September 4, 2018 8:04am

September’s first day of trading

I’d sit and wait to see which elements of speculation play out!

 

Pre-open indications: 3 BUYs

 

RMi provides a quick synopsis for the U.S. trading day.

I answer one question, in which company should investors put, keep and commit their money


U.S. stock index futures are headed south

Dow futures are DOWN -0.33% (-86 points) and NASDAQ futures are DOWN -0.31% (-24 points)

 

U.S. stock index futures are fluctuating as trade tensions between the U.S. and major economies continued;

European stocks edge higher amid emerging market turmoil;

Asian stock indexes were broadly positive after a slightly turbulent trading day, with markets remaining uncertain over trade concerns and emerging market worries.

 

Data docket: manufacturing purchasing managers' index (PMI) figures are due out at 9:45 a.m. ET, followed by ISM manufacturing data and construction spending, both at 10 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a +0.1% UPSIDE 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 +0.01% UPSIDE in Tuesday’s pre-open

 

Henry’omics:

Starting the month on a seemingly down day; however, the sector will be put to rigorous test in September, with the month among the worst for stock performance.

The closed we get to the end of September and Q3 – pricing will fade due to the “seasonality” affect.

However, with the exception of a scant few bumps, the sector has held steady with investor sentiment still “nibbles the cheese”!

If the mice are fat and happy, they can’t … think about the future – be PREPARED – LIGHTEN some POSITIONS!

 

I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence:

Monday was a holiday so lets quote from Friday’s night’s newsletter: “exercising the sector, follow the bouncing share pricing. As I had stated, lighten the load as the sector opened up, floated down, was back up at mid-day and closed positive of the 45 covered companies - still with low volume.”

The iShares NASDAQ Biotechnology (IBB):

  • Friday closed up +0.16%
  • Thursday closed up +0.39%
  • Wednesday closed up +1.3%
  • Last Tuesday closed up +0.49%
  • The previous Monday closed up +1.75%
  • For a five session aggregate of +4.09% - still looking at the start of a downside reaction!

 

Of the 45 companies covered on Friday; 17 downside equities finished in a range of -0.10% (VSTM) to -9.54% (KOOL) while the 25 upside equities oscillated from +0.19% (BOLD) to +14.51% (HSGX) with 3 flat closes (BSTG, ONVO and AGTC ).

Of the 21 August sessions – 6 had negative and 15 positive closes

 

Companies in my headlights – It’s your decision; I provide the idea and context:

Asterias Biotherapeutics (NYSEMKT: AST) closed up +$0.05 to $1.66.  AST’s Safety Review Committee (SRC) for the first clinical trial of VAC2 held its second meeting to review the safety and tolerability data generated in patients two and three enrolled in the study and recommended continuation of the study and moving to open enrollment in the advanced disease cohort (Arm A), as planned per the study’s protocol. This initial clinical trial, which is being sponsored, managed and funded by Cancer Research UK, will examine the safety and tolerability of VAC2 in NSCLC as the study’s primary endpoints. Secondary and tertiary endpoints of the study include evaluations of the immunogenicity of VAC2 in NSCLC – Maintaining BUY

BioTime (NYSEMKT: BTX) closed up +$0.06 to $2.75. BTX has closed the previously announced transaction with Juvenescence Limited, a global leader in developing therapeutics focused on improving and extending human lifespans. BioTime sold 14.4 million shares of AgeX to Juvenescence for $43.2 million. The cash consideration of $21.6 million, or 50% of the purchase price, will be paid in two installments. The first installment of $10.8 million was received by BTX at the close of the transaction. The second installment will be paid on November 5, 2018. The remaining 50% of the $43.2 million consideration, or $21.6 million, has been paid by Juvenescence in the form of a 2-year convertible promissory note with an annual interest rate of 7%, payable at maturity, if not converted into Juvenescence common stock sooner. Proceeds provide sufficient capital to fund BTX through major milestones for current programs, including Renevia® and OpRegen® key data and decisions – BUY;

Sangamo therapeutics (SGMO) closed up +$0.10 to $18.25. The pre-market indication is a positive +$1.00 or +5.48% after reporting intriguing interim data for its hemophilia A therapy and ahead of a planned update on its progress toward developing a zinc-finger nuclease gene-editing therapy for Hunter syndrome. On Sept. 5, Sangamo Therapeutics, plans to update investors on SB-913 use in patients with MPS II, or Hunter syndrome, a lysosomal storage disorder caused by genetic mutations that inhibit a patient's ability to break down complex sugars. SB-913 attempts to address Hunter syndrome by inserting a functioning copy of the gene responsible for the protein necessary to break down these sugars in the liver – 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.