May 10, 2017 8:34am
… As I had stated, I believe, post quarterly reporting - some share pricing bounces are anticipated
Traders should be gearing up for the oversold
… While the invested are at the same time optimistic and wary about share pricing
Lower open expected
Pre-open indications: five (5), 4 BUYS and 1 SELL, with all the reporting that is about to go on with the resulting influences – I will HOLD in some cases until Q1/17 consequences become evident
Wednesday’s financial results: Vericel (VCEL), Sangamo (SGMO), Fibrocell (FCSC), Intrexon (XON),Applied Genetic Technologies (AGTC), Stemline (STML), Verastem (VSTM) and BioTime (NYSEMKT: BTX)
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 -0.20% and NASDAQ futures are DOWN -0.01%
U.S. stock index futures pointed to a lower open on Wednesday, as investors prepared to wade through new data and earnings, while keeping a close eye on the potential fallout from President Trump's decision to fire the director of the FBI.
European markets were under pressure as investors digested the latest batch of corporate earnings and searched for clues as to whether major bourses could surpass recent highs.
Asian equities closed mixed as investors digest the dramatic dismissal of FBI Director James Comey in the U.S. and follow the inauguration of liberal candidate Moon Jae-in after his win in the South Korean presidential election.
Data docket: Mortgage Applications are set to be released at 7.00 a.m. ET, followed by import prices at 8.30 a.m. ET, and oil inventories at 10.30 a.m. ET.
The cell therapy sector closed NEGATIVE on Tuesday, Monday, Friday, Thursday and last Wednesday.
The cell therapy sector’s record after the last 5 days (of 43 covered companies):
· Tuesday closed NEGATIVE with 22 decliners, 18 advancers and 3 flats;
· Monday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats;
· Friday closed NEGATIVE with 24 decliners, 15 advancers and 4 flats;
· Thursday closed NEGATIVE with 21 decliners, 16 advancers and 6 flats;
· Last Wednesday closed NEGATIVE with 24 decliners, 14 advancers and 5 flats;
Remembering Tuesday’s closing bell newsletter, “Come out; come out, where ever you are … I know what a company is supposed to look like, be like, and smell like to succeed.”
- Reiterating,” The cell therapy sector had a number of up moves after reporting Q1/17 results as there has been a betterment of the oversold.”
On Tuesday, Trump terminated James Comey's role at the FBI, saying in a letter that it was "essential that we find new leadership for the FBI that restores public trust and confidence in its vital law enforcement mission."
- This firing issue could have some concerns in the market today but, will it impede any confidence in today’s sessions. Many years ago, I was in the FBI and saw the politicization and its effect and it scares me now!
Back to the original issue, will it affects the market and “our” universe”– the Trump high could be slowed and investors will be nervous and anxious over headlines!
Will that pressure incur weakness …?
Wednesday’s financial results:
· Vericel (VCEL)
· Sangamo (SGMO)
· Fibrocell (FCSC)
· Intrexon (XON)
· Applied Genetic Technologies (AGTC
· BioTime (NYSEMKT: BTX)
Stemline (STML)
Verastem (VSTM)
What did I see on Tuesday, the DOW closed down -0.17% and The NASDAQ closed up +0.29% while volatility traded below 10.
The week is meeting its mid-point after nine (9) of the “usual suspects reported Q1 results - in regard to decliners versus gainers – it frames the state of the sector – rotating and ready to bounce to the upside:
· Tuesday’s decliners ranged from -0.07% <MDXG> to -27.70% <CUR> in 22 equities;
· Monday’s decliners ranged from -0.65% <CAPR> to -13.56% <CUR> in 28 equities;
· Friday’s decliners ranged from -0.41% <ONCE> to -12.83% <IMUC> in 24 equities;
Gainers versus decliners– it also frames the state of the sector:
· Tuesday’s gainers ranged from +0.04% <CLLS> to +6.41% <JUNO> in 18 equities;
· Monday’s gainers ranged from +0.37% <ONVO> to +11.84% <OSIR> in 12 equities;
· Friday’s gainers ranged from +0.37% <ONVO> to +8.09% <AXGN> in 15 equities;
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 up +1.21%, and is indicating a negative 0.12% in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday down -2.71% and is NOT indicating in Wednesday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.62% Tuesday and is NOT indicating in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) closed down -0.04% on Tuesday and is indicating a negative 0.34% in Wednesday’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. Exceptions are …
Athersys (ATHX) closed down -$0.04 to $1.39. Commercial milestone payment of $1 million was received from collaboration with RTI Surgical, Inc. (RTI). Net proceeds of $20.9 million was received in February 2017 from common stock offering in support of ongoing and planned clinical and process development activities. Proceeds from warrant exercises of $1.9 million was received in Q1 2017, resulting in the issuance of approximately 1.8 million shares of common stock. No warrants remain outstanding. Revenues of $1.5 million were recognized. Cash and cash equivalents were $31.9 million at Q1’s end. Post Q1/17 results being announced, the aftermarket indication is a positive +$0.18 or +12.95% - BUY;
bluebird bio (BLUE) closed up +$0.15 to $88.95. Last week, after the close of Q1, BLUE announced that it had licensed its lentiviral vector platform to Novartis and GlaxoSmithKline. The biotech will get an upfront milestone payment (presumably a fairly small one, since the amount wasn't disclosed) and potential future milestone and royalty payments. BLUE is also readying a Marketing Authorization Application (MAA) filling in the EU and Biologics License Application (BLA) in the U.S. Post Q1 results, the aftermarket is a positive +$1.05 or +1.18% - BUY;
Cellectis SA (CLLS) closed up +$0.01 to $23.79. An IND approval was received from the U.S. FDA to conduct PI clinical trials in patients with AML and BPDCN. CLLS has the first clinical trial approval by the FDA for an allogeneic, “off-the-shelf” gene-edited CAR T-cell product candidate. The FDA has also granted Pfizer (PFE) and Servier with IND clearance to proceed in the U.S. with PI clinical development of UCART19 to treat patients with relapsed/refractory acute lymphoblastic leukemia. PI clinical trials in pediatric and adult ALL patients are ongoing at University College London (UCL) and Kings College London (KCL), UK, sponsored by Servier. The aftermarket indication is a positive +$0.21 or +0.88% - BUY;
Kite Pharma (KITE) closed up +$1.11 to $72.10 following Monday’s -$10.79 or -13.19% to $70.99. Even after all the Q1 reporting news, there could be an upside. The aftermarket indication is a positive +$0.74 or +1.04% - Maintaining BUY;
Regenxbio (RGNX) closed up +$0.60 to $18.95, an increase of 92% in the last 12 months. Post Q1 reporting, RGNX reported a loss of $22 million or $0.82 per share. Regenxbio shares have increased 2% since the beginning of the year – 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.
