|Written by GSCR Staff|
|Tuesday, 19 November 2013 07:14|
Sunday and early Monday there were some highly unusual storms with devastating winds and tornadoes in the Midwest causing a lot of damage and human casualties. Every time these events occur, all one can do is be grateful it was not you and provide any support for those affected. Let’s hope the recovery is swift and effective.
In yesterday’s Goldman Guide we discussed the major headwinds facing President Obama’s Affordable Care Act as well as some of the latest IPO offerings to hit the market as the year winds down.
We decided to look at a stock that is a combination along the lines of both themes, which is a biotech stock that got beaten down after the initial IPO that may offer a good value going forward.
Galena Biopharma, Inc. (NASDAQ – GALE - $3.04) was just in the wrong place at the wrong time when the Company went public in March 2008. The stock shot up to $13.60 on the second day of trading, then proceeded to get beaten down, along with the rest of the market to $0.39 in December 2011.
Galena Biopharma focuses on late stage oncology treatments that are currently unmet in late stage cancer treatment. The lead product candidate includes NeuVax (nelipepimut-S or E75), which is in Phase 3 clinical trials for preventing the recurrence of breast cancer. It also develops Folate Binding Protein-E39, a targeted vaccine that is in Phase 1/2 clinical trials for the prevention of recurrence in gynecological cancers, such as ovarian and endometrial adenocarconimas.
The Company’s breakthrough cancer pain pill, Abstral, has been FDA approved and is set to be marketed and sold. The drug is already generating approximately $55 million annually in revenue in Europe, and even at low estimates could generate $60 million per year in the U.S.
With a market cap of only $320 million, a drug about to be sold on the U.S. market and two others well along the clinical trial phase, GALE maybe is a solid acquisition target as big pharma looks to add late stage cancer treatment drugs to its platforms. A 57% rise in price level with an average of 3.5 million shares traded per day over the last three months indicates a strong accumulation has begun and may not be over. The Daily Moving Average technical analysis gives the signal that the bulls are still running very strong and have plenty of tailwinds left for at least 50 days.
Look for GALE to hit north of the $4.00 mark sometime in early Q1 2014.
Have a great day!
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