Scimitar Equity Blog

Shares of regenerative medicine stem cell companies were pummeled hit by depreciating markets and profit taking by Friday, 5/13/11.

At the end of the week, the NASDAQ was down -34.57 (-1.21%) to 2828.47. The Dow was down -100.17 (-0.79) to 12,595.75.

US equities finished lower as euro and regulatory concerns in the financials added to uncertainty on the economic outlook. US corporate earnings also hampered sentiment on margin concerns. Defensive healthcare companies again outperformed the broader markets for a 2nd consecutive session in a flight to quality and on positive analyst comments yet regenerative medicine companies were again, excruciatingly pushed way down during the week. Everywhere, uncertainty remains elevated. Visibility remains a constant as all market issues over-whelmed any thoughts of investment.  Losses per share (LPS) earnings have been increasing as elements of conviction continue to be the indicator of momentum initiatives … (Last week close, 5/6/11 = LW)

Advancers (3):

• Aastrom (ASTM) up $0.03 (1.09%) to $2.77 (LW $2.73);
• ImmunoCellar Therapeutics (IMUC) up 0.06 (3.28%) to $1.89 (LW $1.95);
• NeoStem (AMEX: NBS) up $0.01 (0.60%) at $1.67 (LW $1.74).

 Decliners (14):  

• Athersys (ATHX) down  -$0.14 (-4.86%) to $2.74 (LW $2.88):
• BioTime (AMEX: BTX) down -$0.38 (-6.43%) to $5.53 (LW $6.35);
• BioMimetic (BMTI) down -$1.10 (-11.90%) to $8.10 (LW $13.29);
• Cytori (CYTX) down -$0.13 (-2.09%) to $6.08 (LW $6.31);
• Geron (GERN) down -$0.03 (-0.60%) to $4.96 (LW $4.85);
• International Stem Cell (ISCO.OB) down -$0.03 (-2.54%) to $1.15 (LW $1.06);
• Neuralstem (AMEX:CUR) down -$0.04 (-2.63%) to $1.48 (LW $1.42);
• Opexa (OPXA) down -$0.02 (-1.12%) $1.76 (LW $1.82);
• Osiris (OSIR) down -$0.02 (-0.27%) to $7.38 (LW $6.58);
• Pluristem (PSTI) down -$0.04 (-1.50%) to $2.63 (LW $2.65);
• ReNeuron Group (RENE.L) down -$0.04 (-0.82%) to $5.33 (LW $5.37);
• StemCells (STEM) down -$0.010 (-1.28%) to $0.77 (LW $0.783); and
• Tengion (TNGN) down -$0.35 (-15.91%) to $1.85 (LW $2.53 
• ThermoGenesis (KOOL) down -0.04 (-1.73%) to $2.27 (LW $2.24).                                     

Flat (3):

• Advanced Cell Technology (OTC: ACTC) flat at $0.205 (LW $0.198);
• Brainstorm (BCLI.OB) flat at $0.262 (LW $0.285); and
• BioHeart (Symbol Change: BHRTE.OB) flat $0.20.

The Bottom Line: The universe needs some promising news. Yet another wild week ending Friday (5/13/11), marked by continued volatility in the markets adjusting investor attitudes, as can be seen by the numbers. Declining stocks versus advancers (14 to 3 versus last weeks 9 to 9) shows a weak indicator. Market unrest is killing our sector. The biggest winners (that is a misnomer) of the regenerative medicine universe Friday’s close were ImmunoCellar Therapeutics (IMUC) up 0.06 (3.28%) to $1.89, Aastrom (ASTM) up $0.03 (1.09%) to $2.77 followed by NeoStem (AMEX: NBS) up $0.01 (0.60%) at $1.67.

The biggest events from the previous week were the earnings report card additions: (http://www.scimitarequity.com/blog/2011/05/10/earnings-report-card-stem-cellregenerative-medicine-universe-to-date). Paramount was the article, Stem Cell Treatments re iPS cells and their degree of immune response (http://www.scimitarequity.com/blog/2011/05/13/setback-for-new-stem-cell-treatment ). Recapping the week: http://www.scimitarequity.com/blog/2011/05/13/the-regmed-daily-dialogue-friday-51311-a-jinxed-day ); http://www.scimitarequity.com/blog/2011/05/12/the-daily-dialogue-thursday-51211-whats-up ; http://www.scimitarequity.com/blog/2011/05/11/the-daily-dialogue-wednesday-51111-new-ma ; http://www.scimitarequity.com/blog/2011/05/11/the-daily-look-51111-mid-week-cause-and-affect ; http://www.scimitarequity.com/blog/2011/05/10/the-daily-dialogue-tuesday-51011-risk-on-moves ; http://www.scimitarequity.com/blog/2011/05/09/the-daily-dialogue-mid-day-monday-5911 .

 I believe “buying the dips” could be a frustrating endeavor in the immediate term but, as I am always outspoken when the universe is filled with doubt. So, I won’t be quiet, trading traffic is “taking” any gains from the previous months. Hesitancy continues to be nudged by smaller volume indicators. Last weeks, comment of conventional-wisdom of “sell in May” rule of thumb seems to ring true as optimism is suspect.  Short term (1-2 months) I see continued gyration, near term (2-4 months) I feel slow appreciation but, long term (4-6 months) expect solid appreciation. Reiterating, short sale ratio data continues to carry significance.

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