August 31, 2017 5:46pm

 

Markets track gains while sector volume is still very low yet increasing with upsiders

 

As investors look for clues as to where the sector goes from here

After six (6) positive closes in seven (7) sessions in my covered universe, I’ve gone from worried to anxious

 

Pre-open indications: 3 hits and 1 miss (by pennies):

Out and about: Finally, Applied Genetic Technologies (AGTC) will provide Q4 and FY17 update – 9/13/17

 

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.

 

 

 

Thursday’s results have implications to Friday’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 “…I continue to worry … About upsized share pricing as sector comparables appreciating post KITE and NVS news. Everyone gets hot and bothered re M&A but, why buy a partnered program at these prices? The bigger issue, what about the rest of the sector, the non-immune-oncology companies?”

  • “I am maintaining my weakness prognosis … “

Sector equities and the NASDAQ have enjoyed a tenuous and an opposite relationship where if one goes up the other tends to go down.

  • But the pattern is breached this week, and it’s sending an anxious feeling in my gut about sentiment in defiance of risk, share pricing and valuation.

Case in point, while stock indexes have broken record highs since the beginning of the week but, can it continue …

  • Over the past week, however, we’ve seen the immune-oncology and gene therapy companies moving up on KITE and NVS news with the IBB, XBI, XLV and IWM remaining resiliently up and … resistance to profiteering has diminished – but … for how long!

It’s interesting to see today’s positive group; BLCM, KITE, JUNO, SGMO and VSTM stay strong with upside premium dangling as low hanging fruit in trader’s eyes!

  • Look at BioLife Solutions (BLFS), I’ve been saying an offering could be in store and it wasn’t – which after their recent upside ride – was a big mistake as it has ridden the downside today by -$0.24 or -4.82% ($4.74).

Is the sector ignoring substantial risk … divergence has usually been on the plate as to most recent jumps in share pricing yet … ETFs, algorithms and traders have  convergence up until Thursday, August 31, 2017.

  • But it is … month’s end and a long holiday weekend with September being usually a hollow month to be prepared,

The usual suspects – the slackers, BSTG, CAPR, CUR, CYTX, FCSC, IMUC, ISCO and PSTI have performed habitually – a little up and marginally down yet going … incrementally NOWHERE!

  • While VistaGen (VTGN -$0.06 to $1.76), another loser is raising capital selling 1.37 M shares at $1.75 with warrant coverage attached of 1.892 M warrants – they wanted to sweeten the pot but, that number is a … doozy, a true walk-away deal other than bottom-feeding funds.

 

We should have a GONG SHOW dedicated to “our universe”!

 

 

Pre-open indications: 3 hits and 1 miss:

  • Verastem (VSTM) closed up +$0.05 – miss;
  • Applied Genetic Technologies (AGTC) closed up +$0.05 – hit;
  • Biostage (BSTG) closed at $0.00 – hit;
  • Vericel (VCEL) closed up +$0.15 – hit;

 

 

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

·         The first hour was positive with an A/DL of 24/14 and 5 flats;

·         The mid-day was positive with an A/DL of 28/11 and 3 flat;

·         The close was positive  with an A/DL of 27/14 and 2 flat;

 

 

Out and about:

Applied Genetic Technologies Corporation (AGTC) will report financial results for the fiscal quarter and year ended June 30, 2017 before the market opens on Wednesday, September 13, 2017. AGTC management will host a conference call beginning at 8:00 am ET that day to review results and provide a corporate update.

 

 

Daily analytics:

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Thursday traded at 10.58 down -5.70% …

  • Wednesday traded at 11.22, down -4.10% after Tuesday traded at 10.71, up +3.45% after Monday traded at 11.34, up +0.09% following Friday trading at 11.24, down -8.09% after last Thursday traded 12.23, down -0.16%

 

Welcome to another day of the sector’s roller coaster …

… The iShares Russell 2000 (IWM) indicated:

·         Thursday was up 0.99%

·         Wednesday +0.63%

·         Tuesday +0.02%

·         Monday +0.44%

·         Friday +0.29%

·         Last Thursday +0.32%

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Thursday was up +2.78%

·         Wednesday +2.05%

·         Tuesday +0.29%

·         Monday +1.88%

·         Friday -0.58%

·         Last Thursday +1.20%

 

 

The count - decliners versus gainers:

……. look at the differences in the spreads as decliners jump and %

·         Thursday’s decliners ranged from -1.47% <NWBO -$0.0024> to -% <ISCO -$0.10> in 14  equities;

·         Wednesday’s decliners ranged from -0.03% <KITE -$0.05> to -8.03% <JUNO -$3.52> in 14  equities;

·         Tuesday’s decliners ranged from -0.06% <KITE -$0.10> to -7.49% <QURE -$0.64> in 16  equities;

·         Monday’s decliners ranged from -0.06% <MDXG -$0.01> to -5% <CUR -$0.06> in 14  equities;

·         Friday’s decliners ranged from -0.24% <BCLI -$0.01> to -9.89% <OPXA +$0.09> in 21  equities;

·         Last Thursday’s decliners ranged from -1.35% <RENE.L -$0.025> to -9.78% <IMUC -$0.04> in 11 equities;

Versus

… Look at the percentage’s (%) and spreads …

·         Thursday’s gainers ranged from +0.05% <KITE +$0.09> to +10.98% <BLUE +$12.35> in 27 equities;

·         Wednesday’s gainers ranged from +0.33% <OSIR +$0.02> to +16.67% <ISCO +$0.20> in 26 equities;

·         Tuesday’s gainers ranged from +0.50% <OSIR +$0.03> to +20.09% <JUNO +$7.33> in 24 equities;

·         Monday’s gainers ranged from +0.48% <RGNX +$0.10> to +28% <KITE +$38.95> in 21 equities;

·         Friday’s gainers ranged from +0.47% <SGMO +$0.05> to +8.70% <CYTX +$0.03> in 17 equities;

·         Last Thursday’s gainers ranged from +0.60% <HSGX +$0.01> to +9.09% <ADVM +$0.23> in 26 equities;

 

 

Some of MY working trend lines or indications:

… The greatest volume to the downside:  NWBO, IMUC, CYTX, FATE and BLFS

… Upside volume was weighted to:  JUNO, KITE, BLUE, SGMO and MDXG

… Biggest $ downside:  MESO, BLFS, FATE, FCSC and ISCO

… Largest $ upside:  BLUE, RGNX, BLCM, JUNO and XON

… Flat:  AST and CLBS

 

 

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.