September 26, 2016 7:06am
Indexes and ETFs: The IBB (-0.90%), IWM (-0.75%) and XBI (-0.21%) are DOWN and the XLV is NOT indicating
… Last week strung four (4) solid positive closes together, be ready …
Also, the capital market window is open; more offerings should be coming, the key is the ability to “jump” but, better have some “named” investors
They’re coming … maybe not this week or next but, they’re coming …
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 IBB (-0.90%), IWM (-0.75%) and XBI (-0.21%) are DOWN and the XLV is NOT indicating
Companies in my headlights: BUY – AGTC,
SELL – VCEL and VTGN
Dow futures are DOWN -0.45% and NASDAQ futures are DOWN -0.55%
U.S. stock-index futures fell on Monday, indicating a lower start to trade as global shares fell ahead of the oil producers' meeting in Algiers.
European stocks were lower in morning trade as investors trod cautiously ahead of an OPEC producers meeting in Algeria this week.
Asian shares were broadly lower, as traders largely gave up hope for an oil breakthrough this week and as the Bank of Japan flagged that it remained committed to negative rates.
Data docket: monthly new home sales.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Friday, Thursday, Wednesday and Tuesday and NEGATIVE last Monday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Friday closed POSITIVE with 20 decliners, 22 advancers and 1 flat;
- Thursday closed POSITIVE with 16 decliners, 23 advancers and 4 flats;
- Wednesday closed POSITIVE with 17 decliners, 24 advancers and 2 flats;
- Tuesday closed POSITIVE with 18 decliners, 23 advancers and 2 flats;
- Last Monday closed NEGATIVE with 22 decliners, 16 advancers and 5 flats;
Remembering Friday’s closing post, “what’s the wrong side of the trade these days? As most sector stocks dip before they move to new highs. Do ping-pong moves shake-out the weak hands, punish the crowded trade or reward the RMi’s subscribers.”
A few companies have jumped through the “open” capital market window with big discounts and dilution saddled with the usual share depreciation.
How will the coming batch of the “neediest” fare … “named” investors are needed to facilitate any offering or private placement …
- 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;
A KEY word - perception: keep relationships to the commentators strong and the disparagers to a minimum …
Reiterating, sometimes it’s time to evaluate the topography versus the geography.
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 down -0.63% and is DOWN -0.90% in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Friday down -1% and is DOWN -0.21% in Monday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.31% Friday and is NOT indicating in Monday’s pre-market;
- The iShares Russell 2000 (IWM) closed down -0.71% on Friday and is DOWN -0.75% in Monday’s pre-market.
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed UP +$0.07 to $8.96 after being FLAT at $8.89 on Thursday after Wednesday’s $8.89 (+$0.07) following Tuesday’s $8.82 and last Monday’s $8.58. 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;
Vericel (VCEL) closed UP +$0.28 To $2.92. Big one day move after a conference presentation; VCEL has been trending back and forth in September with a low of $2.20 and a high of $2.39, while August’s trend was $2.10 to $2.53 following July’s $2.09 to $2.29. Where am I going with this, VCEL needs cash as it has been operating with use of ATM draw-downs, if this market pricing is the best it can be – why not go for an offering or even a private placement? A +10.61% upside sends a message - SELL;
VistaGen (VTGN) closed UP +$0.14 to $4.35. Another “field of dreams”, if you build on an old drug, it they might work? However, VTGN is very low on cash and also “peaking” in chart land while needing an offering – now might be a good time as any. September’s pricing was $2.99 to $4.35, following an August price range of $1.97 to $3.44 and July’s $3.31 to $3.97 - 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.
