September 26, 2017 6:00pm
To give it a try and make a point, I relied on indexes and ETFs for pre-open indications; wrong – they compound exposure and are inadequate in forecasting pricing
Sentiment and perception are the cause of much of the downside flight in the immuno-oncology and gene therapy companies as profit-taking ramps up
Pre-open indications: 2 hits and 4 miss (1 by pennies)
Out and about: Applied Genetic Technologies (AGTC) closed flat again at $3.65 - 4 out of 5 sessions; 1/3/17’s price was $9.55 – a -61.7% depreciation compared to 9/26/16’s $8.91, a -59% drop - they can’t reverse the losing perception – they need a new CEO “therapy”, as Sue Washer paid $501.6 K hasn’t done her job in protecting shareholders!
The truths of “our” universe are reported - here!
I answer one question, in which company should investors commit and keep their money. In the grip of rotating cycles and disparaging trends, what is the price of sector knowledge – a subscription!
Tuesday’s results have implications to Wednesday’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 “the sector optic isn’t that good but … It has been worse, be ready as I stated turn, turn and turn after churn, churn and burn. I’d be a buyer of some equities – the oversold shall rise again while some overbought will tag along.”
WHY are RegMed and cell therapy stocks underperforming … BELIEVEABILITY as related to sentiment and perception!
Investors starting to question the … development models’ of more than some sector companies.
The selloff that has hit the sector over the last six (6) sessions Tuesday looked like a garden variety case of investors cashing out in some cases the lofty and unsubstantial able valuations.
RegMed and cell therapy equities need more, more and more time to develop their business models to “work” and often underperform as algorithms and ETFs … suffer … momentum over the short-term.
But do investors have the time to foster a return on investment as money burning companies need that capital market access to remain VIABLE!
Some of MY working trend lines or indications:
… The greatest volume to the downside: MDXG, JUNO, VSTM, SGMO and NWBO
… Upside volume was weighted to: KITE, CAPR, ONVO, CUR and STML
… Biggest $ downside: BLUE (-$3.85), ONCE (-$2.00), CLLS (-$0.60), SGMO (-$0.60) and RGNX (-$0.45)
… Largest $ upside: STML (+$0.35), KITE (+0.33), BLFS (+$0.28), FATE (+$0.12) and AXGN (+$0.10)
… Flat: PSTI at $1.54, RENE.L at $1.70 and AGTC at $3.65
Pre-open indications: 2 hits and 4 miss
· Capricor (CAPR) closed up +$0.07 – miss;
· Cellectis SA (CLLS) closed down -$0.60 – hit;
· Juno Therapeutics (JUNO) closed down -$0.28 – miss;
· BioLife Solutions (BLFS) closed up +$0.28 – miss;
· Verastem (VSTM) closed down -$0.32 – miss;
· Pluristem (PSTI) closed down -$0.00 – hit;
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The first hour was positive with an A/DL of 22/19 and 2 flats;
· The mid-day was negative with an A/DL of 14/26 and 3 flats;
· The close was negative with an A/DL of 17/23 and 3 flats;
Daily analytics:
U.S. stocks closed mostly flat on Tuesday.
· The Dow ended down 9 points to 22,286.
· The S&P 500 rose 0.3 point to 2,497.
· The NASDAQ rose 9.5 points to 6,380, a rise of nearly 0.2%.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Tuesday traded at 10.127, down -0.39% …
- Monday traded at 10.21, up +6.47% after Friday traded at 9.59, down -0.83% after Thursday traded at 9.67, down -1.12% after Wednesday traded at 9.78, down -3.93% after Tuesday closed at 10.18, up +0.30% after last Monday traded at 10.15, down -0.20%
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Tuesday was up +0.32%
· Monday +0.23%
· Friday +0.43%
· Thursday -0.10%
· Wednesday +0.33%
· Last Tuesday was FLAT (haven’t seen that in quite a while)
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Tuesday was down -0.93%
· Monday +0.44%
· Friday -0.40%
· Thursday -0.44%
· Wednesday +0.85%
· Last Tuesday -0.67%
The count - decliners versus gainers:
……. look at the differences in the spreads as decliners jump and %
· Tuesday’s decliners ranged from -0.05% <XON -$0.01> to -9.36% <OPXA -$0.10> in 23 equities;
· Monday’s decliners ranged from -0.16% <XON -$0.03> to -10.97% <CYTX -$0.04> in 22 equities;
· Friday’s decliners ranged from -0.04% <KITE -$0.08> to -9.36% <OPXA -$0.10> in 20 equities;
· Thursday’s decliners ranged from -0.20% <KITE -$0.20 > to -9.36% <OPXA -$0.10 > in 21 equities;
· Wednesday’s decliners ranged from -0.18% < MESO -$0.01> to -19.63% < NWBO -$0.043> in 23 equities;
· Last Tuesday’s decliners ranged from -0.31% <BLCM -$0.04> to -3.73% <MDXG -$0.51> in 21 equities;
Versus
… Look at the percentage’s (%) and spreads …
· Tuesday’s gainers ranged from +0.18% <KITE +$0.33> to +5.30% <BLFS +$0.28> in 17 equities;
· Monday’s gainers ranged from +0.01% <KITE +$0.01> to +9.56% <RGNX +$2.70> in 16 equities;
· Friday’s gainers ranged from +0.18% <MESO +$0.01> to +8.46% <JUNP +$3.52> in 18 equities;
· Thursday’s gainers ranged from +0.11% <CLLS +$0.03> to +12.01% <QURE +$1.02> in 16 equities;
· Wednesday’s gainers ranged from +0.11% <CLLS ++0.03> to +17.83% <CUR +$0.21> in 19 equities;
· Last Tuesday’s gainers ranged from +0.26% <CLBS +$0.01> to +70.45% <CAPR +$0.93> in 19 equities;
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.
