November 14, 2016 7:20am

 

… Whose pricing is sustainable … but for how long?

 

Sentiment is about to have new definition … meaning more investor friendly “concepts” will surface … if companies want to define the “attraction” of their share price

 

… Trump won for a reason, no-one listened to the electorate; many management teams will need to “wise-up” and start representing investors

 

 

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!

 

 

BUY: MESO

SELL: ADRO, AST, BLCM, BLUE, JUNO, KITE, ONCE and RGNX

 

Indexes and ETFs: The IBB (+0.93%), IWM (+0.38%) and XLV (0.72%) are UP while the XBI is NOT indicating

Dow futures are UP +0.17% and NASDAQ futures are DOWN -0.12%

 

U.S. stock index futures which had pointed to a markedly higher open reversed (post 7 a.m.) position on Monday morning as traders continued to react to the results of the U.S. presidential election.

European markets were higher, shrugging off broadly lower trade in Asia, amid a tick-up in bond yields and the U.S. dollar that is stoking risk appetite.

Asia markets traded mixed, with the Nikkei continuing its third straight session of gains, likely getting a boost from a weaker yen and better-than-expected Japanese economic data.

 

 

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

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

·         Friday closed POSITIVE with 10 decliners, 30 advancers and 3 flats;

·         Thursday closed POSITIVE with 11 decliners, 30 advancers and 2 flats;

·         Wednesday closed POSITIVE with 8 decliners, 34 advancers and 1 flat;

·         Tuesday closed NEGATIVE with 24 decliners, 18 advancers and 1 flat;

·         Last Monday closed POSITIVE with 13 decliners, 25 advancers and 5 flat;

 

 

Remembering Friday’s closing investor letter, “The … upside lives large yet, the sector still needs to prove itself … as pricing stretches higher while expectation declines – it may be appropriate to be cautious.  We could be on the brink of peaking.”

As I had stated, from Friday’s morning’s investor’s letter, “My contrarian “artery” is hemorrhaging. “

·         “The Dow <Friday> closed about +0.21% higher, and rose around 5.4% marking its best weekly performance since December 2011. The NASDAQ rose more than half a percent and gained 3.8% for the week, marking its best weekly performance since February. The S&P 500 underperformed, falling 0.15% and ended the week about 3.8% higher, posting its highest weekly gain since 2013.”

·         Past thinking and practice says … don’t trust the “current’ upside!

There has been a stunning outcome to the presidential election and there is a new investor’s re-position if stem, cell, gene and regenerative therapies want to entice and enjoin investors to re-initiate and maintain interest.

The dawn of a new investor model has implications to understanding the elements of communicating … to investors than … at them!

 

 

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 down -0.61% and is UP +0.93% in Monday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Friday up +0.64% and is NOT indicating  in Monday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed done -1.50% Friday and is UP +0.72% in Monday’s pre-market;

·         The iShares Russell 2000 (IWM) closed up +2.30% on Friday and is UP +0.38% in Monday’s pre-market.

 

 

Companies in my headlights – share pricing is getting “heady”, I’d be building my cash positions to buy the coming … DIP:

Aduro Biotech (ADRO) closed UP +$0.55 to $15.25 following Thursday’s $14.70 (+$0.30) after Wednesday’s $14.40 (+$1.85).  The previous four day range was $9.95 to $12.55. Personalized therapies are the next new wave in immunotherapy which customizes individual treatment for each patient based on neoantigens that are unique to a patient’s tumor. Take some “$” off the plate, shooting stars run-out of burnable gases – Maintaining SELL;

Asterias Biotherapeutics (NYSEMKT: BTX) closed UP +$0.80 to $4.40 after a good week’s range of $3.05 to $3.60 of solid volume. But, can it last; there is money on the table for a stock that doesn’t “carry” well. The dice get cold after many throws, I’d fold and rebuild my “wad”– SELL;

Bellicum Pharma (BLCM) closed UP +$1.65 to $22.14 following Thursday’s $20.49 (+$1.21) after Wednesday’s $19.28 (+$1.55). The previous four days ranged from $16.31 to $17.75. Traders have not been making any money in this sector, so it might be time to fill an investor’s wallet – Maintaining SELL;

bluebird bio (BLUE) closed UP +$2.10 to $56.85 following Thursday’s $54.75 (+$2.15) post Wednesday’s $52.60 (+$6.50). The previous four days have ranged $41.30 to $46.10. After all the burn and churn of the stock, any “serious” upside is suspect and subject to selling – Maintaining SELL;

Juno Therapeutics (JUNO) closed UP another +$1.54 to $31.58 following Thursday’s $30.14 (+$1.73) following Wednesday’s $28.41 (+$3.12).  I’d be a trader on new high and Friday ends the week – never be too “long” – Maintaining SELL;

Kite Pharma (KITE) closed UP +$0.60 to $51.50 following Thursday’s $50.90 (+$1.29) post Wednesday’s $49.61 (+$4.04). The previous four days have ranged from $40.21 to $45.69 on some serious volume. Every time pricing gets “heady” they suffer from trading – Maintaining SELL;             

Mesoblast (MESO) closed UP $0.41 at $4.68. MESO is reporting quarterly results tonight and announced that the P3 trial of its intravenous product candidate MSC-100-IV used as front-line therapy in children with steroid-resistant acute graft versus host disease (aGVHD) had been successful in a pre-specified interim futility analysis. Enrollment in the 60-patient open label P3 trial is ongoing across multiple sites in the United States, trial completion is expected in the first half of 2017, and commercial launch activities are underway. A POSITIVE but, investors get edgy on the reporting day although Friday was up – there are some issues; A partnership is needed and “given MESO's balance sheet constraints, I expect management to push out the timeline for initiating additional clinical trials for certain earlier stage pipeline programs including rheumatoid arthritis and diabetic kidney disease until readouts from the interim analysis for the P3 heart failure program (1Q17) and pediatric aGVHD (1H17) – I’m a betting man and I like the company – BUY;

Regenxbio (RGNX) closed UP +$1.00 to $23.30 following Thursday’s $22.30 (+$2.55) post Wednesday’s $19.75 (+$1.85). After the previous six days of ups that ranged from $15.65 to $17.90 – the chart seems to be “peaking” with a target on its back. After a surge, there is always a purge – Maintaining SELL;

Spark Therapeutics (ONCE) closed UP another +$3.25 to $58.42 following Thursday’s $55.17 (+$2.67) following Wednesday’s $52.50 (+$4.99). The share pricing is surging after four days that ranged from $40.51 to $47.51.  Time to put the horse in the paddock for a rest – 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.