December 19, 2016 7:29am
The answer is sought through another question – in what time period?
I answer one question; in which company should investors put, keep and commit their money!
Who is in today’s headlights – seven (7) equities, are they a BUY or a SELL – should have subscribed!
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: AGTC, BCLI and XON
Sell: CYTX, KITE, SGMO and VCEL
Indexes and ETFs: The XLV (+0.37%), XBI (+0.87%) are UP while the IBB and IWM are NOT indicating
Dow futures are UP +0.17% and NASDAQ futures are UP +0.15%
U.S. stock index futures pointed to a higher open on Monday morning as traders eyed an unstoppable post-election rally and look forward to the Dow breaking through the 20,000 mark.
European shares were lower in morning trade as investors reacted to fresh German data and eyed a speech from Janet Yellen, the chair of the U.S. Federal Reserve.
Asian markets traded mixed as Australia gained after it appeared to dodge a possible downgrade for now of its treasured top sovereign rating and Japan fell despite better-than-expected trade data.
Data docket: a flash release of Markit services PMI data at 9.45 a.m. ET.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Friday, POSITIVE on Thursday, NEGATIVE on Wednesday, POSITIVE on Tuesday and NEGATIVE last Monday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Friday closed NEGATIVE with 26 decliners, 14 advancers and 3 flats;
· Thursday closed POSITIVE with 19 decliners, 23 advancers and 1 flat;
· Wednesday closed NEGATIVE with 26 decliners, 16 advancers and 1 flat;
· Tuesday closed POSITIVE with 19 decliners, 22 advancers and 2 flats;
· Last Monday closed NEGATIVE with 27 decliners, 14 advancers and 2 flats;
Remembering last Friday’s close newsletter, “The option witch was on its broom … At the end of the session, traders closed, rolled out and offset their expiring positions. The stem, cell, gene and regenerative therapy (SCG&RT) sector opened positive, was barely positive at the mid-day and closed negative.”
Re the title, when we ask the question about "our" universe another question is always raised without a direct resonse!
I am cautious, hoping to be upbeat yet ...
I have concerns that management teams are .... MISGUIDING ... investors about the true status of their dealings i.e. platform catalysts and milestones, financings and the usual - guidance!
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 up +0.18% and is NOT indicating in Monday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Friday up +0.05% and is UP +0.87% in Monday’s pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed up +0.09% Friday and is UP +0.37% in Monday’s pre-market;
· The iShares Russell 2000 (IWM) closed down -0.18% on Friday and is NOT indicating in Monday’s pre-market
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed DOWN -$0.50 to $8.75 - oversold. Last week’s range of $8.75 to $9.60 compared to the previous week’s $9.10 to $9.50. Up, down, up, down – there is still $9.23 of cash in the per share pricing, solid revenue, a quarterly net income and a solid partner – Biogen (BIIB), what more does an investor need – Maintaining BUY;
BioTime (NYSEMKT: BTX) closed UP +$0.21 to $3.78. After a good week, BTX ranged from $3.39 to $3.78 as compared to the previous week’s $3.19 to $3.39. Traders will pounce – SELL, but come back;
Brainstorm Cell Therapeutics (BCLI) closed UP +$0.19 to $2.67 following Thursday’s $2.48 (-$0.14) after Wednesday’s $2.62 (+$0.46). The pre-market indication is positive +$0.08 or +3% as BCLI reports on End-of-P2 Meeting w/ the FDA; the FDA has accepted the key elements of the P3 program to support a BLA for NurOwn in ALS. The planned P3 clinical trial will be a randomized, double-blind, placebo-controlled multi-dose trial that will be conducted at multiple sites in the U.S. and in Israel. The trial is expected to begin enrolling patients in the second quarter of 2017. BCLI plans to submit an application in Israel that will allow patient access to NurOwn as a treatment that has been granted Hospital Exemption. – BUY;
Cytori (CYTX) closed UP +$0.15 to $1.59. Last week’s range of $1.44 to $1.59 compared to the previous weeks of 1.55 to $1.60. CYTX never seems to “hold its water” as day traders “pull it from the well” – SELL;
Intrexon (XON) closed DOWN -$0.03 to $28.35 following Thursday’s $28.38 (+$0.27. Every time XON drops below $30.00, it seems to jump back-up as some traders circle that number. Randal Kirk CEO and 10% owner of Intrexon purchased 34,606 shares on 12/13/16. The price per share was $28.90 for a total transaction of $1,000,113 – Maintaining BUY;
Kite Pharma (KITE) closed UP +$2.49 to $51.76 following Thursday’s $49.27 (+$1.64) after Wednesday’s $47.63 (+$1.02). The upswing was on a platform realization but, a software deal with NO details. As I had stated, why chase a spurious swing – Maintaining SELL;
Sangamo (SGMO) closed UP +$0.25 to $3.65 following Thursday’s $3.40 (+$0.05) after Wednesday’s $3.35 (+$0.10). 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” – remember the fear and greed indicator is up. Overbought - 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.
