August 10, 2016 6:40am
… The development cycle won’t be done today, in two months or three years
I need to see a sign, wear a “tab” of achievement or even a glimpse of an end game
… Otherwise, the only easy day was yesterday and that stunk so, get used to it
Wednesday’s financial results/earnings … ONCE
Companies in my headlights: ADVM, ATHX, CLBS, STML, VCEL and XON
I answer one question; in which company should investors put, keep and commit their money!
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Indexes and ETFs: The IBB (+0.13%) is UP, the IWM and XBI are NOT indicating and the XLV (-0.05) is DOWN
Dow futures are UP +0.07% and NASDAQ futures are UP +0.10%
U.S. stock-index futures ticked slightly higher on Wednesday, with retail earnings set to take center stage and crude oil prices still in focus.
European stocks traded lower as global investors tread cautiously, considering the timing of the next interest rate hike by the U.S. Fed as well as the outlook for oil prices.
Asian shares were mixed, with traders eyeing moves in oil prices ahead of a flurry of Chinese data later in the week.
Data docket: the Treasury budget for July and JOLTS jobs openings for June. There will also be the weekly MBA mortgage index and crude oil inventories.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEUTRAL on Tuesday, NEGATIVE on Monday, POSITIVE on Friday, NEGATIVE on Thursday and POSITIVE last Wednesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Tuesday closed NEUTRAL with 21 decliners, 21 advancers and 1 flat;
- 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;
- Last Wednesday closed POSITIVE with 7 decliners, 33 advancers and 3 flats;
Remembering Tuesday’s post, “A soft outlook as financial results/earnings play through.”
- Focusing on the title, for me, there are two powerful and opposing meanings to these statements. One meaning has provided me a refuge, a destination if you will.
The other reminds me that this “stuff” never ends, so get used to it.
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 Tuesday up +0.13% and is UP +0.13% in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday down -0.10% and is NOT indicating in Wednesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up Tuesday +0.24% and is DOWN -0.05% in Wednesday’s pre-market;
- The iShares Russell 2000 (IWM) closed up +0.11% on Tuesday and is NOT indicating in Wednesday’s pre-market.
Companies in my headlights:
Athersys (ATHX) closed UP +$0.02 to $2.10. ATHX beats Q2 EPS by +$0.02 and on revenue <of $600 K <+172.7% YTD> beats by $280 K - a good sign. Q2 net loss was $7 M compared to net loss of $1 M for the same period in 2015. The $6 M net variance is due primarily to a $5.7 M decrease in non-cash income from the change in the fair value of our warrant liabilities, combined with the net impact of the $400 K increase in revenues and the $700 K increase in operating expenses for the three-month period ended June 30, 2016. ATHX ended the quarter with $24 M in cash and cash equivalents and available-for-sale securities – worth a BUY
Adverum (ADVM) closed UP +$0.01 to $4.41. The aftermarket indication is positive +0.56 after their “earnings” release. Q2’s net loss was $61.6 M or $1.76 per share compared to a net loss attributable to common stockholders of $9.8 M, or $0.38 per share, for Q2/15. The increase in net loss is primarily due to a preliminary non-cash goodwill impairment charge of $49.1 M. The non-cash charge had no effect on our current cash balance or operating cash flows. Remember they were Avalanche (AAVL). Cash, cash equivalents and marketable securities were $241.3 M as of 6/30/16 - BUY
Caladrius Biosciences (CLBS) closed DOWN -$0.08 to $6.14. Don’t forget the recent 1 for 10 reverse split. Post financial results/earnings, their cash position were $17.7 M <low>. Total revenues Q2/16 increased 41% to $8.3 M compared with $5.9 M for Q2/15. Gross margin on revenues was 15% in Q2/16 compared with 1% in Q2/15. CLBS will be “looking” for an offering soon – SELL;
Intrexon (XON) closed DOWN -$0.09 to $26.96. The aftermarket indication is negative -$0.20. Net loss of $49.1 M attributable to Intrexon, or -$0.42 per basic share, including non-cash charges of $44 M. Total revenues of $52.5 M, an increase of 17% over Q2/15. Cash, cash equivalents, and short-term and long-term investments totaled $321.2 M - SELL to BUY;
Stemline (STML) closed DOWN -$0.21 to $7.52 after Monday’s $7.73 (+$0.26). 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 -$0.06 to $2.22 following Monday’s $2.28 (-$0.07). 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 – 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.
