December 14, 2016 8:01am

 

Fundamentally are fragile as resistance floats

 

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

 

Who is in today’s headlights – six (6) equities, are they a BUY or a SELL – subscribers know!

 

I write in every line that investors need to avoid risks as if I were the first to be hurt if I am wrong!

 

 

The sector is being driven by a missing theme - until we get some optimism, the path of least resistance is lower.

 

 

BUY: BTX, FATE, HSGX, VCEL and VTGN

SELL: AXGN

 

Indexes and ETFs: The IWM (-0.02%) and XLV (-0.03) are DOWN while the IBB (+0.06%) is UP and XBI is NOT indicating

Dow futures are DOWN -0.01% and NASDAQ futures are UP +0.07%

 

U.S. stock index futures pointed to a flat open on Wednesday as traders awaited an announcement from the Federal Reserve meeting and focused on a slew of economic data.

Europe markets were lower as investors focused on an upcoming rate decision by the U.S.Fed.

Asian markets shares flip-flopped with markets cautious ahead of what is expected to be the Federal Reserve's first rate hike in a year, with comments on the outlook key.

 

Data docket: Wednesday will see a host of releases with retail sales and producer price index (PPI) due at 8.30 a.m. ET. Industrial production, capacity utilization and business inventories are all set to be released later on Wednesday morning.

  • The long-awaited Federal Reserve Open Market Committee (FOMC) meeting is widely expected to result in an interest rate hike, which would be the second rate rise in a decade.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Tuesday, NEGATIVE on Monday, POSITIVE on Friday; Thursday wasn’t tracked after a NEGATIVE close last Wednesday.

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

·         Tuesday closed POSITIVE with 19 decliners, 22 advancers and 2 flats;

·         Monday closed NEGATIVE with 27 decliners, 14 advancers and 2 flats;

·         Friday closed barely POSITIVE with 19 decliners, 20 advancers and 4 flats;

·         Thursday closed without being tracked;

·         Last Wednesday closed NEGATIVE with 27 decliners, 14 advancers and 2 flats

 

 

Reiterating, the newly passed, 21st Century Cures Act should allow for early patient access to cell therapies, while also creating medical and economic benefits for the U.S. healthcare system.”

  • Remembering last night’s newsletter, “You never get hurt by taking a profit in any overbought territory. To build a BUY account for the down-trodden who are oversold candidates.”

Even I have a hard time ignoring the carnage of many share pricings! Where are the CEOs in their indignations … NOT a peep …!

 

Where is the share price defense when the offence has left the management suite?

 

 

 

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 up +0.57% and is UP +0.06% in Wednesday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Tuesday down -0.11% and is NOT indicating in Wednesday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.81% Tuesday and is DOWN -0.03% in Wednesday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -1.06% on Tuesday and is DOWN -0.02% in Wednesday’s pre-market

 

                                                                                   

Companies in my headlights:

AxoGen (AXGN) closed UP +$0.50 to $8.90. After a daily $0.50 and a $0.15 three-day jump, a target is established for traders – SELL;

BioTime (NYSEMKT: BTX) closed UP +$0.17 to $3.56. BTX has achieved an important patient enrollment milestone in its Renevia® pivotal trial in Europe. The company now has more than 50 patients in the trial, keeping it on track with the anticipated forecast for top-line data by the middle of 2017 – BUY;

Fate Therapeutics (FATE) closed DOWN -$0.08 to $2.81. Now is the time for all good investors to count the cash in the till as the year ends; FATE has rung that bell – BUY;

Histogenics (HSGX) closed DOWN -$0.08 to $1.71. The come-back equity needs to make up lost ground; reason – how many P3s are out there in our sector with a 2017 read-out – BUY;

Vericel (VCEL) closed DOWN -$0.05 to $2.60. The U.S. FDA has approved MACI® (autologous cultured chondrocytes on porcine collagen membrane) for the repair of symptomatic single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. MACI is the first FDA-approved cellularized scaffold product that applies tissue engineering processes to grow cells on scaffolds using healthy cartilage tissue from the patient’s own knee - BUY;

VistaGen (VTGN) closed DOWN -$0.07 to $3.82.  VTGN has signed a sublicense agreement with BlueRock Therapeutics, a stem cell research company established by Bayer AG and Versant Ventures, for VTGN's rights to certain proprietary technologies relating to the production of cardiac stem cells for the treatment of heart disease.  VistaGen licensed exclusive rights of the cardiac stem cell technologies from University Health Network (UHN), Canada's largest research hospital, pursuant to a strategic research agreement with UHN and distinguished UHN researcher, Dr. Gordon Keller, Director of UHN's McEwen Centre for Regenerative Medicine (McEwen Centre. Under the sublicense agreement, VTGN will receive an upfront cash payment of $1.25 M, as well as potential future milestone payments and royalties - BUY;

 

 

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.