August 17, 2016 4:59pm

One word – anxiety over tighter ranges, low volume and high volatility doesn’t make for pricing sustainability

 

However, it will be a set-up for the oversold …

Pre-open indication’s tally:  3 hits and 1 miss

 

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 Thursday'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 closed mostly higher on Wednesday as investors digested the release of the Federal Reserve's July meeting.

The NASDAQ closed UP +1.55 or +0.03% to 5,228.66 and the DOW closed UP +21.78 or +0.12% to 18,573.80.

 

 

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 negative with an A/DL of 12/28 and 3 flats;
  • The mid-day stayed negative  with an A/DL of 11/31 and 1 flat;
  • The closing bell was negative with A/DL of 9/33 and 1 flat;

 

 

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector opened negative, stayed negative at the mid-day with the sector closing negative.

  • The day’s theme was more than profit taking.

Stocks traded in a very tight range amid low volume and little volatility.

  • “Our” universe has been sucker-punched by seen – traders and unforeseen trading forces – ETFs and algorithms which has led to precipitous plunges.

Remember, August tends to be a period in which investors take vacations and is typically associated with sluggish market activity.

  • That factor and conditions that have seen stocks stampede to highs in a short daily period and then plummet to lower lows.

… This … opens the door for the oversold …

 

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

 

 

Out and about:

Mesoblast (MESO) closed UP +$0.34 to $6.04 in a daily range of $5.71 to $6.30 …

  • MESO was granted patent by the USPTO for its IP portfolio covering the use of its Mesenchymal Precursor Cells in the treatment of rheumatic diseases, including rheumatoid arthritis (MESO) :
  • MESO's patent estate in the US for the treatment of RA and related conditions comprises the newly and recently granted patents, US 9,381,216 and US 9,265,796, which cover treatment of rheumatic diseases by administration of STRO-1 positive MPCs.
  • Additionally, the granted claims cover the use of these cell populations to reduce levels of inflammatory cytokines TNF-alpha, interleukin-6, and interleukin-17, all established mediators of inflammatory arthritis in rheumatic diseases.

 

StemCells (STEM) closed DOWN -$0.75 to $1.794

2015 warrants' exercise period through 8/17 at a cut exercise price of $1.10 per share

  • Reduction in exercise price for warrants issued April 29, 2015, effective from 5:30pm today until 4:01pm
  • Wednesday: filing. Any exercises outside this period will be honored at $10.20 price
  • StemCells merged with privately held Microbot, an Israel firm

 

 

Pre-open indication’s tally:  3 hits and 1 miss:

  • AxoGen (AXGN) closed UP +$0.21 – hit;
  • Histogenics (HSGX) closed DOWN -$0.38 – hit;
  • Pluristem (PSTI) closed UP +$0.02 – miss;
  • StemCells (STEM) closed DOWN -$0.76 – hit;

 

 

Today’s Bottom Line:

The real issue is markets do NOT believe the sector can hold-on to ANY appreciation!

 

 

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

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

 

 

Decliners:

  • StemCells (STEM) -29.23% after Tuesday’s +598.55% after merger;
  • Neuralstem (CUR) -11.56% or -$0.029 after Tuesday’s +$0.40% or +$0.08;
  • Histogenics (HSGX) -10.30% after Tuesday’s +30.85% after Monday’s +33.02% after Friday’s +6.05%;
  • Caladrius Biosciences (CLBS) -7.48%;
  • Adverum (ADVM) -5.11% after Tuesday’s -5.46%;

 

Advancers:

  • Fate Therapeutics (FATE) +5.62%;
  • Mesoblast (MESO) +5.96% after Tuesday’s -9.91% after Monday’s -2.60%;
  • Intrexon (XON) +2.38%;
  • AxoGen (AXGN) +2.40%;
  • VistaGen (VTGN) +2.13%

 

Flat:

  • 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.