November 16, 2016 7:14am
… What are the catalysts and milestones?
As I maintain “our” universe’s stocks will be stuck in trading ranges if they don’t start moving the needle
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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BUY: CLLS,
SELL: BLUE, CLBS, ONCE and XON
Indexes and ETFs: The IBB (-0.42%), IWM (-0.43%) are DOWN while the XBI and XLV are NOT indicating
Dow futures are DOWN -0.21% and NASDAQ futures are DOWN -0.29%
U.S. stock index futures pointed to a lower open on Wednesday as trader's expectations of an eight-day winning streak waned.
European stocks were higher as the U.S. dollar paused for breath after a post-election rally driven by a rise in bond yields.
Asian equities were mostly higher, following the stronger finish on Wall Street and a rise in oil prices overnight.
Data docket: PPI at 8:30 a.m. ET, industrial production at 9:15 a.m., and NAHB homebuilders sentiment at 10 a.m. Treasury's international capital flows is released at 4 p.m.
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):
· Tuesday closed NEGATIVE with 27 decliners, 13 advancers and 3 flats;
· 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;
· Last Wednesday closed POSITIVE with 8 decliners, 34 advancers and 1 flat;
Remembering Tuesday’s closing investor letter, “Speculation is alive and well … as the sector’s sentiment splays out in the market. Are we back to the pattern of deep lows and quick highs?”
- Reiterating, 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 …
The SCG&RT sector will tank, and then recover. Investors will shudder, and then adjust as they always do but, do they have to...? Why can’t we as investors make them change …?
- Let’s take a look at January’s share pricing and then compare those prices to their current share “status”.
Once we get through quarterly financial results <notice I didn’t say – earnings> season, it will be easier for investors to take a short -term view, but Q3 numbers didn’t look much better than the Q2 numbers.
Milestones and catalysts are the “secret sauce” of cell therapy valuations - what makes share pricing sense, of course, is another matter!
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 Tuesday down -0.60% and is DOWN -0.42% in Wednesday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Tuesday down -0.62% and is NOT indicating in Wednesday pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed up +0.28% Tuesday and is NOT indicating in Wednesday’s pre-market;
· The iShares Russell 2000 (IWM) closed up +0.31% on Tuesday and is DOWN -0.43% in Wednesday’s pre-market.
Companies in my headlights:
bluebird bio (BLUE) closed UP again +$0.95 to $63.60 following Monday’s $62.65 (+$5.80) 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;
Caladrius Biosciences (CLBS) closed UP +$0.42 to $4.20. Subsidiary, PCT revenues were UP +58% in Q3 and CLBS reported a net loss attributable to Caladrius common stockholders for Q3/16 of $6.9 M, or $1.09 per share, compared with a net loss attributable for Q3/15 of $11.4 M, or $2.06 per share. I personally can NOT trust this management team as its only redeeming value – is reversing the number of shares – SELL;
Cellectis SA (CLLS) closed DOWN -$0.35 to $18.74. CLLS initiated a series of production runs of UCART123 <a TALEN® gene edited product candidate> was successfully performed in large scale, according to cGMP standards, for the purpose of conducting two P1 clinical trials in patients with acute myeloid leukemia (AML) and blastic plasmacytoid dendritic cell neoplasm (BPDCN). The cGMP manufacturing of UCART123 clinical batches has been operated with CELLforCURE, a LFB group company and the largest industrial facility for clinical and commercial production of innovative cell and gene therapies in Europe. CELLforCURE is in charge of implementing cGMP manufacturing processes that are designed and developed by Cellectis. The aftermarket and pre-market is positive +$0.15 – BUY;
Intrexon (XON) closed UP +$0.68 to $32.66. Overbought, I have felt repeatedly, the $30.00 “mark” was a top, let it drop to $25.00 again and reload. The aftermarket indication is negative -$0.66 – SELL;
Spark Therapeutics (ONCE) closed FLAT at $62.63 after Monday’s $62.63 (+$4.21) following Friday’s $58.42 (+$3.25) after Thursday’s $55.17 (+$2.67) post last Wednesday’s $52.50 (+$4.99). The share pricing had also 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.
