September 20, 2016 4:58pm
… With the iShares Nasdaq Biotechnology ETF (IBB) rising +1.43%
Pre-open indication’s tally: 3 hits <AGTC, AST and KITE> and 0 miss
I answer one question; in which company should investors put, keep and commit their money!
Do you care what happened today, you should because it has implications to Wednesday's sector activity?
Subscribe or lose a portfolio advantage!
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 higher on Tuesday on the heels of disappointing housing data, while investors awaited the latest monetary policy decisions from the Federal Reserve and the Bank of Japan.
The NASDAQ closed UP +6.32 or +0.12% to 5,241.35 and the DOW closed UP +9.79 or +0.05% to 18,129.96.
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 positive with an A/DL of 27/14 and 2 flats;
- The mid-day was positive with an A/DL of 23/19 and 1 flat;
- The closing bell stayed positive with A/DL of 23/17 and 3 flats;
Henry’omics:
The stem, cell, gene and regenerative therapy (SCGT&RT) sector was positive at the opening bell, stayed positive 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 positive at the open of +0.40% and was DOWN -0.39% at the close while the iShares Nasdaq Biotechnology (IBB) did NOT indicated this a.m. and closed UP +1.43% at the close.
Momentum is alternating through the day as the upside stays in the 20s <out of 43 covered companies>. However, upside volatility is brittle!
- The usual week reeks of spikes in volatility to the downside, and then followed by one or two maybe three up days in the sector.
As the sector ends Q3 in eight (8) sessions, be ready for the declines in pricing.
- From my point of view, when you have strength in the stem, cell, gene and regenerative therapy (SCGT&RM) companies, it’s a sign of risk-on and should be taken as a play for defense in this market.
Reiterating, volume is still low, volatility floats with momentum and that’s low … which also says … to me – caution about the next few weeks. I maintain we will see the usual pull/push pricing as most equities will remain sideways as the week ends!
The real issue is … SCGT&RM companies suffer liquidity tending to fall harder after big swings to the upside, the speed and force of their downside is usually what’s notable!
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: 3 hit and 0 miss:
- Applied Genetic Technologies (AGTC) closed UP +$0.24 – hit;
- Asterias Biotherapeutics (NYSEMKT: AST) closed DOWN -$0.07 – hit;
- Kite Pharma (KITE) closed DOWN -$0.33 – hit;
Out and about:
Histogenics (HSGX) is UP +$0.09 to $3.16 …
- After announcing a $30 M private placement priced at $2.25
I always consider HSGX the come-back “kid” of pricing based on Histogenics’ current plans, enrollment in the NeoCart P3 clinical trial will be completed in Q2/17, with topline data on its 1-year primary efficacy endpoint available by the middle of 2018.
The key to my nickname is that affiliates of certain members of HSGX’s Board of Directors agreed to purchase an aggregate of 283,045 shares of common stock and 2,563.1451 shares of Series A Convertible Preferred Stock in the private placement and will receive warrants to purchase up to 1,422,221 shares of HSGX’s stock at the exercise price of $2.25 per share.
- Hopefully, those who are next in line to finance will follow this lead …
Today’s Bottom Line:
The trading sandbox is filling; it’s time to empty the “toys” that get wet from the rain … of trading …
Review my fear gauge or the CBOE Volatility Index (VIX):
- Tuesday traded 15.9;
- Monday traded near 15.3;
- Friday traded near 16.2;
- Thursday traded near 15.79 – 13% lower;
- Wednesday traded 18.14 – 1.18% lower
- Last Tuesday traded at 18.74 – 24% higher;
Decliners:
- Fibrocell (FCSC) -4.27%;
- International Stem Cell (ISCO) -3.74%;
- Organovo (ONVO) -3.73%;
- VistaGen (VTGN) -3.03%;
- AxoGen (AXGN) -2.70%;
- Caladrius Biosciences (CLBS) -1.87% after Monday’s -4.18%;
- Neuralstem (CUR) -2.215 after Monday’s +4.1% after Friday’s +10.65% or +$0.03;
Advancers:
- Northwest Bio (NWBO) +18.82 % after Monday’s +23.28% after Friday’s +12.59% after Thursday’s-18.81% after Wednesday’s +8.23% after Tuesday’s +42.61% after last Monday’s +17.56% or +$0.0597;
- Adverum (ADVM) +7.63%;
- Histogenics (HSGX) +2.93% after Monday’s -4.36% after Friday’s -6.69% after Thursday’s -1.21%;
- Fate Therapeutics (FATE) +6.33%;
- Regenxbio (RGNX) +5.28% after Monday’s 5.57%;
Flat:
- Brainstorm (BCLI) at $2.52;
- ReNeuron (RENE.L) at $2.625;
- Vericel (VCEL) at $2.37
Volume spikes that stand out:
- Northwest Bio (NWBO) – 10th day <13.5 M shares traded following Monday’s 9.8 M shares after Friday’s 4.29 M shares versus Thursday’s 5.35 M shares versus Wednesday’s 7.52 M shares compared with last Tuesday’s 22.346 M shares versus 3 month average = 1.7 M>;
- ReNeuron (RENE.L) 2nd day 3.388 M shares traded versus Monday’s 3.295 M shares <3 month average = 2.4 M 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.
