August 17, 2016 6:29am

...Valuations and equity pricing are too “bubbly” due to a missing element:  personal attachment

 

Time will answer the question, though it is cash positions that will keep shareholders from leaving  

Companies in my headlights: AXGN, HSGX, PSTI and STEM

 

I answer one question; in which company should investors put, keep and commit their money!

 

Where is today’s market going? 

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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 (-0.17%) and XBI (-0.10) are DOWN while the IWM is NOT indicating and the XLV (+0.01) is UP

Dow futures are DOWN -0.04% and NASDAQ futures are UP +0.05%

 

U.S. stock index futures were roughly flat on Wednesday, as investors trod cautiously ahead of the much-anticipated release of the U.S. Fed's July minutes.

European stocks were lower after initially opening higher, as investors remain cautious ahead of the closely-watched release of the U.S. Fed's latest minutes.

Asian markets were mixed, as sentiment hit from a lower finish offset the positive impact of a rise in oil prices.

 

Data docket: The Mortgage Applications, due out at 7.00 a.m. ET. The crude inventories data is released at 10.30 a.m. ET. The Federal Open Market Committee releases the minutes from its July meeting, expected to come out at 2.00 p.m. ET.

 

 

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

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

  • Tuesday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats;
  • Monday closed POSITIVE with 13 decliners, 28 advancers and 2 flats;
  • Friday closed POSITIVE with 14 decliners, 27 advancers and 2 flats;
  • Thursday closed POSITIVE with 13 decliners, 27 advancers and 3 flats;
  • Last Wednesday closed NEGATIVE with 36 decliners, 6 advancers and 1 flat;

 

 

Remembering Tuesday’s post, “Profit taking … churned through resistance which should have recognized the shift from risk-on pricing into risk-off sentiment.”

  • I believe it is time for a deep breath and a pause to evaluate what investors want to have in their portfolio.

There is a complacency concerning companies that have a need for financing in the next five to six months. Unless these companies can prove their capacity to fulfill milestones and catalysts with a proper team – they’re toast!

 

 

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 down -1.40% and is DOWN -0.17% in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Tuesday down -1.67% and is DOWN -0.10% in Wednesday’s  pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed down Tuesday -0.89% and is UP +0.01 in Wednesday’s pre-market;
  • The iShares Russell 2000 (IWM) closed down -0.82% on Tuesday and is NOT indicating in Wednesday’s pre-market.

 

 

Companies in my headlights:

AxoGen (AXGN) closed DOWN -$0.15 to $8.76. AXGN had run-up in the past weeks to $9.07 from $8.76 following 8/1’s $6.69. The inclusion into the Russell 2000® Index in June drove recent appreciation. The aftermarket indication is positive +$0.09 – SELL to BUY;

Histogenics (HSGX) closed UP +$0.87 to $3.69 after Monday’s $2.82 (+$0.70). A huge “high” after Friday’s $2.12, Thursday’s $2.00, Wednesday’s $1.98 and last Tuesday’s $2.00; it has had a good weekly run with earnings during the week. Intrexon (XON) as a partner and a P3 and continuing enrollment is being perceived as a positive but, the cash level is low. I like the company and the CEO but, a traders target is pinned to its pricing. As the shares appreciate and a financing is needed; I smell a potential offering as BTIG sets a new $3.50 price target – Maintaining SELL;

Pluristem (PSTI) closed UP +$0.07 to $1.66. PSTI experienced a new high that usually never lasts. It’s about investor perception and it “ain’t” positive … SELL;

StemCells (STEM) closed UP +$2.2278 or +598.55% to $2.60 with 59.15 M shares traded <3 month = 615 K shares> after announcing a merger agreement. The run-up was TOO extreme making it a target for profit taking initiatives as day traders were the major influence in its past pricing. The aftermarket indication is negative -$0.73 – 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.