December 30, 2016 7:50am

 

If you must, “Play” the low volume pullbacks …

 

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: BLCM, JUNO, KITE and VSTM

SELL: CYTX

 

Indexes and ETFs: The IWM (+0.16%) is UP while the XLV, IBB and XBI are NOT indicating

Dow futures are UP +0.13% and NASDAQ futures are UP +0.14%

 

 

U.S. stock index futures pointed to a higher open on Friday, with data and oil set to be on the agenda as traders look ahead to the start of 2017.

European markets were trading slightly in the red in the last trading day of 2016.

Asian shares were mixed on the last trading day of the year, tracking a weak lead from Wall Street, with Hong Kong and Taiwan in the lead.

 

Data docket: the release of the latest Chicago PMI data, due out at 9.45 a.m. ET.

 

 

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

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

·         Thursday closed NEGATIVE with 23 decliners, 17 advancers and 3 flats;

·         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;

·         Last Friday closed POSITIVE with 7 decliners, 34 advancers and 2 flats

 

 

Remembering Thursday’s closing bell newsletter, “Pricing has made some sharp moves both up and down -- with gaps in both directions. The sector’s deteriorating indicators combine to hurt share pricing as the overbought become oversold and then back again as volume continues at low ebb.”

  • As I had stated, “Black swans are paddling … however; I propose positions that could be added to if a sector stock has the ability to prove itself!”

It’s the last trading day of 2016, and the wild year is going out with many sector investors feeling burned …!

  •  “December” trades caused many an equity to snap, crackle and pop! 

What might I expect – even as an optimist – a bit more of fizzle, with the stem, cell, gene and regenerative sector currently  looking like it won’t deliver until we have totally eradicated the traces of 2016 I.e. – once Q4 reporting is concluded.

 

Don’t break-out the champagne, quite yet …

 

 

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  Thursday down -0.36% and is NOT indicating in Friday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Thursday down -0.78% and is NOT indicating in Friday’s pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.12% Thursday and is NOT indicating  in Friday’s pre-market;

·         The iShares Russell 2000 (IWM) closed up +0.05% on Thursday and is UP +0.18% in Friday’s pre-market

 

                                                                                   

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

Bellicum Pharmaceutical (BLCM) closed DOWN -$0.13 to $13.93 after Wednesday’s $14.05 (-$0.45) after Tuesday’s $14.50 (-$0.11). BLCM had closed Friday $14.61 (+$0.99) following last Thursday’s $13.62 (-$0.34). 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;

Cytori (CYTX) closed UP +$0.03 to $1.39 on larger volume of 196.7 K shares traded <3 month average = 179.9 K shares>. CYTX just signed up for a debt instrument of $20 M over a 30-month period, an ATM common stock purchase agreement. Debt has been their weakness in the past and they’re doing “it” again – SELL;

Juno Pharmaceuticals (JUNO) closed DOWN -$0.07 to $18.97 following Wednesday’s $10.04 (-$0.43). Expect six-month data in February, after the JPMorgan Healthcare Conference in San Francisco in early January. Traders are selling any past upside for I believe the next set-up of appreciative moves as they have stripped a lot of value - Oversold – Maintaining BUY;

Kite Pharma (KITE) closed DOWN -$1.00 to $45.25 following Wednesday’s $46.25 (-$1.47). KITE's (KITE) lymphoma drug will likely come away with "solid" six-month durability data in February and U.S. Food and Drug Administration approval before year-end 2017, Before the holiday, the stock was trading at $48.89 (12/21) and $51.38 (12/20) - Oversold, Maintaining BUY;

Verastem (VSTM) closed DOWN -$0.04 to $1.08 following Wednesday’s $1.12 (-$0.03) after Tuesday’s $1.15 (-$0.02) following last Friday’s $1.17 (+$0.03). 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.