November 7, 2017 7:13am

Increased selling by the sector’s retail core has evolved into holdings by ETFs and dark (trading) pools

 

Somewhere in the evolving relationship with the market, the potential for destructive behavior was kept largely in check by the SEC but not now …

... As there is an under supply of reliable information from many companies …

 

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Pre-open trading indications: 4 SELLs and 1 BUY

Quarterly financial results: AGTC, BLCM, ONCE, VSTM and VCEL

 

For continued access to what one industry CEO calls the “bible” for smart investing in the RegMed, gene and cell therapy sector’ … I’d recommend being a subscriber!

 

Is the truth so hard to fathom?


What’s the gauge of pricing expectation – monetization of information!

 

 

Higher open expected

Dow futures are UP +0.08% (19 points) and NASDAQ futures are DOWN -0.03% (-1.75 points)

 

U.S. stock index futures pointed to a slightly positive open on Tuesday, as investors geared up for another big batch of earnings from major U.S. companies.

European stocks were mixed, as investors monitored a fresh batch of corporate earnings.

Asia indexes closed higher after U.S. stocks closed at record levels and oil prices traded at their highest marks since 2015 overnight.

 

Issues that will affect the trading day: Quarterly results from AGTC, ONCE and VCEL

Data docket: the National Federation of Independent Business (NFIB) small business survey is set to be released at 6 a.m. ET, followed by JOLTS data at 10 a.m. ET and consumer credit at 3 p.m. ET.

On the political front: Trump called upon the world to take action against the threats that North Korea pose, stating that the U.S. was prepared to use the full range of its military force to defend itself and allies

 

 

The cell therapy sector closed NEGATIVE on Monday, POSITIVE on Friday and Thursday, NEGATIVE on Wednesday and last Tuesday.

The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):

·         Monday closed NEGATIVE with 30 decliners, 10 advancers and 3 flats;

·         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;

·         Last Tuesday closed NEGATIVE with 23 decliners, 17 advancers and 3 flat;

 

 

Henry’omics:

From Monday night’s closing bell post, “sector opens up, dives at 12ish and closes to the downside in tandem with the IBB (-0.40%), NBI (-0.48) and the XBI (-0.78).”

As I had stated, “It was expected as the overbought became the targets of profit-taking while the sector prepares for the loss-per-share quarterlies of those on the “usual suspect” list.”

Look at the progression of yesterday’s indexes and my evening metrics – or suppression as they (pricing) have been stripped of most upside!

The way forward can NOT be found in the practices of the past!

 

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 NOT indicating in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.03% in Tuesday’s pre-open

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed up +$0.05 to $3.45 with 85 K shares traded <3 month average = 162.4 K shares>. AGTC can’t shake the issues on clinical trial enrollment, keeping non-performing executive too long and a CEO who doesn’t communicate to shareholders effectively and can’t define or fulfill the objectives to manage a growing entity – the BOD NEEDS to ACT but, those same “buddies” refuse to fulfill their fiduciary responsibility! – 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;

Cellectis SA (CLLS) closed down -$0.38 to $26.27 with 189.2 K shares traded <3 month average = 241.4 K shares>. CLLS focused on developing immunotherapies based on gene-edited allogeneic CAR T-cells (UCART), today announced that the U.S. FDA has lifted the clinical hold, previously announced on September 4, 2017, on P1 trials of Cellectis’ UCART123 product candidate in acute myeloid leukemia (AML) and blastic plasmacytoid dendritic cell neoplasm (BPDCN). The aftermarket indication is a POSITIVE +$2.46 or +9.36% – SELL to BUY;

Juno Therapeutics (JUNO) closed down -$2.03 to $56.45 with 2.3 M shares traded after Friday’s $58.48, Thursday’s $59.91 and Wednesday’s  $48.31 and last Tuesday’s  $44.91 <3 month average = 2.95 M shares>. The aftermarket indication is a NEGATIVE -$0.24 or -0.41% - Maintaining SELL;

Vericel (VCEL) closed down -$0.10 to $4.30. Questions will be brought up on the call and an offering could or should be in the cards as VCEL has only $14 M in cash but, $10.8 M in debt plus we have seen $4.30 multiple times in November, October and September – 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.