Kenny Soulstring

Youngevity International YGYID Stock News

Youngevity International, a company that CNA Finance highlighted last week, announced that the company had expanded its “services division” by adding Identity Theft, Credit Monitoring, Virtual Tech Support, and Data Storage services.

The addition of these services compliments the growing portfolio of products at YGYID, which has surpassed the 5000 mark for unique items offered through a direct-sales model.

The Services Division at YGYID was launched last year and spurred by the acquisition of David Allen Capital which represents a variety of lenders that offer specialized lending services to small businesses. Since the acquisition of DAC, the company has arranged more than $8 million of loans to independent businesses throughout the United States.

David Rutz, Vice President of Global Services, commented, “Our goal is to provide a full lineup of business and residential services that will either introduce simplicity and convenience to our customers or savings on services they are already using.” He added, “We expect to release the newly announced services later this year and have several additional services in the due diligence process. We expect to continue to expand our product offering as we leverage the growth taking place within Youngevity’s customer and distributor base.”

David Briskie, President, and CFO of YGYID is also optimistic about the growth in the company’s services division. “We are enthusiastic about our Services Division and the potential it provides for revenue growth without the dependence of inventory management. Our Services further accentuate the unique nature of our Omni-Direct business model, and we believe this new suite of products are a great addition to this exciting category.”

As CNA Finance covered last week, we find the niche that YGYID is serving to be unique in both business model and approach. Already generating significant revenue through its direct-sale model, the company is on track to extend its substantial rise in revenue growth, one that has demonstrated an over 307% increase since 2012.

Youngevity International

Youngevity International, Inc. is developing its position as a leading omni-direct lifestyle company offering well over 5000 unique products and services through a hybrid of the direct selling business model. The strategy also integrates e-commerce and social media to power its sales platform. Since 2011, YGYID has built a broad portfolio of offerings including sales of products from the six top-selling retail categories that include health and nutrition, home and family, food and beverage (including coffee), spa and beauty, apparel and jewelry, as well as innovative services.

More than just a direct-sale company, YGYID is positioned to benefit from its socially conscious approach to business, dedicating the spirit of the company to remain not only socially responsible but to practice sustainable and renewable business practices.

The stock is thinly traded, and at the current price of $5.50 per share, YGYID offers significant value that is yet to be realized by the markets. We find YGYID to be one of those under-the-radar stocks that are worthy of investor attention and investment consideration.

For breaking news on YGYID, stay focused to CNA Finance.

Petro River Oil Corp PTRC Stock News

Petro River Oil Corp (PTRC)

Now that the U.S. has an administration in the White House that is bent on making the nation energy independent, investors should embrace an opportunity to find and profit from emerging, under-the-radar stocks. Finding them is not enough, though. Investors also need the willingness to get out in front of the trade to bank the rewards. Since President Trump took office, my focus has been on finding the finest of the emerging energy bunch, taking advantage of small and micro-cap opportunities that can deliver both near and long-term value to investors with an appetite for adding risk to their investment portfolio. Now that oil has made a break above the $50 level for the first time in weeks, the desire for energy-focused investment is on the rise. And, as is usually the case during market rotation, the clear winners are the early adopters that take positions well ahead of the shifting market, enabling them to capture gains from the change in momentum, which brings prime opportunity to score stellar returns.

As CNA Finance followers and subscribers know, I am uncompromising when it comes to uncovering the next pack of developing leaders in a reinvigorated sector, and Petro River Oil has advanced to my list of emerging oil producing favorites. Petro River Oil (PTRC) is deserving of the attention, and when compared to its peers, the case for substantial share price increase and long term opportunity gets magnified. Now, it’s up to investors to look at the big picture to understand and take advantage of the opportunity developing at PTRC.

PTRC Is Primed

No investment comes without risk, and when it comes to investing in the oil and gas industry, those risks often get intensified. While capital intensive pressures play a significant role in individual success and failure, the concern of the regulatory pressures put on producers has also played an intense role in limiting the opportunities for small competitors. Finally, this trend in overzealous oversight may have ended, and the next four to eight years may be the best chance investors have had in quite a while to entertain the idea of adding oil producing companies to their investment portfolio.

While PTRC may be under-the-radar to many investors, the stock has been on my screen for several months, and now that the company has completed a series of steps necessary to advance to the next stage of viable and long-term production, the investment thesis is compelling.

Why? It’s simple. Markets rotate, and when they do, investors are provided a golden opportunity to become a first responder, taking advantage of the low-hanging fruit that less aggressive investors leave on the table. My investment style is comparable to my eating habits – I partake in the appetizers. The similarity is that just like a good appetizer may oblige the early pangs, the main course is usually more satisfying. Thus, why not enjoy both, and take advantage of the satisfaction that each has to offer? Following that logic, taking an early bite into PTRC is attractive, potentially allowing investors to realize quick gains coupled with long-term satisfaction.

Investors have already been nibbling at PTRC stock, with shares up over 43% since the beginning of May. But, the increase may only be setting the stage for a significant move higher as investors come to recognize the inherent value in the company. Simply put, my excavation practices may have uncovered an investment opportunity in PTRC that the market herd is yet to recognize.

Petro River Oil As An Emerging Oil Stock

From my vantage point, accumulation in PTRC started two months ago, with volume increasing from 10X to 50X normal trading levels. Obviously, there are interested parties that see potential in the company. Despite the recent increase in share price, though, I believe the company has significant opportunity to run higher, with sights set on a near-term return of more than 100% from current levels. My bullish views are not outrageous, and they get substantiated by the proven reserves, the strength of the balance sheet, and by the company’s strong management team, who have clearly demonstrated the capability to accomplish their goals in an efficient and cost-effective manner.

If my analysis proves to be correct, the early investors into PTRC may sense that the company is now positioned to generate substantial revenue at current oil prices. In fact, the company has stated on several occasions that even a sub $40 per barrel spot price keeps the pumping profitable. Independent from the company’s statements, outside analysts have suggested that PTRC is positioned even better, enjoying the capability to generate profitable returns on oil priced as low as $35 per barrel.

Unlike the plethora of start-up production companies, Petro River Oil did not blindly meander into the oil business. The PTRC mission is calculated, designed, and intended to deliver returns. Focusing on the proven grounds of Osage County, Oklahoma, PTRC has spent the past several months conducting 3D seismic testing to recognize opportunity and minimize risk. As experienced sector investors know, oil production is a zero sum game for inexperienced drillers. Dry wells produce nothing and can be an exhaustive drain on capital resources. Despite the proven reserves in Osage County, small and inexperienced producers have gone belly-up trying to bring the black-gold to the light of day. Others, however, have made fortunes. And, because PTRC is taking a prudent, step-by-step approach to limit production risk, the company may indeed become the newest initiate to the “fortunate” club.

Osage County, Oklahoma, PTRC Historic Opportunity

Money making opportunity in Osage County, Oklahoma is not a new concept. The grounds were proven fertile well before Oklahoma became a sovereign state. Oil pioneers became aware of the underground asset in the early 1800’s and quickly took advantage of its potential, learning that the geographic location provided an inexpensive means of pumping the oil to the surface, a factor that still exists today.

Production was booming in the region for decades, and it wasn’t until the U.S. government entered the fray that the market took a turn. Typical to over-regulation and unintended consequences from ill-advised government intervention, many producers left the region. The oil remained, however, and with it the opportunity for innovative and experienced producers, like PTRC, to exploit the area for this valuable resource. Now, with a softening political climate, and technology capable of substantiating production value, smart companies have brought their focus back to Oklahoma, where billions of dollars in oil reserves lay in wait.

As others ran from the heavy government oversight and stifling regulations enforced by the former administration, PTRC intensified investment in the region upon the belief that the Trump Administration may finally clear a path to unobstructed production with a business-minded approach to regulation. Certainly, President Trump is a hawk when it comes to becoming an energy independent nation, which bodes extremely well for Osage County producers, particularly for vertical drillers like PTRC.

Osage County producers have been no stranger to bureaucratic roadblocks. But, much of the decades-long political wrangling came to a head in the first quarter of 2016, with a strong case presented to alleviate the bureaucratic delays from an understaffed Bureau of Indian Affairs and the U.S. government’s restrictive EPA office. Already showing progress, the promises made and executive actions taken by President Trump to reduce or eliminate the debilitating effects of government intervention are beginning to pay dividends to Osage County producers. For companies like PTRC, who staked their claims before the political shift, the rewards could be substantial by taking advantage of the fertile grounds and state-of-the-art technology at their disposal.

Petro River Oil Is Positioned To Exploit Institutional Interest

Petro River Oil is in an enviable position to deliver substantial returns for investors. Additionally, they are also ideally placed to take advantage of renewed institutional interest in the sector. As an example, investors should focus on a deal recently announced by PetroShare to understand the opportunities that PTRC may be able to exploit.

On Friday, PetroShare (PRHR) (not affiliated with Petro River) announced that they had been underwritten to offer $50 million in common stock through Johnson Rice and Seaport Global. Now, not until you realize that PetroShare had revenue of only $1.5 million in the first quarter of this year, compared to zero a year ago, does the offering demonstrate the institutional interest on a grander scale. The offering swallows the entire market cap of PetroShare, which after Friday’s close stood at roughly $43 million dollars. Beyond the impressive size of the offering, however, the cash is going to a company that has significant debt overhang, a history of quarterly losses, and virtually no trading volume in the stock. On the other hand, the corporate weaknesses on display at PetroShare can play extremely well for Petro River Oil, which clearly shows superiority on a multitude of fronts that can bring with it stronger interest from institutional money.

Side by side, Petro River is a stronger company on almost every business metric. While PetroShare is doing what they can do increase shareholder value, their funding news also serves to validate interest on the institutional front that may surely benefit Petro River.

To be clear, we’re talking about an institutional market that is becoming interested in financing emerging oil producers, and it’s not my intent to place PetroShare into the Hall of Shame. But, comparing the two companies offers insight into the substantial opportunity available to PTRC. Taking a closer look at the two invariably highlights the distinctions and why institutional interest may soon avail themselves to PTRC, which could generate major increases in shareholder value.

First, Petro River has no debt and has secured the funding for planned 2017 drilling programs. In contrast, PetroShare, in March of 2017, entered into a $10 million PIPE financing to raise the capital necessary to perpetuate lease development.

Second, while both companies utilize 3-D seismic technology to prove wells and de-risk exploration, only Petro River has the capability to drill vertical wells. Thus, for PetroShare, the horizontal drilling method may turn out to be a one-and-done approach, adding significantly greater risk and cost in comparison to wells explored through vertical drilling.

Third, PetroShare has a share price of roughly $1.90 a share, with approximately 22 million shares outstanding. While not necessarily an excessive number of shares issued, they are obligated to senior secured debt of about $12 million, and an additional $10 million in unsecured convertible notes. In addition to the convertibles, they also have a warrant overhang that has an exercise price of $3.00 per share, which can bring in $20.1 million with associated dilution of 6.7 million shares. Now, for those who may not understand the entirety of warrant structure, they often play the devil’s role, with astute investors hedging the warrants against a position or using an arbitrage strategy to benefit from the structure of the warrants. While the smell of warrant money is attractive to many retail investors, the untold truth is that the warrants often have a debilitating effect on share price, keeping a ceiling in place for the stock price and causing financial and negotiation distractions for a company that becomes desperate for cash.

The Petro River Oil Distinction

In comparison to the metrics listed, Petro River has 15.8 million shares outstanding, a $1.25 stock price and a market cap of approximately $20 million dollars. Now, while both the market cap and stock price are lower in comparison, PTRC has no debt, no warrant overhang, and no convertible loan features to dilute growth. Therein lay the distinction and opportunity I alluded to a few sections ago. With institutional investors now warming up to financing these emerging players, it makes strategic and financial sense for institutional investors to cozy up to companies positioned for sustainable growth, especially ones sitting as well as PTRC. Thus, while PetroShare may soon execute on their $50 million dollar dilutive offering, the terms for Petro River may become progressively better. Adding

intrinsic value, both companies have strategic partners to assist with growth and strengthen the balance sheet. Petro River enjoys a partnership and 20% ownership interest in Horizon Energy Partners, a potentially lucrative investment. PetroShare has a strategic alliance with Providence Energy Group, who owns approximately 13.7% of the company’s outstanding shares through a $3 million purchase during the company’s IPO.

Comparing the two, while taking into account the news of the pending cash raise at PetroShare, the deal only bodes well for PTRC shareholders in the future. If and when PTRC decides that they want to address the capital markets, they will have the ability to negotiate from strength and clearly show that the terms provided to PetroShare serve as a starting template for any proposed funding agreements. In simplest terms, with PTRC being the better company, there is no reason they should not enjoy better conditions, better underwriters, and greater investor interest in the near-term future.

Where PTRC Will Profit

Petro River Oil is generating meaningful press. On May 8th, PTRC announced the discovery of a new oil field in its Osage County concession. While the company needs to perform some exploratory work to substantiate the potential of the well, initial results are encouraging. According to the company, preliminary testing indicated strong production potential with up to 20 feet of oil productive formation. Confirmatory tests are planned to evaluate the extent and potential of the discovery, and the company has announced that they plan to perform additional 3D seismic testing on new channel sand formations, which have indicated a potential to deliver over 2.5 million barrels of oil.

Investors should not look at the discovery as a one-off, potentially winning lottery ticket. History suggests that additional oil deposits will likely emerge in nearby concessions. PTRC management is cautiously optimistic, believing that the initial discovery confirms their 3D seismic testing technology, which will likely lead to the development of two additional wells in the coming weeks and months. In addition to news of their recent discovery, management reiterated their confidence in its 3D seismic testing, indicating to investors that they believe to have discovered the possibility to develop an additional 12 producing fields, which could generate significant revenue streams and shareholder value.

As of May 2017, PTRC listed current assets at over $28 million, with cash receivables more than $5 million. As noted earlier, the company has no debt. The most recent balance sheet shows that the stock has a book value of $1.03 per share and a cash value of roughly ten cents a share. In comparison to industry valuations, with PTRC trading at around 1.5X its tangible value, the case for PTRC being undervalued is made stronger.

Now, it is true that not all emerging stocks are created equal, and the markets rarely price emerging companies efficiently. For undiscovered and growing stocks, like PTRC, the challenge is less about demonstrating its clean balance sheet and catalyst rich future than it is about getting investors to understand the value trapped beneath the surface of their name. For PTRC, there is value on several fronts, inclusive of a respectable balance sheet, an experienced management team, use of state-of-the-art 3D seismic testing technology, and most importantly, a recent discovery of assets that may serve as a leading indicator for the discovery of new and potentially lucrative oil deposits.

What should be exciting for investors who have today become familiar with PTRC is that the management team is becoming more focused on telling the story to the investment masses. Different from companies that put out multiple press releases a week to build brand recognition without underlying substance, PTRC has kept a spotlight on its accomplishments and is building their brand as a result of success.

For investors who seek out stocks intended to deliver exceptional returns based on substantive data and catalyst potential, Petro River Oil may be an ideal candidate. With the share price higher by over 43% since the beginning of May, this once under-the-radar stock is now obviously on the investing screens by those recognizing the opportunity and potential of this company.

PTRC has mitigated much of the downside risk with a strengthened balance sheet, its minority-owned interest in Horizon, and by its recent asset discoveries. The momentum is in place, and the stage is set for additional market moving developments. At current levels, PTRC is an absolute bargain and is certainly worthy of being positioned as one of my most promising oil stocks for 2017. Factoring in less restrictive oversight that should ultimately lessen the regulatory burden in the Osage County corridor, PTRC may be perfectly positioned to capitalize on both its asset-rich environment and the rejuvenated interest in institutional funding. Each may serve to benefit PTRC in both the near and long term, ensuring long-term viability and sustainable growth potential for the company.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.

Additional Disclosure: I have no position in any stock mentioned, but may initiate a long position in PTRC within the next 72 hours.

Disclaimer- CNA Finance is NOT an Investment Advisor. Our goal is to bring both news and under discovered stocks to the attention of investors to assist in making smart decisions in the market. CNA Finance is a for profit company. That profit is generated through three (3) different types of relationships. First and foremost, we work with pay per click and CPM advertisers on banners. We also have affiliate relationships with various companies where we earn a portion of the sales we refer. Finally, we may have relationships with some of the companies or IR firms that represent companies mentioned within our works in which we are compensated in cash and or stock for consulting, investor relations, and Press Release services. World Wide Holdings paid CNA Finance $3,000 to hire Perceptive Analytics for research and writing services as well as other investor relations services provided to Petro River Oil Corp by CNA Finance. All information researched and provided through any article associated with Petro River Oil Corp and published on CNA Finance is public information that is documented and available upon request. CNA Finance encourages all investors to seek professional advice before making any investment decision.

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required








Athersys ATHX Stock News

Athersys, Inc. (NASDAQ: ATHX)

This article was available to premium members 48 hours before the public.

Okay, Soulstring Nation, we are now delivering on 23 of the last 24 stocks featured in my weekly opine. Coming off last week’s massive 24% increase in Biohaven (BHVN), this week’s stock may offer just as much firepower as BHVN, and it’s certainly time that the market appreciates the value of this innovative and fast developing company. Let’s focus on Athersys Inc. (ATHX)





Athersys Is Moving Quickly

There are several moving parts to the ATHX story, and each of them deserves attention. For those new to Athersys, the company engages in the discovery and development of therapeutic candidates designed and intended to extend, enhance, and prolong quality of human life.

Athersys is developing its MultiStem cell therapy product, which is a patented, adult-derived stem cell product being targeted to treat disease indications in the neurological, cardiovascular, inflammatory, and immune disease areas. The company has several on-going clinical trials evaluating the efficacy of their proprietary and potentially regenerative medicine product.




ATHX Planned And On-Going Trials

At $1.52 a share after its 6% rise on Friday, my belief is that ATHX is still significantly undervalued based on a slew of already known data points. In fact, if there were a weak link in the armor, I would be the first to point it out. However, the company is doing just about everything right from both a clinical and managerial perspective; the only part lacking is a share price that is yet to catch up with the company fundamentals. Unfortunately, like most emerging companies, ATHX stock often gets pushed around due to its relatively low trading volume and under-the-radar status, causing both upside and downside volatility that can cause motion sickness to even the most grounded traders.

For momentum and swing traders, ATHX plays right into investors hands. Oh, I like ATHX as a long-term investment; however, the stock may be primed to deliver quick, short-term gains as the share price continues to churn through the current range and breaks free from the current consolidation. And, as stated, Athersys is already putting the pieces together that make the current share price look like the decimal point is misplaced. Consider the highlights from just the past several months, for instance.

Athersys announced that the FDA had awarded the company Fast Track Designation for its clinical stroke program, meaning that trial results become eligible for rolling data submissions, accelerated approvals, and priority review of the Biologics License Application. ATHX is further guaranteed a far more efficient and timely regulatory review process that can expedite the pace of the trial immensely.

Also, company management announced that the clinical investigators in their MASTERS trial, an on-going phase II study using MultiStem cell therapy to treat ischemic stroke patients, had two articles published in peer-reviewed journals – Stem Cells and Lancet Neurology. For those that listened to recent company conference calls, the trial investigators, many of whom exact a calculated discipline to discussing results, exuded both excitement and surprise at the pace of efficacy being demonstrated by patients in the trial.

The publications cite the potential for MultiStem to extend the treatment window for stroke patients out to 36 hours, a substantial increase in the current and critical treatment timeline for stroke victims. The publications highlight the biological mechanisms that may be directly attributable to MultiStem and illustrate the importance, value, and potential of this off-the-shelf cell treatment. The race to find a viable treatment is critical, with stroke continuing to be a leading cause of severe and debilitating effects in victims. Despite the increasing number of stroke incidents worldwide, many people are still unaware of the signs and symptoms of stroke, paying far less attention than required to the time sensitive nature of treating stroke patients. In failing to recognize an incidence of stroke, the short window for regenerative treatment closes, limiting the opportunity for long-term and sustained recovery from disabling effects. Taking advantage of stem-cell friendly nations, ATHX is working outside of the United States, as well.

ATHX is commencing their TREASURE trial in Japan, partnering with Helios. Japan has seen some of the highest increases in stroke patients in the world and is acting aggressively alongside a cooperative Japanese regulatory agency to bring a regenerative treatment to market. Japan has been a source of opportunity for those advancing treatment using stem cells, and the TREASURE trial expects to benefit from expedited review as well as the potential for limited approvals, provided the data remains supportive of probable therapeutic benefit.

Inclusive to the TREASURE trial, Athersys remains actively engaged with the FDA, the European Medicines Agency, and other regulators to obtain the necessary regulatory alignment for the company’s planned MASTERS-2 phase III clinical trial for stroke. The parallel clinical study has likely potential to bring value-building relationships through new partnerships, licensing opportunities, and collaborative agreements that advance the regenerative platform being developed by the company.

Athersys By the Numbers

The company has $31.9 million in cash and has no outstanding warrants that tend to obfuscate accurate valuations. The company earned $1 million in milestone payments from its collaboration with RTI Surgical and raised an additional $20.9 million from a stock offering during the first quarter of 2017. Athersys raised extra cash during the first quarter of 2017 through the exercise of warrants, which generated an additional $1.9 million for ATHX after the issuance of 1.8 million shares. As of May 1st, ATHX reports 111,316,615 shares outstanding, with approximately 100 million of those in the trading float, and as mentioned, there are no open warrants available to be exercised at this time. Thus, for the time being, ATHX is well-funded and does not have the dilutive overhang that often keeps a lid on the price of shares.

Athersys’ cash burn was $5.4 million in Q1 of 2017, and that burn rate is expected to remain consistent in the next several quarters. ATHX is a regular recipient of grant revenue and is likely to generate proceeds from the company’s collaborations with Helios and RTI Surgical, which will assist in preserving capital and lower cash expenses.

Making The Case For ATHX

OK, so now a case must be built for ATHX, one that can thrust this disrespectful $1.53 share price higher. First, despite the clinical progress achieved at ATHX, the stock is relatively under-the-radar and is not widely held amongst institutional traders. I am not discounting the interest of the approximate 88 institutional firms that own ATHX stock, but I will highlight that combined they own only about 14% of the outstanding shares. That’s both good and bad. It’s bad because when stocks like ATHX get close to quarter’s end, some of these firms like to do the window dressing maneuver, trading in and out of positions before the final deadline for publication ownership. On the plus side, these institutions have ATHX on the screen, and it will only take a small nod by one or two of the institutional folk to start a stampede. And, the rush for shares can drive the stock price significantly higher.

ATHX is a prime candidate for a near-term move higher, but not reliant on institutional interest to generate the momentum. ATHX, through their merit, has earned respect and should be trading at higher prices. The CEO is a meticulous professional, building relationships with regulatory agencies and providing detailed supporting evidence of therapeutic efficacy. While the regulatory route may take time, the interactions between ATHX and trial regulators act to ensure adequacy of data, insulating the trial from unexpected regulatory interruptions.

Investors should recognize that the managerial strength of Dr. Gil Van Bokkelen will be a primary reason that ATHX will enjoy long-term success. In his most recent conference call, he made a point of detailing his plans to implement one or more partnerships in 2017, and he indicated that good progress is being made on that mission. The fast track designation helps, as does the commencement of the MASTERS-2 phase III trial and the TREASURE trial in Japan. These on-going operations have the power to magnify the opportunity to enlist partners, and ATHX has gone as far as hiring a professional firm that specializes in arranging partnership agreements. The company has stated that active discussions, data evaluation, and diligence activities are taking place with multiple companies and ATHX management has confidence that the outcome will be to consummate a partnership deal.

In building lucrative terms, the phase III trial provides bargaining leverage for ATHX, and once again the patience of management will likely pay off for the share price going forward. Keep in mind, ATHX is not only targeting stroke. The company continues to take its cell-based platform to address new clinical indications, including current programs evaluating the treatment of patients that have suffered a myocardial infarction, as well as treatment for patients diagnosed with acute respiratory distress syndrome. Enrollment is progressing for each study and ATHX is committed to completing enrollment in both studies quickly with study results released as soon as practically possible. While no determinate time frame has been committed to by ATHX for data release, history should oblige investors to remain confident that the company will work expeditiously to advance and conclude the next stage of the trials.

Can ATHX Break Higher?

Can Athersys break higher? Well, informed investors certainly believe it can, and will. At these levels, little, if any, of the firepower available from ATHX appears factored into the current share price. In March of this year, ATHX stock price spiked sharply higher, trading at $2.01 a share on March 30th before retreating to current levels. Still, the current price represents an approximate 25% increase from the first quarter, when the stock hovered around the $1.15 level for most of February and March. ATHX likes to migrate toward the $1.50-$1.80 range, thus providing for an excellent short-term target increase of roughly 20% if the stock trends back toward its previous midpoint at $1.80 a share. But, the stock can certainly go higher.

Market conditions will move a stock like ATHX, but at some point, fundamentals take center stage. For short-term traders, taking a position and setting the sell limit at a stated percentage allows trades to be disciplined and can lock in profits as well as limit losses. Based on current technical and company fundamentals, ATHX appears ready to take a run back toward the $1.70 levels by the week’s end. A one-day spike in volume on May 10th took stock prices higher by 8% intraday. Then, on May 12th, shares saw an increase of 6%, so obviously, there are interested parties at work.

Despite time horizon differences, ATHX as both a long- and short-term investment is worthy of strong consideration for all of the right reasons. The company has cash on hand, two on-going clinical trials, a CEO that is meticulous and laser-focused, and a set of data that is emerging to potentially offer best-in-class therapeutic value for stroke victims. Factoring in the motivation to consummate near-term partnership deals, the case for investment consideration is made stronger. With the potential for a few more pennies to the downside, greater opportunities exist for a quick move higher.

The bottom line is this….I like ATHX stock, I like the management, and I like the current share price as an entry point into the company. Management is laser-focused on creating shareholder value and the next several weeks may glitter with value enhancing announcements. Based on the recent news and Fast Track designations, the seats on the bleachers are getting boring. It may be time to get into the game, and investing into ATHX may provide plenty of action.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article. I have no position in any stock mentioned, but may initiate a long position in ATHX within the next 72 hours. Past performance may not be indicative of future results. Therefore, no current or prospective client or subscriber should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by CNA Finance, Inc., it’s employees, or its affiliates), or product made reference to directly or indirectly on this website, or indirectly via link to any unaffiliated third-party website, will be profitable or equal to corresponding indicated performance levels.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio.

Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results.

Material represented is believed to be from reliable sources and we make no representations as to its accuracy or completeness.

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required









Athersys ATHX Stock News

Okay, Soulstring Nation, we are now delivering on 23 of the last 24 stocks featured in my weekly opine. Coming off last week’s massive 24% increase in Biohaven (BHVN), this week’s stock may offer just as much firepower as BHVN, and it’s certainly time that the market appreciates the value of this innovative and fast developing company. Today however, we’re going to focus on yet another incredible opportunity.

You Must Be A Subscriber To View This Content. Subscribe Here or Login Here

Premium Content!

You must be logged in to view this content. To see subscription plans, click here.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article. I have no position in any stock mentioned, but may initiate a long position in ATHX within the next 72 hours. Past performance may not be indicative of future results. Therefore, no current or prospective client or subscriber should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by CNA Finance, Inc., it’s employees, or its affiliates), or product made reference to directly or indirectly on this website, or indirectly via link to any unaffiliated third-party website, will be profitable or equal to corresponding indicated performance levels.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio.

Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results.

Material represented is believed to be from reliable sources and we make no representations as to its accuracy or completeness.

Biohaven Pharmaceuticals Holding Co Ltd BHVN Stock News

Biohaven Pharmaceuticals Holding Co Ltd (NYSE: BHVN)

Biohaven (BHVN) today announced that the company has officially closed its IPO, raising $193.5 million before deducting underwriting discounts, fees, and commissions. As a result of the full exercise of underwriters options, the total public offering size was 11,385,000 shares of common stock.

BHVN Has Momentum





BHVN was a featured stock of the week by Kenny Soulstring on Monday, where he introduced CNA Finance followers and subscribers to the company at $17.00 per share. Since his introduction, BHVN has traded higher by over 27% at the time of this publication. According to Soulstring’s article, BHVN has further to run, banking on the company’s pending phase III trials targeting chronic migraine and ALS.

BHVN is advancing BHV-3000 and BHV-3500 to target and treat chronic migraine through its CGRP platform. The company is also developing BHV-4157 in a potentially pivotal Phase IIb/III trial to assess efficacy and safety in treating patients with Hereditary spinal ataxia (SCA).

Trading BHVN Through PTGEF




Investors have been taking advantage of the leverage through Portage Biotech (PTGEF), who has a 28% ownership stake in BHVN. PTGEF, which trades at .38 cents (10:02est) is one of the largest shareholders in BHVN and is developing additional opportunities for its shareholders through its ownership interests in Sentien, EyGen and Portage Pharmaceuticals.

Since the lead into the IPO, PTGEF has enjoyed share price traction to the upside, trading higher by over 40% since the news of the pending BHVN IPO was announced. Since the BHVN offering, PTGEF stock has risen by over 15%.

Taking a look at BHVN either as a straight-up investment or through PTGEF may prove to be a wise decision. Each stock, at current levels, may prove undervalued and both are actively developing and working hard to deliver novel drugs to market. The investment in either brings with it a platform to develop innovative medicines that are looking to serve unmet medical needs.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.

Additional Disclosure: I am long PTGEF and may purchase additional shares within the next 72 hours.I have no position in BHVN.

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required









Snap Inc SNAP Stock News

Snap Inc (NYSE: SNAP)

Shares of SNAP wasn’t in the chatting mood on Thursday, as it saw its shares tumble by over 21% during the regular session. The after-hours trading session provided a reprieve by taking back about eleven cents of the $4.93 shellacking on the day.





Some Snap, Some Chat, And Some Tweet

With the assumption that people do still like to communicate, companies are not weary of bringing to market a flavor of the month that intends to capitalize on the notion that people still are a sociable animal. Despite the mixed messages I get from my teenage children on the matter, let’s assume that people do have an intense passion for finding more innovative ways to communicate via smartphone, computer or fablet.

Assuming that the statement is true than SNAP needs to come up with a more valid reason for losing $2.2 billion dollars during its first quarter as a publicly traded company. The loss flattens the total revenue number by fourfold and may find itself as the leader in the pack by losing more money in the space at a faster clip than any of its competitors.




Is It Fake News?

Oh, has Fake News reared its ugly head again, this time masking the over $2 billion in stock-based compensation recorded as a loss due to the company’s IPO? Perhaps, but the cover is only as good as the rest of the numbers dictate, and if an Elon Musk type smokescreen can be applied in SNAP’s defense, then more power to them.

Despite the accounting gimmicks and legal maneuvering, SNAP still lost a considerable amount of money. At current prices, don’t get fooled into thinking that the share price offers a buying opportunity just yet, either. SNAP has provided no guidance for future operations, leaving a void in expectation. And if there is one thing that investors hate, it’s uncertainty.

So, for those of you that are waiting for a pullback before buying shares, take your time. Pay less attention to the bankers that brought the company public, who would likely sell their first born King Charles Spaniel instead of put out a negative report on SNAP. Trusting them would be about as nifty as trying to beat that gout-laden leader of North Korea in a game of one-on-one basketball. Chances are you can win, but in the end, well you may be the guiding point on the tip of the next failed missile.

No, for SNAP, investors should take a wait and see approach. That is, wait and see if they ever make a penny. Until then, shop elsewhere…but do it quickly because the retail stores may be closing their doors quicker than SNAP.

Oh, Soulstring, say it ain’t so.

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required









Don't Miss The Profit

If you miss the next “Kenny Soulstring’s Monday Morning Stock Of The Week”, you’ll be ignoring a company that:

  • has received FDA Fast Track Designation to treat a potentially multi-billion dollar market
  • has just been peer-reviewed in at least two highly respected medical journals
  • is commencing International as well as United States based clinical trials
  • is in a strong cash position with no convertible debt overhang

Need more reasons to subscribe….well, here you go:

  • Since November of 2016, Kenny Soulstring has featured 24 individual stocks…. and an ASTOUNDING 95.83% of them (23 of 24 stock picks) traded higher during the next five regular trading sessions
  • Total combined return for all stocks featured during the stated period returned 507%
  • The combined average return for Kenny Soulstring’s picks averaged 23% during the next five trading day period
  • Kenny Soulstring’s most recent pick, Biohaven (BHVN), has returned over 20% since his feature on 5/8/17

Still need more:

  • Every Monday morning, as a subscriber to “Kenny Soulstring’s Stock of the Week”, CNA Finance will deliver to your in-box his exclusive Stock of the Week prior to market open ( Holiday’s included for Tuesday open)
  • Beyond the ticker, you will receive insight and analysis as to why Kenny Soulstring believes that his pick will likely be a winner for the week
  • Exclusive access to market updates about each stock pick of the week
  • Exclusive sneak-peeks of upcoming articles and stocks that deserve investor attention

Investors need an edge and if you are a trader that is looking to find stocks that may be undervalued, lack market exposure or are just being ignored by a distracted market, Kenny Soulstring may be the conduit you need to bring these stocks to focus.

For a complete list of all stocks featured by Kenny Soulstring since Novemebr of 2016, inclusive of date of publication and complete stock prices and changes, click here.

Ready to see how insight can turn to dollars/ Then register for Kenny Soulstring’s weekly analysis below!

  • - $79.99 / 1 Month
    Get access to all premium content on CNA Finance for one, very low monthly fee!

    Select a Payment Method

    No payment methods are available for the selected subscription plan.
Processing. Please wait...

    Credit Card Information

  • /

    Billing Details

Disclosure:

Investors should read the FULL DISCLOSURE prior to investing into any stock. Kenny Soulstring and CNA Finance do not solicit stocks nor does either party provide investment advice. Articles and features are provided for informational purposes only and include opinion and publicly available information. Neither Kenny Soulstring or CNA Finance have been compensated for any feature covered by Kenny Soulstring. Both Kenny Soulstring and CNA Finance rely on publicly available information at the time of publication. Investors should always rely on the most currently available information prior to making an investment decision, inclusive of company press releases and SEC filings.

Past performance may not be indicative of future results. Therefore, no current or prospective client or subscriber should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by CNA Finance, Inc., it’s employees, or its affiliates), or product made reference to directly or indirectly on this website, or indirectly via link to any unaffiliated third-party website, will be profitable or equal to corresponding indicated performance levels.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio.

Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results.

Material represented is believed to be from reliable sources and we make no representations as to its accuracy or completeness.

Merck & Co., Inc. MRK Stock News

Merck & Co., Inc. (NYSE: MRK)

It’s always a great treat to report that the heavily subsidized, lobbyist-infused FDA approved a drug to combat a debilitating or fatal disease. In this case, the FDA has approved Keytruda, a combination chemotherapy treatment for frontline lung cancer. Though the approval was expected, the actual stamp of approval lends comfort to the notion that the FDA is still diligently hard at work doing everything it can to bring life-saving medications to market. That’s if you have the cash to lobby the ever-living pockets off the panel.





Oh, here I go again, playing cynic to a regulatory agency that is supposed to be immune from lobbyist pressures and maintaining the ability to independently manage their investigative stature and approve or deny based on drug merit and efficacy.

Sorry, not buying that load of manure.

Merck Gets Keytruda

Yes, Merck gets approval for Keytruda, and perhaps some patients lives will be extended or saved. That’s the best case scenario. For Merck, they may earn some money. Analysts are expecting roughly $3.5 billion in sales in 2017, about $500 million less than what Merck is forecasting. By 2020, BMO Capital predicts sales of more than $10 billion.




The good news, though, remains that patients are being given new opportunities for life. The antiquated FDA, which can now be swayed by advocacy groups faster than a frog spits water, has become a puppet to money and a slave to public opinion. That’s not necessarily bad for patients, but for small and emerging drug companies, it limits the playing field.

In a perfect world of drug approvals, all company names would be blinded from the investigators, allowing them to judge the merits of a drug based solely on how it performs. Leaving out the trips to Martha’s Vineyard on the weekends. These blinded FDA investigation panels may do more good by approving drugs to help the citizens of the United States. True, it may hurt airlines, since people wouldn’t have to travel overseas to receive much needed medical care, but it’s a fair trade in most anyone’s opinion.

Good for Merck, though, and keep on truckin’. Bring as many drugs to market as possible. But, keep the weekend junkets paid for at the travel agency, I would hate to imagine a stressed out FDA panelist with a rubber stamp and ink pad with the power to say NO.

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required









Biohaven Pharmaceutical Holding Co Ltd BHVN Stock News

Biohaven Pharmaceutical Holding Co Ltd (NYSE: BHVN)

Biohaven Pharmaceutical raised $168 million on its May 4th debut, pricing beyond the expected range of $12-$16 dollars per share. Not bad for a company that has come to market at a time when the appetite for biotech stocks has been relatively fickle. While analysts penned reports expecting BHVN to raise roughly $100 million to fund the company’s pending phase III trials, investors familiar with the deal anticipated more, and they were right. Lofty IPO expectations were in order, based not only on the promising science, but also because of the pipeline depth and strong management team at the company. And, while the $168 million IPO deserves celebration, shares may still be significantly undervalued.





With Biohaven a potential hidden gem to many, others took an early shot at BHVN with an investment into Portage Biotech, a strategy designed to benefit from PTGEF’s approximate 28% ownership stake in BHVN. Even though Biohaven had been relatively tight-lipped when it came to publicizing their clinical prowess, PTGEF owners had an early glimpse of the pending IPO, allowing them to position ahead of the deal by either taking an initial position or increasing their stake in PTGEF. As a result, investors saw their PTGEF holdings increase by over 50% as the IPO approached.

I bring PTGEF into the equation for two reasons. First, they are now one of the largest shareholders in BHVN, and second, I like to follow the money. Information released before the IPO indicated that a group of investors, PTGEF insiders included, pledged up to $70 million to support the Biohaven IPO, and this is on top of the $80 million that BHVN raised in November of 2016. Needless to say, that amount of money is not chump change by any stretch of the imagination, and by connecting the dots, many investors speculated that insider interest in the BHVN IPO might be strong because they are impressed with ongoing clinical data. Thus, investors should pay attention.

Biohaven Grows Up… But Shares Are Far From Mature

Investors that followed BHVN toward its IPO have compared the probability of stock price increases to the story at AXON, who has seen its share price rise by over 60% since April. The appreciation at Axovant Sciences came after announcing that a new CEO has taken the helm to advance the company’s clinical stage prospects. What makes the story relevant is that the same people that are involved at Axovant Sciences are also congregating at the BHVN water-cooler, and if history does repeat itself, this group of professionals may once again have the Midas touch in uncovering the value in BHVN.

Although the IPO is recent news, Biohaven has been building its history since long before Thursday’s financial windfall. The company has not only earned peer respect but has built a formidable chest of promising assets.




Many investors received the first glimpse of BHVN back in October of 2016 when the company announced that it had licensed the rights to develop and commercialize glutamate modulating agents for cancer treatment from Rutgers University. The interest for BHVN is that they believe the research has established a role of glutamate receptor signaling in the growth and spread of multiple tumor types. With a potential signal identified, the first major obstacle in a breakthrough treatment becomes more realistic, and while armchair experts proffer a hundred different opinions on receptor signal matters, those that have come to know the intellectual depth of the Biohaven team know which voice to follow.

Subsequently, in November of 2016, the company raised $80 million in an oversubscribed private financing to advance Phase III clinical trials. At the time, BHVN was a privately-held company that was demonstrating particular expertise in late stage clinical development and held a portfolio of multiple late-stage assets. The $80 million came from private investors as well as from at least two undisclosed blue-chip pharmaceutical companies as part of in-licensing agreements with BHVN. The medical team, led by Vlad Coric, M.D., is a primary reason that investors placed their stamp of approval on the funding. However, the pipeline platform has no shortage of fans either and gets recognized as being a highly investable opportunity, tagging along with BHVN’s ambition to develop treatments to combat rare and debilitating diseases such as spinocerebellar ataxia, ALS, migraines, and cancer.

Growth Continues…Phase III Trials And Orphan Drug Designations

Moving forward, Biohaven announced in December of 2016 that the FDA had granted Orphan Drug designation for BHV-0223, an oral dissolving tablet developed for the treatment of ALS (Lou Gehrig’s Disease). The Orphan Designation became the third such request granted by the FDA and became part of the emerging clinical pipeline at BHVN. Because of the private nature of BHVN at the time, clinical results remained closely guarded, an apparent effort to protect strategic advantage and limit potential pipeline competition.

Now publicly traded, investors have since come to know about the clinical prospects on a more intimate basis. BHV-0223, described as a novel formulation of a glutamate-modulating agent that utilizes the Zydis ODT fast-dissolve technology, was acquired under an exclusive worldwide agreement with Catalent. BHVN believes, based on their clinical studies, that agents which modulate glutamate neurotransmission may have therapeutic potential in treating multiple diseases involving glutamate dysfunction. In doing so, BHVN intends to target diseases like ALS, Alzheimer’s, Rett syndrome, and dementia. A therapeutic value for BHV-0223 may further emerge in treating tinnitus, anxiety disorders, and major depressive disorders.

BHVN cleared the FDA IND application in 2015 and had completed a pharmacokinetic study in humans, supporting its prospective pivotal bioequivalence study in 2017.

Robust Pipeline Fueled By BHV-4157 Program

The momentum continued in December of 2016, when BHVN announced that it had enrolled its first patient in its potentially pivotal Phase IIb/III clinical trial to assess the efficacy and safety of BHV-4157 in treating patients with hereditary spinal ataxia (SCA), a condition for which no approved treatments exist.

Progressing into 2017, BHVN plans to enroll approximately 120 patients in a randomized, double-blind, placebo-controlled trial that will take place at an estimated fifteen trial sites in the United States. Researchers will be evaluating acute symptomatic treatment with BHV-4157 in patients with SCA, measuring primary outcome of a change from baseline in the total score on a Scale for Assessment and Rating of Ataxia. If the treatment proves successful, investors should expect BHVN to submit an NDA application to the FDA to assess BHV-4157’s value in treating the disease.

No Pain: Biohaven’s CGRP Receptor Platform To Treat Migraines

There is no weak link in the BHVN pipeline, but it’s fair to say that investors are fixated on the potential of the CGRP platform. The CGRP program is advancing its small molecule receptor antagonist platform, comprised of two product candidates. First, there is BHV-3000, designated for the treatment of acute migraine episodes. The second therapeutic candidate is BHV-3500, which is intended to provide preventive relief from chronic and episodic migraines. BHVN acquired the worldwide exclusive rights to the program from Bristol-Myers Squibb (BMY).

BHV-3000 (Remegipant) is the lead candidate in the CGRP program, which is an orally available, small molecule receptor antagonist. Supported by encouraging Phase IIb clinical data, the medical team at Biohaven believes that the drug has the potential to produce best-in-class therapy to treat an acute migraine episode, and may deliver additional value to address multiple unmet medical needs across an array of migraine symptoms. Data from the Phase IIb trial showed that BHV-3000 achieved statistical significance in providing long-term pain-free relief, with clinical benefits extending from two to forty-eight hours of relief.

As of December 31, 2016, BHVN has treated approximately 687 patients, with no severe or unexpected side effects observed. BHVN plans to commence the Phase III trial in the second half of this year with top line results expected in the first part of 2018.

BHV-3500 is the second product candidate in the platform. Also a small molecule CGRP receptor antagonist, BHV-3500 is being developed as a preventive agent against chronic and episodic migraines, clinically defined as fifteen of more migraine episodes per month. Like BHV-3000, the drug has shown no adverse or unexpected events, making it a potential candidate for daily use to serve as a preventative treatment for chronic migraine sufferers. Like BHV-3000, the drug has tremendous potential and is generating pre-clinical data to substantiate its value in treating four key headache categories, with its goal to show substantive improvements in symptoms. BHVN plans to initiate clinical studies in 2017 with hopes of generating results that support the filing of an IND application before year end for the prevention of chronic migraine episodes.

A common theme to both drugs is that they are looking to replace triptans, opioids, NSAID’s and combination medications that are currently on the market. Triptans, the most prolific standard of care, have produced sub-standard results, with only about 30% of patients reporting pain-free symptoms after a two-hour period. Triptans also have been shown to have secondary risk factors and are not recommended for people with cardiovascular conditions or disease. These restrictions eliminate a significant number of patients that need treatment, and although some analysts refer to the current treatment options as competitive barriers to entry for a successful BHVN approved drug, they fail to recognize the limitations of most all currently marketed drugs. They also, in their analysis, fail to point out that BHV-3000 is showing the ability to clear those restrictive hurdles, making the medication a best-in-class option, or an “only option” for patients.

The Future At Biohaven

While there is strength at Axovant Sciences, the truth of the matter is that BHVN may prove to be the superior horse in the race. Biohaven has two Phase III trials pending and has additional pipeline opportunities beyond the two programs mentioned. Now strengthened by a successful IPO, BHVN not only has the clinical potential to bring lucrative indications to market, but they have a well-fortified balance sheet to advance the stages. Therefore, in my opinion, the door is open to similar and significant gains, like those seen at AXON.

The $17 per share IPO price may very well become the lows in the stock as the company progresses toward its Phase III trials. Already trading above $18 on its second trading day, the case for Biohaven to trade significantly higher is understandable. The company has motivated insiders, endorsements from top pharmaceutical firms, and a tight share float that may become squeezed even tighter if insiders follow historical ownership patterns. Knowing how institutional bankers work, a quick upgrade in opinion is also likely, which can serve as the next catalyst for an upward move.

Hoping to gain investment leverage, many investors are looking to PTGEF to offer derivative exposure to BHVN. At just 35¢ per share, tiny PTGEF owns a 28% stake in BHVN, and that ownership position provides book value to the company that exceeds current prices. The pure value play through BHVN, though, fails to factor in the PTGEF portfolio of assets, which include significant value-driving opportunity from their wholly-owned assets – EyGen, Portage Pharmaceutical, and Sentien. Each asset can become as impressive as Biohaven, and investors should expect consistent news flow from PTGEF regarding these private holdings shortly.

While I am investing in BHVN through my PTGEF holdings, a straight-up investment into BHVN would certainly make sense. Following the money is always a good indicator of strength, and BHVN checks that box. With an oversubscribed offering and perhaps an additional $20 million or more on its way from underwriters options, taking a long-term position in BHVN should not make investors uncomfortable.

Immune from near-term headline risk, shares may be in for a nice move higher as each of the planned phase III trials commence. Just as AXON took a 60% leap on structural change, BHVN can do better, compounding gains from active insiders, a robust pipeline, and a fat wallet. Opening day IPO provides some churning, which is what investors saw last week. Given the three-day rule, I look for BHVN to work higher during this trading week, with investors digesting the robust interest in the IPO along with the promising clinical data.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.

Additional Disclosure: I am long PTGEF and may purchase additional shares within the next 72 hours. I have no position in BHVN and do not intend to purchase shares within the next 72 hours.

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required









Asterias Biotherapeutics Inc AST Stock News

Asterias Biotherapeutics Inc (NYSEMKT: AST)

For any of you that are surprised that Asterias Biotherapeutics has run higher by roughly 12% during the past week, don’t be. Finally giving credit where credit is due, investors have been replacing skepticism for an opportunity and are coming to appreciate that while the AST share price has been weak, the company has certainly not missed a beat in reaching clinical milestones. True, by the end of last week AST had given back over half of its 28% gain, but the company shares ultimately closed the week appreciably higher and on better than average volume.

Asterias is not new to the Soulstring universe, and I certainly shared in the frustration when the stock was unable to maintain its footing at higher levels. Experienced traders live through the fact that a stock price is not always reflective of what a company may truly be worth, and it’s during these times that investors must stay focused on fundamentals. As painful as it may be for investors, a depressed share price should not serve as the lead indicator for when to throw in the towel on an investment. It’s the fundamentals of a company that matter, and at AST, the fundamentals and clinical success have certainly made a case for continued conviction in the stock.

Asterias Should Never Have Dropped

Stocks fluctuate, that is a given. And for stocks like AST, who are relatively under the radar, they can get whipsawed back and forth faster than a frog in a paddle wheel. But, there are times when investors just need to admit that stocks like AST often get beaten down for all the wrong reasons. Sometimes they have ineffective IR companies managing their exposure or offer press releases that are more technical than explanatory. Add to that the loose notion that many in the institutional class won’t ordinarily purchase a stock that trades under the $5.00 threshold, and we get delivered a trifecta of reasons that may contribute to a lower share price. For long-term AST shareholders, here we are again, riding a seesaw of price action. AST is trying to complete its most recent round-trip in price, from the $5.00 level in January, down to $2.83 during mid-April, and now working its way higher in price, flirting with the $4.00 level at Friday’s close.

To continue reading this content, please login here or sign up here.

Premium Content!

You must be logged in to view this content. To see subscription plans, click here.

Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.

While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.

I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.

Additional Disclosure: I am long AST and may purchase additional shares within the next 72 hours.

Thought Leader Discussions

Gevo, Inc. GEVO Stock News

0 7198
Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...