Why Are Analysts Behind the Curve on Himax Technologies, Inc. (ADR) (NASDAQ:HIMX)?

Himax Technologies, Inc. (ADR) (NASDAQ:HIMX)

Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) shares have experienced a bit of whiplash recently. Consider the following timeline:

  • November 7, 2016, HIMX closes at $7.82 – Morgan Stanley downgrades HIMX shares from “Overweight” to “Equal-weight”.
  • February 6, 2017, HIMX closes at $5.14 – Morgan Stanley downgrades HIMX shares from “Equal-weight” to “Under-weight”.
  • February 10, 2017, HIMX hits its new 52-week low of $4.88.
  • March 10, 2017, HIMX closes at $7.75 – Morgan Stanley upgrades HIMX shares from “Under-weight” to “Equal-weight”.
  • March 27, 2017, HIMX closes at $9.44 – Morgan Stanley upgrades HIMX shares from “Equal-weight” to “Over-weight”.

Morgan Stanley is not alone in some seemingly schizophrenic analysis on Himax Technologies, Inc. (ADR) (NASDAQ:HIMX). There are other firms that also fell in/out of love with HIMX shares, but they provided the cleanest example. One well known stock analysis website published an article wondering if the company’s shares were doomed on February 8, 2017 – two days before they hit their 52-week low. Another stock analysis website hated HIMX shares at $5 but fell in love with them at $8.

Taiwan-based Himax Technologies, Inc. (HIMX) is a semiconductor solution provider that designs and manufactures display imaging processing technologies. Himax is a worldwide market leader in display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, car navigation, virtual reality (VR) devices and many other consumer electronics devices. Additionally, Himax designs and provides controllers for touch sensor displays, in-cell Touch and Display Driver Integration (TDDI) single-chip solutions, LED driver ICs, power management ICs, scaler products for monitors and projectors, tailor-made video processing IC solutions, silicon IPs and LCOS micro-displays for augmented reality (AR) devices and heads-up displays (HUD) for automotive. The Company also offers digital camera solutions, including CMOS image sensors and wafer level optics for AR devices, and 3D depth scanning and machine vision.

Between 2011 and 2014, Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) had impressive numbers. In 2011 HIMX EPS was $0.06 and sales were $633 million. By 2014 EPS was $0.39 and sales were $840.5 million. However, Himax failed to progress on its achievements and in 2015 EPS was $0.15 with sales of $691.8 million. However, to their credit, the number of outstanding shares has decreased since 2011 so investors experienced no dilutive effects. HIMX shares are up 36% for the month, 58% for the quarter, and up 56% YTD. There is a moderate short position on HIMX shares as 9.73% of the float represents the number of shares held short.

Still, one has to wonder if analysts are doing what we are told not to do by investment councilors – are they chasing performance?

3/29/2017
Ticker Symbol HIMX
Last Price a/o 4:00 PM EST  $                      9.28
Average Volume                4,600,000
Market Cap (mlns)  $              1,590.00
Sales (mlns) $725.00
Shares Outstanding (mlns) 168.3
Share Float (mlns) 148.8
Shortable Yes
Optionable Yes
Inside Ownership 12.30%
Short Float 9.73%
Short Interest Ratio 3.15
Quarterly Return 58.22%
YTD Return 56.13%
Year Return -20.29%

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.

JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) Defying Analysts

JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO)

JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) is based in Shanghai, China. JA Solar designs and manufactures products for the solar energy sector under its own name as well as for original equipment manufacturers under their own brand name. The company serves residential, commercial, and utility-scale markets. JA Solar has been the top producer of solar cells since 2010. Today JASO shares were up 6.6% on the release of their Q$ an full year 2016 financial results.

2016 net revenues rose 25% to $2.3 billion – a figure which beat expectations – compared to net revenue of $1.9 billion in fiscal year 2015. Operating profit was $130.1 million, compared to an operating profit of $124.6 million in fiscal year 2015. Earnings per diluted ADR were $2.10, compared to $1.52 in fiscal year 2015.

For the first quarter of 2017, JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) expects total cell and module shipments to be in the range of 1,200 to 1,300 MW, essentially all being external shipments. JA Solar expects to further expand its annual manufacturing capacity to 3.0 GW for wafers, 7.0 GW for cells, and 6.0 GW for modules by the end of 2017. Full year 2017 shipments are expected to be in the range of 6.0 to 6.5 GW, including 200 to 250 MW of module shipments to the Company’s downstream projects.

Not all is so bright for the industry according to some analysts. They reference pricing competition in an industry that is projected to experience a demand drop from 74 GW to 69GW. That lack of demand and pricing pressure has apparently taken a toll on gross margins at JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO). In Q1 2016 GM was 16.3% but by Q4 2016 that figure had decreased to 12.9%. Given the margin compression and possible balance sheet challenges, it is possible to see some headwinds in the industry.

However, investors seem to have turned a blind eye to any news that is deemed negative. On March 8th, 2017 JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) closed at $4.74. Since then JASO has experienced almost a direct uptrend. Today JASO shares closed at $6.31 on heavy volumes.

3/28/2017
Ticker Symbol JASO
Last Price a/o 4:00 PM EST  $                      6.31
Average Volume                    381,440
Market Cap (mlns)  $                  296.50
Sales (mlns) $2,370.00
Shares Outstanding (mlns) 46.99
Share Float (mlns) 39.06
Shortable Yes
Optionable Yes
Inside Ownership 21.60%
Short Float 1.18%
Short Interest Ratio 1.21
Quarterly Return 29.04%
YTD Return 32.56%
Year Return -26.03%

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.

First Check Deal with Akers Biosciences Inc (NASDAQ:AKER) Pops Shares

Akers Biosciences Inc (NASDAQ:AKER)

First Check Diagnostics, LLC has placed an order with Akers Biosciences Inc (NASDAQ:AKER) for its cholesterol self-test. News of the order sent AKER shares gapping up to open at $2.05 from yesterday’s close of $1.40. Volumes have been extraordinary. AKER has a listed average daily volume of 72,600 shares traded per day. Today, less than an hour into trading, over 2.5 million shares have traded hands.

According to the United States Centers for Disease Control and Prevention, 73.5 million adults (31.7%) in the United States have high ‘bad cholesterol’ and less than 1 in every 3 of them has the condition under control. Too much cholesterol puts people at risk for heart disease and stroke, two leading causes of death in the United States. However, with responsible actions such as self-testing with Akers Biosciences Inc (NASDAQ:AKER) Tri-Cholesterol “Check” test, people can take steps to manage their cholesterol levels and lower their risk.

First Check Diagnostics LLC owns the First Check brand. Its products are distributed through such well known stores such as CVS, Rite Aid, Target, and Kmart. The cholesterol self-test will be the first product offering outside the scope of their current offerings which are used to test for illicit drugs such as marijuana and cocaine.

Akers Biosciences Inc (NASDAQ:AKER) develops and manufactures rapid screening and testing products designed to provide health care professional and consumers with quick and cost-effective health care information. Akers has three lines generating revenue. The first is Clinical Diagnostics, designed for use by healthcare professionals, in which they have products for the screening of Heparin and Malaria. Akers also produces a line of Safety Diagnostics. In this line, they produce tests for alcohol presence. Their Wellness line includes tests for Ketosis and oxidative stress for aiding in weight loss and general health maintenance. Akers has tests and screens in development for asthma, chlamydia, chronic obstructive pulmonary disease (COPD), and diabetic ketoacidosis.

Performance for shareholders of Akers Biosciences Inc (NASDAQ:AKER) has been disappointing. The 52-week high is $3.70 and the 52-week low is $1.15. The normally thinly-traded nano-cap company had a public share offering in January which diluted shares. Share dilution has taken place each year since 2012. In 2012 there were just 1.14 million shares of AKER outstanding but that number increased to 1.6 million in 2013, 4.75 million in 2014, and 5.14 million in 2016. Today the number of outstanding shares is 6.64 million. Accordingly, shares are down over 25% for the year and down over 26% YTD. No firms follow Akers Biosciences Inc (NASDAQ:AKER) or rates AKER shares.

3/28/2017
Ticker Symbol AKER
Last Price a/o 10:57 AM EST  $                      2.10
Average Volume                      72,600
Market Cap (mlns)  $                      9.30
Sales (mlns) $2.80
Shares Outstanding (mlns) 6.64
Share Float (mlns) 6.13
Shortable Yes
Optionable No
Inside Ownership 19.40%
Short Float 1.19%
Short Interest Ratio 1
Quarterly Return -9.68%
YTD Return -26.32%
Year Return -25.53%

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.

Why Is Kandi Technologies Group Inc. (NASDAQ:KNDI) Trending Downwards in a Growing Market?

Kandi Technologies Group Inc (NASDAQ:KNDI)

China is nearly everyone’s #1 growth play. The market for electric vehicles and non-fossil fuel technology is expanding. So then why is Kandi Technologies Group Inc. (NASDAQ:KNDI) trending down? Kandi designs, manufactures, and distributes electric-powered vehicles (EV). Located in China, the company sells battery packs, EV units, body parts, and other auto parts. It has the backing of the government – though the extent of that support is now in debate and led to a lawsuit. However, to their credit, the company’s leadership continues to buy up its shares.

Founded in 2002 under the name Kandi Technologies, Corp., the company changed its name to Kandi Technologies Group, Inc. in 2012. Sales over the next four years were impressive. In 2012 Kandi posted a sales figure of $64.5 million. That figure improved YoY and in 2015 it stood at $201.1 million. The share price of that sales growth reflected the company’s fortunes. In 2012 KNDI was trading below $5, but by 2014 that share price was over $20. But towards the end of 2014 KNDI shares started falling and KNDI shares have not seen these levels since early 2013.

In 2016, issues were raised that led to a review of the amount of Chinese government subsidies and spurred several class-action lawsuits. At the center of the review were the number of vehicles sold in 2013 and 2014 that were eligible for government sponsored subsidies. Kandi Technologies Group Inc. (NASDAQ:KNDI) announced, in December of 2016, that the subsidies had been recalculated by the Chinese government and the firm would be making adjustments to the amount of subsidies received. The net effect was to adjust the amount of government subsidies due Kandi Technologies Group Inc. (NASDAQ:KNDI) downwards by $6.6 million.

America law firms jumped into action and filed lawsuits against Kandi Technologies Group Inc. (NASDAQ:KNDI), accusing them of violating the 2934 Securities Exchange Act. The lawsuits seek to recover monetary damages for shareholders of KNDI who owned the shares between March 16, 2015 and March 13, 2017. The lawsuit alleges that Kandi Technologies Group Inc. (NASDAQ:KNDI) made false or misleading statements and/or failed to disclose material financial information and lacked effective financial controls which led to false and misleading public statements on the company’s financial health. It is widely accepted that the issues surrounding the incorrect booking of subsidy payments led to the CFO’s resignation in November of 2016.

In March, Kandi Technologies Group Inc. (NASDAQ:KNDI) released their 2016 financial reports. The company reported revenues of $129.5 million which was a decline of 35.6% from 2015. Sales of EV products plummeted. In 2015 Kandi reported sales of 24,220 products sold compared to 2016’s number of 10,148. GAAP net loss was $6.5 million of -$0.14 per fully diluted share of KNDI.

3/24/2017
Ticker Symbol KNDI
Last Price a/o 4:00 PM EST  $                      3.85
Average Volume                    242,750
Market Cap (mlns)  $                  176.79
Sales (mlns) $129.50
Shares Outstanding (mlns) 45.92
Share Float (mlns) 33.85
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 16.47%
Short Interest Ratio 22.97
Quarterly Return -24.51%
YTD Return -21.43%
Year Return -47.04%

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.

Cogint, Inc. (NASDAQ:COGT) Is Changing How Industry Markets

Cogint, Inc. (NASDAQ:COGT)

Cogint, Inc. (NASDAQ:COGT) is in a rapidly growing market. Cogint scours data from sources and uses their proprietary data analytics to bring information to light that might otherwise have gone undetected. CEO Derek Dubner provided an example in the company’s presentation at a recent industry conference. Cogint could scour publicly available databases to see if the purchaser of a company was also buying product from another firm where their brother-in-law was a corporate officer. Such information might indicate fraud that might have gone undetected previously. Cogint terms the ability to analyze data from different sources and create information from it that was previously unavailable as “Data Fusion”.

Current and potential customers include insurance companies, law enforcement, the legal industry, healthcare, retail, advertising agencies and more. Essentially any business that could benefit from being able to learn more about a person for existing or future purposes is a potential client of Cogint, Inc. (NASDAQ:COGT) services.

Several things really stand out when analyzing Cogint, Inc. (NASDAQ:COGT). The first is that over 30 million COGT shares have been bought by Cogint Executives in the past year. Fully 36.3% of the outstanding shares are held by insiders. Also interesting is that institutions have increased their positions in the company by over 40%. Those are quite serious indications of confidence in a company whose stock price has essentially barely moved over the past year.

Boca Raton, FL-based Cogint, Inc. (NASDAQ:COGT) released their Q4 and full year results on March 9, 2017. Quarterly revenue came in at $54.2 million. Cogint had a net loss of $5.4 million and adjusted EBITDA of $6.3 million for the fourth quarter ended December 31, 2016, and revenue of $186.8 million, net loss of $29.1 million and adjusted EBITDA of $15.0 million for full year 2016.

Shares of Cogint, Inc. (NASDAQ:COGT) closed yesterday at $3.55. However today they have been on a run supported by heavy volumes. COGT shares have hit $4.35 on volumes in excess of 16 times their daily average. While COGT is trading about 50% above its 52-week low, it is still over 25% from its 52-week high of $6.22. Only two firms follow Cogint, Inc. (NASDAQ:COGT). However both rate COGT shares as a “Strong Buy” with a consensus price target of $9.25 – more than double the current price level.

3/24/2017
Ticker Symbol COGT
Last Price a/o 1:03 PM EST  $                      4.20
Average Volume                    147,350
Market Cap (mlns)  $                  190.95
Sales (mlns) $143.50
Shares Outstanding (mlns) 53.79
Share Float (mlns) 12.75
Shortable Yes
Optionable Yes
Inside Ownership 36.30%
Short Float 13.10%
Short Interest Ratio 9.25
Quarterly Return -2.74%
YTD Return 2.90%
Year Return 0.00%

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.

Growing Sales May Not Help Tandem Diabetes Care, Inc. (NASDAQ:TNDM)

Tandem Diabetes Care, Inc. (NASDAQ:TNDM)

Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a medical device company targeting people who deal with insulin-dependent diabetes. Tandem is based in San Diego, CA and has a market cap of less than $50 million. On March 8, 2017 Tandem announced that they had filed with the SEC for a public offering of TNDM shares. The proposed raise was $50 million. In addition, the press release detailed the granting of $7.5 million worth of additional options to the underwriters, Piper Jaffray & Co. and Wedbush Pac Grow, of the public offering. Shares dropped.

Less than three weeks later it appears there has been a change in their offering’s strategy. Today Tandem Diabetes Care, Inc. (NASDAQ:TNDM) issued a press release with a noticeably lower goal of 18 million shares priced at $1.25 for an expected raise of just $22.5 million – less than half its original raise target. The market reacted predictably – TNDM shares closed trading today down almost 20% to settle at $1.25. Volumes were over 26 times their normal daily average.

The $22.5 million figure is gross – before deductions for underwriting expenses to Piper Jaffray & Co., Oppenheimer & Co., and Wedbush PacGrow. The underwriters were also granted a 30-day option to purchase an additional 2.7 million shares at the $1.25 offering price minus deductions for underwriting expenses.

On March 8, 2017 Tandem Diabetes Care, Inc. (NASDAQ:TNDM) reported Q4 2016 financial results. It posted an EPS loss of -$0.48. However, that figure beat the street estimate of -$0.63 EPS. Q4 revenues also beat street estimates. Tandem posted revenues of $28.9 million. The street was expecting revenues of $23.7 million. For the year 2016, Tandem reported a loss of $83.4 million on revenues of $83.4 million. That loss translated into a per share loss of -$2.73.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM) has a short float figure of over 10%. Given its normally thin trading, the short ratio is 7.51. TNDM has a 52-week high of $11.30 and a 52-week low, before today, of $1.52. YTD TNDM is down 28% and for the year down over 84%. Institutions own almost 40% of the shares but have been selling. The Institutional transaction number is now at -31.16%. On the bright side, Tandem has impressive sales growth. In 2012 sales were reported at $2.5 million, That figure steadily increased YoY and in 2015 the company posted a sales figure of $84.2 million.

There is a broad range of opinion for the future of Tandem Diabetes Care, Inc. (NASDAQ:TNDM). Five analysts rate TNDM as a “Strong Buy”, one rates the shares as a “Buy, three rate TNDM as a “Hold”, and one rates TNDM as an “Underperform”. Their consensus price target is $5.

3/23/2017
Ticker Symbol TNDM
Last Price a/o 3:31 PM EST  $                      1.25
Average Volume                    287,000
Market Cap (mlns)  $                    48.55
Sales (mlns) $84.20
Shares Outstanding (mlns) 31.32
Share Float (mlns) 21.13
Shortable Yes
Optionable Yes
Inside Ownership 32.03%
Short Float 10.19%
Short Interest Ratio 7.51
Quarterly Return -34.04%
YTD Return -27.91%
Year Return -84.42%

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.

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO) Trades Huge Volumes and Stays Steady

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO)

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO) shares experienced volumes that were over five times their average daily volume figures. However NAO ended the day unchanged. On February 24, 2017 NAO shares dropped almost 49% when Nordic Amern priced a 40 million share offering at $1.25. Since then NAO shares have rarely seen action over $1.20.

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO) owns and operates ten platform supply vessels that cater to offshore oil platforms. Nordic Amern operates the supply vessels in the United Kingdom and in the Norwegian areas of the North Sea. All ten of their vessels are on medium or long-term charters.

Remarkably, only five employees are listed as working directly for Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO). The analysts’ consensus target price is $1.50. Given the defined medium and long-term contracts that bind Nordic’s fleet, it is credible that analysts, knowing industry multiples, have set a target price above which would require speculation on the future of the industry sector or the company in specific.

Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO) had just $1.3 million in sales in 2013 but that number improved in 2014 to $52.8 million. However in 2015 sales declined to $36.4 million. In 2015 a reversal of fortune occurred for NAO shareholders. In 2014 a EPS profit of $0.34 was posted.

Morgan Stanley and Seaport Global follow Nordic Amern Offshore Ltd Ordinary Shares (Bermuda) (NYSE:NAO). One rates NAO shares as a “Strong Buy”. The other rates the shares as a”Hold”.

3/22/2017
Ticker Symbol NAO
Last Price a/o 4:00 PM EST  $                      1.20
Average Volume                    539,700
Market Cap (mlns)  $                    72.80
Sales (mlns) $26.10
Shares Outstanding (mlns) 60.67
Share Float (mlns) 38.17
Shortable Yes
Optionable Yes
Inside Ownership 0.00%
Short Float 3.31%
Short Interest Ratio 2.34
Quarterly Return -58.57%
YTD Return -55.56%
Year Return -72.77%

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.

Freeze Tag, Inc. (OTCMKTS:FRZT)

CleanTech Solutions International, Inc. (NASDAQ:CLNT) Volumes Rocket After De-Listing Avoidance

CleanTech Solutions International, Inc. (NASDAQ:CLNT)

CleanTech Solutions International, Inc. (NASDAQ:CLNT) is based in China. CleanTech claims to be a high-quality manufacturer of precision metal components and assemblies targeted at two end users – dyeing and finishing machines as well as wind turbines. CleanTech states that they design and manufacture proprietary high and low temperature finishing machinery for the dyeing and finishing industry. For wind turbines they manufacture, using axial close-die forging technology, rolled rings and related components.

CleanTech Solutions International, Inc. (NASDAQ:CLNT) avoided delisting by the NASDAQ through the use of a 1:4 reverse stock-split effective March 20, 2017. Prior to that date, shares of CLNT had traded over $1 only once since early October. Traders in chat rooms were active and direct in their belief that the increased volumes since CLNT’s reverse split. Many appeared to believe that the increased volume was the result of a Twitter user pumping the stock to attract day-traders.

In November of 2016, Mr. Jianhua Wu, Chairman and CEO of CleanTech Solutions International, Inc. (NASDAQ:CLNT) was quoted early in the press release of their Q3 2016 financial release. In his first sentence Mr. Wu references China’s economic headwinds and a limited availability of credit. Mr. Wu then proceeds to be quoted about the government decrees which forced manufacturers in the Zhejiang region to stop operations in an attempt to improve air quality for the G20 summit to be held in Hangzhou.

CleanTech Solutions International, Inc. (NASDAQ:CLNT) is experiencing volumes at over 10 times the normal average daily volume figure. Some services report that CLNT shares have a “Buy” rating but StockNewsUnion was unable to independently verify that information.

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.

What Is Going On With Adeptus Health Inc (NYSE:ADPT)?

Adeptus Health Inc (NYSE:ADPT)

Medical Properties Trust, Inc. (NYSE:MPW), tenant and emergency room operator, Adeptus Health Inc (NYSE:ADPT), warned of considerable doubt about its ability to work as a going concern. Mentioning a meeting with MPW CFO Mr. Steven Hammer, Karin Ford of Mitsubishi said that Adeptus is current late on rent since last month, and MPW has letter of credit for 4 months’ rent and can succeed in finding a replacement operator.

The buzz

Earlier in the month, Adeptus Health Inc (NYSE:ADPT) declined over 60% on heavy trading volume after the firm posted a weaker-than-anticipated report for Q3 2016. Adjusted earnings came at 6 cents per share compared to the FactSet consensus projection of 54 cents per share. Revenue for the quarter came at $85.4 million compared to Wall Street’s projections of $90 million.

The firm lowered its estimate for full-year EBITDA to a range of $70 million to $80 million versus its prior expectation of $110 million to $115 million. Street analysts surveyed by FactSet anticipate EBITDA of $88 million for 2016. Thomas Hall, the CEO, reported that the results were dismal following weaker than anticipated volumes in non-hospital casualty department segments, collection issues linked with third party billing agent and increased expenses associated with the starting of three hospitals in 2H2017.

Bank of America and Merrill Lynch downgraded Adeptus Health Inc (NYSE:ADPT) stock to “underperform” from previous recommendation of “buy.” The firm reduced its price target to $17 from the previous target of $60, showing a lack of visibility. Adeptus’ issues won’t be solved quickly.

Jefferies also lowered its rating on the stock to “hold” from “buy” and lowered its price target to $13 from previous given target of $77. The firm reported that it is concerned about company’s cash flows and balance sheet.

Additionally, Stephens reduced its rating to “equal weight” from “overweight” and dropped its price target $19 from previously given target of $63, noting that the firm must “right itself.” However, this won’t occur within the imminent quarters, the firm projects.

TheStreet Ratings rated this stock as per “risk-adjusted” total return outlook over a one-year investment horizon. Not depending on the news in any particular day, the rating may vary from Jim Cramer’s view. TheStreet Ratings released a rating of “hold” with a score of C-.

Adeptus Health Inc (NYSE:ADPT) strengths can be noted in multiple areas, like as its revenue growth, mainly robust financial position with rational debt levels by most attempts and notable return on stock.

3/21/2017
Ticker Symbol ADPT
Last Price a/o 3:21 PM EST  $1.76
Average Volume 1.36M
Market Cap (mlns) $37.19M
Shares Outstanding (mlns) 21.13M
Share Float (mlns) 8.82M
Inside Ownership 1.50%
Short Float 71.33%
Short Interest Ratio 4.64
Quarterly Return -79.07%
YTD Return -76.96%
Year Return -96.89%

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.

Syndax Pharmaceuticals Inc. (NASDAQ:SNDX)

Cerulean Pharma Inc. (NASDAQ:CERU) Gets Gobbled Up in Fire-Sale

Cerulean Pharma Inc. (NASDAQ:CERU)

As previously reported in StockNewsUnion.com, Cerulean Pharma Inc. (NASDAQ:CERU) was searching for strategic alternatives that could give continued life to the troubled biotech firm. Today that alternative was announced and shared cratered. CERU closed Friday at $3.32, gapped down to open at $1.30 today, and ended the session at $1.25. Volumes were very heavy – over eight times CERU’s average daily volume.

The Deal

Cerulean Pharma Inc. (NASDAQ:CERU) entered into a stock purchase agreement with Daré Bioscience, Inc., a privately-held, clinical-stage pharmaceutical company. Daré Bioscience, Inc. will become the majority shareholder.

Daré Bioscience shareholders will receive shares of soon-to-be newly issued Cerulean Pharma Inc. (NASDAQ:CERU) common stock. Daré Bioscience options and convertible securities will be assumed by Cerulean shareholders. In essence – a swap of newly issued CERU shares for existing options and convertible securities issued by Daré. The deal is engineered so that existing Cerulean stockholders will own between 30% and 49% of the combined company, and existing Daré Bioscience stockholders will own between 51% and 70% of the combined company. The boards of directors of both Cerulean and Daré have already approved the deal. The transaction is expected to close during Q2 2017, subject to customary closing conditions, including approval by stockholders of Cerulean.

Additionally, Cerulean Pharma Inc. (NASDAQ:CERU) has entered into two agreements to sell assets for a combined total of $7.5 million. Cerulean sold its clinical product candidates, CRLX101 and CRLX301, for $1.5 million to BlueLink Pharmaceuticals for $1.5 million. They received $6 million from Novartis (NVS), an existing collaborator, for all rights to Cerulean’s Dynamic Tumor Targeting™ Platform.

The New Company

Daré Bioscience, Inc. centers its therapeutic development program around women’s reproductive health – specifically contraceptive options. Contraception is a $16 billion market globally. Daré Bioscience believes it has the skills and resources to exploit a therapeutic hole in the market. The contraceptive pill (“The Pill”) was granted FDA approval in 1960. Since then few contraceptive options have been available to women that are not hormone based.

Ovaprene, a contraceptive ring, is a Daré Bioscience’s product in development that is a non-hormonal option and provides multi-week protection. It is this product that will likely become the focus of the combined company. Sabrina Martucci Johnson, Daré Bioscience’s CEO, will assume that leadership role in the new company. She remarked on the merger “”We are thrilled to have the opportunity to grow our business as a public company. Women’s reproductive health encompasses a broad spectrum of categories, many of which have unmet needs. Daré is committed to developing a portfolio that expands options, improves outcomes, and enhances safety for women.”

The new company will be without 11 employees of Cerulean Pharma Inc. (NASDAQ:CERU) who were released as part of the deal.

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.