August 9, 2016 6:33am

Weakness stymies “our’ universe

… In a development horse race, it’s not always the horse but, the jockey/CEO to bet on

But, do they have the right team to go forward?

 

Tuesday’s financial results/earnings … ATHX, BTX, CLBS, RGNX and XON 

Companies in my headlights:  CLLS, KITE, MESO, STML and VCEL

 

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!

 

 

Indexes and ETFs: The IBB (-0.67%), IWM (-0.09%) , XLV (-0.13) and XBI (-0.25%) are DOWN

Dow futures are UP +0.05% and NASDAQ futures are UP +0.06%

 

U.S. stock-index futures traded flat to higher on Tuesday as traders eyed oil prices and earnings season trailed off.

European stocks reversed early losses to trade slightly higher but investors remained cautious amid a retreat in oil prices and U.S. markets closed lower overnight.

Major Asian markets advanced, with sentiment likely underpinned by cooling Chinese inflation data helping to spur stimulus hopes, while the Reserve Bank of India kept its monetary policy steady.

Data docket: wholesale inventories for June and second-quarter labor productivity data are out

 

 

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

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

  • Monday closed NEGATIVE with 23 decliners and 20 advancers;
  • Friday closed POSITIVE with 11 decliners, 29 advancers and 3 flats;
  • Thursday closed NEGATIVE with 23 decliners, 19 advancers and 1 flat;
  • Wednesday closed POSITIVE with 7 decliners, 33 advancers and 3 flats;
  • Last Tuesday closed NEGATIVE with 26 decliners, 15 advancers and 2 flats;

 

 

Remembering Monday’s post, “The question is whether investors should be more fearful, especially in a sector that has so many visible hot spots seemingly about to burst into flames.”

  • Stocks to watch of those reporting financial results/earnings – those whose cash positions are SOLID!

One of the problems all investors face is that there is simply too much data.

 

To be successful, investors need to pay attention to runways … Regenerative Medicine Earnings Scorecard - Q2/2016 - to date … http://www.regmedinvestors.com/articles/9257

 

 

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 Monday down -1.05% and is DOWN -0.67 in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Monday down -1.89% and is DOWN -0.25% in Tuesday’s  pre-market;
  • .The Health Care Select Sector SPDR ETF (XLV) closed down Monday -0.84% and is DOWN -0.13% in Tuesday’s pre-market;
  • The iShares Russell 2000 (IWM) closed down -0.05% on Monday and is DOWN -0.09% in Tuesday’s pre-market.

 

 

Companies in my headlights:

Cellectis SA (CLLS) closed DOWN -$0.59 to $27.76 after Friday’s $28.35 (+$0.66). August began at $27.10, July began at $27.25 and June began at $32.51 - NO specific reason other than being oversold. The aftermarket indication is positive +$0.25 – Maintaining BUY;

Kite Pharma (KITE) closed DOWN -$0.34 to $58.25. From my earnings review, Kite continues to expect the full year 2016 net cash burn to be $235 M to $250 M, which includes approximately $20 M in capital expenditures, but excludes any inflows or outflows from future business development activities. The estimated full year 2016 net cash burn is primarily driven by an estimated net loss of $295 M to $310 M, which includes an estimated $80 M of non-cash stock-based compensation expense. The aftermarket indication is negative -$1.15 – SELL;

Mesoblast’s (MESO) cell treatment shows promise in rheumatoid arthritis. Experimental stem-cell treatment led to significant improvements of symptoms and disease activity in patients whith RA according to data from a mid-stage trial. MESO is UP in the aftermarket +$0.71 or +16.59% - BUY;

Stemline (STML) closed UP +$0.26 to $7.73. Q2’s had a net loss of $9.3 M, or $0.52 per share, compared with a net loss of $10.2 M, or $0.58 per share, for Q2/15.  STML ended with $81.2 M in cash, cash equivalents and investments, as compared to $87.8 M as of 3/31/16, which reflected a cash burn of $6.6 M for the quarter. I believe STML is prone to aftermarket depreciation post earnings release – SELL;

Vericel (VCEL) closed DOWN -$0.07 to $2.28. Carticel and Epicel net revenues decreased 3.9% compared to Q2/15 with Carticel net revenues decreasing less than $100 K and Epicel net revenues decreasing approximately $400 K, compared to Q2/15.  Gross profit for Q2 was $5.5 M, or 43% of net product revenues, compared to $6.7 M, or 49% of net product revenues, for the Q2/15. VCEL closed the Q with $9.8 M in cash.  VCEL needs a financing. The aftermarket indication is negative -$0.21 – 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.