August 30, 2016 7:26am

… The real question is how much risk is in the last and next trade?

 

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Companies in my headlights: AGTC, BSTG, BTX  and STML,

 

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

 

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Indexes and ETFs: The IBB (+0.08) and the IWM (+0.17) are UP while the XBI and the XLV are NOT indicating 

The Dow futures are UP +0.01% and NASDAQ futures are DOWN -0.18%

 

U.S. equities look set-up for an weak open on Tuesday, with stock-index futures paring gains to turn negative.

European stocks were trading higher although basic resources stocks were hit by falling metal prices.

Asia markets finished higher, while Japanese shares edged down in a muted reaction to better-than-expected economic data.

 

Data docket: includes consumer confidence for August and the Case-Shiller home price index for June.

 

 

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

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

  • Monday closed POSITIVE with 18 decliners, 23 advancers and 2 flats;
  • Friday closed POSITIVE with 17 decliners, 25 advancers and 1 flat;
  • Thursday closed NEGATIVE with 29 decliners, 13 advancers and 1 flat;
  • Wednesday closed NEGATIVE with 35 decliners, 5 advancers and 3 flats;
  • Last Tuesday closed NEGATIVE with 28 decliners, 14 advancers and 1 flat;

 

 

Remembering Monday’s closing post, “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, splits and reverses cut deeply into the pricing and ultimately a return to investors! Discounts and dilution are guaranteed losses that investors must worry about.”

  • As usual … any upside is likely to be short-lived …

This week pending the three day Labor Day holiday weekend, investors will have to wait until Friday's August employment report before making any portfolio decisions.

  • We need to hurry up and sell without waiting any bit longer by Thursday, but in the meantime, a slow continued melt up and quick down seems to be the most likely scenario.

 

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

 

 

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 Monday down -0.45% and is UP +0.08% in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Monday down -0.10% and is NOT indicating in Tuesday’s  pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up Monday +0.22% and is NOT indicating in Tuesday’s pre-market;
  • The iShares Russell 2000 (IWM) closed up +0.52% on Monday and is UP +0.12 in Tuesday’s pre-market.

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed UP +$0.05 to $13.27 following Friday’s $13.22 (-$0.08) post Thursday’s $13.40 (-$0.28) after Wednesday’s $13.58 (-$1.05) after last Tuesday’s $14.63 (-$0.19). It’s been a merry-go-round seven days of trading. The last time we saw a lower close was June 27 at $12.96. I do have concerns that AGTC hasn’t reported financial results/earnings after Fidelity dumped their position and Biogen (BIIB) has been reviewing all internal programs and collaborations. I had taken MY hits with considering an oversold AGTC for three sessions last week – Maintaining BUY;

Biostage (BSTG) closed UP +$0.05 to $0.98. It had been a bad week, as Friday ranged from $0.93, Thursday’s $0.94, Wednesday’s $0.96 and last Tuesday’s $0.97 after the previous Monday’s $1.00. Stemming the tide of downdrafts will be hard as the previous financing at $1.76 had an equal number of warrants attached were are about to be registered in September. Unfortunately for a CEO who I like and a plat form that has hope but, it is still a pre-clinical model – SELL;

BioTime (NYSEMKT: BTX) closed DOWN -$0.10 to $2.90. OncoCyte Corporation, a subsidiary sold an aggregate of 3,246,153 "units," with each unit consisting of one share of OncoCyte's common stock and one warrant to purchase one share of Common Stock, at a price of $3.25 per unit.  The investors include certain OncoCyte shareholders, including George Karfunkel who beneficially owns more than 5% of the outstanding OncoCyte Common Stock. OncoCyte received gross proceeds of approximately $10.5 M from the offering. In connection with the sale of the purchase agreements, OncoCyte has agreed to pay a commission to its placement agent, Cowen and Company, LLC, in the amount of $511 K. It is a positive for the parent <BTX> to have the cash via the “sub” – BUY;

Stemline (STML) closed UP +$0.27 to $8.70. The peak in the chart stands out as the previous week’s ranged from $8.43 to $7.40. As I had stated Monday… “If there is money on the table, it will be taken off” – 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.