September 19, 2016 7:36am
… It is a “sum-of-the-parts” term to signify "something to say when you have nothing to say"
Seems to apply to many sector companies when we could use "an ounce of conversation"
I answer one question; in which company should investors put, keep and commit their money!
Where is “our” universe going today? Astute investors subscribe, you should too!
I say what others won't, so you can do what others can't!
How does the old saying go? It's easier to ask for forgiveness than ask for permission. Maybe it's the other way around. Whatever the case, to the extent I need to, I'm NOT going to ask for forgiveness for what I say – someone NEEDS to speak up and out!
We could be DUE for the sector to be DOWN Monday …
Indexes and ETFs: IWM (+0.43%) and is UP while the IBB, XBI and the XLV are NOT indicating
Companies in my headlights:
- BUY –CYTX and KOOL;
- SELL – CAPR, CLBS, HSGX, ONCE and STML
Dow futures are UP +0.44% and NASDAQ futures are UP +0.35%
U.S. stock-index futures ticked higher on Monday, as European stocks rallied on the back of a gain in oil prices.
European stocks were higher in morning trade as investors cheered a rally in oil markets and awaited the start of the Federal Reserve's policy meeting this week.
Asia markets gained while a technical glitch halted trading in the Australian stock market for most of the session on Monday
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Friday, Thursday and Wednesday, NEGATIVE on Tuesday and POSITIVE last Monday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Friday closed POSITIVE with 18 decliners, 24 advancers and 1 flat;
- Thursday closed POSITIVE with 10 decliners, 29 advancers and 4 flats;
- Wednesday closed POSITIVE with 13 decliners, 26 advancers and 4 flats;
- Tuesday closed NEGATIVE with 34 decliners, 5 advancers and 4 flats;
- Last Monday closed POSITIVE with 11 decliners, 30 advancers and 2 flats;
The title emanates from a song from the musical show, Mary Poppins just after winning a horse race.
- Flush with her victory, she is immediately surrounded by reporters who pepper her with leading questions and they comment that she probably is at a loss for words.
- Mary disagrees, suggesting that at least one word is appropriate for the situation and begins the song … Supercalifragilistic expialidocious …
A stock goes up on NO news and CEOs should have "something to say when you have nothing to say"?
- That’s what generates the “rush” of speculation which cases the steep inclines and rapid declines …
Remembering Friday’s closing post, “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.”
For last week, that’s 3 positive closes in a row, followed by a negative and then a positive while the proceeding eleven (11) closing session’s status of 43 SCG&RT sector’s covered companies:
- Friday closed POSITIVE;
- Thursday closed POSITIVE;
- Wednesday closed POSITIVE;
- Tuesday closed NEGATIVE;
- Monday closed POSITIVE;
- Friday closed NEGATIVE;
- Last Thursday closed POSITIVE;
- Wednesday closed POSITIVE ;
- Tuesday closed POSITIVE;
- The previous Monday was a holiday;
- Friday closed NEUTRAL;
Dusting-off a previous note, pattern of closes alternating as positive closes (7) post negative closes (2) versus one (1) neutral and a holiday … as advance/decline lines, the basis of this review are parsed through a filter of blinking sentiment and poor conviction but, not consistency.
We are DUE for the sector to decline on Monday …
Reiterating, investors need to have one foot in the sector, but the other heading to the exit door. What’s working to make money in the stem, cell, gene and regenerative therapy sector is trading.
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 Friday up +0.51% and is NOT indicating in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Friday down -0.28% and is NOT indicating in Monday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.07% Friday and is NOT indicating in Monday’s pre-market;
- The iShares Russell 2000 (IWM) closed down -0.15% on Friday and is UP +0.43% in Monday’s pre-market.
Companies in my headlights:
Capricor (CAPR) closed DOWN -$0.15 to $3.57 follow an announcement of an offering priced at $3.20 after being down Thursday to $3.83 (-$0.07). Do I need to say more about the HUGE discount, outsized warrant coverage, pending dilution and depreciation? Also the fact that the underwriters are by name – questionable. – Maintaining SELL;
Caladrius Biosciences (CLBS) UP +$0.01 to $5.02 on quadruple witching Friday after Thursday’s $5.01 (+$0.67). Who is kidding whom, as CLBS jumped after a “tranched” fund raising – part with Aspire Capital, who is not an institutional firm? Everyone knew after the reverse of shares, a financing would ensue. For a company that spends money like it drinks water and a CEO who has depreciated stakeholders’ investment, who can believe anything other than keeping the lights on the “newest” Taj Mahal HQ in “polo town”, NJ. CLBS needed the net proceeds to pay down principal and interest payments on its $10 M loan from Oxford Finance, LLC. A five year contract with Adaptimmune (ADAP) should help the stock for a day or two – BUY to SELL;
Cesca Therapeutics (KOOL) closed DOWN -0.15 to $3.95. The USPTO has granted the co two of a family of patent applications related to its proprietary methods for the treatment of ischemic cardiovascular disorders. The patents (numbered 9,393,269 and 9,402,867) protect key components of Cesca's SurgWerks technology platform, designed for the delivery of autologous regenerative stem cell therapies in a point-of-care environment. The patent claims cover rapid concentration and delivery of bone marrow derived stem and progenitor cells such as hematopoietic stem cells (HSCs), mesenchymal stem cells (MSCs), endothelial progenitor cells (EPCs) and CXCR4 positive cells with a reduced amount of red blood cells (RBCs). The SurgWerks processing platform includes a "smart" cell processing module for optically monitored separation and concentration of cell components of interest during centrifugal fractionation. KOOL seems to always run with news -BUY;
Cytori Therapeutics (CYTX) and the Biomedical Advanced Research and Development Authority (BARDA), a division of the U.S. Department of Health and Human Services, increased the contract option originally signed in August 2014 to fund continued investigation and development of Cytori Cell Therapy™ for use in thermal burn injuries. The amended option is valued at $16.6 M, an increase of approximately $2.5 M from its previous value of $14.1 M. Upon Investigational Device Exemption (IDE) approval by the FDA, if received, Cytori will request that BARDA provide additional funding to cover costs associated with the completion of a pilot clinical trial. This trial will employ IV administration of Cytori Cell Therapy. The supplemental funds from this amended contract will be used to support the remaining activities necessary to seek approval of the IDE and support clinical readiness - BUY
Histogenics (HSGX) closed DOWN -$0.23 to $3.21 following Thursday’s $3.44 after announcing a $30 M private placement priced at $2.25 per share. BIG difference in pricing depreciation but, they do have a P3 advancing versus others such as CAPR’s P1/2 and CLBS’ PCT and a P1 – SELL;
Spark Therapeutics (ONCE) closed UP again +$1.61 to $63.85 after Thursday’s $62.24 (+$1.14), Wednesday’s $61.10, Tuesday’s $58.94, Monday’s $59.81 and last Friday’s $57.13? Time to take a safe road by selling and come back – that’s $6.72 on the table – Maintaining SELL;
Stemline (STML) closed UP +$0.29 to $9.86 after Thursday’s $9.57 (+$0.20), Wednesday’s $9.37 (+$0.73), Tuesday’s $9.01 and last Monday’s $8.30 following last week’s Friday $8.30, Thursday’s $9.16 and last Wednesday’s $8.59. . The chart is “peaky” while pricing is susceptible to a trading attack. TOO elastic – 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.
