August 15, 2016 5:41pm

… A post earnings rebound as many financial results missed consensus estimates, but did so to a lesser degree than in previous quarters.

There probably won’t be much to digest this week, meaning that a slow drift lower is the likely scenario

 

As the stragglers release: CAPR, NYSEMKT: AST, ISCO and STEM

Pre-open indication’s tally:  3 hits and 3 miss but, trading made money!

 

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 Tuesday'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.

 

 

U.S. stocks rose Monday, with the three major indexes posting simultaneous record closes for the second time in less than a week, as investors digested rising oil prices.

The NASDAQ closed UP +29.10 or +0.56% to 5,262.02 and the DOW closed UP +59.58 or +0.32% to 18,636.05.

 

 

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 28/12 and 3 flats;
  • The mid-day stayed positive  with an A/DL of 29/12 and 2 flats;
  • The closing bell was positive with A/DL of 28/13 and 2 flats;

 

 

Henry’omics:

There is a disconnect between news, runways and share pricing which is dangerous.

  • As Q2 financial results/earnings season draws to an end, many sector participants are rebounding. While loss-per-share oriented companies as a whole missed consensus estimates, they did so to a lesser degree than in previous quarters.

The issue, share pricing has declined in the last quarter and during the last 6 month period — in other words, shareholders LOST money.

  • Sector companies, I call them “participants” are betting that the financing window will open as there is too much dependence on ATM, debt financings and “short” runways.

Which to me DOESN’T provide runway fuel for the stem, cell, gene and regenerative therapies sector to … RALLY significantly?

 

The stem, cell, gene and regenerative therapy (SCGT&RT) sector opened positive, staying positive to the mid-day with the sector closing positive.

Watch list is jumping dangerously to unsustainable levels:

  • The iShares Nasdaq Biotechnology NASDAQ GM (IBB) was UP +0.92%
  • The iShares Russell 2000 NYSE Arca (IWM) was UP +0.99%,
  • The SPDR S&P Biotech ETF (XBI) was UP +1.38% and
  • The Health Care Select Sector SPDR ETF (XLV) was UP 0.18%.

The CBOE Volatility Index (VIX) traded near multi-year lows last week and traded about 2.1% higher, around 11.81.

 

Call me cantankerous, contrarian or even a curmudgeon but at the least I get it right …

 

 

Pre-open indication’s tally:  3 hits and 3 miss:

  • AxoGen (AXGN) closed DOWN -$0.16 – hit;
  • BioLife Solutions (BLFS) closed DOWN -$0.05 – hit;
  • Cellectis SA (CLLS) closed UP +$0.64 – miss;
  • Fate Therapeutics (FATE) closed UP +$0.17 – miss;
  • Mesoblast (MESO) closed DOWN -$0.17 – hit;
  • Regenxbio (RNGX) closed UP +$0.80 – miss;

 

 

Financial results/earnings conference calls:

 

Capricor (CAPR) closed UP +$0.01 to $3.53 … with 43 K shares traded <3 month average = 39.9 K shares> …

  • In Q2, CAPR reported a net loss of $4.7 M, or $0.26 per share compared to a net loss of to $3.1 M, or $0.19 per share, for Q2/15.
  • At 6/30/16, CAPR's cash, cash equivalents and marketable securities totaled approximately $11.4 M compared to $13.6 M at 12/31/15.

Based on its current operating plans, CAPR expects that its existing cash, cash equivalents and marketable securities will fund its research and development programs and other operations through Q1/2017.

 

 

Asterias Biotherapeutics (NYSEMKT: AST) closed UP +$0.09 to $3.09 …

In Q2, AST reported a loss of $5.2 M or -$0.12 per share.

The results topped expectations. The average estimate was for a loss of $0.19 per share. AST posted revenue of $1.5 M in the period, which also beat forecasts having expected $1.1 M.

On May 13, 2016, Asterias completed the sale of 5,147,059 shares of its common stock and warrants to purchase 2,959,559 shares of its common stock, through a public offering for net proceeds to Asterias of $16 M. On May 23, 2016, Asterias issued an additional 742,421 shares of its common stock upon the full exercise of the over-allotment option by the underwriters for net proceeds of an additional $2.2 M.

As of 6/30/16, AST's cash, cash equivalents and available-for-sale securities totaled $32.2 M, which management believes will be sufficient to fund operations through the Q3/2017.

A year ago, they were trading at $3.82.

 

 

StemCells (STEM) closed FLAT at $0.37 …

STEM filed an 8-K versus a press release re financial results/earnings

The net loss was -$2.51 M or -$0.22 per share as compared with a net loss of $8.461 M or -$1.07 per share in Q2/15.

STEM’s cash position was $2.448 M as of 6/30/16

STEM affected a one-for-twelve reverse stock split on May 6, 2016. As a result of the reverse stock split, each twelve shares of common stock automatically combined into and became one share of common stock.

STEM’s issues of a wind-down, raises substantial doubt about the ability of the company to continue as a going concern; as they exhaust their cash reserves and are unable to obtain adequate financing, STEM may be unable to meet its operating obligations and may be required to initiate bankruptcy proceedings.

 

 

International Stem Cells (ISCO) closed FLAT at $1.99

ISCO filed an 8-K versus a press release re financial results/earnings

  • The net loss was -$10.9 M or -$3.76 per diluted share or -$0.26 per common share versus Q2/15’s net loss of $723 K or -$0.40 per common share and -$0.52 per diluted share.
  • Revenues were $1.9 M from Lifeline Skin Care, a subsidiary.

ISCO’s cash position was $768 K as of 6/30/16

 

 

Today’s Bottom Line:

A shifting summer Monday as sellers are on vacation or traveling back to an office on Tuesday ...

 

 

Review my fear gauge or the CBOE Volatility Index (VIX):

  • Monday traded 11.81;
  • Friday traded near 11.5;
  • Thursday traded near 11.6;
  • Wednesday traded near 12.5;
  • Tuesday traded near 1.6;
  • Last Monday traded near 11.5;

 

 

Decliners:

  • Bellicum Pharma (BLCM) -3.57%;
  • Fibrocell (FCSC) -2.78%;
  • Mesoblast (MESO) -2.60%;
  • BioLife Solutions (BLFS) -2.40%;
  • Caladrius Biosciences (CLBS) -2.28%;

 

Advancers:

  • Histogenics (HSGX) +33.02% after Friday’s +6.05%
  • uniQure (QURE) +8.28%;
  • Regenxbio (RGNX) +6.96% after Friday’s +15.35% after Thursday’s +4.29% post Wednesday’s -8.43% after Tuesday’s +10.35% post last Monday’s +9.09%;
  • Fate Therapeutics (FATE) -6.64% after Friday’s 7.56%;
  • Cesca Therapeutics (KOOL) +6.06%

 

Flat:

  • International Stem Cell (ISCO) at $1.99;
  • ReNeuron (RENE.L) at $2.875;                                                                   

                                                                                                  

 

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.