December 29, 2016 7:32am

 

… As the sector and market sold off; yet, I’d let most of the sector ride it out!

 

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?

 

I hope you don’t miss me as the New Year will be subscriber only; it’s time to become 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: JUNO, KITE and VSTM

SELL: BCLI and BSTG,

 

Indexes and ETFs: The IWM, XLV, IBB and XBI are NOT indicating

Dow futures are DOWN -0.04% and NASDAQ futures are DOWN -0.04%

 

U.S. stock index futures pointed to a lower open on Thursday, as investors prepared to wade through more data, while trying to see if there's any chance of the Dow’s reaching 20,000 before the year is out.

European markets started lower as the light Christmas trading period continues.

Asia markets struggled and closed mixed, with the Japanese benchmark down more than 1 percent after Toshiba tumbled on credit downgrades.

 

Data docket: jobless claims data, due out at 8.30 a.m. ET, on top of U.S. trade deficit data, expected at 8.30 a.m. ET.

 

 

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

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

·         Wednesday closed NEGATIVE with 35 decliners, 6 advancers and 2 flats;

·         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

·         Last Thursday closed NEGATIVE with 30 decliners, 10 advancers and 3 flats;

 

 

Remembering Wednesday’s closing bell newsletter, “Traders took profits and locked in any of the year’s gains which IS a SET-UP for the New Year, 2017.”

  • Reiterating, “The final week of the year is typically a quiet one for markets, with few expected news events to dictate sector direction.  Days in this period of time typically result in a market that has little distinct direction; the lower liquidity can also leave equities vulnerable to outsize swings.”

Volume and breadth have been weakening while volatility has been “muddled”, which taken all together has formed an oversold condition!

  • However, sector stock speculators would do well to exercise caution in entering this market in these last days of 2016 even as the bottom of the barrel appears.

 

I see opportunity and dysfunction caused by trading yet a few pattern setups exist, with most falling under the oversold banner; in the meantime – I’d let  the sector ride it out!

 

 

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 down -1.17% and is NOT indicating in Thursday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Wednesday down -0.82% and is NOT indicating in Thursday’s pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed down -0.76% Wednesday and is NOT indicating  in Thursday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -1.02% on Wednesday and is NOT indicating in Thursday’s pre-market

 

                                                                                   

Companies in my headlights – short, sweet and some sour:

Bellicum Pharmaceutical (BLCM) closed DOWN -$0.45 to $14.05 after Tuesday’s $14.50 (-$0.11). 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;

Biostage (BSTG) closed UP +$0.04 to $0.93 on small 27.4 K volume <3 month average =129 K shares>. What’s getting it up is a bigger question than will it stay up as day traders exact their “harvest” of any upside – SELL;

Brainstorm Cell Therapeutics (BCLI) closed DOWN -$0.12 to $2.56 following Tuesday’s $2.68 (+$0.10). 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” – Maintaining SELL;

Intrexon (XON) closed DOWN -$1.06 to $24.54. Repeating my mantra, it’s under $30 and possibly ripe for pricing expansion – BUY;

Juno Pharmaceuticals (JUNO) closed DOWN -$0.43 to $10.04. The aftermarket indication is positive +$0.16. Oversold – BUY;

Kite Pharma (KITE) closed DOWN -$1.47 to $46.25. Before the holiday, the stock was trading at $48.89 (12/21) and $51.38 (12/20) - Oversold, BUY;

Verastem (VSTM) closed DOWN -$0.03 to $1.12 after Tuesday’s $1.15 (-$0.02) following Friday’s $1.17 (+$0.03) after last Thursday’s $1.14 (-$0.01). 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.