Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.
Merrimack Pharmaceuticals Inc (NASDAQ:MACK)

What Next For Peregrine Pharmaceuticals (NASDAQ:PPHM) After Proof of Concept?

Peregrine Pharmaceuticals (NASDAQ:PPHM)

Peregrine Pharmaceuticals (NASDAQ:PPHM) announced earlier this month that the proof of concept study of its exosome-based cancer diagnostic platform turned up positive results. The company licensed the technology from a unit of University of Texas (UT) called Southwestern Medical Center, which also helped with conducting the study.

Primary cancer cells emit exosomes that contain phosphatidylserine (PS). The technology that Peregrine has developed is able to detect the presence and measure the level of PS in a patient’s blood.

In the proof of concept study, PPHM’s exosomes-based diagnostic platform was used to test samples from 34 patients with ovarian tumor. The study involved a control arm of 10 healthy subjects. The trial was conducted in a blinded format. The outcome of the study showed that patients with ovarian cancer had significantly higher levels of PS in their blood compared to the healthy subjects, suggesting that PPHM’s technology could provide a simpler way to detect cancer and its progress in patients.

“This type of diagnostic technology is particularly important in an area such as ovarian cancer, in which screening options are limited and the ability to detect the disease at an early stage is inadequate. We look forward to continuing to explore the potential of the technology platform in ovarian as well as other types of cancer,” said Peregrine Pharmaceuticals (NASDAQ:PPHM) CEO Steven W. King.

What comes next?

With the positive proof of concept data, Peregrine Pharmaceuticals (NASDAQ:PPHM) has said that its sight is on developing the technology into an optimized diagnostic platform for clinical testing of cancer. To reach that goal, Peregrine said it is seeking strategic partners to help it develop and commercialize the platform.

Those partners would be expected to inject money into the project for an equity stake in Peregrine Pharmaceuticals (NASDAQ:PPHM) or a cut of revenue from the sale of the platform. There are several large pharmaceutical companies developing their own ovarian cancer diagnostic systems are in need of such technology, so PPHM could pitch to them to join its exosomes-based diagnostic efforts.

Potential partners

AstraZeneca plc (ADR)(NYSE:AZN), Tesaro Inc(NASDAQ:TSRO) and Clovis Oncology Inc(NASDAQ:CLVS) are some of the major pharma brands that could be a fit for PPHM. The pharma giants are at various stages in the development of their ovarian cancer assets.

Cash injection from strategic partners will reduce the risk for Peregrine Pharmaceuticals (NASDAQ:PPHM) in developing its exosomes-based cancer diagnostic system.

Stock movement

Shares of Peregrine Pharmaceuticals (NASDAQ:PPHM) have gained more than 55% so far this year, but are down about 52% since 12 months ago. The stock dipped 13% to $0.479 in the last session.

2/21/2017
Ticker Symbol PPHM
Last Price a/o, 4:02PM EST  $                        0.48
Average Volume (mlns)                    2.86
Market Cap (mlns)  $                   117.51
Sales (mlns) $54.50
Shares Outstanding (mlns) 244.82
Share Float (mlns) 229.47
Shortable Yes
Optionable Yes
Inside Ownership 0.20%
Short Float 0.46%
Short Interest Ratio 0.37
Quarterly Return 54.84%
YTD Return 54.84%
Year Return -54.72%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Can Canadian Solar Inc. (NASDAQ:CSIQ) Do Better in 2017?

Canadian Solar Inc. (NASDAQ:CSIQ)

Canadian Solar Inc. (NASDAQ:CSIQ), like many other solar companies, had a tough year in 2016.  Can 2017 be better?

Canadian Solar is due to report its 4Q16 earnings on March 9, which might provide clues about how 2017 could turn out to be for the company. In 2016, the company struggled with tepid demand for solar panels because of a shortage of incentives to solar buyers from governments. Additionally, oversupply of panels led prices lower, making it difficult for panel manufacturers to meet their growth projections.

As a result, Canadian Solar Inc. (NASDAQ:CSIQ) posted downbeat earnings for 3Q16, its most recent quarterly report. Revenue of $657.3 million came short of consensus estimate by $28 million. Furthermore, the revenue declined 23% from a year earlier. Soft demand for panels and weak pricing environment contributed to the revenue shortfall.

That led Canadian Solar Inc. (NASDAQ:CSIQ) to report EPS of $0.27, barely in-line with the consensus estimate.

The troubles in the solar industry in 2016 were also responsible for the nearly 60% drop Canadian Solar’s share price in the year. However, in what signals a positive start to 2017, shares of Canadian Solar Inc. (NASDAQ:CSIQ) are already up more than 25% so far this year. The stock rose nearly 9% to $15.36 in the last session.

Hope for a better 2017

The gains in the stock seem to stem from investors growing more optimistic that 2017 will be a better year for Canadian Solar Inc. (NASDAQ:CSIQ). Part of the reason for optimism comes from expectations that Canadian Solar will find good market for the various projects it has earmarked for sale.

Instead of creating a yieldco, Canadian Solar said it would monetize about $2 billion worth of project assets. It has sold several projects already, including recent sale of three utility-scale solar farms to a unit of Fengate Real Asset Investments. The transaction involving the three solar farms was valued at more than $195 million. Canadian Solar said gains from the transaction will be reflected in its 1Q17 results.

But Canadian Solar Inc. (NASDAQ:CSIQ) has more assets to monetize. About $1.2 billion worth of project assets remain to be sold.

The sale of the assets will yield cash that Canadian Solar can funnel to more growth in 2017 or distribute to shareholders. The cash injection from assets monetization would also ease pressure on Canadian Solar in case recovery in solar industry remains slow in 2017.

Industry growth

Though 2016 was a tough year for solar companies, solar power industry is expected to continue growing thanks to regulatory requirements around greenhouse emissions. Falling panel prices is also expected to encourage uptake of solar power system, leading to more demand for Canadian Solar Inc. (NASDAQ:CSIQ) products and projects.

Canadian Solar Inc. (NASDAQ:CSIQ) has several projects in the pipeline.

2/21/2017
Ticker Symbol CSIQ
Last Price a/o, 4:02PM EST  $                       15.36
Average Volume (mlns)                    1.27
Market Cap (mlns)  $                  837.89
Sales (mlns) $3.30
Shares Outstanding (mlns) 54.55
Share Float (mlns) 45.25
Shortable Yes
Optionable Yes
Inside Ownership 31.00%
Short Float 12.31%
Short Interest Ratio 4.4
Quarterly Return 31.51%
YTD Return 26.11%
Year Return -26.86%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Will Mad Catz Interactive, Inc. (NYSE:MCZ) Sell Itself?

A special committee set up by the board of Mad Catz Interactive, Inc.(NYSE:MCZ) is evaluating strategic options aimed at enhancing shareholder value. The options being explored by the committee include the sale of the entire company.

The strategic review began last year and resulted in Mad Catz selling its Saitek product line to Logitech International SA (NASDAQ:LOGI) for $13 million. Despite the cash injection from the sale of Saitek business, Mad Catz has continued to struggle with working capital shortage and other challenges.

While the strategic review could lead to Mad Catz selling its other assets to unlock funds to revive its fading fortunes, the falling stock price could pave the way to the company selling itself entirely. That is because the downbeat stock price could encourage potential buyers, especially competitors looking to shore up their position, to place bids for the company to grab it at a discount valuation.

Steep stock decline

Shares of Mad Catz Interactive, Inc. (NYSE:MCZ) have retreated more than 46% since the beginning of this year, and are down more than 65% over the last 12 months.

No guarantee of a deal

Mad Catz has retained financial advisors to help it explore strategic alternatives. However, the management said on the fiscal Q3 2017 earnings call that a specific strategic transaction has not been determined and such a decision would be reached after the evaluation of strategic options is concluded. There is no guarantee that the strategic review would result in a transaction.

Focus remains on strengthening the business

Although Mad Catz Interactive, Inc. (NYSE:MCZ) is exploring strategic options to maximize value for shareholders, the management in the meantime is focused on strengthening the business as it stands. Efforts are being made to improve the company’s working capital to avoid problems of product release and shipment delays. The last quarter, the management said working capital shortage led to Mad Catz incurring higher costs in air freight to get products to customers on the promised dates. That led to Mad Catz scooping a loss in the quarter.

Downbeat quarterly results

Mad Catz reported Q3 2017 revenue of $19.1 million, down 71% year-over-year. By region, Mad Catz registered the steepest revenue decline of 75% in the Americas. EMEA and APAC sales fell 63% and 23%, respectively.

The weak sales coupled with a 6.8% decline in gross margin took a serious hit on Mad Catz’s bottom line. The company reported EPS loss of $0.05, sharply down from EPS profit of $0.02 in the year ago quarter.

Fruits of restructuring

Despite Mad Catz Interactive, Inc. (NYSE:MCZ)’s Q3 2017 results being generally weak, the quarter also showed that the company’s restructuring efforts are bearing fruits. Expenses related to sales, R&D and administration declined 52% from the prior year, with the management linking the development to the success of cost pruning.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/17/2017
Ticker Symbol MCZ
Last Price a/o, 4:02PM EST  $                       0.08
Average Volume 718,950
Market Cap (mlns)  $                   7.30
Sales (mlns) $61.90
Shares Outstanding (mlns) 93.59
Share Float (mlns) 73.06
Shortable Yes
Optionable No
Inside Ownership 3.23%
Short Float 0.24%
Short Interest Ratio 0.24
Quarterly Return -61.00%
YTD Return -44.29%
Year Return -66.09%

Can Gold Resource Corporation (NYSE:GORO) Cash In On Global Economic Uncertainty?

Gold Resource Corporation (NYSE:GORO) recently updated the public on the expansion of its Arista Mine in Mexico. The company said it expanded the mine’s Switchback vein system through additional step-out drill intercepts. Gold Resource added that the additional step-out extended the mine’s total strike length to more than 575 meters. That signals a 275 meters expansion since January 1.

“We are thrilled to add another 75 meters on strike of high-grade veins at our Switchback vein system,” Gold Resource’s CEO Jason Reid commented on the development.

Boosting mine output

The expansion of Arista Mine is part of the efforts to boost output at the mine. Gold Resource Corporation (NYSE:GORO)  is a producer of gold and silver.

Gold, considered a safe haven asset by traders, gains when markets are gripped by uncertainty. Prices of the yellow metal have risen more than 7% since the beginning of the year. Some analysts have pointed out that uncertainty over Donald Trump’s presidency could buoy gold. The president’s controversial policies such as a travel ban that targeted citizens of certain Muslim countries and anti-Globalism sentiments could give way to global economic uncertainty that allows gold to thrive. In that case, Gold Resource would benefit from increased demand for gold at a higher price.

However, strong demand for gold in an uncertain economic environment could also encourage other gold producers to step up their production, potentially leading to a supply glut that could destroy prices.

Staying out of controversies

As such, for Gold Resource, gaining from a gold rally would largely depend on how the company keeps down its costs while ramping up production and stays out of controversies.

The company has recently reported mine accidents that are under investigations by the company itself and the authorities in Mexico. Gold Resource could be slapped with fines if investigations reveal that failure to comply with certain workplace regulatory requires led to the accidents.

In a move aimed at increasing Gold Resource’s capacity the company, in January, announced completing acquisition of 100% of East Camp Douglas Property for $2 million.

Shareholder returns

Gold Resource Corporation (NYSE:GORO) recently updated that it has returned $109 million to its shareholders through monthly dividends since it began commercial production in July 2010. Shareholders of Gold Resource are given the option to take their dividends in the form of gold and silver instead of cash.

Earnings above expectations

Gold Resource Corporation (NYSE:GORO) reported Q3 2016 EPS of $0.03, sharply up from EPS loss of $0.01 a year earlier. Revenue of $21.4 million in the most recent quarter rose from $19.4 million in the prior year.

Shares of Gold Resource have risen more than 36% year-to-date, and are up more than 240% since the last 12 months.

 

2/17/2017
Ticker Symbol GORO
Last Price a/o, 4:02PM EST  $                        5.92
Average Volume (mlns) 1.01
Market Cap (mlns)  $                   342.83
Sales (mlns) $86.60
Shares Outstanding (mlns) 57.91
Share Float (mlns) 54.55
Shortable Yes
Optionable Yes
Inside Ownership 2.00%
Short Float 2.66%
Short Interest Ratio 1.43
Quarterly Return 32.29%
YTD Return 36.19%
Year Return 242.97%

Can Coeur Mining Inc (NYSE:CDE) Meet Its Production Targets for 2017?

Coeur Mining Inc (NYSE:CDE) has set its sight on producing 16.4 to 18 million ounces of silver in 2017. The company produced 14.8 million ounces of silver in 2016, and 15.9 million ounces of the metal in 2015.

For gold, the company targets production between 362,000 and 387,000 ounces of gold in 2017. That would be up from 358,170 ounces of gold produced in 2016.

Cash shortage could complicate the picture

However, Coeur Mining Inc (NYSE:CDE)’s 2017 production targets are threatened by cash shortage risk. The company concluded 2016 with cash and equivalents of $162.2 million, down from more than $200 million in the prior year. Debt at the end of the year was $210.9 million.

However, the debt decreased sharply from a year ago when the company’s balance sheet reflected more than $490 million of long-term debt. If the company uses the existing cash to repay its debt, the remaining net debt would be $48.7 million. At that level, net debt-to-EBITDA ratio works out to 2.

While the debt load may be threatening, the ratio suggests lenders would still be willing to advance loans to the company to fund operations if a need for such funding arises.

As such, Coeur Mining Inc (NYSE:CDE) still has room to meet its production targets for 2017 even if organic cash flow isn’t adequate to fund projects or expand them.

Annual and quarterly performance

Coeur Mining Inc (NYSE:CDE) posted 4Q16 adjusted EPS of $0.01, down 96% from the prior quarter, but up 103.2% year-over-year. However, the EPS still came short of the consensus estimate of $0.11.

Falling prices of silver and gold impacted the topline and led the company to the EPS decline and miss in 4Q16. The price of silver per ounce fell 8.8%, while the price of gold declined 12.4% per troy ounce.

Revenue of $159.2 million for the quarter retreated 10% from the prior quarter. Sales of silver accounted for 33% of the company’s revenue, while sales of gold contributed 67% of revenue. The company’s silver production was 3.9 million ounces in 4Q16, while gold production was 102,500 troy ounces.

For the year, adjusted EPS was $0.29 cents, falling 136.3% from a year earlier despite revenue of $665.8 million for the year growing 3% from the prior year.

Stock movements

Shares of Coeur Mining Inc (NYSE:CDE) have declined less than 3% so far in 2017, and are up nearly 150% over the last 12 months.

2/17/2017
Ticker Symbol CDE
Last Price a/o, 4:02PM EST  $                         8.88
Average Volume (mlns) 4.15
Market Cap (blns)  $                   1.65
Sales (mlns) $665.80
Shares Outstanding (mlns) 186.15
Share Float (mlns) 178.72
Shortable Yes
Optionable Yes
Inside Ownership 1.20%
Short Float 2.50%
Short Interest Ratio 1.08
Quarterly Return -7.21%
YTD Return -2.31%
Year Return

149.44%

Can NETEASE INC (ADR) (NASDAQ:NTES) Sustain Its Growth Momentum?

NetEase Inc (ADR) (NASDAQ:NTES) Q4 2016 results exceeded Wall Street expectations for the quarter. Revenue of 12.1 billion yuan ($1.74 billion) rose more than 53% over a similar quarter a year earlier. The online games publisher reported adjusted net income of 4 billion yuan ($570 million), leading to adjusted EPS of $4.30. The EPS rose sharply from $2.56 in the comparable quarter a year earlier.

Analysts on the average were expecting NetEase to report revenue of $1.58 billion and EPS of $3.44.

What supported the growth?

The management attributed the starling quarterly performance to strong execution focused on innovation.

“In 2016, we brought best-in-class products and services to our community and continued to grow our business. As we move through 2017 we will look toward the future, designing products and services that address fluid market dynamics, enabling continued growth and value creation,” said CEO William Ding.

The stop pops following the strong results

Shares of NetEase Inc (ADR) (NASDAQ:NTES) popped more than 14% to $298.73 in the last session following the robust quarterly performance. The stock has gained more than 38% since the beginning of the year, and is up more than 115% since a year ago. Shares of NetEase have oscillated between a low of $130.82 and high of $299.68 over the last one year.

In 2017, investors are looking to see if NetEase can increase or, at least, maintain its growth momentum.

Chinese venture with Google

As part of the efforts to drive future growth, media reports, including by South China Morning Post and The Information, have suggested that NetEase has been in discussion with Google for a joint venture in China. Google is the largest division within the Alphabet Inc (NASDAQ:GOOGL) holding company. Its siblings include autonomous driving technology developer Waymo and cable internet unit Google Fiber.

The NetEase Inc (ADR) (NASDAQ:NTES) Google talks are reportedly about bringing Google Play to China. Such a move would help NetEase reach more international customers with its products by making the games available on Google Play app store. Google Pay is available on Android, which is the world’s most popular mobile operating system.

A return to China

Google pulled its products from mainland China in 2010 in protest over the country’s censorship of internet content. But the company has recently shown that it is willing to return to China, according to South China Morning Post. A partnership with NetEase Inc (ADR) (NASDAQ:NTES) on Google Play could bring Google closer to re-entering China.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol NTES
Last Price a/o, 4:02PM EST  $                      298.73
Average Volume 956,180
Market Cap (blns)  $                  39.63
Sales (blns) $4.95
Shares Outstanding (mlns) 132.67
Share Float (mlns) 129.84
Shortable Yes
Optionable Yes
Inside Ownership 45.00%
Short Float 1.09%
Short Interest Ratio 1.48
Quarterly Return 31.40%
YTD Return 38.72%
Year Return 99.34%

“I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.”

Why Sino-Global Shipping America, Ltd. (NASDAQ:SINO) Is Raising $4.8 Million in Equity

Sino-Global Shipping America, Ltd. (NASDAQ:SINO)

Sino-Global Shipping America, Ltd. (NASDAQ:SINO) has embarked on a fundraiser process that it hopes will yield $4.8 million in gross proceeds after it closes later this month.

The company said that it is selling its common stock worth $4.8 million to three institutional investors that it has yet to reveal. Those investors have agreed to pay $3.18 for a share of the company’s common stock, suggesting a discount of 28% compared to the stock’s closing price on the day immediately before it went public with the equity fundraise plan.

Shares of Sino-Global retreated following the discounted fundraiser announcement, with the stock plunging about 22% to $3.45. However, the stock has risen more than 520% since a year ago, oscillating between a low of $0.45 and a high of $14.20. So far this year the stock is up slightly more than 7%.

Putting the funds into use

Sino-Global Shipping America, Ltd. (NASDAQ:SINO) expects to close the equity offering by February 21. It expects net proceeds from the offering to be $4.3 million, that is, after making deductions such as fees for the placement agent and offering expenses. The company didn’t provide specific detail on how it expects to spend the funds, but said it has identified use for the money in working capital and general corporate purposes, which could drive growth.

F2Q17 revenue up 33%

Sino-Global Shipping America, Ltd. (NASDAQ:SINO) registered its fiscal Q2 2017  performance for the period ended December 31, 2016. Revenue for the quarter rose more than 33% year-over-year to $2.1 million. The company said its inland transportation and freight logistic services segments did well during the quarter.

“During the last quarter we continued our efforts to address industry challenges, and in December we completed the launch of our full-service logistics platform. Our new platform connects shippers with independent trucking organizations, and since launch the Company has entered into agreements with two major shipping conglomerates,” said CEO Lei Cao.

He added that such agreements would bring for customers to SINO and help the company into more strategic alliances.

Strong performance in the higher margin logistics services business combined with tight financial controls resulted in a significant improvement in gross margin to 85% from 55.7% a year earlier. As such, Sino-Global recorded net income of $0.8 million, reversing a loss of $1.6 million in the comparable quarter in the prior year.

Sino-Global Shipping America, Ltd. (NASDAQ:SINO) posted EPS of $0.11, up more than 161%. The company ended the quarter with cash and equivalents totaling $3.3 million. Operating cash flow in the back half of 2016 was more than $1.9 million.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/15/2017
Ticker Symbol SINO
Last Price a/o, 4:02PM EST  $                      3.33
Average Volume 4,467,788
Market Cap (mlns)  $27.07
Sales (mlns) $6.60
Shares Outstanding (mlns) 8.13
Share Float (mlns) 4.22
Shortable Yes
Optionable No
Inside Ownership 19.70%
Short Float 2.06%
Short Interest Ratio 0.16
Quarterly Return 86.03%
YTD Return 7.42%
Year Return 530.80%