May 3, 2017 8:10am
What’s needed in the sector – not run of the mill, but significant holdings …
… Of personal BUYING from board of directors, managements and employees
Make a REAL statement of support by large investments in the current share pricing – its ownership NOT options!
Lower open expected
Pre-open indications: seven (7) – 2 SELLS, 5 BUYS – portfolio safety is my theme, it’s still a “crap game”
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 -0.06% and NASDAQ futures are DOWN -0.23%
U.S. stock index futures pointed to a lower open on Wednesday, with the NASDAQ composite set to fall from a record high after mixed quarterly results from Apple.
European markets were trading lower as investors digested the latest in Brexit negotiations and corporate earnings.
Asian markets were mixed, as gains on Wall Street overnight were offset by disappointment with Apple earnings, with traders looking ahead to the U.S. Federal Reserve meeting results.
Data docket: ADP private sector payroll data for April, which is expected to show 175,000 jobs, were added last month. The data reported 263,000 jobs were added in March. We’ll get the final Markit services PMI reading for April, as well as the ISM non-manufacturing reading.
· It's also the second day of the Fed's policy meeting. A decision from the central bank is due in the afternoon around 2 p.m. ET, but markets expect the Fed to hold steady. It has forecast two more interest rates hikes for this year, and the market thinks odds are greater than 50 percent that the next hike will come in June.
The cell therapy sector closed NEGATIVE on Tuesday, POSITIVE on Monday, NEGATIVE on Friday and Thursday and POSITIVE last Wednesday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Tuesday closed NEGATIVE with 29 decliners, 13 advancers and 1 flat;
· Monday closed POSITIVE with 8 decliners, 33 advancers and 2 flats;
· Friday closed NEGATIVE with 26 decliners, 16 advancers and 1 flat;
· Thursday closed NEGATIVE with 25 decliners, 18 advancers and 0 flats;
· Wednesday closed POSITIVE with 7 decliners, 32 advancers and 4 flats;
Remembering Tuesday’s closing bell newsletter, “The pricing squeeze … Slash and sell seems to be the name of the game after a run-up.”
- Reiterating, “Worrying about what the downside should bring … The focus on who is opening or closing the barn door to share pricing.”
What did I see on Tuesday, the NASDAQ closed up +0.06% while volatility traded near 9.90!
- Investors are tasked to not to get lulled into giving a pass to companies that are NOT meeting expectation. But, if expectation has NOT been defined – how can we measure any quarterly financial results!
Are we ready for yet another roller-coaster ride?
What else did I see: Tuesday versus Monday as compared to Friday’s ranges?
Tuesday’s decliners ranged from -0.04% <CLLS> to -7.19% <RGNX> in 29 equities;
• Monday’s decliners ranged from -0.28% <NWBO> to -10.81% <AST> in 8 equities;
• Last Friday’s decliners ranged from -0.11% <BLUE> to -3.90% <AST> in 26 equities;
Tuesday’s gainers ranged from +0.28% <NWBO> to +5.11% <MDXG> in 13 equities;
• Monday’s gainers ranged from +0.02% <MESO> to +12.12% <VTGN> in 33 equities;
• Last Friday’s gainers ranged from +2.53% <BSTG> to +11.32% <MDXG> in 16 equities;
Referencing the title, “You Show Me Yours” by Willie Nelson, management iteration …
“I wish that I was the answer to all of your <investor> questions
God knows I know you <investors> … are the answer(s) to mine
<Investors> you ain't a thing but I will change in direction
Lord don't you know you'd <investors> be somethin' I'm lucky to …have”
· Give a personal demonstration of the current pricing and ADD significant holdings …
· Bye and bye, in the last few financings – how much did managements, BODs and employees BUY – barely ANYTHING!
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 -0.37%, and is NOT indicating in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday down -1.71% and is NOT indicating in Wednesday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.28% Tuesday and is NOT indicating in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) closed down-0.51% on Tuesday and is indicating a negative -0.29% Wednesday’s pre-open
Companies in my headlights - There is NO market timing but there are indications to consider!
Aduro Biotech (ADRO) closed down -$0.05 to $9.65. The aftermarket indication was +$0.10 after a net loss of $21.8 M or $0.32 per share. The results exceeded Wall Street expectations. The average estimate of four analysts was for a loss of $0.36 per share. ADRO posted revenue of $3.8 million in the period, also surpassing “street” forecasts. Three analysts surveyed expected $3.7 million. ADRO shares have decreased 15% since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $9.65, a fall of 27% in the last 12 months. Take a chance – BUY;
bluebird bio (BLUE) closed down -$2.45 to $88.15 after Monday’s $90.60 (+$1.65). BLUE announced that it has entered into a worldwide license agreement around its proprietary lentiviral vector platform with GlaxoSmithKline Intellectual Property Development Limited (GSK). Under the terms of the agreement, GSK will non-exclusively license certain bluebird patent rights related to lentiviral vector technology to develop and commercialize gene therapies for Wiscott-Aldrich syndrome and metachromatic leukodystrophy, two rare genetic diseases. Financial terms of the agreement include an upfront payment to BLUE as well as potential development and regulatory milestone payments and low single digit royalties on net sales of covered products. The pre-market indication is -$2.20 or -2.50% - BUY to SELL;
Capricor (CAPR) closed up +$0.12 to $3.29. CAPR has had a nice but, little streak in the past twelve <since April 17> sessions in a range of $3.01 to $3.29. It approximately 8.5% worth selling over, take it now - SELL;
Kite Pharma (KITE) closed down -$1.41 to $81.64. Aftermarket indication is a negative -$0.94 or -1.15% Kite reports Q/17 on 5/8/17, are many lightening the “load” - SELL
Organovo (ONVO) closed down -$0.17 to $2.80. Even with Keith Murphy no longer CEO, there is still a transition and his continued role as chairman. I am staying - The aftermarket indication is +$0.04 or +1.41% - BUY;
Pluristem (PSTI) closed down -$0.03 to $1.42. The pre-market indication is a positive +$0.14 or +10.56% as PSTI had promising results of its non-human primates (NHP) pilot study for PLX-R18 as a treatment for Acute Radiation Syndrome (ARS). The study, conducted and funded by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), was designed to assess the safety and efficacy of PLX-R18 following intramuscular injection into irradiated and non-irradiated NHPs. Efficacy measures included survival as well as level of bone marrow function, which is affected by exposure to high levels of radiation as may occur in a nuclear accident or attack. While this pilot study was not powered to demonstrate statistical significance, all cohorts treated with PLX-R18 showed improved survival compared to cohorts that received placebo. It’s worth taking these gains and then when they “thin” sell but, for today – BUY;
Vericel (VCEL) closed down -$0.05 to $2.60. VCEL has been hammered a little too low, there are sales and revenues although they might be a bit lower than a guidance but, I have heard that word mentioned. Reimbursement is the key to their future. The aftermarket indication is +$0.05 or +1.92% - 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.
