October 26, 2017 8:04am
Expect that “early” release of quarterly results could initiate a few offerings …
Such as ATHX (11/1) and VCEL (11/7) – Read the tea leaves!
Out and about: What’s happened to Applied Genetic Technologies (AGTC) which has dropped -$0.30 since 10/2, $0.90 since 9/1, $3.10 since 4/1 and $5.75 since 1/3 – where’s management’s concern for shareholders?
No subscription - you’re missing situational awareness!
Pre-open indications: 1 SELL and 6 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!
Higher open expected
Dow futures are UP +0.25% (58 point) and NASDAQ futures are UP +09% (5.5 points)
U.S. stock index futures are expected to be higher after a slow start on Thursday's, as investors gear up for another slew of major corporate earnings.
European markets hovered around the flat line as investors digested new earnings reports and waited to hear from European Central Bank (ECB) President Mario Draghi
Asian shares closed narrowly mixed following the softer lead from Wall Street and as investors digested regional earnings releases.
Issues that will affect the trading day: investors should be paying close attention to the latest monetary policy decision by the European Central Bank.
Data docket: jobless claims and advance economic indicators kick off the day with both releases coming out at 8:30 a.m. ET. Pending home sales will be released at 10 a.m. ET, followed by the Kansas City Fed manufacturing survey will then be release at 11 a.m. ET.
The cell therapy sector closed NEGATIVE on Wednesday, Tuesday and Monday, POSITIVE on Friday and NEGATIVE last Thursday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Wednesday closed NEGATIVE with 30 decliners, 11 advancers and 2 flats;
· 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;
· Last Thursday closed NEGATIVE with 24 decliners, 16 advancers and 3 flats;
Henry’omics:
From Wednesday night’s closing bell post, “thud as the IBB drops -1.14% as the sector is down in a count and hemorrhaging. The cell therapy sector’s closed down 8 times over the last 10 sessions (of 43 covered companies) - infection is the real danger as quarterly results hang in the balance.”
The problem we have is the appetite for sector equities after all the depreciation; until quarterly results are “unblinded”!
Moves in the equity market are more than anything driven by valuation, with sector pricing suspect when there is more supply than demand.
In 2016, ETFs accounted for 30% of all U.S. trading in terms of value, and 23% in terms of share volume <Credit Suisse data>. From a broader perspective, of the 15 most popular securities traded, measured by both volume and valued traded, 14 were ETFs.
After all the downside, ETFs have deprived more of the retail “play” as their popularity reflects a shift away from direct investment.
All the more need for personalized investor communication to bring back investors …!
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 a NEGATIVE -0.45% in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.017% in the aftermarket but NOT in Thursday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.42% in Thursday’s pre-open
Companies in my headlights:
Cellectis SA (CLLS) closed up again +$0.56 to $32.50 with 447.1 K shares traded after Tuesday’s +$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 = 206.6 K shares>. After five (5) sessions which started at $27.51, CLLS has an upside of $4.99 or +15.3% - might be time to skim the “vig”. The aftermarket indication is a POSITIVE +$0.14 or +0.44% – my “gut” says Maintaining SELL;
Juno Therapeutics (JUNO) closed down again -$1.43 to $43.06 with 1.02 M shares traded after Tuesday’s -$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 +$0.14 or +0.33% – BUY;
Pluristem (PSTI) closed down -$0.02 to $1.98. News of PSTI receiving approval from Israel’s Ministry of Health to initiate a PI trial studying the company’s PLX-R18 cell therapy as a treatment for insufficient hematopoietic recovery following hematopoietic cell transplantation (HCT). The trial was also approved by the U.S. FDA and recruitment is ongoing in the United States. Up to 30 patients will be recruited in total from the US and Israeli trial sites. The pre-open indication is a POSITIVE +$0.08 or +4.04% - BUY;
Regenxbio (RGNX) closed up +$0.60 to $31.10 with 194.2 K shares traded after Tuesday’s -$0.60 to $30.50 with 333.6 K shares traded <3 month average = 321.8 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. I’ve been a fan as RGNX usually recoups its losses – Maintaining BUY;
Sangamo Therapeutics (SGMO) closed down -$0.75 to $12.60 with 1.57 M shares traded <3 month average = 1.64 M shares>. SGMO has been taking some serious hits since 10/3’s $17.00 and 10/3’s $16.20. An aftermarket indication is an upside +$0.10 or +0.75% - Oversold BUY;
uniQure (QURE) closed down -$1.78 to $17.00 with 5.77 M shares traded after Tuesday’s +$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 and last Thursday’s $5.69 to $15.16 with 8.57 M shares traded, <3 month average = 495.5 K shares>. QURE had acquired a patent family – surprised by Tuesday’s upside but, a proposed offering priced at $18.25 which should affect the share pricing – BUY;
VistaGen Therapeutics (VTGN) closed down -$0.02 to $1.02. The U.S. FDA has authorized its Investigational New Drug (IND) application, with its planned P2 clinical study of AV-101 as a new generation oral treatment for major depressive disorder (MDD). VistaGen is preparing to launch a 180-patient, multi-center, double-blind, placebo-controlled Phase 2 study to assess the safety, tolerability and efficacy of AV-101 as an orally administered adjunctive treatment for adult MDD patients with an inadequate response to standard, FDA-approved antidepressants. The pre-market news indicates a positive +$0.43 or +37.25% - BUY;
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.
