|Written by GSCR Staff|
|Friday, 27 June 2014 08:56|
Earlier this week we commented on ETF and features of the core and satellite portfolios in the Market Monitor.
One of the staples in the satellite portfolios are small cap biotech stocks, a sector that appears to be coming back in favor based on the Russell Microcap reconstitution preliminary list which we cited in this week’s Guide. Whether this is coincidence or a great segue, there was a big jump this week in one of our Market Monitor picks from January 2014.
TG Therapeutics (NASDAQ – TGTX - $9.47) is a development stage biopharmaceutical that has some innovative products in its pipeline geared primarily toward the treatment of cancer. This past week’s 18% jump is just the tip of the iceberg. The stock has more than doubled over the last month on tremendous deal flow. We featured the stock at $5.10 and called for a $6.75 level sometime this quarter. Now that the stock has skyrocketed past this level, the question is what to do next with TGTX.
Here is a refresher on TG Therapeutics. The Company is developing two advanced therapies targeting hematological malignancies. The TGTX-1101 (ublituximab) is a novel, third generation monoclonal antibody that targets a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes, or antibody agents, which is in clinical development for patients with relapsed and refractory non-Hodgkin's lymphoma. The TGR-1202 is an orally available PI3K delta inhibitor believed to be important in the proliferation and survival of B-lymphocytes.
Looking at TGTX from a technical perspective, the stock is trading above both the 20 and 50 day DMA, a very bullish indication. The deal flow remains steady as well. Earlier this week TG Therapeutics signed a deal Global Licensing Agreement with Ligand Pharmaceuticals (NASDAQ – LGND) for the development of Inhibitors of IRAK4. The clinical phase testing is also producing steady positive news. In late May the Company issued positive news for Phase I results for its TGTX-1101 treatment. Finally, the revenue potential is coming into focus as consensus analysts’ estimates forecast that the Company will start to generate some significant revenue in 2015 approaching $13 million in market that has the potential to reach $100 billion.
The deal flow and positive clinical results will keep the momentum going on TGTX. The stock could reach $12 by the end of 3Q.
Have a great weekend!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports.
Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.
It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.
ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com