December 15, 2016 6:45am

 

While “our” universe “floats like a butterfly and stings like a bee”

 

I’d be looking for 2016’s bottoms in “some” equities for a 2017’s BUY in

 

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

Who is in today’s headlights – five (5) 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 – optimism; until we get some, the path of least resistance is lower.

 

BUY: BTX

Sell: BCLI, KITE, SGMO and VCEL

 

Indexes and ETFs: The IWM (+0.37%), XBI (+0.82%) and XLV (%) are UP while the IBB and XLV are NOT indicating

Dow futures are UP +0.26% and NASDAQ futures are UP +0.11%

 

U.S. stock index futures pointed to a higher open on Thursday as traders continued to digest the Federal Reserve's decision to raise interest rates.

European bourses were mixed after the U.S. Fed announced a 25 basis point rate increase and opened the door to three hikes next year.

Asian markets were mostly lower as the dollar rose sharply and investors digest the Federal Reserve's first interest rate rise this year and its hawkish rate outlook for 2017.

 

Data docket: initial jobless claims, CPI (Consumer Price Index) and the Philadelphia Fed survey are released at 8:30 a.m. ET. Markit manufacturing PMI is due at 9:45 a.m. ET, with NAHB homebuilder sentiment set to come out at 10:00 a.m.

 

 

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

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

·         Wednesday closed NEGATIVE with 26 decliners, 16 advancers and 1 flat;

·         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;

·         Last Thursday closed without being tracked due to World Stem Cell Summit (WSCS) presentation;

 

 

Remembering last night’s newsletter, “a day of falling knives as any strength was sold into as the advance/decline line started at 28/16 and fell to 16/26. The sector dived beginning at 10 a.m. while the iShares Nasdaq Biotechnology ETF was UP +0.14% which is off -20% so far this year

Reiterating, “As far as “our” universe is concerned, there's a difference between predicting what could, might or should happen … especially where 2017 is about to knock on the door.

  • Re investing in the SCG&RT sector is all … about return on investable dollars and that is … accomplished by lowering your cost for owning what “could” return;
  • The real issue is when …

There are a few weeks of December left, so what happens I believe is a … spiral, some due to tax selling and Friday is a quadruple witching day – stay tuned when one is +80% correct  - it’s worth reading!!

 

The 21st Century Cures Act has been passed by both houses of congress and is expected to be signed into law in the near future, has specific provisions for accelerated approval and priority review for regenerative medicine therapies.

  • This act allows the Food and Drug Administration (FDA) to grant accelerated approval for regenerative therapeutic products and directs the agency to consider the unique characteristics of such therapies and determine if they would address an unmet medical need; 
  • Expedited approval would require a rigorous collection of post-approval data to confirm the safety and efficacy of a drug candidate.

 

So, let’s see how it fares in the New Year… the market is what it is, but what will it be? While “our” universe still “floats like a butterfly and stings like a bee”

 

 

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  Wednesday up +0.14% and is UP +0.02% in Thursday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Wednesday down -0.02% and is UP +0.82% in Thursday’s pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.52% Wednesday and is NOT indicating in Thursday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -1.25% on Wednesday and is UP +0.37% in Thursday’s pre-market

 

                                                                                   

Companies in my headlights:

BioTime (NYSEMKT: BTX) closed DOWN -$0.15 to $3.41 following Tuesday’s $3.56 (+$0.17) after Monday’s $3.39. BTX has been feeling the pain, since the end of November having achieved a range of $3.21 to $3.70. BTX has to communicate its locked-in value of multiple platforms. Oversold - Maintaining BUY;

Brainstorm Cell Therapeutics (BCLI) closed UP +$0.46 to $2.62. I will make it simple, when has BCLI sustained its share pricing after news –SELL;

Kite Pharma (KITE) closed UP +$1.02 to $47.63. The upswing was on a platform realization but, a software deal with NO details. Why chase a spurious swing - SELL;

Sangamo (SGMO) closed UP +$0.10 to $3.35. What’s the reason, hemophilia is in season, what’s the price, it ain’t gonna be nice, when its rich – the chart will pitch” – SELL;

Vericel (VCEL) closed UP +$1.50 to $4.10 after Tuesday’s $2.60 (-$0.05). 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. After every run-up, many sell; cash on hand has been VCEL’s biggest issue as debt increased and ATM usage doubled  – BUY to SELL, be ready for an offering;

 

 

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.