Indication intelligence, analysis and sector perception

Higher open expected; RegMed Investors’ pre-open, a tightly coiled spring

September 8, 2016 6:56am

… Does “our” universe may need to pop more before it can drop once again?

After two positive sessions, two negative closes, one neutral session and a holiday

Indexes and ETFs: The IWM (+0.12%) is UP, the XBI, IBB and XLV are NOT indicating

Companies in my headlights: ADRO, AGTC, AST, VTGN and XON

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

Where is “our” universe going today? If you want to know, subscribe and find out!

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

The Dow futures are UP +0.07% and NASDAQ futures are UP +0.04%

U.S. stock index futures indicated a higher open on Thursday morning as traders eyed developments in Europe, where the latest monetary policy meeting of the European Central Bank (ECB) will take place.

European stocks were slightly higher in morning trade after dipping at the open as markets look ahead to the latest monetary policy meeting of the European Central Bank (ECB).

Asian markets traded mixed while investors weighed what the Fed's Beige Book means for U.S. interest rates.

Data docket: initial claims are set to come out at 8:30 a.m. ET., with consumer credit due at 3:00 p.m. ET.

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Wednesday and Tuesday, Monday was a holiday, followed by a NEUTRAL Friday with a NEGATIVE close last Thursday.

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

Wednesday closed POSITIVE with 15 decliners, 27 advancers and 1 flat
Tuesday closed POSITIVE with 12 decliners, 29 advancers and 2 flats;
Monday was a holiday;
Friday closed NEUTRAL with 19 decliners, 19 advancers and five flats;
Last Thursday closed NEGATIVE with 24 decliners, 18 advancers and 1 flat;

Remembering Wednesday’s closing post, “How is certainty and doubt priced? By distrust and hesitation, respectively!

Exercising my freedom of contrarianism … “For stem, cell, gene and regenerative therapy equities to become appealing again, expectation needs to supplant some of the bonehead press releases with clear and articulate definitions of the plusses of the “happening” event <and maybe a negative> which could focus more than some recovery in share pricing!”

We've seen “our” universe trade in a tight range with low volume as many enjoyed the summer months, but, it’s back to real business as the oversold and untended have flip flopped throughout the last two months. We’re two-thirds through Q3 and pricing has sat in the cheap seats … it’s time for many to move up in the stands!”

I study price action, translate quantitative models and interpret qualitative reviews to sustain my monitoring!

Reiterating, it’s too risky to be long at this time especially as Q3 approaches its end, but it’s also too early to go short.

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 Wednesday up +0.71% and is NOT indicating in Thursday’s pre-market;
The SPDR S&P Biotech ETF (XBI) closed Wednesday up +1.59% and is NOT indicating in Thursday’s pre-market;
The Health Care Select Sector SPDR ETF (XLV) closed flat Wednesday +0.00% and is NOT indicating in Thursday’s pre-market;
The iShares Russell 2000 (IWM) closed up +0.63% on Wednesday and is UP +0.12% in Thursday’s pre-market.

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed UP +$0.16 to $13.01 after Tuesday’s $12.85 (+$0.32) after Friday’s $12.52 (-$0.13) following last Thursday’s $12.66 (-$0.12) following the previous Wednesday’s $12.78. We are getting closer, AGTC will report financial results for Q2 after the market closes on Monday, 9/12/16. AGTC management will host a conference call beginning at 5:00 pm ET that day to review results and provide a corporate update. I have taken MY hits with my LONG consideration of AGTC being oversold but, I am sticking by – Maintaining BUY;

Aduro Biotech closed DOWN -$0.51 to $14.97 following Tuesday’s $15.48 (+$0.99) preceding Friday’s $14.49 (+$0.27). It has been a good short-term run by ADRO with last Thursday’s $14.22, the previous Wednesday’s $14.09, and Tuesday’s $13.95. As much as I have seen $14’s (dollar range), $15’s and a few $16’s in the past months, the middle of July stood out – the $12’s (dollar range stood out more frequently. Overbought – Maintaining SELL;

Asterias Biotherapeutics (NYSEMKT: AST) closed +$0.18 to $3.13. AST has had a good multiple session run with Tuesday’s $2.95, Friday’s $2.96, last Monday’s $2.82, the previous Thursday’s $2.79, Wednesday’s $2.74 and the previous Tuesday’s $2.73. I just don’t like the chart and question the support – SELL;

Intrexon (XON) closed UP +$1.16 to $27.46. Florida politicians issued a letter Wednesday urging the federal government to allow the state to use genetically engineered mosquitos made by Intrexon's (XON) Oxitec unit to fight the Zika virus. XON was advancing on heavy trading volume mid-Wednesday afternoon after a coalition of 61 Florida House members sent a letter to the U.S. government asking for permission to use the company's technology to fight the Zika virus. Intrexon's Oxitec unit, which the company purchased in 2015 for $160 M, manufactures genetically engineered "friendly" mosquitos to target and suppress populations carrying deadly viruses or diseases like Zika. In their letter, the politicians asked that the government take steps including emergency use authorization (EUA) to allow the state to use Oxitec's genetically engineered mosquitos. The aftermarket indication is positive +$0.05 – BUY;

VistaGen (VTGN) closed DOWN -$0.12 to $3.95 following Tuesday’s $4.07 (+$0.44) after Friday’s $3.56 (-$0.06) post last Thursday’s $3.62 (+$0.18) the previous Wednesday’s $3.44 (+$0.16), Tuesday’s $3.28 (+$0.31), Monday’s $2.99 and the previous Friday’s $3.07. A steep peak stands out on the chart and I never trust being too long– 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.

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Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.