August 25, 2017 6:10pm

 

Never trust a strung-out sector’s momentum as the downside rebounds!

As I had stated this a.m., “I’d question being long over a summer weekend”.  One way to gauge an underlying trend in “our” universe is through the risk appetite of investors. Understanding that they aren’t in control anymore – its ETFs and algorithms and traders follow the new herd!

 

Depending on momentum alone will not fill the value glass, pouring from a bottle of truth might fill a glass half full to taste a more robust upside

 

Pre-open indications: 3 Hits and 1 Miss

Out and about: Rockville-based gene therapy company Regenxbio (RGNX). plans to acquire Boston-area biotech Dimension Therapeutics (DMTX) in an all-stock transaction that values the purchase at about $86 million — a massive premium from Dimension's worth the prior day, but a massive discount from its worth the prior year.

 

It’s called premium content for a reason … I define insight  from a real-time perspective discussing equity share pricing, attractiveness and support levels as stock pricing changes by the hour … if not the minute!

Others don’t even come close!

 

I answer one question, in which company should investors commit and keep their money.

 

 

Friday’s results have implications to Monday’s sector activity as a daily report may say little or a lot and it serves as insurance that all indications are being examined and evaluated!

 

 

Henry’omics:

From the pre-open’s investor’s newsletter, “…the sector’s seesaw action can take a toll. Sector sentiment seems to flip flop. As the weekends, with three (3) positive closes that followed two (2)negatives of which one was last Friday …

As I stated, I’d question being long over a summer weekend …

I missed the signal on Thursday but, I was a day early after Wednesday’s statements …

·         “With so many uncertainties weighing on sector equities due to their being overvalued one day and undervalued the next;

·         Volume is still very low;  

·         Speculation is running rampart as low volume quickly became downdrafts!

 

 

Pre-open indications: 3 hits and 1 miss:

  • Adverum Biotechnologies (ADVM) closed down -$0.10 – hit;
  • Bellicum Pharmaceuticals (BLCM) closed down -$0.34 – miss;
  • Kite Pharma (KITE) closed down -$1.03 – hit;
  • Osiris (OSIR) closed down -$0.10 – hit;

 

 

Out and about:

Rockville-based gene therapy company Regenxbio Inc. plans to acquire Boston-area biotech Dimension Therapeutics Inc. in an all-stock transaction that values the purchase at about $86 million — a massive premium from Dimension's worth the prior day, but a massive discount from its worth the prior year.

RGNX closed down -$0.65 or -3% to $21.05

RGNX said Friday it will acquire Dimension (DMTX), based in Cambridge, Massachusetts, for an implied value of approximately $3.41 per share, a 284 percent premium on Dimension's $1.20 closing price Thursday.

Investors drove up Dimension's stock price by 152% to $3.03 per share in Friday morning trading, while RGNX's share price dipped 4.15% to $20.80 apiece.

·         Maybe the SEC should look at this …?

Dimension, which went public in 2015, announced plans to lay off 25% of its staff in June by the end of 2017. The move came after the company scrapped its lead treatment aimed at hemophilia B in January following trial results that showed serious safety concerns.

Under the terms of the deal, Dimension shareholders will receive 0.1573 shares of RGNX in exchange for each of their Dimension shares. They are expected to own about 10.9 percent of the combined entity, and Dimension will become a wholly owned subsidiary of the larger company. RGNX's plans are unclear for Dimension's employees, which numbered at 74 as of March 2, and roughly 32,000 square feet of office and lab space in the Cambridge area.

The acquisition will add two lead product candidates to RGNX's metabolic disease franchise that have been granted orphan drug status, as well as a gene therapy candidate for treating hemophilia. RGNX will also acquire preclinical product candidates for phenylketonuria (PKU), Wilson disease and citrullinemia type I, as well as manufacturing technology and other intellectual property developed by Dimension.

All of Dimension's drug candidates utilize RGNX gene therapy technology, which uses a virus that does not cause illness in humans to introduce healthy genes into patients. The Dimension products were developed under exclusive licenses that RGNX had previously granted to the smaller company. HWM/RMi and Don Seiffert/American City Business Journals>

 

 

The advance/decline line scenario of 43 SCGT & RT covered companies:   

·         The first hour was positive with an A/DL of 19/17 and 7 flats;

·         The mid-day was negative with an A/DL of 18/19 and 6 flat;

·         The close was negative with an A/DL of 17/21 and 5 flat;

 

 

Regenerative Medicine Earnings Scorecard - Q2/2017 - to date – so far