November 6, 2017 7:32am
And the Icarus’ moves of many equities … there is always danger after equities spike
It’s still a trader’s dilemma or proposition
No subscription - you’re missing situational awareness!
Pre-open trading indications: 5 SELLs
Quarterly financial results: AGTC, ONCE and VCEL on Tuesday; CAPR on Wednesday; BLFS, CLBS, HSGX and CYTX on Thursday and by Friday, we will be loss-per-share veterans
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Is the truth so hard to fathom?
What’s the gauge of pricing expectation – monetization of information!
Mixed open expected
Dow futures are UP +0.07% (+17 points) and NASDAQ futures are UP +0.04% (+2.25 points)
U.S. stock index futures pointed to a mixed open on Monday, as investors pivoted their attention to the latest set of earnings set to be published.
European stocks were marginally lower as investors focused on earnings and monitored President Donald Trump's comments in Asia.
Asian indexes closed mixed as investors digested earnings reports and President Donald Trump's tour of the region got underway.
Issues that will affect the trading day: U.S. stocks looked challenged to extend record highs Monday, with investors primed for merger news in the chip sector, watching earnings and anxious for fresh headlines on the Republican tax plan.
Data docket: Looking to the U.S. Federal Reserve, New York Fed President William Dudley is expected to be at an Economic Club of New York's luncheon on Monday. Investors will be paying close attention to the speech, to see if Dudley comments on the state of the U.S. economy, following the latest non-farms data that revealed that the U.S. added 261,000 jobs in October.
On the political front: Investors may be nervous this week as U.S. President Donald Trump’s Asian tour kicks off, with much attention focused on what he might say over North Korea..
The cell therapy sector closed POSITIVE on Friday and Thursday, NEGATIVE on Wednesday, Tuesday and last Monday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Friday closed POSITIVE with 10 decliners, 29 advancers and 4 flats;
· Thursday closed barely POSITIVE with 20 decliners, 21 advancers and 2 flats;
· Wednesday closed NEGATIVE with 27 decliners 14 advancers and 2 flats;
· Tuesday closed NEGATIVE with 23 decliners, 17 advancers and 3 flat;
· Last Monday closed NEGATIVE with 28 decliners, 13 advancers and 2 flats;
Henry’omics:
From Friday night’s closing bell post, “rebound … investors should be happy as sector and IBB (+1.54%) jump while the NASDAQ rises to an all-time high. Be careful of what investors wished for as traders are salivating. There are many new upside targets.”
As I had stated, “There is a packed week of quarterly results due this week! Until we get through this maze of loss per share financial results, I don’t see any appreciation of consequence but, I do see traders piling on those with quick upsides!”
Sector equities will struggle to hang onto their newest levels!
Last week, the Dow added 0.5%, the S&P was up 0.3% and the NASDAQ advanced 0.9%. The week marked the eight straight weekly gains for both the Dow and the S&P, the longest such streak for both since November 2013. The NASDAQ closed out its sixth positive week in a row, matching a streak that ended in early March.
Like I said, be careful what you wished for, while Humpty-Dumpty sat on the high wall just before to fell ,,,
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 NEGATIVE -0.01% in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.26% in Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Monday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.15% in Monday’s pre-open
Companies in my headlights:
AxoGen (AXGN) closed up another +$1.80 to $24.55 with 540.7 K shares traded after Thursday’s +$2.15 to $22.75 with 664.6 K shares traded, Wednesday’s +$0.05 to $20.60, Tuesday’s +$0.40 to $20.55 with 340.1 K shares traded and last Monday’s +$0.05 to $20.15 with 209.3 K shares traded <3 month average = 217.3 K shares>. October started at $19.10 with a low of $18.50.It’s getting rich, there’s $4.45 in premium or +18.12% - traders are looking for knock-down pricing post positive releases. The aftermarket was negative on Friday – Maintaining SELL;
bluebird bio (BLUE) closed up +$2.20 to $156.25 with 1.28 M shares traded after Thursday’s +$11.10 to $154.05 with 1.32 M shares traded, Wednesday’s -$2.50 to $139.10 with 549.3 K shares traded, Tuesday’s -$2.50 to $139.10 with 600.3 K shares traded and last Monday’s +$0.80 to $141.60 with 434 K shares traded <3 month average = 867.9 K shares>. Last week started out at $141.1.60 which was up +$2.20 from the Thursday’s $13.30 at $142.95, Wednesday’s $139.10 ($3.85) and Tuesday’s $1.41 following Monday’s $140.70. October started out at $125.45 which was down -$1.19 from September’s month end with the month’s high of $143.30. Since October 26th‘s $$17.15 or +10.9% premium – enough to stimulate traders? – Maintaining SELL;
Capricor (CAPR) closed up +$0.02 to $2.23 with 301 K shares traded after Thursday’s -$0.214 to $2.21 with 431.7 K shares traded, Wednesday’s -$0.13 to $2.35, Tuesday’s +$0.10 to $2.48 with 1.08 M shares traded <3 month average = 1.9 M shares> and Monday’s -$0.02 to $2.38 with 238.4 K shares traded. October started at $3.45 and has seen a continuous decline with a low of $2.20; HC Wainwright announced 10/31/17 a $14 M at-the-market financing for CAPR. NO pricing or advance notice to shareholders. Questionable status re financing and outstanding S-1 - Maintaining SELL;
Osiris (OSIR) closed up +$0.84 to $5.96 after Thursday’s +$0.37 to $5.12 with 51 K shares traded <3 month average = 25.8 K shares. OSIR has agreed to settle with the SEC, without admitting or denying its allegations, by consenting to the entry of a final judgment, subject to court approval, that permanently restrains and enjoins the Company from violating certain provisions of the federal securities laws. As part of the resolution, OSIR also has agreed to pay a civil penalty in the amount of $1.5 M. As previously disclosed, there is STILL an ongoing criminal investigation being conducted by the U.S. Attorney’s Office for the Southern District of New York. A former chief financial officer pleaded guilty to making false statements to auditors to inflate OSIR's reported revenue. The SEC's lawsuit, filed Thursday in Maryland federal court, also targets Jacoby and three other former executives. The other defendants are the former CEO Lode Debrabandere, former VP of finance Gregory Law and former CBO Bobby Montgomery. In a criminal information filed in Manhattan federal court on Thursday, prosecutors said that Jacoby recorded $1.1 million in revenue in Q4/14 from the sale of its Ovation bone matrix product, even though the product had actually been given to a distributor on consignment rather than sold at the time. The SEC said in its lawsuit that Osiris and the former executives engaged in a "wide-ranging fraud" to inflate the company's reported revenue by about 17% in 2014 and about 9% the first three quarters of 2015. The investigation is NOT over and in five (5) sessions, there is a premium of $1.26 or +21%. – Maintaining SELL;
Stemline Therapeutics (STML) closed up +$0.35 to $14.15 with 410.4 K shares traded <3 month average = 261.9 K shares>. Chart looks “toppy” while pricing is “choppy” after last week’s - Thursday’s $13.80, Wednesday’s $13.95, Tuesday’s $13.65 and last Monday’s $1.55 – 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.
