October 25, 2017 7:53am
There are just too many collisions of risk and sentiment
While the oversold are also the victims of diminished volume and declining expectation
No subscription - you’re missing situational awareness!
Pre-open indications: 6 SELLs and 3 BUYs
For continued access to what one industry CEO calls the “Bible” for smart investing in the RegMed, gene and cell therapy sector, click on the button below: http://www.regmedinvestors.com/create-account
What’s the gauge of pricing expectation – monetization of information!
Lower to mixed open expected
Dow futures are DOWN -0.01% (2 point) and NASDAQ futures are DOWN -0.16% (-9.25 points)
U.S. stock index futures are expected to be lower to mixed note, as investors pause for breath amid an extremely busy week for corporate earnings.
European stocks hovered around the flat line as investors reacted to new earnings reports and monitored fresh economic data.
Most major indexes in Asia closed higher as the Australian dollar fell to its lowest levels in three months after inflation missed expectations.
Issues that will affect the trading day: GlaxoSmithKline and Amgen earnings
Data docket: durable goods data is set to be published at 8:30 a.m. ET, which will be followed shortly by the Federal Housing Finance Agency's house price index due out at 9 a.m. ET. In addition to the routine mortgage applications, due out at 7 a.m. ET, new homes sales data is scheduled to be published at 10 a.m. ET.
The cell therapy sector closed NEGATIVE on Tuesday and Monday, POSITIVE on Friday, NEGATIVE on Thursday and last Wednesday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Tuesday closed NEGATIVE with 28 decliners, 10 advancers and 5 flats;
· Monday closed NEGATIVE with 24 decliners, 15 advancers and 4 flats;
· Friday closed POSITIVE with 11 decliners, 28 advancers and 4 flats;
· Thursday closed NEGATIVE with 24 decliners, 16 advancers and 3 flats;
· Last Wednesday closed NEGATIVE with 23 decliners, 18 advancers and 2 flats;
Henry ’omics:
From Tuesday night’s closing bell post, “same old theme, challenged share pricing. Given the performance of certain sector equities, has the market discounted forward share value? Equity market caps are being disrupted by “current” sentiment based on questions of platform viability and the irregularity stimulated by algorithms and ETF exposure … negating investor’s outlook!”
I still have a wait-and-see attitude related to "our' universe as I am always ready for a reverse but, an optimist hoping for the oversold to become the overbought!
The problem with my thesis is as days go bye, we are closer to quarterly financial resuls being announced - increased spending on development, a lessening of forward results and decreased cash positions along with lowered share pricing.
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?
Watch list:
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.09% in the aftermarket but NO indication in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.01% in the aftermarket but NOT in Wednesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.15% in Wednesday’s pre-open
Companies in my headlights:
Capricor (CAPR) closed down -$0.08 to $2.20 with a POSITIVE pre-market indication of +$0.35 or +15.91%. CAPR in a late-breaking session the 12-month results from the company's HOPE-1 clinical trial of its lead investigational product, CAP-1002, in boys and young men in advanced stages of Duchenne muscular dystrophy. HOPE-1 is a randomized P1/2 12-month clinical trial that evaluated a single dose of CAP-1002, a cell-based therapeutic candidate, in 25 boys and young men in advanced stages of Duchenne muscular dystrophy, a rare, life-threatening genetic disorder - BUY;
Cellectis SA (CLLS) closed up again +$0.97 to $31.94 with 354.6 K shares traded after Monday’s +$0.58 or +1.91% to $30.97 with 335.5 k shares traded <3 month average = 202.4 K shares>. After five (5) sessions which started at $27.51, CLLS has an upside of $4.43 or +13.8% - might be time to skim the “vig”. The aftermarket indication is a NEGATIVE -$1.07 or -3.45% – Maintaining SELL;
Athersys (ATHX) closed down -$0.03 to $1.96 with 548.7 K shares traded after Monday’s flat at $1.99 with 1.17 M shares traded after Friday’s +$0.15 to $1.99 with 1.5 M shares traded after being down on Thursday -$0.11 to $1.84 with 1.6 M shares traded after Wednesday’s -$0.105 to $1.945 with 1.5 M shares traded after last Tuesday’s -$0.05 to $2.05 with 820.6 K shares traded after being down -$0.07 to $2.10 with 990.2 K shares traded <3 month average = 1.20 M shares>. There are questions re their cash position and how they going to pay for their future, be ready for a depreciating offering post the 11/8’s Q3 results – Maintaining SELL;
BioLife Solutions (BLFS) closed up again +$0.28 or +4.23% to $6.90 with 212 K shares traded after Monday’s +$0.19 to $6.62 with 288.3 K shares traded after Friday’s +$0.07 to $6.43 with 173.6 K shares traded after Thursday’s +$0.26 to $6.36 with 1.6 M shares traded <3 month average = 199.1 K shares>. Too much to the upside over a very short time; BLFS has a target on its back – Maintaining SELL;
Juno Therapeutics (JUNO) closed down -$0.64 to $44.49 with 1.337 M shares traded <3 month average = 2.62 M shares traded> after Monday’s $45.13 and last Friday’s $43.71. Oversold, the aftermarket indication is a POSITIVE +$0.49 or +1.10% – BUY;
Pluristem (PSTI) closed up +$0.16 or +8.70% to $2.00 with 2.73 M shares traded after Monday’s +$0.07 to $1.84. October started at $1.53 and saw $1.79 and $1.80 twice each with a month’s low of $1.47. PSTI is always a “leaky pail that trickles water” as share pricing usually dissipates after quick upsides - SELL;
Regenxbio (RGNX) closed down -$0.60 to $30.50 with 333.6 K shares traded <3 month average = 318.5 shares> after Monday’s -$1.65 ($31.10) after being up on Friday +$0.30 ($32.75). October started at $33.50 with a high of $33.65 and a low of $30.50. The pre-market indication is a POSITIVE +$1.10 or +3.54%. I’ve been a fan as RGNX usually recoups its losses – BUY;
Spark Therapeutics (ONCE) closed UP +$1.80 to $85.49 with 646.5 K shares traded+$1.82 to $83.69 with 454.9 K shares traded after Friday’s +$1.08 to $81.87 after Thursday’s -$1.21 to $80.79 with 482.7 K shares traded after Wednesday’s $82.00 and last Tuesday’s $82.97 <3 month average = 537.1 K shares>. Last Thursday, an FDA Advisory committee unanimously recommended an approval of Investigational LUXTURNA™ (voretigene neparvovec) for patients with Biallelic RPE65-mediated Inherited Retinal Disease. This market is selling off many of the “ups”; - Maintaining SELL;
uniQure (QURE) closed up +$0.26 to $18.78 with 1.79 M shares traded after Monday’s -$0.75 to $18.52 with 2.97 M shares traded on news of a 5 M share offering after Friday’s +$4.11 to $19.27 with 9.9 M shares traded, Thursday’s $5.69 to $15.16 with 8.57 M shares traded, Wednesday’s down -$2.20 to $9.47 with 517 K shares traded after last Tuesday’s -$0.31 to $11.67 with 337.8 K shares traded <3 month average = 431 K shares>. QURE had acquired a patent family – surprised by Tuesday’s upside but, a proposed offering has lowered the pricing with an aftermarket indication of -$0.41 or -2.18% - 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.
