August 9, 2017 7:44am
It isn’t the momentum you want to ride
As the trading week meets the half-way mark, investors are gearing up for another group of Q2 numbers ...
Today’s reporters: Athersys (ATHX), Intrexon (XON), Fibrocell (FCSC), Organovo (ONVO) and Vericel (VCEL)
Q2 results as we have heard from sixteen (16) so far.
Critical indication ahead of “our” universe’s open!
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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.
Lower open expected
Dow futures are DOWN -0.18% and NASDAQ futures are DOWN -0.54%
U.S. stock index futures pointed to a slightly lower open on Wednesday, as investors focus on rising geopolitical tensions between the U.S. and North Korea, and get ready to pore over another slew of corporate earnings.
European equities edged lower as geopolitical concerns curbed investor sentiment.
Asian indexes closed lower as geopolitical tensions re-entered the spotlight and China consumer inflation missed expectations.
Data docket: productivity and costs data are due out at 8.30 a.m. ET, followed by wholesale trade at 10.00 a.m. ET. Mortgage applications are expected to come out at 7.00 a.m. ET.
In the political sphere, investors will be keeping a close eye on the rising tensions between North Korea and the U.S. on Wednesday. Geopolitical tensions ramped up as President Donald Trump warned of "fire and fury" if North Korea continued to make threats against the U.S.
The cell therapy sector closed NEGATIVE on Tuesday, POSITIVE on Monday, Friday and Thursday and NEGATIVE last Wednesday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Tuesday closed NEGATIVE with 28 decliners, 14 advancers and 1 flat;
· 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;
· Last Wednesday closed NEGATIVE with 28 decliners, 14 advancers and 1 flat;
As I had stated in Monday’s closing bell post,” … is cell therapy losing its individual investor base? As ETF and hedge fund exposure indicate an upswing in quickening exits. It’s the newest battle to contend with - the active versus passive investment trend. The ETFs, BOTS and algorithms are gaining a disruptive strength in ownership and holding’s percentages
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.
As I stated, “So where does that leave the cell therapy sector … that is being “run” by algorithms, exposed by ETFs, managed by day traders and hedge funds … as mutual funds and retail brokers … CAN’T invest <in most cases> in an equity below $5.00!”
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?
- The iShares Nasdaq Biotechnology (IBB) closed down -0.94% on Tuesday and is NOT indicating in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday down -1.12% and is indicating a POSITIVE +0.3% in Wednesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.48% Tuesday and is NOT indicating in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) closed down -0.31% on Tuesday and is indicating a NEGATIVE pre-open of -0.66% on Wednesday
Q2/17 reporting for … sixteen (16) so far to date:
Regenerative Medicine Earnings Scorecard - Q2/2017 - to date … http://www.regmedinvestors.com/articles/9841
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 down -$0.04 to $1.52 after Monday’s $1.56 (-$0.09), 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 negative-$0.01or -0.64% - A contrarian SELL on today’s Q2 results;
Biostage (BSTG) closed down -$0.0099 to $0.58 following Monday’s $0.60 (+$0.14) on Monday’s 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 on August 7th? WHAT are they HIDING? 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 -$0.03 or -5% so far. Last question, when was the last time this CEO communicated with shareholders? – Maintaining SELL;
BioLife Solutions (BLFS) closed down -$0.05 to $3.70 following Monday’s $3.74 (-$0.05), Friday’s $3.74 (-$0.137), Thursday’s $3.88 (+$0.17). BLFS is getting too RICH, having started the week at $3.48, July 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;
Bellicum Pharmaceuticals (BLCM) closed down -$0.17 to $10.71. Post Q2 results don’t look good. The aftermarket indication is a negative -$0.51 or -4.76% - SELL;
bluebird bio (BLUE) closed down -$1.30 to $97.35 after Monday’s $98.65 (+$3.60), Friday’s $95.05 (+$1.65), Thursday’s $93.40 (+$2.55) following last Wednesday’s $90.85. The aftermarket indication is a positive +$0.60 or +0.61% - BUY;
Kite Pharma (KITE) closed up +$6.58 to $120.13 after Monday’s $113.55 (+$0.97) following Friday’s $110.53 (+$1.11). The aftermarket indication is a negative -$1.13 or -0.94% and the pre-market indication is a negative -0.03 or -0.02% - Maintaining SELL;
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.