April 17, 2017 7:39am
This sector is the most hostile place in the market
And its underachieving won’t be complete until they marshal the devil in the details
It’s all about the time and the cash positions behind it …
Pre-open indications: five (5) – 3 SELLS, 2 BUYS
Critical information ahead of “our” universe’s open! I provide intelligence and analysis for short and near-term investment.
Readership is a team sport, are you on it?
Expectation is the word for 2017 – meeting the unknowns with the soon to be exposed concerns will be the subject of investing decisions throughout this year.
Dow futures are DOWN -0.09% and NASDAQ futures are DOWN -0.07%
The market is expected to open lower after U.S. Vice President Mike Pence said the "era of strategic patience" with North Korea was over.
European stock exchanges close for a four-day spring break. Volumes are expected to be thinner than usual in the final sessions before the holidays, which could mean extra volatility in the financial markets.
Asian equities ended mixed, with the dollar sinking against the yen, following tensions in the Korean Peninsula and better-than-expected Chinese economic data.
Data docket: on Easter Friday <though closed> released economic data showed retail sales fell for the second straight month and consumer prices dropped for the first time in just over a year. The Empire state survey is released at 8:30 am ET and the NAHB survey is out at 10:00 am ET.
The market was closed on Friday; the cell therapy sector closed POSITIVE on Thursday, NEGATIVE on Wednesday and Tuesday and POSITIVE last Monday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Friday was a holiday and the market was closed;
· Thursday closed POSITIVE with 17 decliners, 22 advancers and 4 flats;
· Wednesday closed NEGATIVE with 21 decliners, 17 advancers and 5 flats;
· Tuesday closed NEGATIVE with 28 decliners, 13 advancers and 2 flats;
· Last Monday closed POSITIVE with 18 decliners, 23 advancers and 2 flats;
Remembering Thursday’s closing bell newsletter, “The market dives while the sector endeavors; weathered sentiment … a fresh high.”
Reiterating, “Sector equities closed feeling some tail wind on Thursday after being lower on Wednesday as investors traders focused on the oversold.”
What did I see Thursday> the sector’s buying and selling again was managed through low volume except in a few cases:
· AST, ATHXC, MDXG, JUNO, KITE, FCSC, RGNX and VSTM to the upside;
· ONVO, CYTX, AXGN, ADRO, AST to the downside
What else did I see?
Volume drove the advance/decline line as a positive close moved the dial
Thursday’s 17 sells were marginal ranging from -$0.01 <ONVO> to a mid-point of -$0.10 <KOOL> and a low at -$0.20 <XON>
While the buys also ranged from +$0.01 <CUR> yet spurted to a mid-point of $0.55 <ADRO> and a better high of $3.05 <KITE>
The weakness was assigned to 17 decliners, the stronger to 22 advancers and those 4 flats who balanced the session;
Fundamentals and charts continue to reflect the toll;
The sector was again empty of any moving news.
What’s in the title … The idiom, "The devil is in the detail" refers to a catch or mysterious element hidden in the particulars and facts, meaning that something might seem simple at a first look but will take more time and effort to be revealed than expected …
In order to make something as perfect as possible it's necessary to get all the details right. It's a devil of a job and it is NOT always the science but, the balance sheet!
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 up +0.67% and is NOT indicating in Monday’s pre-market;
· The SPDR S&P Biotech ETF (XBI) closed Thursday up +1.03% and is NOT indicating in Monday pre-market;
· The Health Care Select Sector SPDR ETF (XLV) closed down -0.19% Thursday and is NOT indicating in Monday’s pre-open;
· The iShares Russell 2000 (IWM) closed down -1.32% on Thursday and was DOWN -0.01% Monday’s pre-open
Companies in my headlights:
Applied Genetic Technologies (AGTC) up +$0.10 to $6.15 following Wednesday’s $6.05 (-$0.25) after Tuesday’s $6.30 (-$0.10) post Monday’s $6.40 (-$0.10). AGTC is trading well below its cash value, which is approximately $8.53 in cash per share – Maintaining BUY;
Kite Pharma (KITE) closed up +$3.05 to $82.25 following Wednesday’s $79.20 (+$0.91). The pre-market indication was a positive +0.75 or +0.91% - SELL to BUY;
MiMedx (MDXG) closed up +$0.84 to $10.74. The chart looks very peaky after Q1/2017 revenue highlights as revenue grew 36% over Q1 2016 revenue and its f $72.6 M exceeded the upper end of MiMedx guidance range – SELL;
Regenxbio (RGNX) closed up +$0.95 to $19.75 which is back to April 3rd’s $19.75 with a low of $16.95 so far this month. March started at $19.70 and ended at $19.30 although there was a high of $24.10 and a low of $19.30 – SELL;
Verastem (VSTM) closed up Thursday’s +$0.23 to $1.85 following Wednesday’s $1.62 (-$0.12) post Tuesday’s $1.74 (-$0.05) after last Monday’s $1.79 (-$0.04). Back to the basics, VSTM has $2.19 in cash per share and no debt thus trading below its cash value yet, day traders have the company on its “take” list. The aftermarket indication was a positive +$0.01 or $1.84 –BUY to SELL;
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.
