August 15, 2016 6:47am

… After two positive days Thursday and Friday, two negative’s Wednesday and last Monday and a neutral Tuesday

As Increasing volume and volatility could signal an after-effect

… More financial results/earnings on the way this week

 

Companies in my headlights:  AXGN, BLFS, CLLS, FATE, MESO and RGNX

Monday’s financial results/earnings: Capricor (CAPR), International Stem Cells (ISCO), StemCells (STEM) and Asterias Therapeutics (NYSEMKT: AST)

 

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Indexes and ETFs: The IBB (+0.98%), IWM (+0.20) and XBI (+0.13) are UP and XLV (-0.02%) is DOWN

Dow futures are UP +0.17% and NASDAQ futures are UP 0.19%

 

U.S. stock index futures pointed to a higher open, on the back of a rebound in oil prices and positive sentiment overnight in Asia and Europe.

European stocks pared early gains to trade flat as investors trod cautiously amid growing concerns over the global economy.

Most Asia markets reversed early losses to trade higher, but Japan shares slipped after data showed the world's third-largest economy failed to grow in the three months through June, missing already subdued forecasts.

Data docket: The New York Federal Reserve is slated to release an index reading for its Empire State Manufacturing Survey at 8:30 a.m. ET. At 10 a.m. ET, investors are expected to get an August figure for a housing market index from the National Association of Home Builders. Economists see a reading of 59.

 

 

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

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

  • Friday closed POSITIVE with 14 decliners, 27 advancers and 2 flats;
  • Thursday closed POSITIVE with 13 decliners, 27 advancers and 3 flats;
  • Wednesday closed NEGATIVE with 36 decliners, 6 advancers and 1 flat;
  • Tuesday closed NEUTRAL with 21 decliners, 21 advancers and 1 flat;
  • Last Monday closed NEGATIVE with 23 decliners and 20 advancers;

 

 

Remembering Friday’s post, “Two up days in a row following two negative sessions and a neutral close during the week identifies risk capacity versus risk tolerance as a daily concept.  Enhanced trading influences … preps … this week’s shakeout moves.”

  • Buckle seatbelt, there are speed bumps coming in the week ahead - it’s going to be a bumpy ride.

We are consistently seeing directionless activity based solely on trading the oversold to the overbought and back again.

 

August could be summed up as a sideway’s slide which speaks to me about “our” universe’s – speed limit!

 

 

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 Friday up +0.21% and is UP +0.98% in Monday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Friday up +0.92% and is UP +0.13% in Monday’s  pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed down Friday -0.25% and is DOWN -0.02% in Monday’s pre-market;
  • The iShares Russell 2000 (IWM) closed up +0.10% on Friday and is UP +0.20% in Monday’s pre-market.

 

 

Companies in my headlights:

AxoGen (AXGN) closed UP +$0.12 to $9.07 after Thursday’s $8.95 (+0.69). Love the highs but, when a target is on a stock’s pricing – be aware. Monday started at $8.44, following Tuesday’s $8.30 and Wednesday’s $8.26 – a trader’s delight if holding – Maintaining SELL;

BioLife Solutions (BLFS) closed UP +$0.05 to $2.08 after Thursday’s $2.02 (-$0.06) after Wednesday’s $2.08 (+$0.01). I am worried about the 6/31 $1.3 M cash position from a “draw-down” and interest costs (10%) – Maintaining SELL;

Cellectis SA (CLLS) closed UP +$0.57 to $27.59. Another company with a divergent week after Thursday’s $27.02, Wednesday’s $27.58, Tuesday’s $27.91 and last Monday’s $27.76. I’d be careful about the sustainability of pricing. The aftermarket indication is -$0.57 – SELL;

Fate Therapeutics (FATE) closed UP +$0.18 to $2.56. After another up and down week following Thursday’s $2.38, Wednesday’s $2.32, Tuesday’s $2.51 and Monday’s $2.59, a trader target could be on its share price. I still like the company especially after raising $10.3 M in a non-banker deal, however skimming the upside should be expected.  The aftermarket indication is negative -$0.11 – SELL;

Mesoblast (MESO) closed UP +$0.80 to $6.50 after Thursday’s $5.58 (+$0.75). Love the company but, traders will be picking at the “ups” before a summer weekend based on last Monday’s $4.25 followed Tuesday’s $4.41 and Wednesday’s $4.95 –SELL to come back;

Regenxbio (RNGX) closed UP +$1.53 to $11.50 on 260 K share volume <3 month = 178.4 K shares>. After a positive week with Thursday’s $9.97, Wednesday’s 9.56, Tuesday’s $10.44 and last Monday’s $9.48. Yet another new high with a question of pricing sustainability - 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.