The RegMed Daily Dialogue, 6/1/11, real time and coincident indicators
The 6 W’s: Who, what, where, when, why and what of it…
Regenerative medicine/stem cell universe stocks are “way” down in mid-day trading on Wednesday (6/1/11). The NASDAQ is DOWN -37.07 (-1.31%) to 2798.23. The Dow is also down -190.08 (-1.51%) to 12379.71. Being that macro initiatives have played such a major role, it is appropriate to mention:
- US stock index futures added to their losses Wednesday after data on private-sector employment in May proved to be unexpectedly gloomy;
- The headwinds holding back the U.S. economy are getting stronger. Most of the economic data released in the past month have been disappointing, to say the least.
Isn’t there anything good to say about the economy? Sure!
- Many of the factors depressing the economy are temporary: Gasoline prices have been falling for the past month, and businesses are figuring out how to work around the supply disruptions from the tsunami. Household finances are slowly improving, setting the stage for faster domestic growth. Even the optimists are nervous about the next few months. It’s possible that some of the gloomy data reflect excessive caution ahead of several key events: the end of the Federal Reserve’s asset purchases, the resolution of the US debt ceiling soap opera, the resolution of Europe’s fiscal disaster, and the ability of the developing world to achieve its soft landing. If all of those go well or even just OK, the future might look a little brighter at the end of the summer. And, if they don’t … we may look back on this spring with fond memories.
What’s driving the regenerative medicine – stem cell market … today … not much?
AMEX: CUR, ASTM, STEM and KOOL are up!
Quoting and adlibbing from my Saturday (4/28/11), Regenerative Medicine Weekly Trend Line … To me, there … is … a vacuum of impacting news. Hopefully, the clouds of May will bring sunshine to June but, don’t pull out the sunscreen just yet! June traditionally has been a slow month.
- Still, investors don’t seem particularly bearish … just non-committal.
- But despite all the gyrations, valuations in the RegenMed/StemCell universe are reasonable – in some cases outright cheap!!
- But, beware of those companies with needs for cash via offering dilution in the next few months!! Hopefully, we are setting up for a better 2nd half.
- Finally after a rough few weeks, a bottom (?) has been defined and highlighted by (a few) appreciative moves.
The trend is (NOT) good (but, NO CRATERS) so, I will keep my mouth shut and be thankful … so far. Click: http://www.scimitarequity.com/blog/2011/05/28/regenerative-medicine-weekly-trend-line-11
