November 14, 2017 7:25am
I keep asking, have investors heard me and how well is my message being received?
Lately every time the sector shines, burns and/or turns, it will come back to remind everyone it’s just a matter of time before it finds room for its risk appetite!
My words for the month – anticipate the falls and their retracement!
Pre-open trading indications: 3 SELLs and 2 BUY
Earnings this week: MESO, KOOL and AST
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Lower open expected
Dow futures are DOWN -0.06% (-15 points) and NASDAQ futures are UP +0.02% (+1.25 points)
U.S. stock index futures pointed to a relatively weak open Tuesday, as investors continued to pore over corporate earnings, while keeping an eye on news surrounding tax in the U.S.
European stocks hovered around the flat line as investors digested earnings and new data releases.
Asian equities closed lower following a lackluster session on Wall Street that saw major indexes close just above the flat line. Investors also digested the release of a slew of Chinese economic data points that came in below forecasts.
Issues that will affect the trading day: the future of a tax reform deal in the U.S. is expected to add uncertainty to markets throughout the trading day,
Data docket: the NFIB's small business optimism index is slated to come out at 6 a.m. ET, which will then be followed by producer price index (PPI) data, due out at 8:30 a.m. ET.
On the political front: U.S. President Donald Trump will conclude his trip in Asia today. The U.S. incumbent said that he had made it evident during his visit that the U.S. was open to trading with other nations, on the condition that the policies were fair and reciprocal to the U.S.
The cell therapy sector closed NEGATIVE on Monday, POSITIVE on Friday and Thursday and 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 25 decliners, 17 advancers and 1 flat;
· Friday closed POSITIVE with 18 decliners, 24 advancers and 1 flat;
· Thursday closed POSITIVE with 15 decliners, 25 advancers and 3 flats;
· Wednesday closed NEGATIVE with 23 decliners, 16 advancers and 4 flats;
· Last Tuesday closed NEGATIVE with 33 decliners, 8 advancers and 2 flats;
From Monday night’s closing bell post, “sector opens down, swings north at the mid-day, dives around 3 and closes to the downside. Winners become losers and also front-runners for following sessions. Short termism continues to infect this sector, going from the overbought to the oversold.”
As I had stated, “We’ve seen it again and again – do I say ride it out… yes in some cases to buy at new lows and sell at newer highs to come back at lower pricing.”
It is quite simple ,,, Jeapardy is the name given to this market and it is a game to push which button - buy or sell!
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?
- 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 -0.2% in Tuesday’s pre-open
Companies in my headlights:
AxoGen (AXGN) closed down -$0.25 to $24.80 with 106.8 K shares traded after Friday’s +$0.15 to $25.05 with 192 K shares traded, Thursday’s +$0.80 to $24.90, Wednesday’s +$0.20 to $24.10 and last Tuesday’s +$0.20 to $23.90. My issue is the cash position ($22 M) and bank debt positions ($25 M). It’s still rich with a trader’s target on its back with $4.70 or +18.95% in twelve (12) sessions - Maintaining SELL;
BioLife Solutions (BLFS) closed up +$0.30 to $6.21 with 173.6 K shares traded after Friday’s +$0.76 to $5.91 with 412.6 K shares traded <3 month average = 219.8 K shares>. Wednesday (11/9) saw $5.01. 11/1 saw $5.60 while 9/1 saw $4.86; I still have a problem with their cash and debt position and their dependence on facilitation for others, sooner or later companies are going to seek internal solutions – In five (5) sessions, there is $1.23 or +19.8% of premium in the share price - Maintaining SELL;
bluebird bio (BLUE) closed up +$2.80 to $154.55 with 553.1 K shares traded <3 month average = 884.2 K shares>. Last week saw $151.75 (Friday), $150.35, $146.70 (Wednesday), $146.70 and $144.75 (Monday) – a nice trend and a target for traders. The aftermarket indication is a NEGATIVE -$0.85 or -0.56% - SELL;
Cellectis SA (CLLS) closed down -$1.05 to $24.01 with 297.2 K shares traded <3 moth average = 255.1 K shares>. CLLS quarterly results were not bad (a net loss attributable to shareholders of $14.1 million (or $0.40 per share on both a basic and a diluted basis) and 9 month net loss attributable to shareholders of Cellectis of $26.2 million (or $0.73 per share). As of 9/30/17, CLLS had $304.1 million in total cash, cash equivalents and current financial assets compared to $271.2 million as of 6/30/17. This increase of $32.9 million reflects an increase of $38.0 million attributable to Calyxt IPO, the net cash provided by investing activities of $6.1 million included $7.0 million of proceeds from Calyxt’s sale leaseback transaction and the unrealized positive translation effect of exchange rate fluctuations on U.S. dollar cash, cash equivalents and current financial assets of $3.1 million; partially offset by the net cash flows used by operating activities of $15.5 million – BUY;
Juno Therapeutics (JUNO) closed down -$1.54 to $56.05 with 1.39 M shares traded <3 month average = 3.01 M shares>. Oversold as the aftermarket is a negative -$0.06 or -0.11% yet the pre-market indication is a POSITIVE +$0.14 or +0.24%. JUNO always seems to retrace their declines – 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.