September 13, 2017 7:28am
Not any worse than usual, not any better in the short run
I propose a wait-and-see mode as indexes are down (IBB and IWM) or do not indicate as algorithms and ETFs retard any upside
It might be time to close the pool as the summer investing season and quarter is about to close
Preview RMi's morning call. You’d be reading this if you were a SUBSCRIBER!
Pre-open indications: 1 BUY and 5 SELLs
If you had been right as many times as I have been in these many months of 2017 as a SUBSCRIBER you would know when to get in and out or get back in again!
It’s called premium content for a reason: I reporting the truth in this sector!
A critical pre-market indication ahead of “our” universe’s open!
Lower and weak open expected
Dow futures are DOWN -0.11% and NASDAQ futures are DOWN -0.25%
U.S. stock index futures pointed to a slightly weaker open on Wednesday after Wall Street closed at record highs in the previous session.
European markets were slightly lower, despite record highs on Wall Street following the release of Apple's latest iPhone.
Asia equities finished mixed despite notching gains earlier in the day on the back of Wall Street closing at record levels.
Data docket: mortgage applications are set to come out at 7.00 a.m. ET, followed by Producer Price Index (PPI) data, due out at 8.30 a.m. ET. The Treasury budget release will then follow, due out at 2.00 p.m. ET.
Issues that affect the trading day: While investors have been breathing a cautious sigh of relief in recent days – the real question is what’s the next catastrophe headed our way …?
The cell therapy sector closed NEGATIVE on Tuesday, POSITIVE on Monday, Friday and Thursday and NEGATIVE on 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 20 decliners, 23 advancers and 0 flats;
· Friday closed POSITIVE with 16 decliners, 19 advancers and 8 flats
· Thursday closed POSITIVE with 11 decliners, 28 advancers and 4 flats;
· Last Wednesday closed NEGATIVE with 22 decliners, 18 advancers and 3 flat;
From last night’s (Tuesday) post… “The sector trips with the U.S. stock market hitting another record high Tuesday, the question remains why can’t the sector sustain … any sense of share pricing? It comes down to believability of development costs and progress versus G&A!”
It is what it is until it isn't ...!
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 up +0.22% on Tuesday and Wednesday’s pre-market is indicating a NEGATIVE 1.53%;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday down -0.43% and is NOT indicating in Wednesday’s pre-market%;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.22% on Tuesday and is NOT indicating in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +0.61% on Tuesday and is indicating a NEGATIVE -0.09% in Wednesday pre-open
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed up +$0.25 to $4.95. It is late quarterly results and FY 17 reporting day – seemed a bit late -0 AGTC has observed variability in the visual function of the 56 patients in its XLRS natural history study, as well as those dosed in its P1/2 trial. AGTC also believes that in addition to the three patients initially enrolled in the high-dose group, the full group of patients in the expansion group needs to be enrolled and followed for at least six months before meaningful conclusions can be drawn regarding biological activity. It expects to fully enroll this expansion group by Q1/2018 and will present complete data after the last patient has been followed for six months. I have questions re clinical status - SELL;
Bellicum Pharmaceuticals (BLCM) closed down -$0.07 to $10.20 with 473.3 K shares traded after Monday’s $10.27 (+$0.23) with 623.9 K shares traded <3 month average = 839.2 K shares>. 9/1 saw a price of $10.72, while 8/1 was $10.39 and 7/3 was $11.70 – an upside to be posed or an attitude for consideration. Sooner or later, someone will be coming for BLCM. The aftermarket indication is a positive +$0.08 or +0.78% - Maintaining BUY;
Biostage (BSTG) closed up +$0.01 to $0.326. BEWARE, their terminal suit dismissal (filed) has yet to be adjudicated upon; which if the judge sees merit - it could open the door for a bankruptcy filing. I just got a copy to read – more to come. After $30 M has been spent with yet another down offering as their product category failed and they’re on to a new indication yet they’re still “in business” for the sake of executive salary continuation. Their indifference to shareholders is beyond belief as communication is deafening. What is their status of the recent compassionate use patient, the oddly promised Mayo Clinic paper etc., etc. and another etc. -Maintaining SELL;
bluebird bio (BLUE) closed up +$1.00 to $127.90 with 710.4 K shares traded >3 month average = 966.7 K shares> after Monday’s $126.90 (+$2.10) with 712.3 K shares traded after Friday’s $124.80 (-$4.40) after Thursday’s $129.20 (+ $2.70) . It’s been an up and down scenario with no news and good three sessions as BLUE advanced, $125.45, and $126.50 to $129.20 considering that on 8/30, the share price was $112.50. The aftermarket indication is a NEGATIVE -$0.35 or -0.27% - Maintaining SELL;
Fibrocell Science (FCSC) closed up $0.16 to $3.42 with 133.7 K shares traded after Monday’s $3.26 (-$0.04) with 91.7 K shares traded <3 month average = 67.7 K shares> following Friday’s $3.26 (-$0.02) with 457.2 K shares traded <3 month average = 67.7 K shares> following Friday’s $3.30 (+$0.40) with 457.2 K shares traded. FCSC still opens my eyes to an Icarus play. September started at $2.69, August 14 at $2.61 after a reverse. As a contrarian, I never trust outcomes in the short and near-term – Maintaining SELL;
Verastem (VSTM) closed down -$0.17 to $5.24 with 1.498 M shares traded after Monday’s $5.41 (+$0.12) with 2.29 M shares traded following Friday’s $5.29 (+$0.35) with 5.959 M shares traded following Thursday’s $4.94 (+$0.02) with 3.71 M shares traded after Wednesday’s $4.92 (+$1.08) with 20.8 M shares traded <the 3 month average = 1.441 M shares> after last Tuesday’s $3.84 (-$0.08), the previous Friday’s $3.92 (+$0.02), Thursday’s $3.90 (+$0.05) and Wednesday’s $3.85 (+$0.42), Tuesday’s $3.43 (+$0.05). It’s time to take some profit – 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.