September 1, 2017 6:40pm
As I had stated, caution should be practiced as entrance at these premium prices is hard and should not be chased and investors shouldn’t be all-in long!
The iShares Nasdaq Biotech ETF (IBB) finished up +0.75% after yesterday’s +2.78%, its highest level since December 2015. For the week, the ETF is looking at a rise of 7.75%
Pre-open indications: 4 hits and 2 miss (one by pennies):
Out and about: Cytori (CYTX) restructures to reduce expenses and employees by 50% while CEO continues to take home $574 K a year being the cause or reason for reducing the company; where is its BOD now - collecting their fees!
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 “… keep an eye on the indexes and averages. The iShares Nasdaq Biotechnology ETF (IBB) rose +2.78% and is the highest it’s been since January 2016 but, indicating a negative -0.59% in the pre-market. In the wake of big gains of the immmuno-onclogy stocks, volumes are still low or strikingly moderate.”
- Trading activity was light to moderate with the exception of SGMO, KITE, JUNO, BLUE and XON as volume subsided after an initial rush of data as traders prepared for the three-day Labor Day weekend.
For the week, the three major indexes posted solid weekly gains. The Dow gained 0.8% for the week, while the S&P rose 1.3%. The NASDAQ, meanwhile, rose 2.7%, notching its best weekly performance of the year.
- U.S. financial markets are closed Monday.
The IBB ETF was wide of the mark as the averages ran higher …
Cell and gene therapy companies are feeling the pain or slight gains: Bellicum Pharmaceutics (BLCM -$0.11), Regenxbio (RGNX -$0.10), Spark Therapeutics (ONCE -0.17), Stemline (STML -$0.25) are down – all on some solid volumes as bluebird bio (BLUE +$6.00), Verastem (VSTM +$0.02), JUNO Therapeutics (JUNO +$0.65), Kite Pharma (KITE +$0.06) and Sangamo Therapeutics (SGMO +$0.90) also with upside volumes.
And then there were the … tradeables: CYTX – who announced a restructuring after the close, BSTG +$0.03 to a wholesome $0.34 who was up on day’ traders along with FCSC +$0.01, IMUC which was flat, while ISCO was down -$0.04 along with PSTI -$0.01.
Athersys (ATHX) was flat at $1.75 with a problem with its protocol
I keep saying caution should be practiced as entrance at premium prices based on past week’s news is hard and should not be chased as investors shouldn’t be all-in long!
Still, I say it isn’t wise to just short – at the moment but, it’s coming … this pricing arena given how its stocks have battled and powered through big resistance level.
Pre-open indications: 4 hits and 2 miss:
- Verastem (VSTM) closed up +$0.02 – miss;
- Applied Genetic Technologies (AGTC) closed up +$0.10 – hit;
- bluebird bio (BLUE) closed up +$6.00 – miss;
- Cellectis SA (CLLS) closed up +$3.42 – hit;
- Juno Therapeutics (JUNO) closed up +$0.65 – hit;
- Sangamo Therapeutics (SGMO) closed up +$0.90 – hit;
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The first hour was positive with an A/DL of 22/20 and 1 flats;
· The mid-day was positive with an A/DL of 22/16 and 5 flat;
· The close was positive with an A/DL of 27/14 and 2 flat – same as yesterday;
Out and about:
Cytori (CYTX) announced a substantial corporate restructuring intended to significantly reduce expenses while maintaining its ability to execute on its BARDA-sponsored cell therapy program, Japanese business and oncology program. The Cytori Habeo program for scleroderma is expected to move forward based on feedback from its forthcoming meetings with the FDA in the U.S. and PMDA in Japan. The restructuring is expected to reduce Cytori’s workforce by approximately 50% and significantly reduce quarterly operational cash burn.
- “Our need to conserve capital and focus our talented team on the priorities most relevant for stockholders and other key stakeholders has sadly required us to take action that will affect a number of valued and capable members of the Cytori team,” said Dr. Marc H. Hedrick, Cytori’s President & CEO. “In addition, we have engaged TAP Advisors to help us evaluate several potential opportunities the company has that could enhance our ability to create value for stockholders.”
The first move should have been to remove the CEO and replace this ineffective board of directors …
- CYTX and its advisors, TAP Advisors, will consider a range of options aimed at enhancing shareholder value, including a sale of the company, a reverse merger, a business combination or a sale, license or other disposition of corporate assets of the company, as well as potential opportunities to raise capital in the shareholder’s best interest.
CYTX closed at $0.363 … enough said … I remember owning at $5.21!!
Daily analytics:
U.S. stocks ended higher Friday, closing out the first session in September the same way it wrapped up the previous day and month.
· The Dow closed up 0.2% at 21,997, marking its fourth straight day in positive territory.
· The NASDAQ finished with its 46th all-time high of 2017, up 0.1% at 6,435, and posting a weekly gain of 2.7%.
· The S&P 500 booked a weekly climb of 1.3% and, ended the session up 0.2% at 2,475.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Friday traded at 10.13, down -4.34% …
- Thursday traded at 10.58 down -5.70% after 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 last Friday trading at 11.24, down -8.09%
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Friday was up +0.54%
· Thursday+ 0.99%
· Wednesday +0.63%
· Tuesday +0.02%
· Monday +0.44%
· Last Friday +0.29%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Friday was up +0.75%
· Thursday +2.78%
· Wednesday +2.05%
· Tuesday +0.29%
· Monday +1.88%
· Last Friday -0.58%
The count - decliners versus gainers:
……. look at the differences in the spreads as decliners jump and %
· Friday’s decliners ranged from -0.21% <ONCE -$0.17> to -3.70% <ADRO -$0.45> in 14 equities;
· 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;
· Last Friday’s decliners ranged from -0.24% <BCLI -$0.01> to -9.89% <OPXA +$0.09> in 21 equities;
Versus
… Look at the percentage’s (%) and spreads …
· Friday’s gainers ranged from +0.03% <KITE +$0.06> to +11.89% <CLLS +$3.42> in 27 equities;
· 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;
· Last Friday’s gainers ranged from +0.47% <SGMO +$0.05> to +8.70% <CYTX +$0.03> in 17 equities;
Some of MY working trend lines or indications:
… The greatest volume to the downside: BLCM, ONVO, ADRO, RGNX and BTX
… Upside volume was weighted to: SGMO, KITE, JUNO, BLUE and BSTG
… Biggest $ downside: ADRO, STML, OSIR, ONCE and BLCM
… Largest $ upside: BLUE, CLLS, SGMO, JUNO and XON
… Flat: ATHX and RENE.L
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.
