RegMed Investors’ closing bell analysis, the pace of sustainability in the sector …

September 22, 2016 5:07pm

… Begets short-lived investment as risk-on trades create volatility

Sector actions speak louder than words

Pre-open indication’s tally:  2 hits < AGTC and BLUE> and 2 miss <JUNO and KITE>

Out and about: uniQure’s (QURE) CEO resigns for personal family reasons

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 Friday's sector activity?  

Subscribe or lose!

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 Thursday, with the NASDAQ having another record-setting session, as investors digested several economic data releases while processing the Fed's latest monetary policy decision.

The NASDAQ closed UP +44.34 or +0.84% to 5,339.52 and the DOW closed UP +98.76 or +0.54% to 18,392.46.

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 negative with an A/DL of 21/19 and 3 flats;
• The mid-day popped positive with an A/DL of 24/17 and 2 flat;
• The closing bell stayed positive with A/DL of 23/16 and 4 flats;

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector was negative at the opening bell, popped 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 open of +0.41% and was UP +1.44% at the close while the iShares Nasdaq Biotechnology (IBB) was NOT indicating this a.m. and closed UP +0.86% at the close.

Some say, it is not time to stay on the sidelines – I totally disagree!

• As much as I say – trade, sometimes it’s better to PAUSE and evaluate the topography versus the geography.

Those who choose to argue with either this cliché <i.e. sidelines> or the other major axiom <pause> in investing will be stuck in left field as batters hit to the shortstop as related to share pricing.

• U.S. stocks extended gains for a 3^rd  session Thursday as the Nasdaq finished at a record-high close on buoyant sentiment following the Fed's decision to stand pat on interest rates.
• The S&P 500 SPX, +0.65% rose 14 points, or 0.6%, to end at 2,177 while the Dow added 98 points, or 0.5%, to finish at 18,391.
• The NASDAQ advanced 44 points, or 0.8%, to close at 5,339 after touching an intra-day record of 5,342.88.

It is NOT good to fight momentum or IS it?

• Volatility is NOT subsiding but, increasing as the month and quarter ebbs to a close.

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:  2 hit and 2 miss:

• Applied Genetic Technologies (AGTC) closed UP +$0.00 – hit;
• bluebird bio (BLUE) closed DOWN -$0.51 – hit;
• Juno Therapeutics (JUNO) closed DOWN -$0.70 – miss;
• Kite Pharma (KITE) closed DOWN -$0.65 – miss;

Out and about:

uniQure N.V. (QURE) closed DOWN -$0.14 to $7.61

QURE has accepted the resignation of Daniel Soland as CEO and an executive member of the Board, effective immediately.

• The Board announced that Matthew Kapusta, QURE’s CFO since 1/15 that also serves as an executive member of the Board, has been appointed interim CEO. In addition, Philip Astley-Sparke, a member of the BOD and former President of uniQure's US operations, has been elected unanimously to serve as its Chairman.
• "My decision to resign as Chief Executive Officer is due solely to personal family reasons," stated Mr. Soland, "I regret the abrupt nature of this decision but believe that it is in the best interests of uniQure,
• A good point, following Mr. Soland's resignation, QURE's Board of Directors currently consists of seven members, of whom four are independent within the meaning of the applicable NASDAQ rules.

As a consequence, QURE is in compliance with Nasdaq Listing Rule 5605, which requires that at least a majority of the Board consist of independent directors.

Today’s Bottom Line:

Ben Graham used to talk about the stock market being a cross between a voting machine and a weighing machine.

• On any given day, traders vote by buying and selling shares, and in the short run, the trades happen at the levels dictated by whether the buyers or sellers are more aggressive.

That is the voting machine of the market. In the short run, values can be pretty senseless if one side or the other decides to be aggressive in their buying or selling.

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

• Thursday traded 11.3, -16.46% lower – I don’t see it in the SCG&RT sector;
• Wednesday traded near 13.9, -2.6% lower;
• Tuesday traded 15.9;
• Monday traded near 15.3;
• Friday traded near 16.2;
• Last Thursday traded near 15.79 – 13% lower;

Decliners:

• Northwest Bio (NWBO) -12.37% after Wednesday’s -9.87% after Tuesday’s +18.82 % after Monday’s +23.28% after Friday’s +12.59% after Thursday’s-18.81% after last Wednesday’s +8.23% ;
• International Stem Cell (ISCO) 7.69% after Wednesday’s +8.33%;
• Histogenics (HSGX) -4.08%;
• Biostage (BSTG) -3.67% after Wednesday’s FLAT at $1.09;
• Caladrius Biosciences (CLBS) -2.53%

Advancers:

• Fate Therapeutics (FATE) +11.32%;
• Vericel (VCEL ) 8.64%;
• AxoGen (AXGN) +6.61% after Wednesday’s +4.11%;
• Asterias Biotherapeutics (NYSEMKT: AST) +5.32% after Wednesday’s +3.68%
• BioTime (NYSEMKT: BTX) +3.16%

Flat:                                                            

• Applied Genetic Technologies (AGTC) at $8.89;
• Neuralstem  (CUR) at $0.31;
• Osiris (OSIR) at $4.89;
• ReNeuron (RENE.L) at $2.625;

Volume spikes that stand out: 

• Northwest Bio (NWBO) 3.2 M shares traded <3 month average = 2 M shares>;
• Asterias Biotherapeutics (NYSEMKT: AST) 526.3 K shares traded versus yesterday’s 692.9 K shares traded <3 month average =244 K shares>;
• VistaGen (VTGN) 78.8 K shares traded <3 month average = 37.9 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.