September 28, 2016 7:07am
… The increase of volume, pricing and volatility raises the specter of trading
I answer one question; in which company should investors put, keep and commit their money!
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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 (+0.13%) is UP and the XLV, IBB and XBI are NOT indicating
Companies in my headlights: BUY – ATHX and CLLS
SELL – BLUE, KITE and STML
Dow futures are DOWN -0.04% and NASDAQ futures are DOWN -0.03%
U.S. stock-index futures fell slightly on Wednesday, ahead of a flurry of speakers from the Federal Reserve, including Janet Yellen.
European stocks were higher in morning trade with investor sentiment buoyed by higher oil prices and a rally in the banking sector.
Asia markets finished mixed, with Japanese shares selling off amid a relatively stronger yen.
Data docket: an August report on durable goods orders is anticipated at 8:30 a.m. ET while Investors are waiting for a big dose of Fed speeches, a reading on orders for big-ticket items and more signals from a key meeting of major oil producers.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Tuesday, NEGATIVE on Monday, POSITIVE on Friday, Thursday and last Wednesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Tuesday closed POSITIVE with 15 decliners, 27 advancers and 1 flat;
- Monday closed NEGATIVE with 33 decliners, 9 advancers and 1 flat;
- Friday closed POSITIVE with 20 decliners, 22 advancers and 1 flat;
- Thursday closed POSITIVE with 16 decliners, 23 advancers and 4 flats;
- Last Wednesday closed POSITIVE with 17 decliners, 24 advancers and 2 flats;
Remembering Tuesday’s closing post, “Unfortunately, the stem, cell, gene and regenerative therapy sector (SCG&RT) is swinging wildly between volume and volatility.
The focal point of this market is that that Q3 is about to end; in my opinion, financial results/earnings are all about expectation. Where past earnings expectations were low, expectations for this coming quarter are basically stagnant – basically loss-per-share (LPS) metrics will be incrementally up, and they are even more ominous for Q4.
- Don’t wish for the quarter to be over so quickly because, even though October, on average, is not as terrible a month as September, it has been even more volatile in the past — the most volatile of the entire calendar.
And odds are good that October’s low will be lower than where the stock market stands at the end of September.
- Remember, nobody has ever gone broke by taking profits, that's why, I say traders are sure to be “lightening the load” as Q3 ends … as development company losses are expected.
Investors shouldn’t get too complacent …
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 Tuesday up +1% and is NOT indicating in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday up +1.45% and is NOT indicating in Wednesday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.71% Tuesday and is NOT indicating in Wednesday’s pre-market;
- The iShares Russell 2000 (IWM) closed up +0.41% on Tuesday and is UP +0.13% in Wednesday’s pre-market.
Companies in my headlights:
Athersys (ATHX) closed UP +$0.01 to $1.97. ATHX has received agreement from the U.S. FDA under a Special Protocol Assessment (SPA) for the design and planned analysis of a P3 clinical trial of Athersys’ novel MultiStem® cell therapy product for the treatment of ischemic stroke. The SPA provides agreement from the FDA that the protocol design, clinical endpoints, planned conduct and statistical analyses encompassed in Athersys’ planned P3 study are acceptable to support a regulatory submission for approval of the MultiStem product for treating ischemic stroke patients - BUY
bluebird bio (BLUE) closed UP +$1.70 to $72.97 after Monday’s $71.27. When BLUE gets rich, a bullseyes appears on its back and front. The aftermarket indication is negative -$0.47 – SELL;
Cellectis SA (CLLS) closed DOWN -$0.20 to $24.62 after Monday’s $24.82 (-$0.63). Last week was a “bummer”; Friday’s close of $25.46 was preceded by $25.72, $25.26 and last Tuesday’s $24.66 and the previous Monday’s $24.39. Oversold – Maintaining BUY;
Kite Pharma (KITE) closed UP +$5.06 to $60.04 after Monday’s $54.98 (+$0.41) following Friday’s $54.57 and Thursday’s to $54.93 (-$0.65) after Wednesday’s $55.58 (-$0.10) following last Tuesday’s $55.68 (-$0.33). KITE reported positive clinical data from a treatment with patients with aggressive non-Hodgkin lymphoma, with shares sharply higher. When equity gets TOO rich, it becomes a target for taking a profit. The aftermarket indication is negative -$0.39 – BUY to SELL;
Stemline (STML) closed UP +$0.54 to $11.24 after Monday’s $10.70, Tuesday’s $10.58, Wednesday’s $10.23 and last Tuesday’s $10.21 and the previous Monday’s $9.79. The chart is “peaky” and the arrows have come out of the quiver – 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.
