by Travis Johnson, Stock Gumshoe | June 13, 2014 3:34 pm
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Source URL: https://www.stockgumshoe.com/2014/06/friday-file-portfolio/
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All the subscribers to stockgumshoe are above average. here is a comment on (maybe) why the biotech sector did so poorly except for those of us who track Dr RSS.
Adam Feuerstein of TheStreet.com writes:
“The Securities and Exchange Commission is investigating Galena Biopharma (GALE) for its role in the ‘DreamTeam Group’ stock-promotion scandal. Galena paid an investor relations firm, DreamTeam Group, to engage in a stock-promotion campaign on behalf of the company. The DreamTeam’s work for Galena included publishing promotional articles written under false names on the investor web site SeekingAlpha.
“If you thought Galena would lay low while SEC investigators dig into its business practices, you’d be mistaken. Galena is now paying a different marketing firm to create promotions for its experimental breast cancer vaccine Neuvax. These Neuvax ads are dressed up to look like legitimate news articles, except for the small disclaimer labeling them as ‘sponsored content paid for by a third party.’”
The Motley Fool’s Sean Williams disagrees based on a statistically meaningless drug trial:
“Cancer immunotherapy drug developer Galena… saw its shares rocket higher by 16.8% despite no company-specific news today. Galena shares, however, have been practically unstoppable since releasing phase 1 study data last week. In that study, involving GALE-301, Galena noted that out of 30 enrolled patients with ovarian or endometrial cancer, 7 out of 14 in the control arm had their cancer reoccur. Out of the 16 GALE-301 intent-to-treat patients, 4 had their cancer reoccur after completing the vaccine series, 2 had their cancer reoccur prior to completion, and one withdrew.
“Possibly the biggest factor in today’s continuation move higher for Galena is its nearly 23% short interest. A rapid increase in Galena’s share price forces short-sellers to either endure the pain or cover their short shares, possibly sending Galena even higher.
“I am keeping a close eye on Galena as its HER2-negative breast cancer adjuvant therapy NeuVax has the potential to put the company on the map, but until I see its phase 3 results I’m perfectly satisfied sticking to the sidelines.”
Google Altert meanwhile sent me a note from a pennystock newsletter called Caddystocks offering a free write-up of GALE if I signed up. When I did I learned that I am already a subscriber to this service which warns in a hard-to-find disclaimer that:
“All information on profiled companies is provided by such companies.. and no representation, warranty, or guaranty is made as to its accuracy or completeness… Neither CaddyStocks.com nor any of its owners, operators, or affiliates shall be liable to any subscriber or reader for any losses or damages arising from the use of any inofmration contained herein, caused in wholeor part by CaddyStocks.com in … compiling, interpreting, reporting or delivering aly information contained herein.”
Despite my signing up, my efficient spam-blocker kept the GALE report out of my in-box. All I got was this note:
“GALE has been added to our watchlist. Our team has been doing their due diligence to provide a detailed report including both Technical and Fundamental Analysis on GALE. We have been monitoring GALE’s press releases, SEC filings, and management history for quite some time.”
GALE “proclaimed that date from the phase I study with GALE-301 or Folate Binding Protein, was presented at the American Society of Clinical Oncology Meeting.” GALE “surged +04.2% and closed at $2.41 on a traded volume of 1.02 mn shares, in comparison with 2.56 mn of average trading volume. The company has a total market capitalization of $284.44 mn.” (All this information is public but maybe there is more they didn’t send me which takes GALE’s side.)
This stuff tells you as that there is no such thing as a free lunch, particularly not on the Internet. All 4 services are supposedly free. http://www.global-investing.com is not free since we pay our contributors for their investment advice—and ban them to getting fees from companies they write about, mutual funds, or “investment relations” stock-promotion firms. Nor is Dr RSS free. His ideas like Biocept are far too valuable for that!
Thats v helpful perspective…Thanx
as it came from you particularly warm thanks.