November 10, 2016 5:37pm

 

… Let’s not forget that quarterly results have kept reporting with diminished cash positions and increasing losses

 

The iShares Nasdaq Biotechnology ETF (IBB) pared gains but, still closed at +1.68%

 

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

 

Pre-open indication’s tally:  1 hit (BSTG) and 7 miss (ADRO, BLCM, BLUE, JUNO, KITE, RGNX and ONCE) but, sellers into strength made money ($) and a fuller wallet!

 

 

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 traded mixed on Thursday as investors repositioned their portfolios following the presidential election.

The NASDAQ closed DOWN -42.28 or -0.81% to 5,208.80 and the DOW closed UP +225.79 or +1.21% to 18,815.48.  

 

 

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 28/11 and 4 flats – close to the same as yesterday;
  • The mid-day stayed positive with an A/DL of 30/12 and 1 flat;
  • The closing bell was positive with A/DL of 30/11 and 2 flat;

 

 

Henry’omics:

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

  • From this morning’s investor’s letter, “Volatility after a surprise event usually sells off. Think about today <Thursday>, you don’t know what tomorrow holds … bank some upside!


The first and the second day of a Trump election win’s market reaction are emotionally based; still based on the uncertainty over quarterly results that have been ignored!

  • Investors should note that early reactions are very short-term and rarely correlate to near-term sector performance.

Prior to the election results, my view was, and it continues to be, that “our” universe will face several headwinds and challenges in ending the year FY16 and beginning 2017 to mid-year.

 

**** Many of my readers made money today, especially toward the end of today’s session as strength is to be sold into. Trying to guess "when" to SELL is futile. Being prepared to act when it is called for is appropriate … and IF it is a bit early.  Did I recommend leaving money on the table – I did today but, I have many who are happy with the trades! ****

 

By the mid-day, the Dow rose and the NASDAQ plummeted with StemCells (STEM +$0.43) or +54.32% and Fibrocell (FCSC +$0.09) or +16.38% contributing the most gains.

The biggest losers of the session were again Histogenics (HSGX -$0.21) or -8.61%, Caladrius Biosciences (CLBS -$0.20) or -5.41%, Cytori (CYTX -$0.08) or -4.65% and Athersys (ATHX -$0.05) or -3.01%.

 

The iShares Russell 2000 (IWM) indicated a positive pre- open of +1.04% and closed UP +1.60% while the iShares Nasdaq Biotechnology (IBB) indicate a pre-open positive of +1.66% and closed UP +1.68%.

 

 

This upside swing show just how “soft” pricing was and this week to date, we are still focused on the oversold.  However, the sector is on a roll – and I’d beware!

The downside trend reflects a pricing trend range of:

  • Thursday’s decliners ranged from -0.03% <CAPR> to -8.61% <HSGX>  in 11 equities;
  • Wednesday decliners ranged from -0.53% <CLBS> to -8.35% <FCSC> in 8 equities;
  • Tuesday’s decliners ranged from -0.02% <OPXA> to -5.63% <KOOL> in 23 equities;
  • Monday’s decline ranged from -0.08% to -14.94% in 13 equities;
  • Friday’s decline ranged from -0.53% to -6.40% in 8 equities;
  • Last Thursday’s decline ranged from -0.24% to -13.74% in 37 equities;

 

The upside shows a pricing trend range of:

  • Thursday’s advancer’s ranged from +0.61% <AXGN> to +46.91%  in 30 equities;
  • Wednesday’s advancers ranged from +1.06% <VTGN> to +29.79% <AGTC> in 34 equities;
  • Tuesday’s advancers ranged from +0.35% <ONVO> to +23.63% <OSIR> in 18 equities;
  • Monday’s advancers ranged from +1.03% to +10.41% in 25 equities;
  • Friday’s advances ranged from +0.01% to +11.06% in 31 equities;
  • Last Thursday’s advances ranged from +1.62% to +4.66% in 5 equities;

 

Wrap-up: anybody can read a paragraph … review the percentage changes per day in the week of the decliners and advancers. The shifting correlation of the number of equites inclining versus the decliners hasn’t abated!

Thursday’s 30 gainers compared to Wednesday’s 34  following Tuesday’s 18 compared to Monday‘s 25 compared to Friday’s 31 from last Thursday’s gains of 5 …

Thursday’s 11 decliners compared to Wednesday’s 8 following Tuesday’s 24 following Monday’s 13 compared to Friday’s decliners to 8 compared to last Thursday’s 37...

 

 

Pre-open indication’s tally:  1 hit (BSTG) and 7 miss (ADRO, BLCM, BLUE, JUNO, KITE, RGNX and ONCE) but, sellers into strength made money ($)

  • Aduro Biotech (ADRO) closed UP +$0.30 – miss;
  • Bellicum Pharma (BLCM) closed UP +$1.07 – miss;
  • Biostage (BSTG) closed DOWN -$0.02 – hit;
  • bluebird bio (BLUE) closed UP +$2.39 – miss;
  • Juno Therapeutics (JUNO) closed UP +$1.39 – miss;
  • Kite Pharma (KITE) closed UP +$0.97 – miss;
  • Regenxbio (RGNX) closed UP +$2.54 – miss;
  • Spark Therapeutics (ONCE) closed UP +$1.50 - miss;

 

 

Percentage decliners:

  • Histogenics (HSGX) -8.61% after Wednesday’s -3.94% after Tuesday’s +9.96%;
  • Caladrius Biosciences (CLBS) -5.41%;
  • Cytori (CYTX) -4.65%;
  • Athersys (ATHX) -3.81%;
  • Biostage (BSTG) -2.30%

 

 

Percentage advancers:

  • StemCells (STEM) +46.91%;
  • Osiris (OSIR) +22.96%;
  • Fibrocell (FCSC) +18.18% after Wednesday’s -8.35% after Tuesday’s -4.76% after Monday’s -5.96%;
  • Regenxbio (RGNX) +2.55%;
  • Vericel (VCEL) 12.20% after Wednesday’s -2.38% after Tuesday’s -4.55%;

 

 

Flat:                                                                                                      

  • Brainstorm (BCLI) at $2.20;
  • Pluristem (PSTI) at $1.53;

 

 

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

·  Thursday traded near 14.74;      

Wednesday traded near 15.6;

·         Tuesday traded near 18.5;

·         Monday traded near 18.6

·         Friday traded near 22.5;

·         Last Thursday traded near 22.47;

 

                                                                                                             

                                                                                                                            

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.