August 8, 2017 7:58am

 

Many are saying Q2 earnings period has been a dud so far …

 

Q2 financial results today: Adverum (ADVM)Bellicum Pharmaceuticals (BLCM), Kite Pharma (KITE), Neuralstem (CUR), uniQure (QURE), Regenxbio (RGNX), Stemline (STML) and Verastem (VSTM)

 

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Do you know who should be up or down – I say …

Pre-open indications: 0 BUYs and 5 SELLs plus a weekly calendar of Q2 roll-outs

 

 

The battle of the oversold and the overbought continues but, who or what is making that determination – ETFs and algorithms.

 

 

Flat to lower open expected

Dow futures are DOWN - 0.09% and NASDAQ futures are DOWN -0.14%

 

U.S. stock index futures pointed to a flat to lower open on Tuesday, as investors continue to wade through another batch of corporate earnings and data.

European equities were marginally lower, with investor sentiment weakened by new earnings reports and weaker-than-expected trade data from China and Germany.

Asian indexes closed mixed as investors digested the release of China July trade data during the session.

 

Data docket: the Job Openings and Labor Turnover Survey (JOLTS) is set to come out at 10.00 a.m. ET on Tuesday. The National Federation of Independent Business' (NFIB) small business optimism index is also expected to come out at 6.00 a.m. ET.

 

 

The cell therapy sector closed POSITIVE on Monday, Friday and Thursday, NEGATIVE on Wednesday and last Tuesday.

The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):

·         Monday closed POSITIVE with 17 decliners, 22 advancers and 4 flats;

·         Friday closed POSITIVE with 15 decliners, 24 advancers and 4 flats;

·         Thursday closed barely POSITIVE with 18 decliners, 20 advancers and 5 flats;

·         Wednesday closed NEGATIVE with 28 decliners, 14 advancers and 1 flat;

·         Last Tuesday closed NEGATIVE with 31 decliners, 8 advancers and 4 flats;

 

 

Henry ’omics:

As I had stated in Monday’s post,” caution … don’t chase the sector.  Pricing will be on sale with all the Q2 reporting this week and next.”

  • I am NOT totally buying in quite yet if not for a while as current performance in the cell therapy sector is being camouflaged by alternating acts of pricing flagellation!

Volume on advancing stocks versus declining stocks as always has its ebb and flow however, market breath … stinks! It’s hot one day and stinks to high heaven two ahead.

  • Rising selling volume could out-strip demand for even lower pricing as the IBB and IWM slog up and down.

 

Technicals stink and understanding a comparable model is … ineffectual!

How’s that for a current testimonial … it’s not gospel but, truly a sermon from my precipitous mount.

 

 

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 up +0.54% on Monday and is NOT indicating in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Monday up +0.41% and is NOT indicating in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +0.21% Monday, and is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) closed up +0.16% on Monday, and is indicating a NEGATIVE pre-open of -0.05% on Tuesday

 

 

Q2/17 reporting for … eight (8) so far to date:

Today (8/8) - 8:

  • Adverum (ADVM)
  • Bellicum Pharmaceuticals (BLCM)
  • Kite Pharma (KITE)
  • Neuralstem (CUR)
  • ​uniQure (QURE)
  • Regenxbio (RGNX)
  • ​Stemline (STML)
  • ​Verastem (VSTM)

 

Wednesday (8/9) - 5:

  • Athersys (ATHX)
  • Intrexon (XON)
  • Fibrocell (FCSC)
  • Organovo (ONVO)
  • Vericel (VCEL)

 

Thursday (8/10) – 5:

  • BioLife Solutions (BLFS)
  • Caladrius Biosciences (CLBS)
  • Capricor (CAPR)
  • Cytori (CYTX)
  • Histogenics (HSGX)

 

 

Companies in my headlights:

Athersys (ATHX) closed up $0.09 to $1.56 following Friday’s $1.47 (+$0.01). Still going to need more cash i.e. offering to complete a P3 - The pre-market indication is a positive +$0.04 or +2.56% - A contrarian SELL on Q2 results;

Biostage (BSTG) closed up +$0.14 to $0.60 on news of its Cellspan Esophageal Implant product candidate in a patient at The University of Texas Health Science Center at Houston (UTHealth), via an FDA-approved single-use expanded access application. The procedure was initiated on May 4th, on a 75 year old male; why are we only NOW hearing of it? NO proof of concept as promised by Mayo clinic and a BIG risk as this “Hail Mary” – I say “blunder” could derail the whole company. BSTG  has STILL … NOT received the company filed dismissal of a terminal death lawsuit and discovery. WHY wasn’t the “pig” data published, what are they hiding?  WHY has the Mayo Clinic walked away as NO known proof of concept peer reviewed paper has … “appeared” as promised? Will the SEC approve the abrogation of shareholder rights so they can finance? NO IND yet and the date of initiation keeps slipping – WHY? TOO MANY RISK factors well beyond vascularization of the implant. The aftermarket indication is a negative -$0.01 or -1.67% so far. Last question, when was the last time this CEO communicated with shareholders?  – Maintaining SELL;

BioLife Solutions (BLFS) closed down -$0.04 to $3.74 following Friday’s $3.74 (-$0.137), Thursday’s $3.88 (+$0.17). BLFS is getting too RICH, having started the week at $3.45, the month at $2.62, June at $2.15 and May at $2.02. BLFS restructured its debt and will report Q2 financial results on 8/10. Be prepared for an OFFERING – Maintaining SELL;

bluebird bio (BLUE) closed up +$3.60 to $98.65 following Friday’s $95.05 (+$1.65), Thursday’s $93.40 (+$2.55) following Wednesday’s $90.85. The aftermarket indication is a negative -$0.55 or -0.58% - Maintaining SELL;

Kite Pharma (KITE) closed up +$0.97 to $113.55 following Friday’s $110.53 (+$1.11). Q2 reporting day and the aftermarket indication is a positive +$0.10 or -0.09% - SELL on Q2 results;

 

 

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.