RegMed Investors’ (RMi) closing bell analysis, volume is low; volatility is so-so while resistance somersaults as traders pick to flip …

December 20, 2016 5:29pm

The stem, cell, gene and regenerative therapy (SCG&RT) sector opened positive, stayed positive at the mid-day and closed positive.

Pre-open indication’s tally:  4 hits (BCLI, JUNO, MESO and VCEL) and 1 miss (BLCM)

… Appreciation’s here today and gone tomorrow or by the next session …

​Out and about: Northwest Bio (NWBO) proposes yet another offering for $10 M ...

There are two things that investors need - interpretation of news and translation of market realities concerning the SCG&RT sector to corroborate share pricing.

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

I say today what others won't, so you can do what others can't!

Stocks rose on Tuesday, led by financials, as investors remained unfazed by geopolitical tensions, while the Dow Jones industrial average kept marching toward 20,000.

The NASDAQ closed UP +26.50 or +0.49% to 5,483.94 and the DOW closed UP +91.56 or +0.46% to 19,974.62.

A day in the life of the stem, cell, gene and regenerative therapy (SCGT & RT) sector – the advance/decline line scenario of our 43 covered companies:   

• The open was positive with an A/DL of 26/15 and 2 flats;                      
• The mid-day stayed positive with an A/DL of 27/14 and 2 flats;
• The closing bell continued positive with A/DL of 25/15 and 3 flats;

Henry’omics:

The stem, cell, gene and regenerative therapy (SCG&RT) sector opened positive, stayed positive at the mid-day and closed positive.

From this morning’s investor’s letter, “I believe investors need to be focused NOT on their near and long-term goals as the necessity of SCG&RT companies fear their capacity of raising money in capital market that turn-off investors by the riding impact of discounts,  dilution and warrant coverage!”

• Reiterating, headlines about the sector are typically focused on the downside of events, which tend to be the most sensitive to depreciation.  In reality, a positive headline and the resulting appreciation will also suffer the same affliction as trader sell into any strength.

Watch and listen long enough and you might get the right buy or sell trade that will come back as the sector and market turns on a daily basis.

• I am NOT always right, but investors have always been able to count on … ME for sector intelligence, signal interpretation and straight talk and answers that, when relied upon as counsel, keeps a lid on trades that get taken for granted!

Forget return on investment (ROI) and start thinking return on speculation – as some of the costs of investing are deductible!

• The iShares Russell 2000 (IWM)  indicated a positive +0.30% in the pre- open and closed UP +0.83%; the iShares NASDAQ Biotechnology (IBB) indicated a positive +0.08%  in the pre-open and closed UP +0.79%.
• The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower near 11.5.

Out and about:

Northwest Biotherapeutics (NWBO) to sell approximately 28.6 M shares of common stock at $0.35 per share in a registered direct offering with institutional investors for gross proceeds of $10 M

·         My question, which institution (in their right mind) would BUY these shares – bottom feeders!

Today’s 3 biggest $ gainers included:

• Spark therapeutics (ONCE) +$1.74 after Monday’s -$2.13;
• Kite Pharma (KITE) +$0.75 after Monday’s -$1.13 after Friday’s+$2.49 after Thursday’s +$1.64 after Wednesday’s +$1.02;
• Cellectis SA (CLLS) +$0.56

Today’s 3 biggest $ losers of the session were:

• Intrexon (XON) -$1.43 after Monday’s +$0.29;
• Bellicum (BLCM) -$0.35;
• Vericel (VCEL) -$0.20

The downside trend reflects a pricing trend range of:

• Tuesday’s decliners ranged from -0.32% <CUR> to -28.35% <NWBO> in 15 equities;
• Monday’s decliners ranged from -14.69% <NWBO> to -0.48% <RGNX> in 20 equities;
• Friday’s decliners ranged from -0.07% <BLUE> to -19.36% <NWBO> in 26 equities;
• Thursday’s decliners ranged from -0.11% <MDXG> to -15.06% <NWBO>in 19 equities;
• Wednesday’s decliners ranged from -0.22% <MDXG> to- 7.36% <IMUC> in 26 equities;
• Last Tuesday’s decliners ranged from -0.64% <CYTX> to -14.19% <ISCO> in 19 equities;

The upside shows a pricing trend range of:

• Tuesday’s gainers ranged from +0.07% <BLUE> to +9.52 <ADVM>in 25 equities;
• Monday’s gainers ranged from +0.27% <ONVO> to +16.24% <CUR> in 22 equities:
• Friday’s gainers ranged from +0.09% <ONCE> to +10.42% <CYTX> in 14 equities;
• Thursday’s gainers ranged from +0.28% <VTGN> to +14.22% <BSTG>   in 22 equities;
• Wednesday’s gainers ranged from +0.08% <ONCE> to +57.69% <VCEL> in 16 equities
• Last Tuesday’s gainers ranged from +0.63% to +10.80% in 22 equities;

Wrap-up: anybody can read a paragraph … review the percentage changes per day in the week of the decliners and advancers while …

• Tuesday’s 25 gainers followed Monday’s 22 compared Friday’s 26
• Tuesday’s 15 decliners followed Monday’s 20 compared to Friday’s 14 …

Pre-open indication’s tally:  4 hits (BCLI, JUNO, MESO and VCEL) and 1 miss (BLCM)

• Bellicum Pharmaceuticals (BLCM) closed DOWN -$0.35 – miss;
• Brainstorm Cell Therapeutics (BCLI) closed DOWN -$0.19 – hit;
• Juno Therapeutics (JUNO) closed UP +$0.54 – hit;
• Mesoblast (MESO) closed UP +$0.09 – hit;
• Vericel (VCEL) closed DOWN -$0.20 – hit;

Percentage (%) decliners:

• Northwest Bio (NWBO) -28.35% after Monday’s -14.29% after Friday’s -19.36% after Thursday’s -15.06% after Wednesday’s +21.17% after Tuesday’s +10.66% after last Monday’s +3.17%;
• Brainstorm (BCLI) -6.60% after Monday’s +7.87% after Friday’s +7.06%;
• Vericel (VCEL) -6.15% after Monday’s +6.556% after Friday’s -12.86% after Thursday’s -14.63% after Wednesday’s +57.69%;
• Sangamo (SGMO) 5.80% after Monday’s -5.48% after Friday’s +7.35%;
• Intrexon (XON) -4.99%

Percentage (%) advancers:

• Adverum (ADVM) +9.52%;
• Fibrocell (FCSC) +8.52%;
• BioLife Solutions (BLFS) +7.67%;
• ReNeuron (RENE.L) +4.76%;
• BioTime (NYSEMKT: BTX) +4.02%

Flat:                                                                                                      

• Cytori (CYTX) at $1.60;
• Fate Therapeutics (FATE) at $2.75;
• International Stem cell (ISCO) at $1.23

Review my fear gauge or the CBOE Volatility Index (VIX):

·         Tuesday traded near 11.5;

·         Monday traded near 12;

·         Friday traded near 12.2;

·         Thursday traded near 12.7;

·         Wednesday traded near 13.4;

·         Last Tuesday traded near 12.7;

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.