December 28, 2016 7:23am

 

It’s not easy connecting the dots as the year ends and as volatility wanders and volume withers

 

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

 

Who is in today’s headlights – four (4) 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!

 

 

BUY: BLCM and VSTM,

SELL: AST and BCLI

 

Indexes and ETFs: The IWM (-0.15%) and XLV (-0.16%) are DOWN; the IBB (+0.82%) is UP while the XBI is NOT indicating

Dow futures are UP +0.15% and NASDAQ futures are UP +0.28%

 

U.S. stock index futures pointed to a slightly higher open on Wednesday, with investors preparing for more economic data, while waiting patiently to see if the Dow Jones hits 20,000.

European shares are trading mixed as trading picks up again after the Christmas break, takes a breather from the highs stateside and follows a mixed session in Asia.

Asian shares were mixed, with shares in South Korea down as its political scandal grows more entangled and Toshiba plunges 20% on a possible write-down of several billion dollars related to its Westinghouse unit.

 

Data docket: pending home sales data, due out at 10.00 a.m. ET, as well as mortgage applications, expected at 7.00 a.m. ET.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Tuesday; Monday was a holiday, closed POSITIVE on Friday and NEGATIVE on Thursday and last Wednesday.

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

·         Tuesday closed NEGATIVE with 24 decliners, 18 advancers and 1 flat;

·         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;

·         Last Wednesday closed NEGATIVE  with 31 decliners, 9 advancers and 3 flat;

 

 

Remembering Tuesday’s closing bell newsletter, “The downside after the morning’s upside became the afternoon’s glide path.”

  • Reiterating, “Tuesday’s sessions did nothing to improve the fortunes of sector stocks. They sold into strength, slipping in and out of favor due to the continuous issue of pricing risk amid trading and momentum rotations.”

Investor sentiment remains in a puddle as traders dominate the sessions with selling post any appreciation as the year ends. Will current gains be followed by future pain - YES?

 

The sector underperforms then overheats, what is one to do – WAIT.  Pullbacks are always temporary as resistance levels trade a bit more “jerky”!

 

 

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 down -0.39% and is UP +0.82% in Wednesday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Tuesday down -0.94% and is NOT indicating in Wednesday’s pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.20% Tuesday and is DOWN -0.16% in Wednesday’s pre-market;

·         The iShares Russell 2000 (IWM) closed up +0.45% on Tuesday and is DOWN -0.15% in Tuesday’s pre-market

 

                                                                                   

Companies in my headlights:

Asterias Biotherapeutics (NYSEMKT: AST) closed UP +$0.25 to $4.85.Weird week, traders will be “smelling” any upside to sell into – thus a candidate –SELL;

Bellicum Pharmaceutical (BLCM) closed DOWN -$0.11 to $14.50. BLCM had closed Friday $14.61 (+$0.99) 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;

Brainstorm Cell Therapeutics (BCLI) closed UP +$0.10 to $2.68. It has been a good past five sessions as BCLI’s price appreciation grew from $2.69 to $2.71, dumped to $2.50 grew again to $2.58 and Tuesday’s $2.68. Traders will be eking-out any quick appreciation to end the year. The problem is I don’t trust any micro-cap appreciation lately as it is “sold into” – SELL;

Verastem (VSTM) closed DOWN -$0.02 to $1.15 following Friday’s $1.17 (+$0.03) after Thursday’s $1.14 (-$0.01) following last 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.