December 8, 2015 7:42am

This week’s decline after last week’s mediocre showing following the previous week’s ascendancy implicates the uncertainty in the stem, cell therapy and gene therapy sector and market! 


 

The odd bouts of buying are usually indicative of oversold positions while the opposite is as true – the overbought have been getting decimated by over-reactive selling.

 

Don’t be fooled by the shares of certain company’s sudden and spectacular appreciation - a dog can’t be dressed as a cat and lipstick always gets smeared on a pig! 

The size of any animal in the room is noticed by the lack of appreciation or scepticism of clinical data and ever increasing operating expense squeeze!

 

Uncertainty of pricing, volume, volatility and tightening trading ranges is also unbalancing these animals!  What are some of the issues?

·         Economic in-efficiencies in how shareholder’s dollars are spent;

·         Accountability, governance and transparency have been bypassed and must be the new mantras.

 

We all need to truly understand what is drive stock pricing.

·         Once again, financial releases and the lack of clarity to the future have depreciated pricing which create patterns of underperformance in the sector.

 

The stem, cell and gene therapy regenerative medicine sector (SCGT&RM) is also a - victim of frequency trading – not just traders, speculators or even investors but – programs. It appears that “our” universe is mired in an “incremental and irrational” pricing market that only displays value in an emotional band or sentiment based trading range.