November 15, 2016 6:57am
… Of those companies that need capital market access to finance their sustainability …
They better be ready in some ways to sell their first born <sarcasm>, reshuffle their dilatant BODs and enhance management team competencies
… Investors are going to be more activist oriented
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!
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SELL: BLCM, BLUE, JUNO, KITE and ONCE
Indexes and ETFs: The IBB (+0.27%), IWM (+0.01%) and XLV (+0.33%) are UP while the XBI is NOT indicating
Dow futures are UP +0.08% and NASDAQ futures are UP +0.14%
U.S. stock index futures indicated a slightly higher open Tuesday with investors focused on rising oil prices and the future policies of President-elect Donald Trump.
European stocks were mixed as the U.S. dollar paused for breath after rallying and Treasury yields held steady as traders digest what President-elect Donald Trump's policies will mean for inflation
Asia markets were mixed, as investors eyed the dollar for guidance amid growing expectations of a Federal Reserve rate hike in December.
Data docket: retail sales, import price figures and the Empire State survey are all due at 8:20 a.m. ET. Business inventories data are due at 10:00 a.m. ET.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Monday, Friday, Thursday and Wednesday and NEGATIVE last Tuesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Monday closed POSITIVE with 17 decliners, 22 advancers and 4 flats;
· 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;
· Last Tuesday closed NEGATIVE with 24 decliners, 18 advancers and 1 flat;
Remembering Monday’s closing investor letter, “The velocity of the upside is scaring me as traders feast their eyes waiting for profit-taking. Steady, steady – don’t sell until you see the whites of their denomination on the green of their dollars.”
- Reiterating, “I asked investors to “lighten” their portfolio - a bit everyday … based on recent upswings.”
As for the stem, cell, gene and regenerative therapy sector, it will get dragged down as the past year has taught us – like the tech sector.
Where will there be some relative safety… understanding shareholder approval!
- I can tell you that those companies which have solid cash positions, advancing development platforms, responsive partners and frequent investor outreach – and bottom line – satisfied shareholders.
As a representative of “pundit nation” I am here to tell you that you might be right-on about a development program but, if you can’t sell it to the public- - the market will make mincemeat of your share price and ability to have any regulatory pathway …
- Companies need to make productive use out of their capital, without having to pay market-timed financing, pricing, unregistered warrant and dilution games!
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 Monday up +1.77% and is UP +0.27% in Tuesday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Monday up +2.90% and is NOT indicating in Tuesday pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed down -0.31% Monday and is UP +0.33% in Tuesday’s pre-market;
· The iShares Russell 2000 (IWM) closed up +1.41% on Monday and is UP +0.01% in Tuesday’s pre-market.
Companies in my headlights – share pricing is getting “heady”, I’d be lightening my portfolio’s “load” and building my cash position to buy the coming … DIP:
Bellicum Pharma (BLCM) closed UP again +$0.55 to $22.69 after Friday’s $22.14 (+$1.65) following Thursday’s $20.49 (+$1.21) after Wednesday’s $19.28 (+$1.55). The previous four days range was $16.31 to $17.75. Traders have been making “paper” money in this sector, so it might be time to sell and make green money– Maintaining SELL;
bluebird bio (BLUE) closed UP again +$5.80 to $62.65 after Friday’s $56.85 (+$2.10) following Thursday’s $54.75 (+$2.15) post Wednesday’s $52.60 (+$6.50). The previous four day’s range was $41.30 to $46.10. After all the churn of the stock, any “serious” upside is suspect and subject to selling – Maintaining SELL;
Juno Therapeutics (JUNO) closed UP another $1.29 to $32.97 following Friday’s $31.58 (+$1.54) after Thursday’s $30.14 (+$1.73) post Wednesday’s $28.41 (+$3.12). I’d be a trader on new high and never be too “long” – Maintaining SELL;
Kite Pharma (KITE) closed UP +$0.73 to $52.19 after Friday’s $51.50 (+$0.60) following Thursday’s $50.90 (+$1.29) post Wednesday’s $49.61 (+$4.04). The previous four day’s range was $40.21 to $45.69 on some serious volume. Every time pricing gets “heady” they suffer from trading – Maintaining SELL;
Spark Therapeutics (ONCE) closed UP another +$4.21 to $62.63 following Friday’s $58.42 (+$3.25) following Thursday’s $55.17 (+$2.67) following Wednesday’s $52.50 (+$4.99). The share pricing surged in the previous four days 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.
