MYOS RENS Technology (Nasdaq: MYOS) to Close on Direct Offering Today

MYOS RENS Technology Inc. – Nasdaq: MYOS

Last Friday shares of MYOS RENS Technology, a bionutrition and biotherapeutics company, gained over 37% on over 150 times the previous day’s volumes. This week MYOS shares, traded on the Nasdaq, have increased over 30% on heavy volumes – ending the after-hours session at $4.80.

Today the closing of the registered direct offering is expected to take place. The Company entered a securities purchase agreement with an investor, announced on February 3, 2017, to sell 500,000 shares of its common stock at a per share price of $4.25. The Company intends to use the net proceeds for general corporate purposes.

Cedar Knolls, NJ-based MYOS RENS Technology is also known as “the muscle company”. MYOS develops and commercializes products that improve muscle health and performance. MYOS is the owner of Fortetropin®, the world’s first clinically demonstrated myostatin reducer. Myostatin is a natural regulatory protein, which inhibits muscle growth and recovery.

Dr. Robert Hariri, U.S. Chairman of MYOS RENS Technology stated in a January 30, 2017 press release “It has become clear that myostatin is a key clinical target to address fundamental issues such as sarcopenia, inflammation and aging. MYOS RENS continues to lead in the development of products that target myostatin, and we believe, is the only company that has a safe and effective product on the market to modulate myostatin.”

Shareholders of nano-cap MYOS have experienced EPS losses since 2011 when MYOS posted a loss of $4.54. EPS losses continued for the next several years and in 2015 the loss narrowed to $1.64. Sales have been erratic. In 2010 MYOS reported a figure of $100k, followed by figures of $$900k, $3.3 million, $3.3 million, and just $200k in 2015.

Of note is that famed astronaut Dr. Buzz Aldrin is a paid member of MYOS’ Board of Directors and the company spokesperson.

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

2/8/2017
Ticker Symbol MYOS
Last Price a/o 9:30 AM EST  $                      4.37
Average Volume                1,180,000
Market Cap (mlns)  $                    17.46
Sales (mlns) $0.30
Shares Outstanding (mlns) 3.7
Share Float (mlns) 2.48
Shortable Yes
Optionable No
Inside Ownership 10.80%
Short Float 1.78%
Short Interest Ratio 0.04
Quarterly Return 225.07%
YTD Return 300.00%
Year Return 214.67%

Plug Power Inc. (Nasdaq: PLUG) Hits 52-Week Low

Plug Power Inc. – Nasdaq: PLUG

Shares of Latham, NY-based Plug Power Inc. hit their 52-week lows yesterday. Shares had been above $5 in early 2014 but yesterday closed at $1.02 on heavy volume. Plug Power Inc. trades on the Nasdaq under ticker PLUG and their average daily volume is over 3.7 million shares but yesterday over 11 million shares traded hands.

The price slide in PLUG comes despite improved margins on unit sales above original estimates to such blue-chip firms such as Wal-Mart, Home Depot, and BMW. Plug Power also recently announced a partnership with two Chinese firms to serve the expanding electric car market there.

Positive earnings, however, have not yet been brought to PLUG shareholders. Despite increasing sales (103.3 million in 2015), EPS has been negative for PLUG shares for the past five years – although the losses show a narrowing trend year-on-year. In 2011, PLUG EPS showed a loss of $1.46 but by 2015 that loss had narrowed to just $0.32.

Six firms follow Plug Power. Four rate PLUG shares as a “Strong Buy”, and two rate the shares as a “Hold”. Their consensus price estimate for PLUG is $2.38.

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

2/2/2017
Ticker Symbol PLUG
Last Price a/o 8:00 AM EST  $                      1.02
Average Volume                3,780,000
Market Cap (mlns)  $                  194.62
Sales (mlns) $91.80
Shares Outstanding (mlns) 190.8
Share Float (mlns) 188.63
Shortable Yes
Optionable Yes
Inside Ownership 0.70%
Short Float 17.33%
Short Interest Ratio 8.66
Quarterly Return -33.33%
YTD Return -15.00%
Year Return -38.92%

Passive Investment Trends Could Lead to Trading Opportunities

The beginning of 2017 has seen two eyebrow raising news items that are seemingly unrelated, but that may signal huge opportunities for traders. Both news items can be traced back to the passive investment trend that has been picking up steam (in terms of AUM) over the last decade. This trend of a passive allocation to a set basket of securities may create market inefficiencies that traders could exploit with greater regularity, and larger profits, than at anytime in recent memory.

Early this year a report was released that showed that seven of the ten most actively exchange-traded securities were not stocks – but exchange-traded funds (ETFs). ETFs typically represent an index that has as its constituents a set list of securities. While those securities change, the vast majority of the securities remain the same. This sedentary allocation mandates that a sizeable portion of funds coming into the market is passively directed towards the same shares.

Given the shift to passive investment instruments, it comes as little surprise that active investment managers are losing AUM. However what was surprising was a news article that disclosed a huge loss of AUM from Grantham investments. Led by legendary investor Jeremy Grantham who foresaw the stock market bubbles of 2000 and 2008, Grantham’s cautious approach to the recent bull market has seen returns of his flagship Benchmark Free Allocation Fund lag behind the indexes. This under-performance to passive indexes has motivated investors to pull assets – over the past two and a half years Grantham’s fund has gone from $124 Billion to $80 Billion.

SNU View has stated before the fact that no President that has followed a two-term President and not experienced a recession. This fact combined with Grantham’s track record on spotting market bubbles do not portend well for the stock market. However this observation is merely tangential to the real issue of the efficient allocation of capital to the market.

The massive, seemingly tidal-like, trend of capital into passive instruments means that a multitude of securities will not have their pricing as affected by an ever-growing share of stock market capital inflows. Could this lead to inefficiencies in pricing securities that are not part of an index? We believe this is exactly what may happen.

The inefficiencies created by the passive capital allocation trend will lead to mis-priced securities. And who loves mis-priced securities more than traders? Those market operators that live each day in front of their screens and scour hundreds of tickers for opportunity – looking for pricing discrepancies and corporate actions that impact future earnings and current prices.

So while there may be plethora of academic research that passive allocations beat the average active investment manager, the beast that has become passive investing may have just born a monster of market inefficiency that could lead to profits that have not been seen since the frenzied day-trading of the 90s.

Ichor Holdings Ltd. (Nasdaq: ICHR) Posts Results – Shares drop

Ichor Holdings, Ltd. – Nasdaq: ICHR

Shares of Ichor Holdings, Ltd. dropped after the firm released financial results for the 4th quarter and gave guidance for 2017. Ichor Holdings, Ltd. trades on the Nasdaq under ticker symbol ICHR.

Fremont, CA-based Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems for semiconductor capital equipment in the United States, the United Kingdom, Singapore, and Malaysia. It primarily offers gas and chemical delivery subsystems that are used in the manufacturing of semiconductor devices. Ichor Holdings employees are strategically located to provide their customers with the highest level of customer service and support from their program management, sales, engineering, and executive management teams.

Ichor expects sales of approximately $131 million for the fourth quarter, and approximately $405 million for the 2016 fiscal year. Additionally, Ichor expects sales for the first quarter of the 2017 fiscal year to be higher than for the fourth quarter of the 2016 fiscal year.

Ichor Holdings has posted negative EPS in 2014 and 2015: -$0.02 and -$0.40 respectively. However sales increased from $249 million in 2014 to $290.6 million in 2015. Five firms follow Ichor Holdings with three rating ICHR a “Strong Buy” and two rating ICHR a “Buy”.

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.

1/10/2017
Ticker Symbol ICHR
Last Price a/o 4:00 PM EST  $                    13.40
Average Volume 162,000
Market Cap $320.5 million
Sales $338.8 million
Shares Outstanding 23.92 million
Share Float 20.83 million
Shortable Yes
Optionable No
Inside Ownership 12.20%
Short Float 0.87%
Short Interest Ratio 1.12
Quarterly Return
YTD Return 23.84%
Year Return

GenVec, Inc. (Nasdaq: GNVC) Posts Big Gains

Genvec, Inc. – Nasdaq: GNVC

Genvec, Inc shares rose over 75% in today’s trading. The shares, traded on the Nasdaq under ticker GNVC, ended yesterday at $4.97. Today they rose to a high of $10.44 before ending the session at $8.79. Volumes for GNVC averaged around 100,000 but today volume reached over 17 million.

GenVec is a clinical-stage biopharmaceutical company with an entrepreneurial focus on leveraging its AdenoVerse™ gene delivery platform to develop a pipeline of cutting-edge therapeutics and vaccines. The company is a pioneer in the design, testing and manufacture of adenovectored product candidates that can deliver on the promise of gene-based medicine. On January 5th, Genvec, Inc. an exclusive option agreement with Washington University in St. Louis, MO to license intellectual property and technology related to gene editing and pulmonary endothelial cell targeting.

A single firm follows Genvec and their analyst gives GNVC a rating of “Strong Buy”. Genvec has never experienced positive EPS and last year reported a loss of $3.90 EPS. While Genvec has reported sales each year since 2011, 2015 represented its weakest year – Genvec posted sales of only $900,000 versus $17.7 million in 2011.

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.

1/10/2017
Ticker Symbol GNVC
Last Price a/o 4:00 PM EST  $                      8.79
Average Volume 100,000
Market Cap $22.33 million
Sales $600k
Shares Outstanding 2.54 million
Share Float 1.72 million
Shortable Yes
Optionable No
Inside Ownership 1.10%
Short Float 2.25%
Short Interest Ratio 0.39
Quarterly Return 114.39%
YTD Return 173.83%
Year Return 22.08%

Asure Software, Inc. (Nasdaq: ASUR) Closes Three Deals – Shares Rise

Asure Software, Inc. – Nasdaq: ASUR

Asure Software, Inc., based in Austin, TX, closed three strategic acquisitions and provided financial guidance for fiscal 2017. Its shares, traded on the Nasdaq under ticker ASUR, have risen almost 30% in response.

Asure Software, Inc. provides cloud-based software-as-a-service (SaaS) time and labor management, and workspace management solutions worldwide. On January 1, 2017, Asure Software closed three strategic acquisitions: Personnel Management Systems, Inc. (PMSI), a provider of outsourced HR solutions, Corporate Payroll, Inc. (Payroll Division) (CPI), a provider of payroll services in Ohio, and Payroll Specialties NW, Inc. (PSNW), a provider of payroll services in Oregon.

CEO Goepel stated: “These acquisitions allow us to grow and make strategic decisions about our growth. Since joining as CEO in 2009, Asure had a $6 million market cap and was in a turnaround situation. Now that the transition is complete, we have evolved into a growth company, with a world-class customer base, industry-leading solutions, and a strong financial profile and outlook. With the completion of the recent capital raise, in which insiders participated for greater than 10%, and now the closing of these acquisitions, we are in a position to make strategic decisions to fund for accelerated growth, while continuing to drive strong EBITDA and cash flow.”

Goepel also gave guidance for 2017 “For the full year of 2017, we expect revenue to range between $45 million and $47 million, and EBITDA (excluding one-time expenses) to be between $9 million and $9.5 million.”

Five firms follow Asure Software, Inc. and all five rate ASUR as a “Strong Buy”.

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.

1/10/2017
Ticker Symbol CUDA
Last Price a/o 3:59 AM EST  $                    10.93
Average Volume 92,800
Market Cap $90.6 million
Sales $32.6 million
Shares Outstanding 8.29 million
Share Float 7.34 million
Shortable Yes
Optionable No
Inside Ownership 10.40%
Short Float 3.78%
Short Interest Ratio 2.99
Quarterly Return 58.41%
YTD Return 28.44%
Year Return 145.62%

Barracuda Networks, Inc. (NYSE: CUDA) Beats Estimates – Rises in After-Hours Market

Barracuda Networks, Inc. – NYSE: CUDA

Barracuda Networks, Inc. beat street earnings estimates and rose over 8% in after-hours trading. Traded on the Nasdaq, CUDA shares rose to an after-hours high of $25.87. Street estimates, on average, were for Barracuda Networks, Inc. to earn $0.15 per share. The Campbell, CA-based company reported $0.22 EPS after posting loss for the same quarter last year. Revenue was also higher than street estimates – $88.8 million vs. $86.9 million.

Barracuda Networks, Inc. offers industry-leading solutions designed to solve mainstream IT problems. Their products span three distinct markets, including: 1) content security, 2) networking and application delivery and 3) data storage, protection and disaster recovery. CitiBank, Coca-Cola, Delta Dental, FedEx, Harvard University, IBM, L’Oreal, Liberty Tax Service, Mythbusters and Spokane Public Schools are among the more than 150,000 organizations in 100+ countries confidently protecting their users, applications and data with Barracuda solutions. Their network has 1000+ employees, 5000+ partners, and offices in 15 countries.

CUDA has reported increasing sales figures every year since 2012 when it reported $160.9 million. In 2016 Barracuda Networks, Inc. reported $320.2 million. Fourteen firms follow CUDA, with eight rating it a “Strong Buy”, one rates it a “Buy”, three rate CUDA as a “Hold”, and two rate it as a “Sell”. Consensus price target amongst analysts is $28.00.

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.

1/10/2017
Ticker Symbol CUDA
Last Price a/o 7:59 PM EST  $                    25.70
Average Volume 663,430
Market Cap $1.23 Billion
Sales $338.4 million
Shares Outstanding 51.71 million
Share Float 32.48 million
Shortable Yes
Optionable Yes
Inside Ownership 12.50%
Short Float 2.22%
Short Interest Ratio 1.1
Quarterly Return -0.25%
YTD Return 10.92%
Year Return 121.53%

Exelixis Inc. (Nasdaq: EXEL) Shares Higher on Resolution of Dispute with Genentech

Exelixis, Inc. – Nasdaq: EXEL

Genentech’s announcement to stop charging Exelixis, Inc. some expenses under their collaboration agreement sent EXEL shares almost 15% higher today. Exelixis Inc. is a San Fransico, CA-based biopharmaceutical company that develops molecular therapies with the potential to improve the treatment of cancer.

Exelixis and Genentech have shared promotional costs since commercial activities were initiated in early 2013. As detailed in previous regulatory filings, Exelixis charged its Profit and Loss Statement approximately $38 million for promotional costs through the third quarter of 2016. With the new approach that Genentech has adopted unilaterally, Exelixis’ liability for promotional costs will be reduced to approximately $15 million for the same period. Exelixis Inc. will not have to pay$18.7 million in disputed costs, and Exelixis will receive $7.1 million for expenses they had already paid – plus interest.

Six firms follow Exwlixis, INC. All six rate shares of EXEL as a “String Buy” The consensus price target is $21.

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.

1/9/2017
Ticker Symbol EXEL
Last Price a/o 4:00 PM EST  $                    17.58
Average Volume 5.98 million
Market Cap $4.93 Billion
Sales $123.8 million
Shares Outstanding 280.3 million
Share Float 260.59 million
Shortable Yes
Optionable Yes
Inside Ownership 0.80%
Short Float 6.52%
Short Interest Ratio 2.84
Quarterly Return 35.75%
YTD Return 17.91%
Year Return 259.51%

 

Enteromedics Inc. (Nasdaq: ETRM)

EnteroMedics Inc.– Nasdaq: ETRM

Enteromedics Inc has had four continuous days of gains. Traded on the Nasdaq under ticker ETRM, the biotech stock had a reverse split in late December. What is newsworthy of late is the massive relative volumes that have been associated with the stock. Below is our original report from January 6, 2017.

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Shares of MN-based EnteroMedics Inc. are up over 80% in pre-market trading on heavy volume. Shares are traded on the Nasdaq under the ticker symbol ETRM. ETRM closed at $2.09 on Wednesday, $3.97 on Thursday, and have traded as high as $7.62.

EnteroMedics® Inc. develops therapies for obesity. It has developed vBloc® vagal blocking therapy, a patented therapeutic approach to treat a range of gastrointestinal and metabolic diseases. vBloc® is a weight loss treatment that addresses the growing global health crises associated with obesity and its co-morbidities, such as diabetes and hypertension.

vBloc® Therapy, delivered by a pacemaker-like device called the Maestro® Rechargeable System, controls both hunger and fullness by blocking the primary nerve which regulates the digestive system. The Maestro Rechargeable System has received Food and Drug Administration (FDA) approval as well as CE Mark in Europe, and has been listed on the Australian Register of Therapeutic Goods (ARTG) by the Therapeutic Goods Administration (TGA) for supply in Australia.

Price action seems to be motivated by news that MedStar Health in Maryland and Roper St. Francis in South Carolina, both vBloc institutes, have implanted vBloc Neurometabolic therapies.

EnteroMedics Inc. has no reported sales. Only one firm follows ETRM and rates it as a “Strong Buy”.

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.

Ariad Pharmaceuticals (Nasdaq: ARIA) Agrees to $5.2 Billion Buy-out

Ariad Pharmaceuticals, Inc. – Nasdaq: ARIA

Takeda Pharmaceutical Company Inc. has agreed to purchase Cambridge, MA-based Ariad Pharmaceuticals for $24 per share. Ariad’s shares, traded on the Nasdaq under ticker ARIA, closed Friday at $13.74 and shot up to an intraday high of $23.81. The $5.2 Billion deal represents a 75% premium over the Friday closing price.

ARIAD Pharmaceuticals, Inc. is focused on discovering, developing and commercializing precision therapies for patients with rare cancers. ARIAD is working on new medicines to advance the treatment of rare forms of chronic and acute leukemia, lung cancer and other rare cancers. According to its website, Takeda conducts activities according to the corporate mission to “strive towards better health for people worldwide through leading innovation in medicine.”

Alexander J. Denner, Ph.D., Chairman of the ARIAD Board of Directors, said: “This transaction is a great outcome for ARIAD shareholders and brings hope to improve the lives of many cancer patients. It has been a pleasure to work with our outstanding management team and, on behalf of the board of directors, I extend our deepest gratitude to everyone at ARIAD for their unrelenting dedication.”

Ariad Pharmaceuticals is covered by nine firms. Five gave ARIA a rating of “Strong Buy”, two rated ARIA a “Hold”, and two rated ARIA a “Sell”. Their consensus price target was $13. While ARIA has never reported a profit, it sales have done well. In 2011 Ariad Pharmaceuticals reported sales of $25.3 million but in 2015 Ariad reported sales of $118.8 million.

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

1/9/2017
Ticker Symbol ARIA
Last Price a/o 11:32 AM EST  $                    23.75
Average Volume 6.5 million
Market Cap $2.6 Billion
Sales $186.2 million
Shares Outstanding 189.4 million
Share Float 187.7 million
Shortable Yes
Optionable Yes
Inside Ownership 0.20%
Short Float 17.26%
Short Interest Ratio 13.45
Quarterly Return 2.92%
YTD Return 10.45%
Year Return 161.22%