AAC Holdings, Inc. (NYSE:AAC) Placing Shorts on Notice

AAC Holdings, Inc. (NYSE:AAC)

AAC Holdings, Inc. (NYSE:AAC) posted some good numbers and the market sent AAC shares higher. AAC closed Monday at $7.59 and closed Tuesday up over 20% at $9.17 on heavy volumes. AAC Holdings reported a yearly loss of $589,000, or $0.03/share. Revenue was reported as $279.8 million. These figures were largely in line with analyst estimates. AAC Holdings also provided guidance for 2017 – the company expects full-year revenue in the range of $295 million to $305 million.

Brentwood, TN-based AAC Holdings, Inc. provides inpatient substance abuse treatment services at its American locations. It also offers therapy services including motivational interviewing, cognitive behavioral therapy, rational emotive behavior therapy, dialectical behavioral therapy, solution-focused therapy, eye movement desensitization and reprocessing, and systematic family intervention services. As of December 31, 2015, the company operated nine residential substance abuse treatment facilities and nine outpatient substance abuse treatment facilities.

In 2016, AAC Holdings, Inc. (NYSE:AAC) grew from 897 to 1,140 residential beds and added 150 sober-living beds. This allowed the company to increase their admissions by over 50%. This was offset by $16 million in start-up and legal expenses which contributed to the yearly loss. Informed sources say that AACHoldings, Inc. (NYSE:AAC) will increase their business over 50% over the next three to five years.

AAC Holdings, Inc. (NYSE:AAC) has had impressive growth in sales as well as earnings. In 2011 sales were $28.3 million and that number grew to $212.3 million in 2015. Shareholders enjoyed a EPS of $0.04 in 2011 and that number steadily grew. In 2015 AAC had an EPS of $0.49.

Investors, and especially traders, should pay close attention to the number of shares held short in AAC and consider that figure with average volumes taken into account.

2/28/2017
Ticker Symbol AAC
Last Price a/o 4:01 AM EST  $                      9.17
Average Volume                    158,000
Market Cap (mlns)  $                  222.01
Sales (mlns) $265.70
Shares Outstanding (mlns) 24.21
Share Float (mlns) 11.57
Shortable Yes
Optionable Yes
Inside Ownership 5.50%
Short Float 25.40%
Short Interest Ratio 18.6
Quarterly Return -4.18%
YTD Return 26.60%
Year Return -55.05%

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: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Ideal Power Inc. (NASDAQ:IPWR) Releases Earnings and Announces New Raise

Ideal Power Inc. (NASDAQ:IPWR) 

Austin, TX-based Ideal Power Inc. (NASDAQ:IPWR) released Q4 2016 and full year results. Ideal Power lost $0.29/share in Q4 which was better than the analyst estimates of $0.29. However Q4 revenue missed badly – $371,000 vs. estimates of $1.4 million. For the year, the company reported that its loss widened to $11 million, or $1.15 per share. Revenue was reported as $1.6 million.  

Also announced yesterday was a definitive securities purchase agreement with various accredited investors, including all of Ideal Power’s executive officers and directors, to raise gross proceeds of approximately $15 million in a private placement of common stock and warrants to purchase common stock. In addition, Ideal Power Inc. (NASDAQ:IPWR) has agreed to sell to a group of affiliated investors whose purchase of common stock would have resulted in such investors beneficially owning more than 9.99% of the company’s outstanding common stock immediately following the offering, shares of the company’s newly designated Series A Convertible Preferred Stock in lieu of common stock. Each share of such preferred stock is convertible, subject to certain limitations, into one share of common stock. Each share of common stock or preferred stock, together with a warrant to purchase one share of common stock, is being sold at a per share price of $2.535. The warrants will have an exercise price of $2.41 per share, are non-exercisable for the first six months and will expire three years from the date of issuance. 

Ideal Power Inc. ( NASDAQ:IPWR ) is a technology company dedicated to advancing electric power conversion. The company has developed a novel, patented power conversion technology called Power Packet Switching Architecture™ (PPSA™). PPSA™ improves the size, cost, efficiency, flexibility and reliability of electronic power converters. PPSA™ can scale across several large and growing markets, including solar PV, variable frequency drives, battery energy storage, mobile power and microgrids, and electric vehicle fast charging. Ideal Power Inc. ( NASDAQ:IPWR ) is also developing and has patented a bi-directional, bi-polar junction transistor (B-TRAN™) which has the potential to dramatically increase bi-directional power switching efficiency and power density. Ideal Power employs a capital-efficient business model which enables the company to address several product development projects and markets simultaneously. 

2/28/2017
Ticker Symbol IPWR
Last Price a/o 4:01 AM EST  $                      2.85
Average Volume                      51,000
Market Cap (mlns)  $                    22.92
Sales (mlns) $2.20
Shares Outstanding (mlns) 9.55
Share Float (mlns) 8.13
Shortable Yes
Optionable No
Inside Ownership 17.14%
Short Float 3.78%
Short Interest Ratio 6.04
Quarterly Return -45.58%
YTD Return -27.27%
Year Return -51.61%

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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

LSB Industries, Inc. (NYSE:LXU) Misses but Shares Rise on Future

LSB Industries, Inc. (NYSE:LXU)

LSB Industries, Inc. (NYSE:LXU) reported Q4 2016 and full year earnings results yesterday. The firm posted a loss of $21.5 million for Q4, 2016 on revenues of $85.4 million which missed analyst expectations by over $2 million. Net sales from continuing operations of $85.4 million for the fourth quarter of 2016 compared to $90.0 million for Q4 2015. That translated into a loss of $1.06/share. Losses, adjusted for one-time gains and costs, came to $1.14/share which was lower than the street number of $1.36. The Oklahoma City, OK-based firm posted revenue for the year of $374.6 million, a net income of $112.2 million or $2.54/share.

Despite missing expectations, LXU shares prices are strong today on heavy volume. At LXU’s height, shares were trading up over 27% ($11.28) in late-morning trading. Shares are trading at over seven times their pro-rata average daily volumes. Also of note – should LXU remain at these levels the shares will have breached their 20, 50, and 200-day moving averages. LXU shares have more than doubled since November.

LSB Industries, Inc. (NYSE:LXU) manufactures and sells chemical products for the agricultural, mining, and industrial markets. The company owns and operates facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates a facility within a global chemical company’s complex in Baytown, Texas. LSB’s products are sold through distributors and directly to end customers throughout the United States.

Analysts have given LSB Industries, Inc. (NYSE:LXU) a strong vote of confidence – both firms that cover the company have assigned LXU shares a rating of “Strong Buy”. However, sales have been flat to down for the last several years. In 2011 sales totaled $805.3 million but the firm only reached $711.8 million in 2015. Unfortunately, in their earnings release, LSB Industries, Inc. (NYSE:LXU) referenced continued pricing pressure for their agricultural lines. Lack of sufficient margin would explain the downward EPS trend. In 2011 LXU enjoyed an EPS of $3.81 but in 2015 it turned into an EPS loss of $1.67.

We would be remiss if we did not turn our reader’s attention to the “short float” and “short ratio” figures in the below table. Both are significant.

2/28/2017
Ticker Symbol LXU
Last Price a/o 11:55 AM EST  $                    10.93
Average Volume                    496,420
Market Cap (mlns)  $                  259.37
Sales (mlns) $466.80
Shares Outstanding (mlns) 29.34
Share Float (mlns) 20.58
Shortable Yes
Optionable Yes
Inside Ownership 4.20%
Short Float 29.96%
Short Interest Ratio 12.42
Quarterly Return 4.12%
YTD Return 4.99%
Year Return 56.18%

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: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Microbot Medical Inc. (NASDAQ:MBOT) Rises with Large Volumes and No News

Microbot Medical Inc. (NASDAQ:MBOT)

Microbot Medical Inc. (NASDAQ:MBOT) shares have been up on huge volumes. MBOT closed Monday at $5.80 and took off this morning when it opened at $5.76 then hit $6.97 in less than an hour. Volumes are very heavy. MBOT shares average about 435,000 shares traded daily but this morning already 1.2 million shares have traded hands in the first hour of trading. No news has been released that might account for this much activity.

Microbot Medical Inc. (NASDAQ:MBOT) specializes in transformational micro-robotic medical technologies leveraging the natural and artificial lumens within the human body. Microbot Medical Inc. (NASDAQ:MBOT) current platforms, ViRob and TipCAT, are comprised of two highly advanced micro-robotic technologies, from which the Company is currently developing its first two product candidates: the Self Cleaning Shunt, or SCS, for the treatment of hydrocephalus and Normal Pressure Hydrocephalus, or NPH; and a self-propelling, semi-disposable endoscope that is being developed initially for use in colonoscopy procedures.

Shares of Microbot Medical Inc. (NASDAQ:MBOT) are down over 85% for the year but up over 12% for the month. Trader chat rooms are wondering what the fuel is that is pushing shares higher on such large volumes. An internet search on mainstream financial news websites revealed no news being released on the company today.

Microbot Medical Inc. (NASDAQ:MBOT) had its worst year for sales in 2015 – it reported a figure of just $100,000. EPS losses draw the most attention though. In 2011, MBOT lost $162.36 EPS. That figure was narrower in 2015 when Microbot reported an EPS loss of $41.05. In the meantime, the number of outstanbding shares has increased every year since 2011 when it had 130,000 shares outstanding. In 2015 that number had grown to 890,000. The sole firm that covers Microbot Medical Inc. (NASDAQ:MBOT) rates the shares a “Hold”.

2/28/2017
Ticker Symbol MBOT
Last Price a/o 10:18 AM EST  $                      6.76
Average Volume                    435,350
Market Cap (mlns)  $                  165.42
Sales (mlns) $0.10
Shares Outstanding (mlns) 28.52
Share Float (mlns) 5.6
Shortable Yes
Optionable No
Inside Ownership 4.50%
Short Float 6.59%
Short Interest Ratio 0.85
Quarterly Return -46.74%
YTD Return -4.92%
Year Return -85.49%

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: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Castle Brands Inc. (NYSE:ROX) Stuns with Walmart Inc. (NYSE:WMT) Deal

Castle Brands Inc. (NYSE:ROX)

Castle Brands Inc. (NYSE:ROX) shares have been up over 91% on news that the company has reached an agreement to supply Goslings Stormy Ginger Beer and Goslings Stormy Diet Ginger Beer to all U.S. Walmart stores. Consumers can expect to find Goslings Stormy Ginger Beer in Walmart stores in March 2017. Walmart Inc. (NYSE:WMT) is one of the world’s most valuable companies in the world by market value, and is the largest grocery retailer in the U.S. In 2016, 62.3% of Walmart’s $478.6 billion sales came from its U.S. operations.

 Pre-market trading is seeing ROX at $1.39 – it closed at $0.73 yesterday. Castle Brands Inc. (NYSE:ROX) all-time high is just over $2 and its average daily volume is around 125,000 shares. However over 1 million shares have traded hands before the regular session opens.

On February 10, 2017 Castle Brands Inc.’s (NYSE:ROX) earnings broke even in FY Q3 2017, in line with street estimates. The company had posted a loss of a penny in the same quarter last year. Q3 revenues of $18.31 million missed estimates of $20.74 million by 11.7%. However, revenues reflected a 6.4% YoY increase.

The New York, NY-based company has had increasing sales every year since 2012 when the company reported $35.5 million in sales. EPS has been marginally negative for the past five years and in each of the last two years shareholders of Castle Brands Inc.’s (NYSE:ROX) experienced an EPS loss of $0.02. 

 

2/28/2017
Ticker Symbol ROX
Last Price a/o 9:18 AM EST  $                      1.34
Average Volume                    124,250
Market Cap (mlns)  $                  113.39
Sales (mlns) $74.70
Shares Outstanding (mlns) 155.35
Share Float (mlns) 85.57
Shortable Yes
Optionable No
Inside Ownership 1.80%
Short Float 1.31%
Short Interest Ratio 9.03
Quarterly Return -3.95%
YTD Return -3.96%
Year Return -16.08%

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: James Marion is a University of Houston student studying Business with a concentration in Finance.

 

aTyr Pharma, Inc. (NASDAQ:LIFE) Lead Product Candidate Gets FDA News

aTyr Pharma, Inc. (NASDAQ:LIFE)

aTyr Pharma, Inc. (NASDAQ:LIFE) announced today that the Food & Drug Administration (FDA) has granted Orphan Drug Designation to Atyr’s product candidate Resolaris – a drug developed to treat limb girdle muscular dystrophy. Shares of LIFE are up 10% in pre-market and trading at $3.80.

In October 2016, aTyr announced that Resolaris was granted Fast Track designation by the FDA for the treatment of facioscapulohumeral muscular dystrophy (FSHD), making it the first known therapeutic candidate for the treatment of FSHD to receive the designation In mid-January of 2016, aTyr announced that Resolaris was granted Fast Track designation by the U.S. Food and Drug Administration (FDA) for the treatment of limb girdle muscular dystrophy 2B (LGMD2B), making it the first known therapeutic candidate for the treatment of LGMD2B to receive the designation. In addition, the FDA removed its partial clinical hold on a dosing ceiling for Resolaris in clinical trials. Clearly, aTyr Pharma, Inc. (NASDAQ:LIFE) fortunes are heavily tied to the performance of Resolaris.

The FDA’s Orphan Drug Designation program is intended to advance the development of products which demonstrate promise in diagnosing or treating rare conditions that affect fewer than 200,000 people in the U.S. Sponsors developing orphan-designated products are eligible for incentives under the program, including seven years of market exclusivity following FDA approval, waiver or partial payment of application fees, and certain tax credits.

Limb girdle muscular dystrophy (LGMD) refers to a group of rare genetic myopathies, of which there are more than 20 different subtypes, none with approved therapies. LGMD affects an estimated 16,000 patients in the U.S., approximately 3,000 of whom have LGMD2B. LGMD2B is a recessive genetic disease caused by a toxic loss of function in the dysferlin gene. Patients experience progressive debilitating muscle weakness and atrophy as well as immune cell invasion in the skeletal muscle. Resolaris is being developed by aTyr Pharma, Inc. (NASDAQ:LIFE) as a potential first-in-class intravenous protein therapeutic for the treatment of rare myopathies with an immune component.

aTyr Pharma, Inc. (NASDAQ:LIFE) likely welcomes the good news. In December 2016 JP Morgan downgraded the shares from “Overweight” to “Neutral. aTyre has no reported sales and has lost EPS every year – LIFE shares had an EPS loss of $2.03 in 2015. All three firms that follow ATyr Pharma rate the shares as a “Hold”.

2/28/2017
Ticker Symbol LIFE
Last Price a/o 8:30 AM EST  $                      3.45
Average Volume                    212,200
Market Cap (mlns)  $                    83.00
Sales (mlns) $0.00
Shares Outstanding (mlns) 24.06
Share Float (mlns) 23.15
Shortable Yes
Optionable No
Inside Ownership 1.60%
Short Float 3.21%
Short Interest Ratio 3.51
Quarterly Return 4.55%
YTD Return 60.47%
Year Return -24.67%

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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Is Billionaire Mario Gabelli Plotting Shakeup Of Hertz Global Holdings, Inc (NYSE:HTZ)?

Hertz Global Holdings, Inc (NYSE:HTZ)

Hertz Global Holdings, Inc (NYSE:HTZ) reported feeble earnings results for both its 4Q2016 and full-year 2016. Financial performance in both periods was dragged by continued trouble in the company’s car-rental operation.

But as Hertz posted downbeat earnings results, Mario Gabelli, the billionaire founder of hedge fund Gamco Investors, disclosed an active stake of about 6.2% in the company. Gabelli’s disclosure of an active stake in Hertz suggests he could push for a shakeup of the company’s management.

Earnings results

Hertz posted adjusted EPS loss of $0.71 in 4Q2016, wider than $0.29 in the comparable quarter in the prior year. Revenue of $2.01 billion for the latest quarter was down 0.9% year-over-year. Analysts on the average were looking for adjusted EPS loss of $0.57 on revenue of $2.01 billion.

For full-year 2016, Hertz posted a loss of $491 million as revenue declined 2.4% to $8.8 billion.

Cash balance

Hertz Global Holdings, Inc (NYSE:HTZ) concluded 2016 with cash of $816 million, down from $1.43 billion in the prior quarter. But the company is carrying a heavy debt load as its debt stood at $13.54 billion at the end of the year, down slightly from $14.86 billion at the end of September quarter.

Asset write-downs

Hertz has struggled to prune costs to stabilize its operations. The company disclosed in the latest report that it wrote down the value of its Dollar Thrift business by about $120 million. It made a similar move in its European rental business where it wrote down the value of the operation by $172 million.

Leadership changes

Hertz Global Holdings, Inc (NYSE:HTZ) has been under three chief executives over the past few years. The current CEO, Kathryn Marinello, was hired in January. She said the disappointing 2016 results were caused by issues related to fleet and services, but promised that Hertz will continue to roll out new services to appeal to US customers as part of the efforts to grow revenue.

If Gabelli is interested in pushing for changes in Hertz, it is unclear what it is likely to focus on as the company only recently hired a new CEO. Perhaps Gabelli could attempt to reorganize Hertz’s board.

Carl Icahn is the largest shareholder in Hertz, and he has expressed confidence in Kathryn’s ability to turn around the company.

Stock movements

Shares of Hertz Global Holdings, Inc (NYSE:HTZ) rose 0.15% to $20 in the regulator session on Monday and continued to rise further by about 2% during after-hour trading. The stock is down more than 7% year-to-date and has retreated more than 97% over the last one year.

2/27/2017
Ticker Symbol HTZ
Last Price a/o, 4:02PM EST  $                         20.00
Average Volume (mlns) 2.19
Market Cap (blns)  $                  1.67
Sales (blns) $9.21
Shares Outstanding (mlns) 83.47
Share Float (mlns) 82.82
Shortable Yes
Optionable Yes
Inside Ownership 0.20%
Short Float 9.12%
Short Interest Ratio 3.45
Quarterly Return -23.55%
YTD Return -7.24%
Year Return

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.

How Did Novavax, Inc. (NASDAQ:NVAX) Fare in Q4?

Novavax, Inc. (NASDAQ:NVAX)

Novavax, Inc. (NASDAQ:NVAX) reported Q4 2016 results after the markets closed on Monday, February 27. It was a mixed report as earnings topped expectations while revenue missed.

The company posted EPS loss of $0.21 for the quarter, narrower than EPS loss of $0.29 in posted in a similar quarter a year earlier. Analysts on the average were looking for EPS loss of $0.23, so Novavax beat expectations on that front.

Revenue of $5.4 million retreated 8% from a year earlier period and also slightly came short of consensus estimate of $5.45 million.

R&D spending and product pipeline

Novavax, Inc. (NASDAQ:NVAX) pumped $51.1 million into research and development activities during Q4, but that was 33% less than R&D spending in the year-ago quarter. Part of the R&D spending went to clinical trials of the company’s product candidate called RSV F vaccine.

Novavax is developing RSV F vaccine as protection for infants and the drug is administered through maternal immunization. The trial of RSV F vaccine has reached Phase 3 stage and it is backed by Bill & Melinda Gates Foundation (BMGF) through a grant of up to $89 million.

RSV F vaccine is also being studied in adults aged 60 years and above. The adult trial is in Phase 2 stage.  Novavax’s pipeline also includes Zika and influenza vaccines.

Cash balance expands

Novavax, Inc. (NASDAQ:NVAX) finished 2016 with cash and equivalents of $235.5 million. Cash and equivalents at the end of the prior year was $230.7 million. However, Novavax burnt more cash in the whole of 2016 than it did in 2015. Cash spending associated with operating activities was $255.5 million in 2016, a sharp increase from $126.1 million in the prior year. The management cited higher staff costs and research and development spending as reasons for the increase in cash burn.

Insider transactions

Several Novavax insiders have recently traded the company’s shares. On February 2, SEC filings shows the company’s SVP of commercial operations, John Trizzino, bought 3,401 shares of the company at the price of $1.12 apiece. On the same date, SEC filing shows SVP and general counsel John A Iii Herrmann bought 4,960 shares in Novavax and paid $1.12 for each share.

The company’s CFO, Barclay A Phillips, also purchased 1,633 shares at the price of $1.12 in a transaction that was completed on February 27.

Stock movements

Shares of Novavax, Inc. (NASDAQ:NVAX) rose more than 18% to close the regulation session at $1.63 on Monday. But the stock fell nearly 10% in the after-hour trading following the release of mixed quarterly earnings results. The stock is up nearly 30% year-to-date, but has retreated more than 65% over the last 12 months.

2/27/2017
Ticker Symbol NVAX
Last Price a/o, 4:02PM EST  $                         1.63
Average Volume (mlns) 6.83
Market Cap (mlns)  $                  442.10
Sales (blns) $15.80
Shares Outstanding (mlns) 271.23
Share Float (mlns) 267.06
Shortable Yes
Optionable Yes
Inside Ownership 0.30%
Short Float 23.89%
Short Interest Ratio 9.34
Quarterly Return 26.36%
YTD Return 29.37%
Year Return -65.39%

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.

What’s On Focus As Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) Reports Q4?

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) reports Q4 2016 results on March 6. An earlier schedule showed the company would release the results on February 27. Arena has had a mixed track record of quarterly earnings. It has exceeded expectations twice, met expectations once and missed expectations once in the trailing four quarter.

As the company reports Q4, analysts are expecting EPS loss of $0.09. The company posted EPS loss of $0.13 in the same quarter a year earlier, meeting the consensus estimate.  Revenue in the year-ago quarter was $7.8 million, short of consensus estimate of $8.26 million.

For the last quarter, Q3 2016, ARNA produced EPS loss of $0.05, besting consensus estimate of EPS loss of $0.07. Revenue of $19 million also topped the consensus estimate of $13.99 million.

Focus on pipeline

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has only one approved product in its portfolio and that is obesity treatment called Belviq. Despite a large addressable market in the US, Belviq sales are yet to impress.

As Arena reports Q4, investors will be looking for clues about how the company intends to improve Belviq sales. Poor Arena sales have been linked to low coverage by third-party insurers, narrow focus on only a certain patients and the tendency of doctors to prescribe drugs for symptoms of obesity instead of the actual disease.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has been working to extend the label of Belviq and a study for the label extension is underway, so positive outcome from the trial would allow Arena to extend the label of the drug. Extended label should expand the drug’s addressable market, potentially yielding more revenue for the company.

In another effort to squeeze more revenue from Belviq, Arena late last year introduced a once-daily formulation of the drug. Because Arena made the move last October, sales of the once-daily Belviq should be reflected in the upcoming 4Q results.

Other product candidates

Other than Belviq, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) investors will also have their eyes and ears on the company’s pipeline update.

Arena has several candidates in its pipeline. They include ralinepag, which is being developed as a treatment for pulmonary arterial hypertension and is in Phase 2 clinical study. The other is etrasimod, which is also a Phase 2 candidate being developed as a treatment for ulcerative colitis.

Stock movement

Shares of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) rose 6.8% to $1.57 on Monday. The stock is up more than 10% since the beginning of the year, and has risen about 2% over the last one year.

2/27/2017
Ticker Symbol ARNA
Last Price a/o, 4:02PM EST  $                          1.57
Average Volume (mlns) 1.61
Market Cap (mlns)  $                  381.91
Sales (mlns) $46.40
Shares Outstanding (mlns) 243.25
Share Float (mlns) 242.12
Shortable Yes
Optionable Yes
Inside Ownership 0.59%
Short Float 3.78%
Short Interest Ratio 5.67
Quarterly Return -1.26%
YTD Return 10.56%
Year Return 2.61%

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.

Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) Continues to Defy the Experts

Kratos Defense & Security Solutions, Inc. Nasdaq: KTOS

Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading national security solutions provider, reported after-hours earnings that beat both on EPS and revenues. Q4 EPS came in at $0.02 – a beat of $0.07. Revenues came in at $182.1 million – a beat by $4.36 million.

For the year ended December 25, 2016, Kratos generated revenues of $668.7 million, a 1.8% increase over 2015 revenues of $657.1 million, and Adjusted EBITDA of $45.0 million for year ended December 25, 2016, compared to $44.6 million in 2015. Net loss from continuing operations was $60.4 million for fiscal 2016, a GAAP EPS loss of $0.99, compared to a loss of $33.2 million for 2015, a GAAP EPS loss of $0.56. Adjusted loss per share was $0.07 for 2016 and 2015.

There have been critics of Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) and they let it be known that they believed KTOS was a screaming short play – that the firm was destined to go into insolvency. However, the market shrugged off those predictions and KTOS shares have been rising since. KTOS shares have risen 22% in the past quarter, 168% for the year, and 18.4% for YTD.

Kratos Defense & Security Solutions, Inc. (KTOS) is a mid-tier government contractor at the forefront of the Department of Defense’s Third Offset Strategy. Kratos is a leading technology, intellectual property and proprietary product and solution company focused on the United States and its allies’ national security.  Kratos is considered by some to be an industry leader in high performance unmanned aerial drone target systems used to test weapon systems and to train the warfighter, and is a provider of high performance unmanned combat aerial systems for force multiplication and amplification.  Kratos is also an industry leader in satellite communications, microwave electronics, cyber security/warfare, missile defense and combat systems.  Kratos has primarily an engineering and technically oriented work force of approximately 2,800. Substantially all of Kratos’ work is performed on a military base, in a secure facility or at a critical infrastructure location. Kratos’ primary end customers are National Security related agencies.

Kratos Defense & Security Solutions, Inc. (KTOS) sales have been on the decline since they posted a figure of $969.2 million in 2012. In 2015 that figure was just $657.1 million. KTOS shareholders have not experienced positive earnings since 2011 when the loss was $0.86/share and in 2015 the company posted a loss of $0.57/share. Five firms follow Kratos Defense & Security Solutions, Inc. (KTOS). Four analysts rate KTOS shares as a “Strong Buy” and one rates the shares as a “Hold”. Their consensus price target is $9.

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: James Marion is a University of Houston student studying Business with a concentration in Finance.