Investors need to take a 2nd or 10th or a new look at regenerative medicine (RegMed) stocks, which have suffered from marginal if any news flow concerning clinical development, disease states and government (FDA) inattention. However, even the most obscure story can produce double-digit stock moves, thanks in part to the universes diminutive stock floats.
NO other medical subsector has had to endure as much volatility.
Most are trading through the motions (in this volatile market) with spurting rounds of bargain hunting but followed by immediate profit taking (a good sign for if the stocks are running even if marginally) … are based a modest pickup in optimism. It is not time to be a hero, but, the fear of a stock-market decline, or another sharp will whip up or down, is so high that the volatility premiums in many bearish, and even bullish moves are unusually high. Investors with long-term horizons SHOULD be buying these stocks.
Focus on the cash positions, financial health and trial status within crowded disease states of these firms as well as the fact of NOT having to seek additional financing to fund forthcoming clinical initiatives. Investors MUST be more “knowledgeable” as they review DIFFERENTIATED pipelines, management’s attitudes to investors as well as their ability to put THEIR own money on the line to re-establish their momentum. Also, the quality and changes in/of the institutional investors and their “staying powers” should also be measured by their recent changes!
Investors have recently been less eager to play in these risk-adverse times, however, several (my BELLWETHERS) companies: Cytori (CYTX), NeoStem (NBS), Athersys (ATHX), Geron (GERN), Osiris (OSIR) ARE potentially great BUYS. The bottom is still being conformed by cross currents but I believe … are being defined more bullish in these depreciated stocks, more pull backs continue to FOCUS the impact of the short positions. Valuations are very cheap, and the evidence is before our eyes based on historical pricing!
I intend to emphatically DEFINE these supporting indicators with follow-up over the next few weeks and months, so look for/at what’s right and possibly what’s wrong … in the RegMed universe. The dearth of news and corporate reviews has been WEAK and SLANTED to banking fees; solid supporting data NEEDS to be articulated! IT is about time someone, defines the current MARKET PULSE … with specific MODELING augmented by fact- based QUALITATIVE synthesis.
After suffering through the “lost decade” for stocks, investors have been taken on a roller-coaster ride in recent weeks but, the question lives “if “ the future looks to hold more of the same. After recent tough going in global markets and a raft of dismal economic reports, investors and institutions around the world are looking for the Fed Chairman and the U.S. (FED) cavalry to ride to the rescue yet again. September is on its way … hopefully, the pulse of the market changes but, certain companies in the RegMed universe will be stronger.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.