KOOL previously reported that it had only $7.25 M in cash and cash equivalents at the end of March after negative cash flow of $8.35 M over the previous nine months. The aftermarket indication is -$0.08 – SELL;
Juno Therapeutics (JUNO) closed DOWN -$0.39 to $30.92. JUNO announced interim results, as of May 19, 2016, in Memorial Sloan Kettering Cancer Center’s (MSK) P1 trial of JCAR015 in adult relapsed or refractory (r/r) acute lymphoblastic leukemia (ALL) patients. Complete remission was observed in 23/30 (77%) patients with morphologic disease and in 18/20 (90%) patients with minimal disease. In patients who achieved a complete remission and had adequate evaluation for minimal residual disease by flow cytometry or polymerase chain reaction, complete molecular remission (CmR) was observed in 19/21 (90%) patients with morphologic disease and in 14/18 (78%) patients with minimal disease. One major key - cash, cash equivalents, and marketable securities as of 6/30/16 were $1.11 billion compared to $1.13 billion as of 3/31/16 and $1.22 billion as of 12/31/15. Cash burn in Q2, excluding the $50 M opt-in fee from Celgene and cash inflows and outflows from business development, was $55.2 M. The cash burn in Q2 was $5.2 M, compared to $18.5 M in Q1/15 – BUY;
Intrexon (XON) closed DOWN -$0.71 to $27.68. A growing Zika outbreak in Florida has forced public health officials to issue a rare domestic travel warning, urging pregnant women — and those trying to have a child — to avoid a trendy section of the city where the virus has been spreading. Zika has not been contained and is spreading. What other defenses other than spraying at the moment are there? The state of Florida could soon be freeing genetically modified mosquitoes to combat the Zika virus. The aftermarket indication is positive +$0.32 – Maintaining BUY
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.
