November 7, 2016 7:05am

 

… In a choice of confidence or conviction, I am betting on neither but, uncertainty and confusion

 

The conflict between candidate views, the breakdown in advance/decline lines and alternating positive and negative closes as well as gridlock concern me

 

… Stay LONG volatility

 

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

 

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!

 

 

 

RegMed Investors’ (RMi) provides exclusive and original content; put your eyes on the page to figure out what’s really going on!

 

 

Indexes and ETFs: The IWM (+1.87) and XBI (+2.06%) are UP while the IBB and XLV are NOT indicating

Dow futures are UP +1.3% and NASDAQ futures are UP +1.59%

 

 

U.S. futures jumped after the Federal Bureau of Investigation (FBI) again cleared Democratic nominee Hillary Clinton over her use of a private server.

European bourses rallied as confidence grew over a Hillary Clinton victory in the U.S. presidential elections.

Asian markets traded higher, after the Federal Bureau of Investigation (FBI) again cleared presidential candidate Hillary Clinton of potential criminal charges in its private email server probe.

 

Data docket: a senior loan officer opinion survey for the fourth quarter is released, as well as consumer credit figures at 3:00 p.m. ET.

 

 

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

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

·         Friday closed POSITIVE on Friday with 8 decliners, 31 advancers and 4 flats;

·         Thursday closed NEGATIVE with 37 decliners, 5 advancers and 1 flat;

·         Wednesday closed NEGATIVE with 36 decliners, 6 advancers and 1 flat;

·         Tuesday closed POSITIVE with 14 decliners, 26 advances and 3 flats;

·         Last Monday closed NEGATIVE with 32 decliners, 11 advancers and 0 flat;

 

 

Remembering Friday’s closing post, “a rotation from the oversold … understanding, the current spike is fickle and the outcome is depreciation, again.”

  • Reiterating, while the market is obsessed with the presidential election next Tuesday, sector quarterly results accumulate loss-per-share and diminishing cash position

Investors are due … a reprieve from all the election rocks, boulders spears and sand being thrown back and forth.

  • On Sunday, the Federal Bureau of Investigation (FBI) again cleared Democratic nominee Hillary Clinton of potential criminal charges over her use of a private email server for government business while secretary of state.

Let’s get past these issues and find a place of peace – if that word is still in our vocabulary.

 

Markets are nervous and both candidates promise respite – don’t bet on it …

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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 up +1.96% and is NOT indicating in Monday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Friday up +2.93% and is UP +2.06% in Monday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.70% Friday and NOT indicating in Monday’s pre-market;

·         The iShares Russell 2000 (IWM) closed up +0.64% on Friday and is UP +1.87% in Monday’s pre-market.

 

 

Companies in my headlights:

  • On the whole, I abstain from individual prognostication - today. I believe many sector equities are OVERSOLD … as quarterly reporting season gets going … while I will shuffle the deck on two glaring companies …

 

Applied Genetic Technologies (AGTC) closed UP +$0.25 to $6.60 following Thursday’s $6.35 (-$0.20) after Wednesday’s $6.55 (-$0.30) following Tuesday’s $6.85 (-$0.30).  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. A slow-down in trial recruitment isn’t worth this depreciation, compared to others – sticking to my research - OVERSOLD – Maintaining BUY;

Biostage (BSTG) closed UP +$0.04 to $0.79 following Thursday’s $0.746 (-$0.04) following Wednesday’s to $0.788 (-$0.09). What are day traders bidding the price up on, quarterly reporting is slated for 11/10 – spending continues without any regulatory advances? The depreciating share pricing is inhibiting BSTG’s capacity and ability to finance to the future on reasonable terms and with a reputable banking team. I believe this impairment after a $1.95 financing, a $1.76 offering will be defined by the lack of quality name investors.  I keep hearing, feedback from analysts, bankers and investors that BSTG has blurred and obstructed their future. The real issue is still, BSTG is an early pre-clinical model in a public shell.    Access to capital markets will be the key but, at what pricing - $0.50? BSTG has forgotten its base and foundation – investors who needed to believe in its ability to follow through – Maintaining 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.