December 27, 2016 7:34am
The sector should move higher having shown some relative strength on Friday, but gains will be limited as the year ends
I answer one question; in which company should investors put, keep and commit their money!
Who is in today’s headlights – three (3) equities, are they a BUY or a SELL?
I hope you don’t miss me as the New Year will be subscriber only; it’s time to be a subscriber for 2017!
I write in every line that investors need to avoid risks as if I were the first to be hurt if I am wrong!
Maintaining BUY: BLCM, ONVO and VSTM
Indexes and ETFs: The IWM (-0.01%) is DOWN, the IBB (+0.25%) is UP while the XLV and XBI are NOT indicating
Dow futures are UP+0.02% and NASDAQ futures are UP +0.07%
U.S. stock index futures pointed to a flat to slightly lower open on Tuesday, with investors set to delve through fresh economic data, while keeping a close eye on the Dow‘s climb towards the 20,000 mark.
European stocks were flat in morning trade amid thin volumes during the holiday period in the region.
Asian shares were mixed amid low-volume holiday trading, despite strong growth in China's industrial profits in November. Investors also awaited a board meeting for Japan's Toshiba after shares dropped sharply.
Data docket: the S&P Case-Shiller HPI, due out at 9.00 a.m. ET and consumer confidence, expected at 10.00 a.m. ET. In addition, the Richmond Fed survey is to be released around 10.00 a.m. ET, followed by the Dallas Fed survey, at 10.30 a.m. ET.
The stem, cell, gene and regenerative therapy (SCG&RT) sector was closed on Monday for the holiday, and closed POSITIVE on Friday, NEGATIVE on Wednesday, POSITIVE on Tuesday and Monday and NEGATIVE last Friday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
· Monday was a holiday;
· Friday closed POSITIVE with 7 decliners, 34 advancers and 2 flats
· Thursday closed NEGATIVE with 30 decliners, 10 advancers and 3 flats;
· Wednesday closed NEGATIVE with 31 decliners, 9 advancers and 3 flat;
· Last Tuesday closed POSITIVE with 15 decliners, 25 advancers and 3 flats;
·
Remembering Friday’s newsletter, “Trading volume in the U.S. evaporated last week, as most investors and traders have left their offices in light of the Christmas holiday.
- The last week of 2016, won’t tell you much of anything about whether the stock market will be higher or lower in 2017.
Like I stated in the title, “the sector should move higher having shown some relative strength on Friday but gains will be limited as the year ends.”
- However, I believe Q1 is still a reflection of 2016 until Q4/16 results are released and only then will the chains and shackles of 2016 be cut!
Companies will be better served by saving ANY big news or events until afterQ4/16 are released.
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 +2.11% and is UP +0.25% in Tuesday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Friday up +3.46% and is NOT indicating in Tuesday’s pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed up +0.75% Friday and is NOT indicating in Tuesday’s pre-market;
· The iShares Russell 2000 (IWM) closed up +0.53% on Friday and is DOWN -0.01% in Tuesday’s pre-market
Companies in my headlights:
Bellicum Pharmaceuticals (BLCM) closed +$0.99 to $14.61 following $13.62 (-$0.34) following Wednesday’s $13.96 (-$0.42) after Tuesday’s $14.38 (-0.35) post Monday’s $14.73 (-$0.38) and last Friday’s $15.41. 12/2 the stock was priced at $18.72, 11/2, the stock was priced at $16.35 and on 10/3, the stock was priced at $19.85 - Oversold– Maintaining BUY;
Organovo (ONVO) closed UP +$0.15 to $3.73 following Thursday’s $3.58 (+$0.02) following Wednesday’s $3.56 (-$0.12). Revenue more than tripled (and came close to quadrupling) in the first half of the company's fiscal year 2016 ending September 30 compared to the prior-year period. The adoption of Organovo's 3D bioprinted human liver tissue is growing. ONVO has also successfully launched its second product -- ExVive human kidney tissue and has made more money from collaborations with big partners including Merck. ONVO should see continued adoption, more presentations at conferences and publications in scientific journals will help. Organovo already counts 10 of the largest global pharmaceutical companies as customers. That's double the number of big customers that ONVO had reported in June. Organovo plans to launch a new service in the near future with metabolism studies. This offering is a natural fit with the company's 3D human liver and kidney tissues. Although no specific time frame has been provided as of yet, a launch in 2017 seems likely. Organovo thinks it can double its annual revenue potential by offering metabolism studies. ONVO recently signed an agreement that should help increase its international footprint. Cosmo Bio Co., Ltd. will promote its NovoView preclinical services in the Japanese market. CosmoBio is one of the largest suppliers in Japan's life science industry. Then I go back to my sitting-in on CEO Keith Murphy’s presentation at the World Stem Cell Summit (WSCS) – I am ALL IN for the NEW Year 2017 – Maintaining BUY;
Verastem (VSTM) closed UP +$0.03 to $1.17 following Thursday’s $1.14 (-$0.01) following Wednesday’s $1.15 (-$0.02). VSTM has felt the “fickle finger of fate” as far as development is concerned but, is on the way back which will take time. One good thing, there is $86.88 M in cash in the till, $2.35 total cash per share and NO debt – Maintaining 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.
