October 18, 2016 7:08am
But, show me more than the upside!
Investor’s caution continues to mount as Election Day approaches
BUY: AGTC, JUNO, ONCE and VCEL
I answer one question; in which company should investors put, keep and commit their money!
Where is “our” universe going today? If you are not a subscriber, you won’t know the morning’s indications and who is in the headlights.
I say what others won't, so you can do what others can't!
The strange case of Dr. Jekyll and Mr. Hyde might make for a great read, but it’s far less fun when the sector acts like it’s a carbon copy. Stock pricing has been alternating between the dreadful and the benign.
Indexes and ETFs: The IWM (+0.80%) and IBB (+0.67%) are projected UP while the XLV and XBI are NOT indicating
Dow futures are UP +0.38% and NASDAQ futures are UP 0.55%
U.S. stock index futures pointed to a higher open on Tuesday, as investors prepared themselves for another batch of corporate earnings, while keeping an eye out for news on oil, the Federal Reserve and new data.
European stocks were higher in morning trade as firming oil prices lifted global sentiment.
Most markets in Asia rose, as oil prices advanced and gaming shares across the region retraced much of Monday's losses.
Data docket: CPI data is due out at 8.30 a.m. ET, while the National Association of Home Builders (NAHB) survey and TIC data are due out at 10 a.m. ET and 16.00 p.m. ET
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Monday, Friday, Thursday, Wednesday and last Tuesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Monday closed NEGATIVE with 34 decliners, 7 advancers and 2 flats;
- Friday closed NEGATIVE with 29 decliners, 12 advancers and 2 flats;
- Thursday closed NEGATIVE with 31 decliners, 9 advancers and 3 flats;
- Wednesday closed NEGATIVE with 36 decliners, 6 advancers and 1 flat;
- Last Tuesday closed NEGATIVE with 32 decliners, 10 advancers and 1 flat;
Monday’s closing post, “the wall of worry heightens … as pricing dives and investor anxiety increases while the iShares Nasdaq Biotechnology ETF (IBB) dropped -0.14%.”
Look close at yesterday‘s session <trading ranges> - I see patterns evolving as technicals and fundamentals matter … yet they seem over-ridden as …the downside trend reflects a pricing trend range:
- Monday’s decline ranged from –0.05% to –10.07% in thirty-four (34) equities;
The upside shows a pricing trend range of
- Monday upside ranged from +0.12 to +4.66% in seven (7) equities
Wrap-up: The day’s sector <43 companies> 9 gains were pretty LEAN with increasing volume on Monday, while the downside trading ranges were So-so as to Friday’s close also with increasing volume than the previous sessions … as the number of downside companies also increased by five (5) as the sector’s oversold were recognized …
- Aside from the upcoming financial results/earnings-season silence and Fed gossip, I’d say it’s time to drop down from the wall of worry.
- But, the bounce won’t be soft … and we will need to walk-off the pain!
After five (5) down sessions – we are DUE an UP but, play it safe!
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 Monday day down -0.14% and is indicating a positive pre-open +0.67% in Tuesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Monday down -0.82% and is NOT indicating in Tuesday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.33% Monday and is NOT indicating in Tuesday’s pre-market;
- The iShares Russell 2000 (IWM) closed down -0.12% on Monday and is projected UP +0.80%% in Tuesday’s pre-market.
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed DOWN -$0.03 to $8.30 following Friday’s $8.33 (-$0.22) after Thursday’s $8.55 (-$0.13) (following Wednesday’s $8.68 after last Tuesday’s $9.35. AGTC has a substantial cash position of $172.7 M, revenue, no debt, and a named partner – Biogen (BIIB), multiple trials as well as pre-clinical programs and on-going research in a hot universe. A book value per share of reflects a $9.87 value and NO need for a capital markets offering. A float of 9.88 M shares with 52.30% held by institutions and 18.05 M outstanding with 51.15% held by insiders is a positive- OVERSOLD – Maintaining BUY;
Juno Therapeutics (JUNO) closed DOWN -$0.82 to $27.17. July - saw $40.69, August - $30.86, September 1 -$29.29 and October 3 was priced at $29.80 – simple economics of a momentum stock. Oversold – BUY;
Spark Therapeutics (ONCE) closed DOWN -$2.97 to $53.63 following Friday’s $55.70 (-$1.21). ONCE presented data at the American Academy of Ophthalmology 2016 Annual Meeting reinforce efficacy & durability of voretigene neparvovec (VN) in RPE65-mediated inherited retinal disease. One year after administration, the mean improvement among all nine subjects, as measured by the primary endpoint, a multi-luminance mobility test was 2.1 lux levels. Anytime you get a p-value of .006, something must be happening! Sustaining the improvement at 2 years is a big deal and the visual field improvement is important – Maintaining BUY;
Vericel (VCEL) closed DOWN -0.03 to $2.40 after Friday’s $2.41 following Thursday’s $2.44 and last Tuesday’s $2.56. As I stated, I haven’t been a personal fan but, in this case, with NO capital market access – the use of an ATM is a stopgap to the future. Cowan and Company is a great banker to have as an advisor. They now have cash via access to stock sales, not a traditional offering but, an at-the-market move? OVERSOLD - 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.
Henry’s comments are for informational purposes only and are not a substitute for personalized advice. Consult your advisor about what is best for you.
