September 16, 2016 5:52pm

… But, capital markets offerings did pick-up

There is always something to worry about – now it’s the actualization of financing discounts

 

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

 

Pre-open indication’s tally:  1 hit and 4 miss – today was “Freaky Friday”, be ready for next week

Out and about: uniQure (QURE) – NASDAQ issue re: board composition

 

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

 

 

I say what others won't, so you can do what others can't!

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 lower on Friday, but posted weekly gains, as investors digested key inflation data and looked ahead to next week's FED meeting.

The NASDAQ closed DOWN -5.12 or -0.10% to 5,244.57 and the DOW closed DOWN -88.68 or -0.49% to 18,223.80.

 

 

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 neutral with an A/DL of 20/20 and 3 flats;
  • The mid-day was negative with an A/DL of 17/21 and 5 flats;
  • The closing bell jumped positive with A/DL of 24/18 and 1 flats;

 

 

Henry’omics:

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

I keep telling investors in the a.m. to check the indexes:  

  • The iShares Russell 2000 (IWM) indicated a negative -0.59% and declined –0.15% while the iShares Nasdaq Biotechnology (IBB) also indicated a negative -0.57% yet advanced +0.51%

 

The financing window has opened or been forced as many sector companies desperately NEED to raise capital. But there is a cost and the pricing power is the … discount to the current market pricing:

  • Histogenics (HSGX) proposed a $30 M offering at $2.25 after closing Thursday at $3.35 …  a $1.10 discount;
  • Capricor (CAPR) proposed a $8.7 M at 3.20 per share after closing Thursday at $3.83 … a $0.63 discount;
  • Caladrius Biosciences (CLBS) raised $25 M in a two tranche private placement at $4.72 … a $0.10 discount but, a questionable assembly of debt and equity package together;
  • OncoCyte (NYSEMKT: ONCO) sold 3.24 M units to raise $10.5 M priced at $3.25 per unit … a $0.77 discount;

“Deals” or offerings will get done but, shareholders are taking the hit for the long run but, managements aren’t taking any … hits to their compensation.

I also question what … is the PARTICIPATION of management in the purchase of shares at the offering??

Don’t hold your breath …

 

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

 

 

Pre-open indication’s tally:  1 hit and 4 miss:

  • Biostage (BSTG) closed UP +$0.04 – miss;
  • Capricor (CAPR) closed DOWN -$0.15 – hit;
  • Caladrius Biosciences (CLBS) closed UP +0.01 – miss;
  • Spark Therapeutics (ONCE) closed UP +$1.61 – miss;
  • Stemline (STML) closed UP +$0.29 – miss;

               

 

Today’s Bottom Line:

I thought the "witch's" broomstick <quadruple witching Friday> would have more effect but, pricing has been so precarious - the broom got pushed aside!

 

 

Out and about:

uniQure N.V. (QURE) closed DOWN -$0.04 to $7.86

QURE received a letter from NASDAQ dated 9/12/16, stating that QURE does NOT currently comply with the requirement under NASDAQ Listing Rule 5605 that at least a majority of the Company's Board consist of independent directors.

  • Currently, four of the eight (8)members of QURE's Board meet NASDAQ's independence standards; this is a result of the retirements from the Board of independent directors Ferdinand Verdonck and Joseph Fezko effective as of the it's 2016 annual general meeting of shareholders.
  • Under the NASDAQ rules, QURE has until the earlier of its next annual shareholders' meeting or June 15, 2017 to regain compliance with the majority independent board requirement (or until December 12, 2016, if uniQure holds its next annual general meeting of shareholders prior to such date).
  • QURE intends to achieve compliance with this requirement prior to the expiration of this cure period.

 

 

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

  • Friday traded near 16.2;
  • Thursday traded near 15.79 – 13% lower;
  • Wednesday traded 18.14 – 1.18% lower
  • Tuesday traded at 18.74 – 24% higher;
  • Monday traded 15.7 – 13% lower;
  • Last Friday traded 16.4 – 30% higher;

 

 

Decliners:

  • Histogenics (HSGX) -6.69% after Thursday’s -1.21%  - offering;
  • Mesoblast (MESO) -4.89% after Thursday’s +4.44%;
  • Capricor (CAPR) -4.03% after Thursday’s) -1.79% after Wednesday’s +4.86% - offering;
  • Cesca Therapeutics (KOOL) -3.66% after Thursday’s -2.15%;
  • Fibrocell (FCSC) -3.66%

 

Advancers:

  • Northwest Bio (NWBO) +12.59% after Thursday’s-18.81% after Wednesday’s +8.23% after Tuesday’s +42.61% after Monday’s +17.56% or +$0.0597;
  • Neuralstem (CUR) +10.65% or +$0.03 ;
  • Brainstorm (BCLI) +5.50%;
  • Opexa (OPXA) +4.82%;
  • Fate Therapeutics (FATE) +4.66%

 

Flat:                                                            

  • ReNeuron (RENE.L) at $2.625;

                                                                                                                               

Volume spikes that stand out: 

  • Northwest Bio (NWBO) – 8th day <4.29 M shares versus Thursday’s 5.35 M shares versus Wednesday’s 7.52 M shares compared with Tuesday’s 22.346 M shares versus 3 month average = 1.3 M>;
  • Juno therapeutics (JUNO) 3.194 M shares traded <3 month average = 2.179 M shares>;
  • bluebird bio (BLUE) 2.482 M shares traded versus Thursday’s 2.773 M shares traded;
  • MiMedx (MDXG) 1.559 M shares traded <3 month average = 834 K shares>;
  • Sangamo (SGMO) 1.363 M shares traded <3 month average = 897 K shares>

 

 

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.