Did not see this piece of fraud, now can see what investors have to put up with, Street probably shorted the stock and then ran this, totally superficial, but enough to scare off day traders and trigger the stop orders.
Curis Inc. Stock Downgraded (CRIS)
By TheStreet Wire 05/02/11 - 06:27 PM EDT
NEW YORK (TheStreet) -- Curis (Nasdaq:CRIS) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
Highlights from the ratings report include:
CRIS, with its very weak revenue results, has greatly underperformed against the industry average of 5.8%. Since the same quarter one year prior, revenues plummeted by 98.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
CURIS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CURIS INC continued to lose money by earning -$0.06 versus -$0.15 in the prior year. For the next year, the market is expecting a contraction of 216.7% in earnings (-$0.19 versus -$0.06).
Net operating cash flow has significantly decreased to -$4.63 million or 167.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, CURIS INC's return on equity significantly trails that of both the industry average and the S&P 500.
The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 242.1% when compared to the same quarter one year ago, falling from $4.78 million to -$6.80 million.
Curis, Inc., a drug discovery and development company, focuses on the research and development of cancer therapeutics. Curis has a market cap of $332.6 million and is part of the health care sector and drugs industry. Shares are up 109.8% year to date as of the close of trading on Friday.
You can view the full Curis Ratings Report or get investment ideas from our investment research center.
For more information on Curis Inc. click any of the following:
This Street Downgrade report was pumped out again for 2012, almost identical to the one in this 2011 thread. Presumably by a computer. What a horrible excuse for writing. I hope no one takes it seriously. It has nothing to do with biotech and is one of the worst pieces of analysis I've ever seen. I can only think that some natural language parsers are reading the text, and that the Street knows this, so they shove it down and feed the readers something to sell on...so they can pick up some themselves. Bleah.
Today, it looks as if CRIS is not even going to trade 400K shares. The volume on Friday, Monday and Tuesday in CRIS was well over one million shares each day. I can't believe that a downgrade of CRIS by Roth Capital on Friday, would result in CRIS trading well over one million shares on Tuesday. I have to believe that the article written by The Street did cause the heavy volume, and the price drop in shares of CRIS, on Tuesday. There was no new news from the company on Tuesday to cause the heavy volume in shares of CRIS.
The Street wire is a service to those that subscribe/pay for Cramers website. You get daily if not hourly recommendations. There is nothing in that post that wasn't already known. Purely based on numbers it is hard to disagree with the Streets recommendation. This stock should not be be judged by that in its near future. I use Clear Station to do my charting and it clearly (no pun) showed that Curis was overbought and the averages had crossed. I looked at this last week when we were up and decided not to sell. That is the first time I have bucked the trend and now I have to live with it. At any rate there is no new info so I wouldn't expect this to act any different than any other small cap nonprofitable (currently) stock. I do believe I'll add to my position if it holds for a day or two.
It also occurs to me that at least 100 promising small biotechs could have been profiled the same way The Street did CRIS, using the same benchmarks, and then they would have to downgrade all 100 of them. Then, at the end of their writeup, OBTW, they had to say that stock price had increased over 100% recently. That's like saying "We're recommending you sell this stock that has doubled in value and has a very promsing pipeline and future." In the past, I have enjoyed The Street, but on this downgrade report I give them a D- grade. They missed an F by at least noting the price double. I don't see how they could miss this badly.
The thing I hate most in life is speculating without actually knowing. It's why talking politics is almost pointless because we don't know the behind the scenes.
Just like with the slide with Curis. Was it mostly due to the Streets analysis or was it just an unfortunate coincidence. As of now, everything is speculation as to what has caused this and that is frustrating.
Wow! Absolutely NO mention of the pipeline or the recent positive test results,or presentations - - they used fundamentals you would use on a small manufacturer, not the tech trends used on a small biotech. They act like they have never looked at a biotech. This is so obviously a put-up job to rescue shorters or an attempt to butcher down any offering price. Were these the same people calling for $40/sh recently? I am going to sell some income stocks and temporarily load my portfolio way far into the speculative side for this one. Wouldn't you think this would be triggering some alerts at SEC, NASDAQ?
This is generated by a computer model that looks at fundamentals such as year-over year revenue, cash flows, earnings trends, etc. I suppose that Curis is being compared by this model to mature companies that have predictable revenue streams and earnings such as Amgen, Gilead, etc... It certainly does not consider things such as the potential to own the franchise for a platform of drugs that suppress the mechanism that many causes cancers. It also may not consider the potential for hundreds of millions in milestone payments and royalties, pending announcements and presentations at ASCO and a NDA for BCC by a deep pocketed partner .... and maybe a buy-out.
Anyone who pays attention to such models without regard to other information is somewhat short sighted.
If this is driven by such news, the the pull back is truly a buying opportunity.
A computer model? How many very small public biotechs are there? If this same computer model were used on all of them, can you imagine how many times it would be wrong. Hard for me to believe anyone would generate or pay attention to a program applied to a small biotech.
just programmed, pumped-out garbage. no one pays attention to such stuff.
CRIS was ripe for a pullback and consolidation after runup of past few months. couldn't decisively break through overhead resistance. Sisyphus, here we go again.