October 27, 2016 6:39am

 

… After the sector slid in the past four sessions

Unfortunately, the narrative around financial results/earnings will change on a daily basis  

 

 

I answer one question; in which company should investors put, keep and commit their money!

 

 

RegMed Investors’ (RMi) provides exclusive and original content; put your eyes on the page to figure out what’s really going on! If you are not a subscriber, you won’t know the morning’s indications and who is in the headlights.

 

 

 

I write in every line that investors need to avoid risks as if I were the first to be hurt if I am wrong!

 

 

BUY:  AGTC, BTX, CLLS, JUNO, MESO and XON

SELL: KOOL and SGMO,

 

Indexes and ETFs: The IBB (+0.09%), IWM (+0.06%) and XBI (+0.81%) are UP while the XLV (-0.16%) is DOWN

Dow futures are DOWN -0.05% and NASDAQ futures are DOWN -0.08%

 

 

U.S. stock index futures pointed to a lower open on Thursday morning as traders eyed a host of big earnings and the release of several pieces of data.

European stocks were higher in mid-morning trade as investors focused on earnings and new data but continued to fret with rising concerns that OPEC countries would not reach an agreement over a production cut.

Asia Pacific markets were mixed, with energy plays in the region under pressure after oil prices extended their losing streak during the U.S. session.

 

Data docket: initial claims and durable goods are due at 8:30 a.m. ET, with pending home sales and housing vacancies set to come out at 10:00 a.m ET.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Wednesday, Tuesday, Monday and Friday and POSITIVE last Thursday.

The SCG&RT sector’s record after the last 5 days (of 43 covered companies):

·         Wednesday closed NEGATIVE with 28 decliners, 14 advancers and 1 flat;

·         Tuesday closed NEGATIVE with 28 decliners, 9 advancers and 6 flats;

·         Monday closed NEGATIVE with 27 decliners, 10 advancers and 6 flats;

·         Friday closed NEGATIVE with 23 decliners, 17 advancers and 3 flats;

·         Last Thursday closed POSITIVE with 16 decliners, 25 advancers and 2 flats;

 

 

Remembering Wednesday’s closing post, “The stem, cell, gene and regenerative therapy sector is feeling the “pain” of share pricing declines as financial results/earnings or loss-per-share (LPS) numbers are hitting the wires. “

  • It’s time for an upswing after … “Trading pressures and negative share returns are deflating sentiment and hampering any upside after four (4) down sessions to date!”

As we close the gap of the oversold and undervalued, a devisive sector shows just how uncertain investors are as the month slowly ebbs as reporting period begins.

  • Determining the daily trend of the stem, cell, gene and regenerative therapy (SCG&RT) sector  is key to the success of an investment portfolio.

However, every investor has a different time frame!

  • I'm always in the daily <pattern> measurement mode until the market tells me when the sector is ready to shift.

 

 

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 +0.05% and is UP +0.09% in Thursday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Wednesday down -1.16% and is UP +0.81% in Thursday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.61% Wednesday and is DOWN -0.16% in Thursday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -0.99% on Wednesday and is UP +0.06% in Thursday’s pre-market.

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed DOWN -$0.15 to $7.95 after Tuesday’s $8.10 (-$0.10) following Monday’s $8.20 (-$0.05) after Friday’s $8.25 (-$0.75) following last Thursday’s $9.00, What has changed, 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.  Book value per share is $9.87 and there is NO need for a capital markets offering; with a float of 9.88 M shares with 52.30% held by institutions and 18.05 M outstanding with 51.15% held by insiders are positives. I’d be buying for the upside - OVERSOLD – Maintaining BUY;

BioTime (NYSEMKT: BTX) closed DOWN -$0.12 to $3.38 following Tuesday’s $3.50 (-0.01) after Monday’s $3.51 (-$0.06). BTX is UNDERVALUED based on the week’s momentum - Friday’s $3.57, Thursday’s $3.58 and last Wednesday’s $3.49. It’s still the big casino – Maintaining BUY;

Cellectis SA (CLLS) closed DOWN -$0.05 to $18.01 following Tuesday’s $18.06, Monday’s $18.52 (-$0.48) after Friday’s $19.00 (-$0.06) following last Thursday’s $19.06 (-$0.49). 9/1’s $26.40 followed 8/1’s $27.10 post 7/1’s $27.25 and 6/1’s $32.51. Still holding-on to my undervalued position. Might be time to play the past value card. The aftermarket indication is positive +$0.30 I’d also be buying for the upside, Oversold – Maintaining BUY;

Cesca therapeutics (KOOL) closed UP +$0.20 to $3.60 following Tuesday’s $3.40 after Monday’s $3.90 after Friday’s $3.07 (+6.68%) and last Thursday’s $2.96. KOOL is always a trader’s delight as it pops and drops. Shooting stars get sold-off – Maintaining SELL;

Intrexon (XON) closed UP +$0.06 to $26.40 following Tuesday’s $26.34 and Monday’s $26.62.  XON's launch on Wednesday of a laboratory in Brazil capable of producing 60 million genetically-modified mosquitoes a week could help protect up to 3 million locals from mosquito-borne diseases like Zika and dengue. Oxitec said that ongoing trials in Brazil, Panama and the Cayman Islands have shown that its genetically-modified mosquitoes - dubbed Friendly Aedes - can reduce localized Aedes aegypti populations by more than 90%. – Maintaining BUY;

Juno Therapeutics (JUNO) closed DOWN -$0.70 to $26.29. I haven’t seen this pricing since 9/1; while the week so far has experience a decline from Monday’s $28.14 and Tuesday’s $26.99. OVERSOLD. The aftermarket indication is positive +$0.26 – BUY;

Mesoblast (MESO) closed DOWN -$0.04 to $4.02 following Tuesday’s $4.06, Monday’s $4.30, Friday’s $4.30 and last Thursday’s $4.24. Low volume alternates and a lack of news keeps MESO at the whim of traders with a 3 month average of 19.9 K shares.  A rope-a-dope– BUY;

Sangamo Biosciences (SGMO) closed UP +$0.10 to $3.75. SGMO reported a loss of $19 M or -$0.27 per share in Q3. The results did not meet “Street” expectations as the average estimate was for a loss of $0.25 per share. SGMO posted revenue of $2.8 M in the period; also falling short of “Street” forecasts expected at $3.7 M. Sangamo expects full-year revenue in the range of $12 M to $17 M.  A year ago, they were trading at $6.81 – 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.

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.