Cerulean Pharma Inc (NASDAQ:CERU)

Cerulean Pharma Inc (NASDAQ:CERU) Explodes On Dare Bioscience Merger Push

Cerulean Pharma Inc (NASDAQ:CERU)

Shares of Cerulean Pharma Inc (NASDAQ:CERU) more than doubled in market value after Dare Bioscience Chief Executive Officer Sabrina Martucci Johnson requested that shareholders approve a proposed merger. The stock was up by 143.69% in Wednesday’s trading session to end the day at $1.13 a share.

Cerulean Pharma Inc (NASDAQ:CERU) has also sought to accelerate the merger push by asking its shareholders to approve a sale of its dynamics Tumor Targeting Platform technology pursuant to a Novartis Asset Purchase Agreement. The company also wants shareholders to approve a reverse stock split at a ratio ranging from 10:1 to 20:1.

Cerulean Pharma Inc (NASDAQ:CERU) is a clinical stage company that specializes in the development of therapies in areas of oncology and other diseases. The company is currently working with Novartis Institute for Biomedical Research to develop nanoparticle-drug conjugates. Dare Bioscience bills itself as a healthcare company focused on developing and commercializing products for women’s reproductive health. Ovaprene, a novel non-hormonal contraceptive, will become the combined company’s lead candidate drug. The drug seeks to address an unmet need in the $19 billion a year contraception market.

Merger Agreement

On March 19, 2017, Cerulean Pharma Inc (NASDAQ:CERU) entered into a definitive agreement for the purchase Dare Biosciences issued and outstanding capital stock. The fate of the proposed merger rests in the hands of shareholders who are set to vote on the management proposal at the upcoming special meeting on July 19, 2017.

“As the founder and CEO of Dare Bioscience, Inc. (“Dare”), I am excited by the prospect of Dare combining with Cerulean Pharma Inc. (“Cerulean”). [..]. We believe a segment of this market is underserved, which gives us an opportunity to create value for stockholders,” said Mr. Johnson.

Cerulean Pharma Inc (NASDAQ:CERU) shareholders will own between 30% and 49% of the combined company upon the deal closing. The combined company will operate under the name Dare Bioscience Inc. under the leadership of Mr. Johnson as the CEO and Lisa Walters-Hoffert as the Chief Financial Officer. The board of directors will consist of William H. Rastetter, Susan L. Kelley, Roger L. Hawley, Robin J. Steele and Sabrina Martucci Johnson

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CERU and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Celsion Corporation (NASDAQ:CLSN)

Update on Celsion Corporation (NASDAQ:CLSN) Sends Shares Booming!

Celsion Corporation (NASDAQ:CLSN)

Shares of Lawrenceville, NJ-based Celsion Corporation (NASDAQ:CLSN) are up over 36% in the first hour of trading. Volumes are extraordinarily heavy. CLSN shares closed Monday at $2.02 and gapped up to open this morning at $2.63 on the biotech company’s update regarding its Phase 1b dose escalating clinical trial (the OVATION Study) combining GEN-1, the Company’s IL-12 gene-mediated immunotherapy, with neoadjuvant chemotherapy for the treatment of newly-diagnosed patients with Stage III and IV ovarian cancer followed by interval debulking surgery.

NASDAQ:CLSN
Daily candle bar graph

Founded in 1982, Celsion Corporation develops and directed chemotherapy, DNA-mediated immunotherapy, and RNA based therapy products for the treatment of cancer. Celsion Corporation (NASDAQ:CLSN)’s lead product candidate, ThermoDox, is in Phase 3 clinical trials for primary liver cancer; and under Phase II clinical trials for recurrent chest wall breast cancer. Celsion Corporation (NASDAQ:CLSN) is also developing GEN-1, a DNA-based immunotherapeutic product for the localized treatment of ovarian and brain cancers.

According to Celsion Corporation (NASDAQ:CLSN)’s press release:

  • Of the fourteen patients treated to date, two (2) patients demonstrated a complete response, ten (10) patients demonstrated a partial response and two (2) patients demonstrated stable disease, as measured by RECIST criteria. This translates to a 100% disease control rate (DCR) and an 86% objective response rate (ORR).
  • Of the five patients treated in the highest dose cohort, there was a 100% objective response rate with one (1) complete response and four (4) partial responses.
  • Fourteen patients had successful resections of their tumors, with nine (9) patients (64%) having an R0 resection, which indicates a margin-negative resection in which no gross or microscopic tumor remains in the tumor bed.
  • Of the five patients treated at the highest dose cohort, all five patients (100%) experienced a R0 surgical resection.
  • Of the seven patients who have received GEN-1 treatment over one year ago and are being followed, only one patient’s cancer has progressed after 11.7 months.

Celsion Corporation (NASDAQ:CLSN) is followed by three investment firms. Two analysts rate CLSN shares as a “Strong Buy” and one rates the shares as a “Hold”. Their consensus price target is over $15. CLSN shareholders have had their shares diluted every single year since 2012 when there were 550,000 shares outstanding. By 2016 that number had ballooned to 1.85 million. EPS losses have also been standard since 2012 when the company posted a loss of (-$48.11) per shares. In 2016 that loss shrank to (-$11.90).

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

Don’t miss out! Stay informed on $CLSN and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Freedom Leaf Inc (OTCMKTS:FRLF)

Freedom Leaf Inc (OTCMKTS:FRLF) Acquires Green Market Europe

Freedom Leaf Inc (OTCMKTS:FRLF)

Freedom Leaf Inc (OTCMKTS:FRLF), which focuses on marijuana industry mergers and acquisitions, has signed an intent letter of acquisition with Green Market Europe owners. The acquisition will see Freedom Leaf take ownership of an operational greenhouse that measures more than 60,000 square feet. Shares of Freedom Leaf fell by 1.94% to $0.0505 on Thursday.

The greenhouse consists of more than 20,000 square feet equipped with a light deprivation system necessary for the stimulation of flowering throughout the year. An additional 200 acres are also available for outdoor production and thus the capacity for both outdoor and greenhouse production can be scaled up if necessary.

No debt

All the facilities that will be acquired from Green Market Europe are free of debt. The acquisition will include all assets belonging to Green Market Europe such as purchase orders that are more than $450,000, production agreements with local farmers, intellectual property, greenhouse equipment, leasehold improvements, and land leases.

The chief executive officer and co-founder of Freedom Leaf Inc (OTCMKTS:FRLF), Clifford Perry, said the acquisition would turn the company into a major player in the industry.

“With this transformative acquisition Freedom Leaf has become a major participant not only in the booming CBD (cannabidiol) industry, but in many other aspects of the global hemp industry,” said Perry.

Some of the development projects that Freedom Leaf Inc (OTCMKTS:FRLF) is engaged in includes rare cannabinoids research. Hemp seed oil, making furniture and footwear from fabric derived from hemp, phytocannabinoid oil, and CBD drinks.

Spanish Mediterranean coast

Miguel Hernandez University, an institution which possesses extensive facilities for research and development, is collaborating with Green Market Europe in fertilizer testing projects, LED growing systems, and genetic breeding.

Operations are in the Callosa de Segura area of Alicante, Spain and close to Elche city on the southeastern Mediterranean coast. Due to the favorable and moderate climate, multiple crops can be produced every year.

Natural Hemp was started in 2013 by Vicente Javaloyes Martinez and Luis Miguel Santos is the predecessor of Green Market Europe.

One of the agreements contained in the intent letter is that the current management of Green Market Europe will be retained. The acquisition will consist of a common stock transaction of 4,800,000 shares belonging to Freedom Leaf as well as 20,000 euros in cash. Shareholders of Green Market Europe will get to keep half of the profits that have been generated. The flagship publication of Freedom Leaf Inc (OTCMKTS:FRLF) is Freedom Leaf Magazine.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $FRLF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

CHF Solutions, Inc. (NASDAQ:CHFS)

Shares Rocket for CHF Solutions, Inc. (NASDAQ:CHFS)

CHF Solutions, Inc. (NASDAQ:CHFS) – formerly Sunshine Heart Inc.

CHF Solutions, Inc. (NASDAQ:CHFS) closed Thursday at $1.08 and gapped up to open at $1.29 before hitting their inter-day high of $1.65 – a gain of over 40%. Volumes are extraordinarily heavy. The 50-day, daily trading average is listed at just over 550,000 shares but already over 13.8 million shares of CHFS have traded hands. The market is responding to a news release by CHF Solutions that researchers in the Stanford University School of Medicine’s Department of Pediatrics have received FDA Investigational Device Exemption (IDE) approval to conduct a clinical study to evaluate the safety and effectiveness of CHF Solutions’ Aquadex FlexFlow Aquapheresis System for diuretic-resistant fluid overload in children with acute decompensated heart failure. Patients suffering from this condition have typically failed diuretic therapy and require hospitalization.

CHF Solutions, Inc. (NASDAQ:CHFS) was formerly known as Sunshine Heart Inc. and is based out of Eden Prairie, MN. In April, Sunshine Heart Inc. (NASDAQ:SSH) shares plummeted on news of the company’s pricing regarding a public share offering. Dilution has been a long-time concern for shareholders as the dilution adjusted share price in 2014 is calculated at over $200. While the nano-cap medical device firm has a market-cap under $15 million, for FY2016 the company reported a net loss applicable to shareholders of over $15 million – in 215 that loss was a larger loss of over $26 million.

Despite these performances, the sole investment firm, Cowen & Company, that follows CHF Solutions, Inc. (NASDAQ:CHFS) rates CHFS shares as a “Strong Buy” with a price target of $6.125.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CHFS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF).

MOLORI ENERGY INC (OTCMKTS:MOLOF) in Good Company

MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF)

One of the world’s greatest sayings is “follow the money”. This is particularly true of businesses as their vision of the future dictates how and when they allocate their resources. Businesses like the highest reward for the lowest risk so it is logical that they spend where they can get the best returns. In today’s oil market, the topic that continues to dominate is the new technology available to North America drillers and friendlier industry regulations – both of which are highly prized assets by the oil and gas sector. This combination is producing an environment where profits are now being generated from assets that were once believed to be depleted or too costly to operate. Mothballed, or previously operationally expensive, assets are now being brought back to life. Oilfields that were once considered too costly, or too difficult, to extract are now getting a second look. A great example of this is the Red Cave formation in the Texas panhandle. Not only are established players returning, but at least one firm we have highlighted in these pages before has an interesting play currently in process.

Red Cave History

The Red Cave formation has an interesting history. Most drillers believe that “Red Beds” do not produce both oil and gas, however Red Cave does. The formation has produced over 70 billion cubic feet of natural gas since drilling there began back in 1919. In 1960, the Red Cave formation received a separate field designation from the Texas Railroad Commission. Drillers have been active here ever since and are to this day, as you can see in the satellite image from Google.

MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF).
Red Cave Wells

Drillers Returning

For a while many believed that the Red Cave formation was either depleted or too costly to drill at a profit. That now appears to be “old thinking”. Reports show that money is returning to the Red Cave formation. Long time player Masterson West LLC, through their affiliate Adams Affiliates Inc., has 8,000 net acres. Masterson is now joining forces with Tulsa, OK-based Empire Petroleum Corp. to attack the sands play. The newly formed entity is named Masterson West II and it will be well capitalized. Empire will be contributing 40 million of its common shares and $9-$18 million for a stake that could range from 25-50%. Masterson West LLC will be contributing the leaseholds. Masterson West believes they have identified 380 locations to develop on wells spaced five to ten acres apart, with 200 proved undeveloped drilling locations. They estimate each well will cost them $250,000 and they are planning on drilling forty wells for the next few years.

Molori Energy Inc (OTCMKTS:MOLOF) Offers Pure Play

So we know that serious money is coming back to the Red Cave formation. How to take advantage? MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF) owns outright, or has optioned, over 4,000 acres with exposure to the Red Cave formation. Their largest lease is named “Mother Goose” while another lease is named “Thompson”. Joel Dumaresq, Molori’s CEO, is expecting two wells to be completed on the Mother Goose and Thompson leases by the end of this month. Molori’s bankers, Casimir Capital, have sourced over $100 million in investments for oil and gas producers with an asset profile similar to Molori Energy. At the last shareholder conference call, Casimir claimed that most of the wells drilled in this area produce around 50 barrels per day with a payback period of six months to a year. A review of the Texas Railroad Commission records seems to indicate that its likely Casimir could be referencing the Red Cave wells owned by Adams Affiliates, Inc. This could explain the massive investment that Empire Petroleum is willing to make.

If technology and a new regulatory environment will return the Red Cave formation to its old glory days, then it could be wise to forgo investment in some of the larger players and instead consider the Red Cave pure play that is offered by MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MOLOF and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

US Stem Cell Inc (OTCMKTS:USRM)

UPDATE! US Stem Cell Inc (OTCMKTS:USRM) Plunges on Open

US Stem Cell Inc (OTCMKTS:USRM)

US Stem Cell UPDATE!

Shares plunged on the open by around 35% after news was released by the company that it would not pursue a Regenerative Medicine Advanced Therapy FDA designation at this time. Instead, US Stem Cell will allocate resources towards expanding their existing 12 stem cell clinics and treatment centers. Volumes are heavy!

US Stem Cell Inc (OTCMKTS:USRM) released positive quarterly earnings in early May and has now announced more positive news in the form of global recognition for the efforts of its Chief Science Officer Kristin Comella.

US Stem cell, Inc. is a promising company in the stem cell industry. They focus on regenerative medicine and cellular therapy. US Stem Cell Inc (OTCMKTS:USRM) discovers, develops, and commercializes cell-based treatments that addresses disease by repairing and/or replacing damaged cell tissue, cells, and organs. US Stem Cell Inc (OTCMKTS:USRM) has three operating divisions – US Stem Cell Training, Vetbiologics, and the US Stem Cell Clinic. These divisions monetize their efforts by developing proprietary cell therapy products and training for healthcare professionals.

In 2016, the size of the global stem cell industry was estimated to be in excess of $68.7 billion. However, the market’s growth is being restricted by the high cost of treatment compounded by a lack of reimbursement policies by insurance carriers. Also contributing to growth impairment is burdensome government regulation in response to the unethical harvesting of stem cells.

US Stem Cell Inc (OTCMKTS:USRM) stock has suffered over the past few years. In 2014 USRM shares were briefly trading over $50 but today the shares can be had for under $0.10 – ten cents. Obviously there has been a lack of execution and ability to generate profits. However it appears what they do not lack is intellectual capacity. A scientific paper regarding intramyocardial implantation, co-authored by Kristin Comella, Chief Science Officer of US Stem Cell Inc (OTCMKTS:USRM), has been recognized as one of the most influential papers of 2016 according to Altmetric.com. This is not the first time that Kristin Comella has been recognized for her contributions to stem cell science. She was also named #24 on Terrapin’s list of top 50 Global Stem Cell Influencers. She was also listed at #1 on the Academy of Regenerative Practices list of Top Ten Stem Cell Innovators. Mr. Comella also led the team that achieved the first ever FDA approval for a clinical trial for a heart product that used a combination of cell and gene therapies.

Here is a link to the paper highlighted above – https://www.ncbi.nlm.nih.gov/pubmed/27255774

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $USRM and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc Anderson is a pseudonym. Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

MoSys Inc. (NASDAQ:MOSY)

The Big MO MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY) now has two claims to the nickname “The Big Mo”. Of course, their name lends itself to the moniker but lately the share price has also been rising at a strong rate without any accompanying news that could justify the price action from a valuation standpoint. Still, there can be little doubt that the stock is rising on the back of heavy buying. The question is – why? On the other hand, for momentum traders, who cares? Just ride it while it lasts!

Last Monday, June the 5th, MOSY shares began their upswing. Prior to that day, shares of MoSys Inc. (NASDAQ:MOSY) had not traded over 100,000 shares per day for weeks, and on some days daily share volume did not break 10,000 shares. But beginning on June 6th daily share volumes have been:

June 6 – 550,250

June 7 – 14,140,000

June 8 – 2,800,000

June 9 – 4,770,000

June 12 – 1,010,000

June 13 – 16,000,000 (a/o 1:30PM EST)

Less than a month ago, MoSys Inc. (NASDAQ:MOSY) hit its existing 52-week lows of $0.55. Today MOSY shares have traded over $2.50. MOSY shares have a long-term performance that is nothing to write home about – the shares have lost over 50% for the past year and are down over 30% YTD. However, the more recent share performance is remarkable. MOSY shares are up over 140% for the week and up over 95% for the month. That performance has attracted many momentum players who will ride the recent trend until they feel the ride is over. Importantly, the Relative Strength Index (RSI) for MOSY is 76.74. That figure does represent an overbought condition – but just barely. So there may be some more room left to the upside.

On the other hand, MoSys Inc. (NASDAQ:MOSY) released Q1 results in early May and the stock dropped on a reported net loss. Since that financial release, there has been no news that would justify the current upward swing.

Several things could be in play. One is a concerted effort to move the stock and force it onto the radar of momentum traders who will then make the move even more exaggerated. Or it could be an institutional player taking a major position. Also a possibility is the notion of insider trading on yet-to-be released material information. No doubt other possible reasons exist and, hopefully, they will become know. But one thing is certain, if this is a pure momentum play, the last one out of the pool loses.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

Don’t miss out! Stay informed on $MOSY and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Airborne Wireless Network (OTCMKTS:ABWN)

Industry Leaders and Investors Await Airborne Wireless Network (OTCMKTS:ABWN) Proof-of-Concept Results

Airborne Wireless Network (OTCMKTS:ABWN)

Airborne Wireless Network (OTCMKTS:ABWN) announced this past Friday that they have completed their proof-of-concept tests in Roswell, NM and will make the results known shortly. The results could, literally, change the direction of the global communications industry – and it is no stretch to believe that the entire communications world is waiting for the results with baited breath. Hundreds of billions of dollars in communication infrastructure spending, maintenance, and operations could vanish if Airborne Wireless Network (OTCMKTS:ABWN) is able to execute their vision. While that is a good thing in terms of cost savings for companies that want to expand their coverage and lower their expenses, it is likely bad news for the vendors that supply the labor and materials to those same communications companies.

Airborne Wireless Network (OTCMKTS:ABWN) has a unique vision – to bring communications to the entire world through a network of airplanes that already exist in the world’s air routes. Think of it as an “ultra low” satellite communications constellation. The model is similar to Iridium Communications Inc (NASDAQ:IRDM). Iridium is the acknowledged leader in global communications technology. Iridium’s hardware, a satellite phone, connects to a satellite and then to any phone in the world – global communications that are geographic agnostic.

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But Airborne Wireless Network (OTCMKTS:ABWN) believe they have gone one step better – their technology utilizes existing aircraft, hence no need to launch expensive satellites. If you look at a global map of airline routes one could certainly conclude that, intuitively, the vast amount of the earth’s surface is at some time flown over by an airplane with some regularity. And what if you connected a ground-based communication to all those airplane’s that are also connected to every other airplane in the sky? If Airborne Wireless Network (OTCMKTS:ABWN) proves this concept, voice and data customers virtually anywhere will now have connectivity without the expensive need for additional towers, cables, or satellites.

If you are thinking “what a great idea!” you are not alone and investors that got in early could be bragging for a long time. The patent for this technology was issued on September 4, 2001 and was obtained by Airborne Wireless Network (OTCMKTS:ABWN) in 2016. A little over one year later they have completed their proof-of-concept. Clearly this company knows how to move.

Airborne Wireless Network (OTCMKTS:ABWN) does not plan to sell the service directly to consumers, rather they see themselves as part of the global communication’s infrastructure. They will sell the bandwidth they create to existing communications providers. In essence, Airborne Wireless Network (OTCMKTS:ABWN) will act as a bandwidth wholesaler. A mobile phone user will use their service exactly the way they do now but, hopefully, with better geographic coverage and speed. The proof-of-concept results are clearly one development that communication’s industry executives and investors want to be aware of sooner rather than later.

I own (am long) shares of ABWN and have no plans to change any ABWN positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

Don’t miss out! Stay informed on $ABWN and receive breaking news on other hot stocks by signing up below for our free newsletter!

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.

Asanko Gold Inc. (NYSEMKT:AKG)

Selling Pressure Continues for Shares of Asanko Gold Inc. (NYSEMKT:AKG)

Asanko Gold Inc. (NYSEMKT:AKG)

Asanko Gold Inc. (NYSEMKT:AKG) has hit back at claims from activist short-seller Muddy Waters that it is destined to run out of cash should gold prices not rally above the $1700 an ounce level. The company’s chief executive officer, Peter Breese, maintains the report has no merit, reiterating that a June 5 feasibility study will set the record straight. However, it appears Wall Street is not buying into the company’s defense.

Asanko Stock Implosion

In the wake of Muddy Waters report, trading on Asanko Gold Inc. (NYSEMKT:AKG) shares had to be halted after they dropped by more than 10% on the Toronto Stock Exchange. The stock has now shed more than 40% in market value since the start of the year and is at risk of going under the $1/share trading level.

In a research note to investors, Muddy Waters maintains that Asanko Gold Inc. (NYSEMKT:AKG) prospects remain bleak given that investments in Ghana were based on flawed geological data. The hedge fund states it does not expect production at the Nkran mine and other deposits to meet production estimates this year.

According to the hedge fund, failure to meet production estimates would make it hard for the company to stay cash flow positive as it continues to struggle to pay its $165 million debt. The company finds itself in a tough spot given that it cannot abandon its Nkran mine as that would cost between $75 and $115 million. Shutting down the mine is not an option given that cash flow from the mine is being used to finance other projects.

“The best-case medium-term scenario seems to be an extremely dilutive equity raise, possibly approximating half of AKG’s market cap. The worst-case scenario – and not a remote one in our view – is bankruptcy. Regardless, the stock is highly likely to end up worthless,” said Muddy Waters in its Report.

Asanko Outlook

Asanko Gold Inc. (NYSEMKT:AKG) has already refuted the hedge fund’s claims and reiterated that it remains on track to achieve its full-year production guidance of 230,000 to 240,000 ounce of gold this year. The Gold miner expects between $64 million and $77 million in cash, based on the production estimates and spot gold going for an average of $1200 an ounce.

Asanko Gold Inc. (NYSEMKT:AKG) sentiments on the street were dealt yet another blow by BMO Capitals Markets which affirmed Muddy Waters claims, reiterating that most of the issues raised were previously known.

Asanko Gold Inc. (NYSEMKT:AKG) dropped, again, in Wednesday trading session – shedding 31.02% in market value to end the day at $1.29 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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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.

Cumulus Media Inc (NASDAQ:CMLS)

Cumulus Media Inc (NASDAQ:CMLS) Getting Dropped from Analyst’s Play Lists

Cumulus Media Inc (NASDAQ:CMLS)

Various financial media outlets have reported that shares of Cumulus Media Inc (NASDAQ:CMLS) were downgraded on Tuesday by Zack’s Investment Research. But it seems that few paid have attention to the news. CMLS shares closed Friday at $0.40; they closed Tuesday at $0.47; and they are trading around $0.57 at 2:40 PM EST. To put a pencil to paper, that gives CMLS a 42.5% return since Friday’s close and over a 20% gain since yesterday’s close. The gains come alongside heavy volumes. Today over 1.4 million shares have been exchanged, or about 1 million more than their 30-day, daily average volume.

To be fair, the downgrade may be accurate however a little late. Or maybe a lot late. At the beginning of 2013 Cumulus Media Inc (NASDAQ:CMLS) was trading under $20 but would go on to hit above $60 by the end of the year. Then the wheels came off. By the end of 2015 investors could have picked up CMLS shares for under $1.50. CMLS shares never fully recovered and now are trading closer to their 52-week low of $0.22 than they are to their 52-week high of $3.60.

Cumulus Media Inc (NASDAQ:CMLS) has a novel business model. It operates radio stations in the mid-markets and currently reaches over 240 million people every week. Cumulus’ 447 owned and operated radio stations broadcast in 90 media markets and they have over 7,500 more that are affiliated with the Cumulus/Westwood brand. Importantly, Cumulus Media Inc (NASDAQ:CMLS) is the largest country music provider in the nation through its NASH brand.

Unlike many nano-cap firms, Cumulus Media Inc (NASDAQ:CMLS) share drop was not due to shareholder dilution. In 2014 there were 28.27 million shares outstanding and by 2016 that number increased just to 29.27 million. Sales have also been relatively consistent as in each of the past five years sales figures have come in between $1.00 million and $1.26 million. What has hurt has been the earnings losses. Although a small EPS profit of $0.40 was posted in 2014, in 2015 the EPS loss was (-$18.73) and (-$17.45) in 2016. So far 2017 does not look like any help will be coming as, for Q1 2017, Cumulus Media Inc (NASDAQ:CMLS) reported net revenue of $264.0 million, down 1.7% from the three months ended March 31, 2016, net loss of $7.4 million and Adjusted EBITDA of $38.7 million, down 7.6% from the three months ended March 31, 2016. No doubt that until earnings get turned around, no analysts will be lending CMLS their stamp of approval. I think in the radio business they call this a falling star.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 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.