September 22, 2016 7:44am
… There is a gap between pricing sustainability, value and what’s to come …
Prepare for volatility as no news is good news
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!
Indexes and ETFs: The IWM (+0.29%) is UP while the IBB, XBI and XLV are NOT indicating
Companies in my headlights: BUY – AGTC, JUNO, KITE,
SELL – BLUE
Dow futures are UP +0.32% and NASDAQ futures are UP +0.33%
U.S. stock index futures pointed to a higher open on Thursday as traders eyed data releases and continued to digest the decision of the U.S. Federal Reserve to keep interest rates unchanged.
European stocks were higher as global investors reacted to the decision by the U.S. FED to hold interest rates steady.
Asia markets climbed across the board, as uncertainties surrounding key monetary policy decisions came to a close, following Wednesday's announcements from the U.S. the Bank of Japan (BOJ).
Data docket: initial jobless claims are due at 8:30 a.m. ET, with the FHFA home price index set to come out at 9 a.m., leading indicators and existing home sales are due at 10 a.m.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Wednesday and Tuesday, NEGATIVE on Monday, POSITIVE on Friday and last Thursday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Wednesday closed POSITIVE with 17 decliners, 24 advancers and 2 flats;
- Tuesday closed POSITIVE with 18 decliners, 23 advancers and 2 flats;
- Monday closed NEGATIVE with 22 decliners, 16 advancers and 5 flats;
- Friday closed POSITIVE with 18 decliners, 24 advancers and 1 flat;
- Last Thursday closed POSITIVE with 10 decliners, 29 advancers and 4 flats;
Remembering Wednesday’s closing post, “up, down round and round then up at the close. Did Yellen’s rate conference help healthcare for once by keeping Mylan (MYL) hearings from the air during Wednesday’s session?
- Reiterating, the key is in staying in the moment and operating on a current assessment of NOT what has happened, but what might happen.
The market rallied Wednesday, with the NASDAQ closing at a record, after the FED decides to keep interest rates unchanged as it sought further evidence of economic strength. The NASDAQ climbed to finish at a record close, surpassing its previous all-time high set on 9/7 and closing near its intraday trading high during the session.
- Is it a telling or a temporary high based on Yellen’s decline to raise rates?
We have been averaging three (3) ups following the previous Wednesday, Thursday and Friday while Monday experienced a negative close and this week’s Tuesday and Wednesday had positive closes.
- Defense or offense for a third (3rd) positive close?
One of the nauseas to come or confront us in the last weeks of the quarter is the earnings-estimate or as I call them, the loss-per-share <LPS> guesstimates expected by the “street” tracking to the sector.
Traders are sure to be “lightening the load” as Q3 ends … as development company losses are expected.
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 +0.62% and is NOT indicating in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Wednesday up +1.14% and is NOT indicating in Thursday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +1% Wednesday and is NOT indicating in Thursday’s pre-market;
- The iShares Russell 2000 (IWM) closed up +1.45% on Wednesday and is UP +0.41%in Thursday’s pre-market.
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed UP +$0.07 to $8.89 following Tuesday’s $8.82 and Monday’s $8.5. Forget all the banter and speculation on who is able or might buy whom; let me make it simple, AGTC’s stock is worth $9.87 in cash per share and has NO debt – Maintaining BUY;
bluebird bio (BLUE) closed UP +$0.04 to $73.81 following Tuesday’s $73.77 (+$2.82). The issue, I have is yesterday’s trading range of $69.85 to $74.89.It is the $5.04 swing in a day floating down and up; following a good September which started at $49.33; BLUE has floated through the $50’s to the $60’s and for two days hit the $70’s on 9/15 and 9/16. When BLUE gets rich, I take a profit while one can to come back for another leg-up – Maintaining SELL;
Juno Therapeutics (JUNO) closed UP +$1.57 to $31.32. JUNO has traced out a pattern of lower lows and lower highs, but seems directionless. In July JUNO gapped to the downside on heavy volume, but prices did not make a new low. Prices are inching up again, and look poised to break above the declining, 50-day moving average line. Prices are below the declining, 40-week moving average line. The aftermarket indication is positive at +$0.23 – BUY;
Kite Pharma (KITE) closed DOWN -$0.10 to $55.58 following Tuesday’s $55.68 (-$0.33). KITE had entered into an exclusive, worldwide license with the National Institutes of Health (NIH) for intellectual property related to multiple T-cell receptor (TCR) based product candidates for the treatment of tumors expressing mutated KRAS antigens. KITE expects the first of the licensed KRAS product candidates to enter clinical study in 2016 as part of the Company’s Cooperative Research and Development Agreement (CRADA) with the National Cancer Institute (NCI). The aftermarket is positive +$0.47 – Maintaining BUY;
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.
