RegMed Sector, levitation not volume drives greens beating reds

12:13:19 PM EDT, Tuesday, April 2, 2013 · by Henry McCusker / Scimitar Equity

The 6 W’s: Who, what, where, when, why and what of it

RegMed sector stocks added to their gains Tuesday while the NASDAQ is up +0.82%.

 Measuring the day – POSITIVE 15 green (ups) following 13 red (downs) and 8-9 fluctuating black (flats)

 

Research note:

 

Roll Call:

  • Aastrom (ASTM) is now UP having down and flat at $0.01 or +0.91% to $0.78 in a mid-day trading range of $0.76 – $0.80 … and a volume of 382 K still an increase of $0.08 from its close last week when it announced its core research strategy will shift to treatments for dilated cardiomyopathy and other rare disease conditions.   ASTM had another huge volume day of 1.137 M shares.  Now a “HOLD” if you still possess the shares versus a “STRONG SELL”. 
  • BioLife Solutions (OTC: BLFS) is up $0.02 or +5.26%  at $0.030 with a 12 K share volume after announcing yesterday a 10th consecutive quarter of record revenue. BLFS is growing its business while keeping high growth as the regenerative medicine market opportunity develops. BLFS hold the leading supplier position for pre-formulated, clinical grade bio-preservation media products.  We estimate that its HypoThermosol^® cell/tissue storage medium and CryoStor^® cryopreservation freeze media products are used in more than 50 clinical trial-stage cell and tissue based therapies in the regenerative medicine field; any 1 of which could generate $1 M per year in revenue, if regulatory and marketing approvals are obtained by customers.  I am still … optimistic about BLFS, now that Q4 and FY12 results are out – my expectations are on target – yet again as BLFS focuses another  “rebound” play! The 50 day moving average is up to $0.30 and the 200 day average is up $0.28. The float is only 19.02 M as compared to outstanding shares of 69.67 M. BLFS is UP +200% for the year – a STRONG BUY.  Demand for bio-preservation media is estimated to grow at an annual rate of almost 20% over the next several years, largely driven by rapid growth of the emerging field of regenerative medicine (including cell therapy and tissue engineering). BioLife’s strategy is to build greater visibility and awareness of the benefits of their bio-preservation products compared to the “home-brews” that currently  dominate the market.  Meanwhile, the company’s contract manufacturing business is expected to provide a source of near-term revenue and cash flow to help fund the further development and commercialization of the biopreservation media business, which is expected to provide the bulk of revenue and drive earnings for the long-term.  Share price up 275% since its July initiation.  Maintaining Outperform rating and $0.70 price target.           

 

  • Bioheart, Inc. (PINK: BHRT) is UP… +2.18% to $0.0281 as prepares an FDA request for access to investigational drugs which are outside the setting of clinical trials. BHRT has decided to start the program because they received numerous requests by the physicians and the patients to make LipiCell and MyoCell available for them on compassionate basis.
  • Cytori (CYTX) is UP … +$0.14 +5.34% to $2.67 in a broad mid-day trading range of $2.51 to $2.67 with a moderate 196 K share volume so far compared to yesterday’s 298.7 share volume.  A 50 day moving average is down to $2.66 <-$0.01> and the 200 is stable at $3.28 <-$0.05>.
  • Cytomedix (OTC: CMXI) is DOWN … -$0.01 or -1.39% at $0.50 … with a trading range of $0.49 to $0.51 with moderate volume of 109 K shares compared to the close of $0.51 and moderate volume of 221.2 shares. The 50 day and 200 day moving averages are flat at $0.55 and $0.71 <-$0.03> respectively.  Visibility is still an issue but the financing got done! Let’s wait <and pray> for earnings based on financing notes. Ranked a BUY with a 3-6 month target 0f $0.85 to $1.00!
  • NeoStem (NYSE MKT: NBS) is DOWN … -$0.01 or -2.17% at $0.63 … with a broadening range of $0.62 to $0.66 … with moderate 566 K trading volume compared to yesterday’s close of $0.65 with huge 1.035 M.  NBS continues a “BUY”! The trending 50 day moving average is $0.62 and the 200 day moving average is the same at $0.65 – not as many dramatic drops associated with many of our sector compatriots. Insiders own 21.26%!  Reiterating, to be STEADY in this market could be considered a small miracle … in comparison to this sector and the market!
  • Medistem (PINK: MEDS) is FLAT … at $1.00 … with 100 share volume. Medistem (PINK:  MEDS) needs to generate some significance to differentiate itself and forward … any visibility standing. MEDS closed on Thursday at $1.00 with 0 share volume. A very thinly or no trading volume stock.
  • Reiterating … Harvard Apparatus Regenerative Technology, Inc., or HART, a wholly-owned subsidiary of Harvard Bioscience, has filed a registration statement with the SEC for an IPO of HART’s common stock. HART has set a price range of $10.00 – $12.00 per share of common stock and has commenced its “road show”. It is expected that the offering of HART’s common stock will price in early April, with the offering closing shortly thereafter. With respect to the offering, Summer Street Research Partners is sole book-running manager, and Maxim Group LLC is co-lead manager.

 

News:

  • Stem cell research company Mesoblast ADR (PINK: MBLTY) is looking at a secondary NASDAQ listing as it advances clinical trials of a new treatment for chronic back pain and seeks to widen its source of global investors.
  • Production of the generic drugs in India, the world’s biggest provider of cheap medicines, was ensured on Monday in a ruling by the Indian Supreme Court.  The decision allows Indian makers of generic drugs to continue making copycat versions of the drug Gleevec, made by Novartis. The ruling will also help India maintain its role as the world’s most important provider of inexpensive medicines, which is critical in the global fight against deadly diseases. Gleevec, for example, can cost as much as $70,000 a year, while Indian generic versions cost about $2,500 a year.
  • Proteonomix, Inc. (OTC: PROT) has settled investor litigation upon the following terms and conditions. PROT will pay to the Investors, a group of ten funds, $200,000 – the first $50,000 in cash due payable today, with the remaining $150,000 to be paid through issuance of 300,000 shares released in 50,000 shares traunches commencing today.  Equal traunches will be released every five trading days until the 300,000 share total is released.  All shares issued pursuant to this Agreement will be free trading. 2)  If the liquidation of the above mentioned shares does not equal $150,000, then the Company may either execute a sixty day note for the balance, or issue additional shares until the $150,000 sum has been reached. 3)  If the above mentioned shares are not delivered in a timely fashion then the Investors shall be entitled to 125% of the assumed value of the shares as liquidated damages. 4)  441 shares of Series E Preferred Stock held by the Investors will be converted to 358,537 of free trading common stock at the conversion price of $1.23. 5)  An additional 1,540 shares of free trading stock will be issued to one investor to rectify a prior issuance error.  6)  A swap of 151,647 free trading shares will be made with four investors holding restricted shares.  7)  The Company shall issue new Series A and Series B Warrants to the investors.  The only changes to these warrants are the exercise price and term. All of these warrants shall have a five year term and are exercisable at $0.75 an $1.50, respectively. Upon issuance of these new warrants, the old Series A and Series B Warrants are null and void.  8) The existing Series C Warrants become null and void.9)  The settlement was also facilitated by the agreement of Proteonomix Ltd. to issue free trading shares to the investors as if all Series E Preferred shares that were still unconverted at the date of the Agreement as if they had been issued prior to the January 18, 2013 so that those Preferred holders could receive shares of Proteonomix, Ltd. as if holders on that date.  In addition, Proteonomix Ltd. has agreed to issue one free trading share to the investors for each share that could be exercised pursuant to the new A Warrant immediately and without cost to the investor.  10)  In exchange, the investors have released the company and dismissed their suit. 

Worth mentioning:

  • JOHN A SCARLETT, CEO, BUYS 50,000 shares  on 4/1/13 OF Geron (GERN)
Categorized under Henry McCusker·

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