Flat open expected; RegMed Investors’ pre-open, can we trust pricing in an itinerant sector

September 2, 2016 8:27am

… Risks are still to the downside

Companies in my headlights: AGTC, BSTG, MDXG, ONCE and VTGN,

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

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Where do investors turn for insight and perspective - I say what others won't, so you can do what others can't!

Indexes and ETFs: The IBB (-0.34%), IWM (-0.11%) and the XLV (-9.85%) are DOWN while the  XBI (+0.03%) is UP

The Dow futures are UP +0.03% and NASDAQ futures are UP +0.09%

U.S. stock index futures indicated a flat open Friday as investors looked ahead to a crucial jobs report that could indicate when the next rate hike by the U.S Federal Reserve will occur.

European stocks opened higher as global markets look ahead to crucial U.S. jobs data that could influence when the U.S. Fed’s next hikes interest rates.

Asian markets were mixed, following a flat finish stateside, as traders likely huddled on the sidelines before the key U.S. nonfarm payroll report due later in the global day.

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

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

• Thursday closed NEGATIVE with 24 decliners, 18 advancers and 1 flat;
• Wednesday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats;
• Tuesday closed POSITIVE with 19 decliners, 22 advancers and 2 flats;
• Monday closed POSITIVE with 18 decliners, 23 advancers and 2 flats;
• Last Friday closed POSITIVE with 17 decliners, 25 advancers and 1 flat;

Remembering Thursday’s opening post, “Threading the needle in bad lighting means to navigate a potentially difficult session. But, it is also a method to get something started.”

• Thursday was the first trading day in September, which has historically been a volatile month for stocks.

The Dow closed about 15 points higher, after briefly falling more than 100 points. The S&P 500 fell less than a point. The NASDAQ outperformed, gaining about 0.3%.

• There has been a lack of volume because a lot of investors and traders are out on vacation, but most will tune in to today's jobs report

If you have been reading, I survived surgery … now with three big bandages neck, chest and hand – ugly to look at. Of it all, the comedown from the anesthesia was the worse.

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 Thursday up +0.20% and is DOWN -0.34% in Friday’s pre-market;
• The SPDR S&P Biotech ETF (XBI) closed Thursday up +0.50% and is UP +0.03% in Friday’s  pre-market;
• The Health Care Select Sector SPDR ETF (XLV) closed down Thursday -0.25% and is DOWN -0.85% in Friday’s pre-market;
• The iShares Russell 2000 (IWM) closed up +0.08% on Thursday and is DOWN -0.11% in Friday’s pre-market.

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed DOWN -$0.12 to $12.66 following Wednesday’s $12.78. AGTC has fallen daily into a deep hole or chasm.  It’s been a merry-go-round seven days of trading. The last time we saw a lower close was October 21, 2015 at $12.65. 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 have taken MY hits with considering oversold but, I am sticking by – Maintaining a BUY;

Biostage (BSTG) closed UP +$0.11 to $1.11 after Wednesday’s $1.00 (-$0.02) after Tuesday’s UP $1.02 (+$0.04) after Monday’s $0.98 (+$0.05). Rapid upswings are a target for day traders to eliminate the spread. – Maintaining SELL;

MiMedx Group (MDXG) closed DOWN -$0.10 to $7.14. MDXG launched AmnioFill™ nationwide, a placental collagen matrix product. Physicians are in need of a product to treat larger acute and chronic wounds encountered in the surgical setting. Slated for nationwide release later this month, AmnioFill is being offered in multiple sizes and configurations to address this and other surgical needs. "AmnioFill is designed to provide a scaffold for recruited cells to attach, populate and proliferate. The placental tissues in the scaffold should modulate the activity of the recruited cells to generate new tissue for these larger acute and chronic surgical wounds. When used earlier in the treatment of these complex wounds, MDXG believes AmnioFill will become an even more cost effective approach as a step therapy for wound closure." – BUY;

Spark Therapeutics (ONCE) closed UP +$0.97 to $57.55 following Wednesday’s $56.58 (+$0.26) after Tuesday’s $56.32 (+$1.57) and Monday’s $54.75 (+0.02) post last Friday’s $54.77. Another equity with a roaring week of pricing, It is worth it in trading fees to go after a $2.82 spurt in this market – I’d take the shot – Maintaining SELL;

VistaGen (VTGN) closed UP +$0.18 to $3.62 following Wednesday’s $3.44 (+$0.16) after Tuesday’s $3.28 (+$0.31), Monday’s $2.99 post last Friday’s $3.07.  A steep peak stands out on the chart and I never trust being long over a holiday weekend – Maintaining 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.