May 8, 2017 7:25am
Sixteen (16) sector companies are reporting Q1/17 results this week – the schedule is below!
Some of the oversold are undervalued yet, there is always a chance the sun will cut through the reporting season
Lower open expected
Pre-open indications: two (2), 1 BUY and 1 SELL, with all the reporting that is about to go on with the resulting influences – I will HOLD until Q1/17 consequences become evident
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 -0.11% and NASDAQ futures are DOWN -0.04%
U.S. stock index futures pointed to a lower open on Monday, with investors set to digest more earnings and moves in oil, on top of the news that a pro-European Union candidate has won the French election.
European markets were under pressure during mid-morning trade as investors reacted to pro-European Union candidate Emmanuel Macron securing a comfortable victory to become the next president of France.
Asian shares closed mostly higher following the landslide victory of Emmanuel Macron in the French polls on Sunday, with the Nikkei share average hitting its highest level since December 2015.
Data docket: no major data is expected to be released on Monday; investors will be on the lookout for the results of two government bond auctions.
·Investors will also be keeping a close eye on two speeches by Federal Reserve members on Monday. Cleveland Fed President Loretta Mester is expected to be at the Chicago Council on Global Affairs' Public Breakfast Program, to weigh in on the topic "From Main Street to Wall Street: Economic Growth, Monetary Policy, and the Federal Reserve", while St. Louis Fed President James Bullard is expected to be at the Federal Reserve Bank of Atlanta's 22nd Annual Financial Market Conference.
The cell therapy sector closed NEGATIVE on Friday, Thursday, Wednesday and Tuesday and POSITIVE last Monday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Friday closed NEGATIVE with 24 decliners, 15 advancers and 4 flats;
· Thursday closed NEGATIVE with 21 decliners, 16 advancers and 6 flats;
· Wednesday closed NEGATIVE with 24 decliners, 14 advancers and 5 flats;
· Tuesday closed NEGATIVE with 29 decliners, 13 advancers and 1 flat;
· Last Monday closed POSITIVE with 8 decliners, 33 advancers and 2 flats;
Remembering Friday’s closing bell newsletter, “the short-term turnstile revolves yet again.”
- Reiterating,” I believe the issues surrounding the declines relate to Q1 financial results – spending is up with minimal results over Q4/16.”
Will this be the week that will be putting the damper on expectation this quarter and the next?
The week to come – financial results a.k.a. earnings:
Monday:
· Kite Pharma (KITE)
Bellicum Pharma (BLCM
Tuesday:
· Regenxbio (RGNX)
· Spark Therapeutics (ONCE)
· Athersys (ATHX)
Wednesday:
· Vericel (VCEL)
· Sangamo (SGMO)
· Fibrocell (FCSC)
· Intrexon (XON)
· Applied Genetic Technologies (AGTC)
· Histogenics (HSGX)
· BioTime (NYSEMKT: BTX)
Thursday:
· Cesca therapeutics (KOOL)
· Asterias Biotherapeutics (NYSEMKT: AST))
· BioLife Solutions (BLFS)
· Biostage (BSTG)
Friday
· none
Who has reported:
· AxoGen (AXGN)
· bluebird bio (BLUE)
· Juno Therapeutics (JUNO)
· MiMedx (MDXG)
What did I see on Friday, the DOW closed up +0.26% and The NASDAQ closed up +0.42% while volatility traded near 10.7!
It was a long week - decliners versus gainers – it frames the state of the sector – rotating, but the decliners are showing me – the oversold are getting restless:
• Friday’s decliners ranged from -0.41% <ONCE> to -12.83% <IMUC> in 24 equities;
• Thursday’s decliners ranged from -0.05% <XON> to -14.22% <IMUC> in 22 equities;
• Wednesday’s decliners ranged from -0.15% <BSTG> to -7.02% <RGNX> in 24 equities;
• 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;
Gainers also had a slow week versus decliners– it frames the state of the sector – gainers should or could be seeing an upside after all the downward actions– the few overbought are also getting restless:
• Friday’s gainers ranged from +0.37% <ONVO> to +8.09% <AXGN> in 15 equities;
• Thursday’s gainers ranged from +0.34% <ONCE> to +6.82% <BLUE> in 14 equities;
• Wednesday’s gainers ranged from +0.20% <CLLS> to +4.95% <BLFS> in 14 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;
Referencing a word in the title, “Oversold” is a condition in which the price of an underlying asset has fallen sharply to a level below where its true value resides. This condition is usually a result of market overreaction or panic selling and is generally considered short term in nature. When an asset has been oversold, the price is expected to rebound in an event referred to as a price bounce.
- Equities that have experienced sharp declines over a brief period of time are often deemed to be oversold.
A couple of my indicators are the advance/decline lines followed by relative strength index, the stochastic oscillator and moving average divergence.
- Let’s also look at the overbought condition - the opposite to oversold. Overbought assets occur when the market experiences a sudden, significant rise in the buying of a particular security. This drives prices up substantially over a short period of time and leads to the asset being overvalued until the market corrects and the oversold condition re-appears.
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 Friday down -0.86%, and indicated a positive +0.04% in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Friday down -0.81% was DOWN in the aftermarket -0.23% and is NOT indicating in Monday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.05% Friday, was UP in the aftermarket +0.07% and is NOT indicating in Monday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +0.64% on Friday and is indicating a negative -0.34% Monday’s pre-open
Companies in my headlights - with all the reporting that is about to go on and the resulting influences – I will HOLD until the Q1/17 financial result “situations” become clear as dark clouds are gathering. One exception is …
Histogenics (HSGX) closed up +$0.02 to $1.72. HSGX has successfully completed all formal consultations with the Office of Cellular and Tissue-based Products of the Japan Pharmaceuticals and Medical Devices Agency (the PMDA) regarding the Marketing and Manufacturing Authorization pathway for NeoCart (autologous cell therapy designed to treat cartilage defects in the knee) in the Japanese market. HSGX is currently nearing the completion of enrollment in a 245 patient P3 clinical trial of NeoCart that is being conducted under a Special Protocol Assessment (the SPA) with the U.S. FDA. The aftermarket indication is positive +$0.38 or +22.09% - Maintaining BUY;
Osiris (OSIR) closed up +$0.07 to $5.32 following Thursday’s $5.25 (+$0.24), Wednesday’s $5.01 (+$0.11), Tuesday’s $4.90, and last Monday’s $4.80. After six (6) sessions, OSIR ranged from $4.71 to $5.32 and with a federal indictment and NO recent (two years’ worth) K or Q filings, Why say more - Maintaining 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.
