August 29, 2016 5:23pm

… As a narrow trading range defines the sector

As I stated this a.m., “if there is money on the table, it will be taken off”

 

Do you care what happened today, you should … because it has implications to Tuesday's sector activity?  

 

If you were a subscriber, you would be reading where “our” universe had gone today!

 

 

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

 

 

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.

 

 

Stocks closed higher on Monday, with financials and materials leading, as investors digested economic data while looking for clues about the Federal Reserve's next move.

The NASDAQ closed UP +13.41 or +0.26% to 5,232.33 and the DOW closed UP +107.59 or +0.58% to 18,502.99.

 

 

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 15/23 and 5 flats;
  • The mid-day was barely positive  with an A/DL of 21/20 and 2 flats;
  • The closing bell was slightly positive  with A/DL of 23/18 and 2 flats;

 

 

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector was negative at the opening bell, moved barely positive at the mid-day with the sector closing slightly positive.

  • Share pricing is everything but, normal … pivots should NOT be forgotten …

In “our” universe not acting as a trader … can turn sector investors into losers!

  • Unfortunately, depreciation is more than a joke.

Sector investment returns look very different after they are adjusted for dilutions, discounts and reverses which cut deeply into the pricing and ultimately a return that investors … think they have achieved or will achieve!

  • Dilution is a guaranteed loss that investors must worry about.

I’m still holding on to “some” equities, recommending BUYING the oversold while sticking my head in the sand until after Labor Day!

 

Call me cantankerous, contrarian or even a curmudgeon but at the least I get it right and investors make money!

 

 

Pet peeve:

High-frequency trading accounted for 49% of August's daily trading volume of about 6.14 billion shares at Friday's close <TABB Group>.

  • During the peak levels of high-frequency trading in 2009, about 61% of 9.8 billion of average daily shares traded were executed by high-frequency traders.

 

 

Today’s Bottom Line:

The sector is UP. But don’t look at it in a mirror – it won’t reflect!

 

 

Out and about:

Biostage (BSTG) has left the basement … after BUYS last week by CEO McGorry – 25, 000 shares, Chairman John Kennedy – 16.182 shares.

  • It does CUT the excess or overflow after trading DOWN -$0.03 for most of the  day but … what of the next weeks …
  • BSTG closed UP +$0.048 on 121,521 shares traded <3 month average = 151,311 shares>

The real question in the cupboard is what news can propel this stock to its next needed financing … due by January???

They’re going to need MORE than a CEO and a director …

 

 

Pre-open indication’s tally:  1 hit and 1 miss:

  • Applied Genetic Technologies (AGTC) closed UP +$0.05 – hit;
  • Intrexon (XON) closed DOWN -$0.65 – miss;

 

 

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

  • Monday traded 13.1;
  • Friday traded near 13.65;
  • Thursday traded near 14;
  • Wednesday traded 13.39;
  • Tuesday traded 12.19;
  • Last Monday traded 12.6;

 

 

Decliners:

  • International Stem Cell (ISCO) -7.18%;
  • Capricor (CAPR) -3.71%;
  • BioTime (NYSEMKT: BTX) -3.33%;
  • VistaGen (VTGN) -2.81% after Friday’s -7.81% after Thursday’s+1.25%;
  • Intrexon (XON) -2.49%

 

Advancers:

  • Neuralstem (CUR) +7.91%;
  • Biostage (BSTG) +5.16%;
  • Northwest Bio (NWBO) +4.81%;
  • ReNeuron (RENE.L ) +4.55% after Friday’s -4.55%;
  • Vericel (VCEL) +4%;

 

Flat:

  • StemCells (STEM) at $1.61;
  • Sangamo (SGM)) at $4.28                                                                   

                                                                                                  

 

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.