October 26, 2017 5:55pm

The iShares Nasdaq Biotechnology ETF (IBB -2.32%) and the SPDR S&P Biotech ETF (XBI -1.36%) plummeted

As investors abandon the sector while depreciation takes its toll; managements had better start recognizing investor loyalty as an asset versus a commodity to be discounted

 

Pre-open indications: 4 hit and 3 miss

 

Out and about: Applied Genetic Technologies (AGTC) closed flat at $3.80 after depreciating -$0.30 since 10/2, $0.90 since 9/1, $3.10 since 4/1 and $5.75 since 1/3 – I reiterate, where’s management’s concern for shareholders?-  The silence is wrong!

MiMedx Group (MDXG) reported Q3 profit of $17.5 M with a net income of $17.45 M or $0.15 per diluted shares.

 

You could and should be reading this review of the day’s share pricing activity?

In the grip of rotating cycles and disparaging trends, what is the price of sector equities - knowledge and a subscription!  

 

The way forward cannot be found in the spending of the past as the sector is operating and defined by its own contradictions.  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 newsletter, “oversold - 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!”

As I had stated, “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.”

The buying appetite is more than way off the mark as NO news of value means plummeting share pricing.

 

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

·         The open was negative with an A/DL of 11/30 and 2 flats;

·         The mid-day was negative with an A/DL of 12/28 and 3 flat;

·         The close was negative  with an A/DL of 10/27 and 6 flats;

 

Pre-open indications: 4 hit and 3 miss

  • Cellectis SA (CLLS) closed down -$0.42 – hit;
  • Juno Therapeutics (JUNO) closed up + $0.47 – hit;
  • Pluristem (PSTI) closed down -$0.06 – miss;
  • Regenxbio (RGNX) closed down -$2.60 – miss;
  • Sangamo Therapeutics (SGMO) closed down -$0.58 – miss;
  • uniQure (QURE) closed down -$1.30 – hit;
  • VistaGen Therapeutics (VTGN) closed flat at $1.02 – hit;

 

Out and about:

MiMedx Group (MDXG) reported Q3 profit of $17.5 M. The per-share basis had net income of $0.15.

Earnings, adjusted for one-time gains and costs were $0.08 per share. MDXG posted revenue of $84.6 M; shares have increased 40% since the beginning of the year. The stock has risen 43% in the last 12 months.

 

 

Some of MY working trend lines or indications:

… The greatest volume to the downside:  SGMO, QURE, IMUC, XON and PSTI

… Upside volume was weighted to:  MDXG, JUNO, NWBO, VCEL and BTX

… Biggest $ downside: ONCE (-$3.35), BLUE (-$2.85), QURE (-$1.30), SGMO (-$0.58) and BLCM (-$0.57)

… Largest $ upside: MDXG (+$0.56), JUNO (+$0.47), FATE (+$0.27), VCEL (+$0.25) and $OSIR (+$0.10)

… Flat:  RENE.L, HSGX, VTGN, AGTC and ADVM

 

 

Daily analytics:

U.S. stocks ended mostly higher on Thursday. The NASDAQ was buffeted by weakness in the biotechnology sector, which also weighed on the overall health-care group.

·         The Dow rose 71.40 points, or 0.3%, to 23,400.86.

·         The S&P 500 gained 3.25 points, or 0.1%, at 2,560.40

·         The NASDAQ edged down 7.12 points, or 0.1%, at 6,556.77.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Thursday traded at 11.33, up +0.90% …

  • Wednesday traded at 11.27, up +0.63% after Tuesday traded at 11.10, up +0.27% after Monday traded at 10.87, up +9.03% after Friday traded at 9.95, down -1% and last Thursday traded at 10.05, down -0.20% …

 

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

… The iShares Russell 2000 (IWM) indicated:

·         Thursday was up +0.21%

·         Wednesday -0.47%

·         Tuesday +0.20%

·         Monday -0.74%

·         Friday+0.46%

·         Last Thursday -0.13%

 

… The Russell 2000 (RUT) indicated

·         Thursday was up +0.27%

·         Wednesday -0.46%

·         Tuesday +0.20%

·         Monday -0.77%

·         Friday +0.48%

·         Last Thursday -0.21%

 

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Thursday was down -2.32%

·         Wednesday -1.14%

·         Tuesday -0.78%

·         Monday -1.22%

·         Friday -0.99%

·         Last Thursday -0.26%

 

The cell therapy sector’s closed down 9 times over the last 11 sessions (of 43 covered companies):

·         Thursday closed NEGATIVE with x decliners, x advancers and x flats;

·         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;

·         The previous Thursday closed NEGATIVE with 24 decliners, 16 advancers and 3 flats;

·         Wednesday closed NEGATIVE with 23 decliners, 18 advancers and 2 flats;

·         Tuesday closed barely POSITIVE with 19 decliners, 20 advancers and 4 flats;

·         Monday closed NEGATIVE with 29 decliners, 11 advancers and 3 flats;

·         Last Friday closed NEGATIVE with 32 decliners, 9 advancers and 2 flats;

·         Thursday closed NEGATIVE with 23 decliners, 16 advancers and 4 flats;

 

 

The count - decliners versus gainers:

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

·         Thursday’s decliners ranged from -0.25% <AXGN -$0.05> to -9.45% <CYTX -$0.049> in 27 equities;

·         Wednesday’s decliners ranged from -0.23% <STML -$0.02> to -13.37% <BLFS -$0.92> in 30 equities;

·         Tuesday’s decliners ranged from -0.95% <FATE -$0.04> to -8.28% <MDXG -$1.02> in 28 equities;

·         Monday’s decliners ranged from -0.76% <KOOL -$0.03> to -11.37% <MDXG -$1.58> in 24 equities;

·         Friday’s decliners ranged from -0.27% <ADRO -$0.03> to -6.67% <VCEL -$0.30> in 11 equities;

·         Last Thursday’s decliners ranged from -0.11% <XON -$0.02> to -13.08% <VTGN -$0.17> in 24 equities;

Versus

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

·         Thursday’s gainers ranged from +0.51% <KOOL +$0.02> to +6.78% <FATE +$0.27> in 10 equities;

·         Wednesday’s gainers ranged from +0.09% <NWBO +$0.0001> to +9.09% <CAPR +$0.20> in 11 equities;

·         Tuesday’s gainers ranged from +0.60% <ISCO +$0.01> to +% <PSTI +$0.16> in 10 equities;

·         Monday’s gainers ranged from +0.61% <ISCO +$0.01> to +11.31% <BSTG +$0.009> in 15 equities;

·         Friday’s gainers ranged from +0.50% <AXGN +$0.10> to +27.11% <QURE +$4.11> in 28 equities;

·         Last Thursday’s gainers ranged from +0.25% <BLUE +$0.35 > to +60.08% <QURE (+$5.69> in 24 equities;

 

 

Picking and sorting the week’s apples:

ATHX closed down another -$0.04 after Wednesday’s -$0.08 after being -$0.03 after Monday’s flat at $1.99 … there are even MORE questions re their cash position going. Be ready for an offering…

CAPR closed down -$0.08 after being up +$0.21 0n news of a presentation on 11/15 after Tuesday’s -$0.08 after Monday’s -$0.02 - CAPR can’t keep fooling investors with their brand of hype – it will run down over the next days and weeks, announcement went out too early;

CLBS closed down again -$0.08 after Wednesday’s -$0.01 after Tuesday’s  -$0.;11 after Monday’s -$0.10 after being flat (Friday) at $3.39 – I keep hearing stories about why they can’t get out of their own way … VTGN closed flat at $1.02 after being down -$0.02 after Tuesday’s $1.04 after being down  -$0.02– ketamine is a horse drug combo?;

VCEL was up +40.25 after being down -$0.05 after Tuesday’s -$0.10 after being up +$0.20– still believe VCEL will announce an offering … while AXGN was down -$0.05 after being up +$0.15 after Tuesday’s flat at $20.00 (Tuesday and Monday) … the merry-go-round turns – I’m still riding the horse; MDXG was up +$0.56 after being down -$1.02 after Monday’s -$1.58 on news of a profitable Q3, as I said  stay in, right again; 

HSGX closed flat at $2.17 after Wednesday’s up +$0.01 after Tuesday’s -$0.06 after Monday’s -$0.03 … I like the company i.e. still undervalued …

SGMO was down again -$0.58 after Wednesday’s -$0.75 after Tuesday’s -$0.25 post Monday’s +$0.15 while ONCE was down another -$3.35 after Wednesday’s -$1.15 after being up +$1.08 after Monday’s +$1.82 – once it got too rich it became a profit-taking target - right again;

BLUE was down another -$2.85 after yesterday’s -$1.80 after Tuesday’s +$0.90 after Monday’s -$2.20 … a soccer ball score or miss;

AGTC was flat after being down -$0.05 after being flat at $3.85 after Monday’s down -$0.20 … can’t escape the basement … is management is deaf to stockholders?

RGNX closed down -$2.60 after being up +$0.60 after being down -$0.60 after Monday’s -$1.65 … I keep telling you to stay;

Cellectis S.A. (CLLS) dumped -$0.42 after Wednesday’s +$0.56 after Tuesday’s +$0.97 after Monday’s +$0.58 … if you stay on the merry-go-round, don’t wait for the music to stop – right again;

AST was up +$0.05 after being down again -$0.05 after Tuesday’s -$0.15 after Monday’s -$0.10 while mothership BTX was up +$0.02 after being -$0.12 after Tuesday’s -$0.15 after Monday’s -$0.05 … both financed to prop their balance sheets

Immuno-oncologists - JUNO closed up +$0.47 after being down -$1.43 after yesterday’s -$0.64 after Monday’s +$1.42; as VSTM was down -$0-.25 after being up +$0.02 after being down again -$0.10 after Monday’s  -$0.07 after Friday’s flat at $3.95 – up, down, round and round;

STML was down yet again -$0.48 after Wednesday’s -$0.02 after being -$0.18 after Monday’s -$0.10; while ADRO dropped another -$0.15 after yesterday’s -$0.10 after Tuesday’s -$0.25 after Monday’s -$0.45 as BLCM closed down -$0.57 after being flat at $10.05 after yesterday’s -$0.12 after Monday’s -$0.22 … it’s a ride with expectation in the wind;

FATE closed up +$0.27 after being down -$0.19 after Tuesdays -$0.04 after Monday’s +$0.03 – is an offering in the near future?

MESO was down again -$0.22 after being down -$0.52 after Tuesday’s -$0.40 post Monday’s +$0.10– still waiting for some news, as I had stated time to be accumulating on dips…

PSTI was down again -$0.06 after Wednesday’s -$0.02 after being up +$0.16 after Monday’s +$0.07 - the downside signal came again!

QURE closed down another -$1.30 after Wednesday’s  -$1.68 after yesterday’s up +$0.26 after Monday’s down -$0.75 after Friday’s +$4.11 to $19.47 following Thursday’s +$5.69 ($15.16) – an Icarus candidate (?) - An offering was proposed on Monday, surprised by the upside – right as an offering dropped the pricing?

 

 

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.