October 27, 2016 5:20pm

 

As financial results/earnings begin with Sangamo (SGMO) missing estimates while MiMedx (MDXG) beats; MDXG closed UP and SGMO closed FLAT after being UP …

As I stated this a.m., “A … divisive sector shows just how uncertain investors are as the month slowly ebbs and quarterly reporting period begins.”

 

 

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

 

 

Pre-market indication review:  4 hit and 4 miss …

Lose an advantage or be a subscriber!  Today’s results have implications to Friday's sector activity.  

 

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.

 

 

I say today what others won't, so you can do what others can't whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

 

 

U.S. equities closed lower on Thursday as investors parsed through a fresh batch of corporate earnings results and economic data, while sovereign bonds around the world fell.

The NASDAQ closed DOWN -34.29 or -0.65% to 5,215.97 and the DOW closed DOWN -29.65 or -0.16% to 18,169.68.  

 

 

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 positive with an A/DL of 27/12 and 4 flats;

·         The mid-day slipped negative  with an A/DL of 18/24 and 1 flat;

·         The closing bell  was negative with A/DL of 10/30 and 1 flats;

 

 

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector opened positive, slipped negative at the mid-day and closed negative.

  • Slipping and sliding, another down session to since last Friday – five (5) and counting!

The SCG&RT sector is rotating even further down after five down days, with an analogy to – no news is bad news which has been the opposite in the past weeks.

  • Speculative sentiment needs to peak but, there are no catalysts or milestones to support any pricing up-swing as too many momentum stocks are suffering from technical breakdowns!

There was a small amount of volume that started positive at the open but, the enthusiasm wore-off at the 10:30 am mark and the sector gyrated to the downside.

  • I perceive that we will be seeing more of … a tug of war between Q3 reporting of cash positions and share pricing – it will be all about … “runways”.

The iShares Russell 2000 (IWM) indicated a positive pre- open +0.06% and was DOWN -1.16% at the close while the iShares Nasdaq Biotechnology (IBB) indicated a positive pre-open +0.09% and closed +0.06%.

 

 

Look close at today and the past days – trading ranges - I see patterns:

The downside trend reflects a pricing trend range of:

·         Thursday’s declines ranged from -0.16% to -16.50% in 30 equities;

·         Wednesday’s decliners ranged from -0.24% to -5.36% in 28 equities;

·         Tuesday’s decliners ranged from -0.20%  to -12.82% in 28 equities;

·         Monday’s decliners ranged from  -0.04% to -5.33% in 27 equities;

·         Friday’s decliners ranged from -0.24%  to -13.11% in 23 equities;

·         Last Thursday’s decliners ranged from -0.31% to -15.19% in 16 equities;

 

The upside shows a pricing trend range of:

·         Thursday’s advancers ranged from +0.24% to 4.48% in 10 equities;

·         Wednesday’s advancers ranged from  +0.14% to +9.09%  in 14 equities;

·         Tuesday’s advancers ranged from +0.31% to +7.89% in 9 equities

·         Monday’s advancers ranged from +0.26% to +27.04% in 10 equities;

·         Friday’s advancers ranged +0.24% to +4.26% in 17 equities;

·         Last Thursday’s upside ranged from +0.51% to +6.94% in 25 equities;

 

Wrap-up: Thursday’s scoreboard <43 companies reporting> 10 gains as compared to Wednesday’s  14 versus Tuesday’s  9 gains matched by Monday’s 10 with so-so volume; while Thursday’s 30 number defined further  weakness backed by Wednesday’s downside of 28 compared to Tuesday’s 28 compared to Monday’s 27 with moderate volume.

 

 

Pre-market indication review:  4 hit and 4 miss …

  • Applied Genetic Technologies (AGTC) closed DOWN -0.45 – miss;
  • BioTime (NYSEMKT: BTX) closed DOWN -$0.04 – miss;
  • Cellectis SA (CLLS) closed UP +$0.10 – hit;
  • Cesca therapeutics (KOOL) closed DOWN -$0.52 – hit;
  • Intrexon (XON) closed DOWN -$0.29 – miss;
  • Juno Therapeutics (JUNO) closed DOWN -$0.92 – miss;
  • Mesoblast (MESO) closed UP +$0.03 – hit;
  • Sangamo Biosciences (SGMO) closed UP +$0.00 – hit;

 

 

Financial results/earnings:

MiMedx (MDXG) closed UP +$0.29 to $8.66 …

·         MiMedx Group (MDXG) reported EPS in-line, beating on revenue and guided Q4 EPS above consensus with revenue in-line.

·         MDXG reported Q3 (Sep) earnings of $0.06 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.06; revenues rose 31.4% year/year to $64.4 M versus the $63.12 M Capital IQ Consensus.

·         MDXG issued guidance for Q4, seeing EPS of $0.21-0.23, excluding non-recurring items, versus $0.08 per share Capital IQ Consensus Estimate; seeing Q4 revenues of $69.4-72.9 M vs. $70.07 M Capital IQ Consensus Estimate.

 

Sangamo Biosciences (SGMO) closed DOWN -$0.00 to $3.75 …

·         Having met “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

 

 

Thursday, Wednesday, Tuesday, Monday and Friday were DOWN days, walking past a strong upside on last Thursday …

 

Percentage decliners:

·         Histogenics (HSGX) -16.50%;

·         Cesca Therapeutics (KOOL) -14.44% after Wednesday’s +5.88% after Tuesday’s -12.82% after Monday’s +27.04% after Friday’s +6.68%;

·         Neuralstem (CUR) -9.81%;

·         International Stem Cell (ISCO) -8.33% after Wednesday’s +9.09%;

·         Aduro Biotech (ADRO) -6.67%

 

 

Percentage advancers:

·         Opexa (OPXA) +4.48% after Wednesday’s -2.76%;

·         MiMedx (MDXG) +3.46%;

·         Brainstorm (BCLI) +3.07% after Wednesday’s +5.56%;

·         Osiris (OSIR) +2.97%;

·         Stemline (STML) +1.99%

 

 

Flat:                                                                                                      

·         AxoGen (AXGN) at $8.80;

·         Pluristem (PSTI) at $1.60;

·         Sangamo Biosciences (SGMO) at $3.75;

 

 

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

·         Thursday traded near 14.9;

·         Wednesday traded near 14.6;

·         Tuesday traded near 13.6. The index was on track to snap a five-day losing streak;

·         Monday traded near 13;

·         Friday traded near 13.5;

·         Last Thursday traded near 13.9

                                                                                                              

 

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.