February 20, 2018 5:46pm
Sector intelligence and perspective
The open was positive, slipping negative at 10:30 a.m. with the mid-day barely negative, closing to the downside
As the sell-off intensified with low volume and technical resistance
I also noticed the sector’s breadth deterioration in review of advance/decline lines of 40 covered companies; my working trend lines; daily analytics and the % count of decliners versus gainers
Out and about: MiMedx Group Inc.'s (MDXG -$5.72 or -39.53%) shares were halted in premarket trade on news that the company is delaying the release of Q4/17 and full-year ‘17 earnings to conduct an accounting review. The audit committee has hired legal and accounting advisers to conduct an internal investigation of allegations relating to sales and distribution practices. More …
Fate Therapeutics (FATE +$0.41 or +4.68%) has treated its first subject in the DIMENSION study of FATE-NK100 for the treatment of advanced solid tumors. More …
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 is what it is, until it isn’t and then … the problem is what expectation to anticipate and … the issue is sorting fundamentals and technicals from pure speculation as uncertainty is infectious while volatility is contagious; be ready for a shot … the indexes and ETFs have toppled in the pre-open.”
The day's losses were broad with much lower volume which could make sector equities less attractive at current levels unless the oversold are marked by the algorithms.
I am concerned that sentiment is more of a drag than many understood.
My checklist of concerns is stretched and changing pricing conviction including connecting loss-per-share statistics, volatility, and a narrowing market breadth and development leadership supported by partners.
Out and about:
MiMedx Group … Executives are reviewing the accounting treatment of certain distributor contracts, among other items. "The company believes, based on information available to date, that the outcome of such investigation should not have a material impact on revenue guidance for 2018," said a statement. The company had about $33 million in cash and cash equivalents at year-end and has no debt. Shares have gained 75% in the last 12 months through Friday. Amid buzz is a short seller’s visit by the FBI, MDXG has been involved in a nasty relationship with short sellers that recently took a turn for the worse. Now, MDXG’s internal investigation is delaying the release of its financial results, including its annual statement that would detail last year’s performance.
Fate Therapeutics (FATE)… the clinical trial is intended to evaluate the safety and determine the maximum dose of FATE-NK100, FATE’s allogeneic donor-derived adaptive memory natural killer (NK) cell cancer therapy, when administered as a monotherapy and in combination with trastuzumab or cetuximab, two FDA-approved targeted monoclonal antibody therapies that are widely used today to treat various cancers. DIMENSION is the third clinical trial of FATE-NK100 currently being conducted. FATE-NK100 is also being clinically investigated in the VOYAGE study for the treatment of refractory or relapsed acute myelogenous leukemia and in the APOLLO study for the treatment of ovarian cancer resistant to, or recurrent on, platinum-based treatment.
The advance/decline line scenario of 40 SCGT & RT covered companies:
· The open was positive with an A/DL of 19/19 and 2 flat ;
· 10:30 a.m. was negative with an A/DL of 16/23 and 1 flat
· The mid-day barely negative with an A/DL of 16/18 and 6 flat;
· The close was negative with an A/DL of 12/26 and 2 flat;
MY working trend lines:
… The greatest volume to the downside: MDXG, JUNO, SGMO, ONCE and ONVO
… Upside volume was weighted to: BLCM, FATE, CYTX, IMUC and ADRO
… Biggest $ downside: BLUE (-$7.90), MDXG (-$5.72), ONCE (-$4.27), SGMO (-$1.05) and CLLS (-$0.67)
… Largest $ upside: FATE (+$0.41), AXGN (+$0.35), BLCM (+$0.31), MESO (+$0.21) and OSIR (+$0.12)
… Flat: RENE.L and QURE
Daily analytics:
U.S. stocks closed lower on Tuesday, with the Dow falling back below 25,000 as losses accelerated in the afternoon.
· The Dow lost 260 points, or 1%, to 24,960.
· The S&P 500 was down 16 points, or 0.6%, to 2,716.
· The NASDAQ slipped 0.1%, or 5 points, to 7,234.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, Tuesday traded at 20.60, up +5.86% …
· Monday was a market holiday
· Friday traded 19.46, up +1.73% …
· Thursday traded at 19.07, down -0.99% …
· Wednesday traded at 19.22, down -23.03% …
· Tuesday traded at 24.97, down -2.50% …
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Tuesday was down -0.83%
· Monday was a market holiday
· Friday was up +0.36%
· Thursday was up +1.07%
· Wednesday was up +1.82%
· Last Tuesday +0.22%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Tuesday was down -1.01%
· Monday was a market holiday
· Friday was down -0.37%
· Thursday was up +0.94%
· Wednesday was up +2.04%
· Last Tuesday +0.18%
The count - decliners versus gainers:
……. look at the differences in decliners:
· Tuesday’s decliners ranged from -0.14% <JUNO -$0.12> to -39.53% <MDXG -$5.72> in 26 equities;
· Monday was a market holiday
· Friday’s decliners ranged from -0.31% <STML -$0.05> to -% <CAPR -$0.15> in 17 equities;
· Thursday’s decliners ranged from -0.38% <BTX -$0.01> to -10.13% <BSTG -$0.31> in 16 equities;
· Wednesday’s decliners ranged from -0.15% <FCSC -$0.001> to -12.42% <ATHX -$0.20> in 10 equities;
Versus
… Look at the percentage’s (%) and spreads …
· Tuesday’s gainers ranged from +0.39% <FCSC +$0.0026> to +4.70% <BLCM +$0.31> in 12 equities;
· Monday was a market holiday;
· Friday’s gainers ranged from +0.12% <QURE +$0.03> to +10.55% <BLCM +$0.63> in 18 equities;
· Thursday’s gainers ranged from +0.63% <STML +$0.10> to +3.55% <ATHX +$0.05> in 20 equities;
· Wednesday’s gainers ranged from +0.75% <RGNX +$0.20> to +15.74% <CYTX +$0.048> in 27 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.
