Kudrna's Stock Market Talk

On March 20, 2012, International Stem Cell Corp. (ISCO) reported financial results for the fourth quarter and year end December 31, 2011. Total revenues in the fourth quarter were $1.1 million, right in-line with our estimate. Revenues consisted of $0.7 million in sales of research products at Lifeline Cell Technology (LCT) and $0.4 million in sales of skin care products at Lifeline Skin Care (LSC). For the full year 2011, total revenues were $4.5 million, derived from $2.1 million in product sales at LCT and $2.4 million at LSC. Sales of products at LCT increased 34% from 2010 driven by management’s efforts to improve the distribution channel and widen the customer base. Sales of skin care products declined during the second half of 2011, down to $0.8 million from $1.6 million in the first half of the year. (more…)

Financial Position

On March 15, 2012, InVivo Therapeutics (NVIV.OB) reported financial results for the full year 2011. The company reported no revenues in 2011, as expected. For the year ended December 31, 2011, net loss was $34.7 million, or $0.67 per share. Net loss for the year included a non-cash derivative loss of $26.1 million reflecting increases in the fair value of the derivative warrant liability. Excluding this non-cash derivative loss, the pro forma net loss for the year ended December 31, 2011 was $8.7 million, or $0.17 per share. (more…)

I recommend avoiding shares of Osiris Therapeutics (OSIR). I believe the stock is meaningfully over-valued at this price, and I see potential clinical failures, the dissolution of the development partnership with Sanofi Aventis, and subsequent dilutive cash raises as catalysts to drive the shares significantly lower. (more…)

On March 8, 2012, Depomed (DEPO) reported financial results for the fourth quarter 2011. Total revenues in the fourth quarter were $12.1 million, in-line with our expectations. Revenues consisted of $0.5 million in sales of Gralise, $7.6 million in royalties from Santarus on Glumetza, and $4.0 million in licensing and collaborative payments. Royalties on Glumetza ($28.5 million in sales in the fourth quarter 2011 at Santarus) were greater than expected. Sales of Gralise were essentially in-line. We note that Gralise reported sales tracked below the prescription trends based on the company s co-pay assistance program designed to lower the out-of- pocket expense that patients pay for Gralise, bringing the drug more in-line with generic gabapentin, and the lower cost titration starter pack. (more…)

We are expecting Zalicus, Inc. (ZLCS) to offer-up a steady flow of news over the next several months, with the key event being the release of top-line data from the phase 2b SYNERGY trial expected in the third quarter 2012. (more…)

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

After the first 90 minutes of action Tuesday morning, the enthusiasm was quickly sucked out of the market for the rest of the day. We gapped-up on the “Greece is saved” continuing theme only for volume to fall off a cliff and the action become very boring to watch/trade. (more…)

This article is a recap of events currently underway in the Hepatitis C arena compiled with facts from industry experts and articles over the last several weeks about what is currently talking place right now. (more…)

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

As expected, The “Greece is saved” theme continued yet again.  Stocks bounced back on Monday as Greece finally approved austerity plans late Sunday. The next test for the plan is a vote on Wednesday from the European finance ministers.  They will vote to approve the bill.  (more…)

Quote of the Day:

I don’t think we’ll come to any results tonight. The negotiations have made progress but we’re not there yet.

Wolfgang Schaeuble – German Finance Minister (more…)

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

We had a gap-down to start the week off and as usual in this new environment, the bulls came to the rescue.  With the Greek deal far from agreed upon, many thought today was the day we’d finally receive some weakness which would hopefully reset the many overbought charts.  Instead, the trend for the past few months continued yet again.  A gap-down finds enough dip buyers that it can not break to new lows, so we drift north for the rest of the day towards even.  This action is not helpful for traders as we must be extra selective with our capital keeping trades either smaller or fast and aggressive as we trim into the close rather than hold overnight. (more…)