May 10, 2019 8:41am

Biostage (BSTG), more warrant money down the drain or a bankruptcy in the making? The depreciation of the share pricing, ROE of -384.23% and a Net Margin of -50,103.26% speak volumes!

Pre-open indications post Thursday’s earnings’ reporting: 3 BUYs, 4 SELLs and 1 RUN

Q1 results: Stemline Therapeutics (STML closed +$0.32)

As a prominent voice of investors; I am not always a doom and gloom reporter but an analyst/journalist who has been “there” with more than a few gray hairs and a readership with real numbers to prove it!

 

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

 

Dow futures are DOWN -0.49% (-127 points), S&P futures are DOWN -0.63% (-18 points) and NASDAQ futures are DOWN -0.65% (-49 points)

 

Dow futures are fluctuating, implying a falling open and mixed session for the index in Friday's market;

European stocks were higher despite the U.S. hiking duties on $200 billion worth of Chinese products. The pan-European STOXX 600 climbed 0.9% in early deals, with the French CAC 40 and German DAX indexes both rising by 1%. Technology stocks were the strongest early performers, jumping 1.3%;

Stocks in China rallied on Friday, after the U.S. carried out its threat and raised tariffs on Chinese goods at midnight. Elsewhere in Asia, however, the picture was mixed;

Data docket: None

 

Henry’omics:

Shares on Wall Street were poised for losses at Friday's stateside open, as U.S. tariffs on Chinese goods were increased shortly after the stroke of midnight ET <CNBC>.

No one knows what's going to happen over the weekend!

 

From Thursday’s closing bell post, “another session of drip, drip and another dip.”

 

Q2/19 so far:

  • In May, there were 3 negative and 3 positive closes;
  • In April, there has been 10 positive and 11 negative closes;

 

Analysts/journalists need to “surface” issue as the First Amendment allows and dictates:

Biostage (BSTG) closed up +$0.18. Lately it is trading (?) on what stimulus and by whom – day traders as it is most usually a flat?

Why is company with an odiousness “going concern”, measured by continual and mounting losses (-$70 + M in past five (5) years), development failures, unfiled INDs and continuous down financings – still viable?

A broken company luckily at the moment … not bankrupt as it scrapes by with a warrant “call” marginally fulfilling a “spent” cash position just adding another 250 K shares with an aggregate cash exercise price of $500,000.

More dilution is NOT the solution in this equity. (The shares were sold and issued without registration under the Securities Act in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving a public offering and Rule 506 promulgated under the Securities Act as sales to accredited investors, and in reliance on similar exemptions under applicable state laws).

This Q is about to report (5/14) and inexcusable management’s incompetence needs to be “extinguished” by investors uniting to push-out this non-performing team.  Also ethic (lapses) issues must be brought forward and reviewed by the Board of Directors (BOD) re how can hospital own (be granted shares and options) where the clinical investigator was also given (granted) development monies – owing share in the company – a bit irregular?

The problem is independence – the hospital administrator is a member of the BOD and another supposed independent director is a CEO friend.

The past issues of failures to “stem” employee harassers (or ignorers) have disappeared - conveniently. The cover-up (reasons and roles of management team) of past FAILED financing in particular need to be cleared and communicated. How can BSTG’s BOD condone the losses of present and past shareholders?

Who is next to being “fleeced” and even more diluted by another desperately needed financing?  

1st of 6th part series – Maintaining SELL;

 

Companies in my headlights – It’s your decision; I provide an idea and context: post earnings release:

Ionis Pharmaceuticals (IONS) closed down -$1.08 after exceeding “street” expectation – BUY;

Caladrius Biosciences (CLBS) closed up +$0.06 after experiencing net loss – SELL;

Verastem Oncology (VSTM) closed down -$0.10 following announcing a net loss and in increase in their debt financing.  Alongside Q1 results, VSTM expects full-year Copiktra sales to be $10 M-$12 M, far short of estimates in the $40 M forecast which begets a negative -$0.48 or -25.40% aftermarket indication – SELL;

Intrexon (XON) closed down -$0.09 after Q1 debilitating decreases and has a negative -$0.32 or -7.395 aftermarket indication – SELL;

BioLife Solutions (BLFS) closed down -$0.21 after reporting net income and has a positive +$0.24 or +1.43% aftermarket indication – BUY;

BioTime (NYSEMKT: BTX) closed down -$0.02 reported net income beating expectation and has a positive +$0.02 or +1.69% aftermarket indication – BUY;

 

This a.m.:

Stemline Therapeutics (STML) closed up +$0.32 before reporting a Q1 loss of $27.4M or -$0.73 per share. The results did not meet “street” expectations of -$0.67 per share. STML posted revenue of $5 M surpassing forecast of expected $2.6 M.  R&D expenses were $17 M which reflects an increase of $4.3 M. SG&A expenses were $16 M, which reflects an increase of $10.1 M from Q1/18.  STML ended Q1 with $124.4 M in cash, cash equivalents and investments. Cash expenditures for Q1/19 were $21.9M. Runway: early 2021 – SELL;

 

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.