The immuno-oncology drug Opdivo from Bristol-Myers Squibb ($BMY) continued on its charmed path today when the drugmaker cut short another trial for lung cancer because it had nailed its goal for overall survival. This comes after accelerated FDA approval of Opdivo for melanoma and then lung cancer, which has led analysts to keep jacking up earnings forecast, now to $7 billion in annual sales in 5 years.
These warrants have been around for years. I'm thinking the owners have used them as a hedge to short against. Hopefully next week, after expiration, we'll see no price change but rather see the short interest come down as they exercise and cover their short positions.
Check out DVAX. Its Hep B vaccine for use in adults has a good probability of success in second large phase 3 trial by EOY and should be approved given the only reservation on the last attempt at approval was the size of the first phase 3 trial Panel gave efficacy a thumbs up. JPM put a 36 dollar price target on it.
DVAX has options so you can leverage your money, don't have to buy expensive shares.
There's a "fringe" market for Helplisav B in infants if DVAX pursues it (which I don't believe they plan to do). Bing themomcrowd aluminum in vacinnes.
That is not the right way to look at it. There are really two points to consider:
1. It the benefit proved good enough for FDA approval? (given 11/2014 MM-398 got fast track from FDA answer is YES)
2. Will insurance and medicare reimburse? (medicare will typically reimburse if approved - private insurance has a history of reimbursing drugs than convey small improvements if it is significant - 45% improvement for MM-398)
The dosing regimen of Sci-B-Vax puts it at a competitive disadvantage to Heplisav. From the Sci-B-Vax medication information sheet:
Vaccination Schedule: The vaccination regimen for all subjects consists of three (3) doses of vaccine given according to the following schedule: first dose at elected date; second dose 1 month after the first dose; third dose 6 months after the first dose
Not sure if a redemption would be open to all shareholders or if it might be for a short period of time or permanent.
CEFL has a permanent redemption clause that shares can be redeemed at NAV in 50K blocks only for a fee.
Central Fund of Canada (CEF) has a permanent redemption clause that shares can be redeemed by any class A holder at 80% of NAV.
A permanent redemption clause would likely keep the market price pegged close to the redemption price. I'm not sure why Pimco would be averse to something like what CEFL has?? (note that CEFL is an ETN)
A buyback would be at market price, probably over a period of at least 12 months (at least that's what I've seen for stocks). I would think just the announcement of a buyback would increase demand for shares. Ironsides mentions both a buyback and a redemption as possibilities in their proxy.
I would hope that shares would not be bought back if the fund could not make a profit. A share buyback should grow the UNII as the portfolio is sold off and the proceeds of the sale are used to buy shares on the open market that are trading at a discount. Ironsides point is that the growing UNII would attract investors and compress the discount. Pimco's point is that it would be a temporary thing where investors pile into PCI for the UNII, then race for the exits after collecting it. For example, FMD Capital has recommended buying PDI in the fall for the UNII, then dumping the shares after the EOY payout.
Let's hope this gives CSIQ some advantage in the US. NV Energy seeks RFPs for additional planning capacity in Nevada that includes:
- A build-transfer option for a 140-MW single-axis tracking solar photovoltaic (PV) facility at a location provided by the bidder; and
- Alternative proposals that would allow the company to acquire or partner to construct a renewable energy resource that would satisfy the remaining 54-MW of planning capacity.
The deadline to submit a bid is May 29, 2015.
The new directors will likely propose what is stated in the Ironsides proxy: share buyback and/or optional share redemption at NAV. I'm guessing that will eat into the UNII to cover expenses. If that does come to pass, I would redeem my shares, then watch for an opportunity to reinvest if the discount widens above 8%.
It will be interesting to see how bond CEFs, ETFs and mutual funds hold up once the Fed starts raising interest rates. I'm expecting a lot of people will be disturbed to see NAVs dropping. I'll be harvesting losses and reinvesting on a rolling quarterly basis.
There are 20M worth of shares tied up in convertible notes (125,000 x 160) that can be converted to shares at $6.25. I would assume holders use the note as a hedge to short against from time to time. Given most of the volume is automated trading, I would assume short positions are turning over on a daily basis.
Summit Therapeutic Now Covered by Oppenheimer (SMMT)
Posted by Max Byerly on Mar 30th, 2015 // No Comments
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Summit Therapeutic logoOppenheimer began coverage on shares of Summit Therapeutic (NASDAQ:SMMT) in a research note issued on Monday. The firm set an “outperform” rating and a $28.00 price target on the stock.
Separately, analysts at Needham & Company LLC initiated coverage on shares of Summit Therapeutic in a research note on Monday. They set a “buy” rating and a $22.00 price target on the stock.
Summit Therapeutic (NASDAQ:SMMT) opened at 11.30 on Monday. Summit Therapeutic has a 52 week low of $9.75 and a 52 week high of $12.20. The stock’s 50-day moving average is $11. and its 200-day moving average is $11..
Given Mulroy exercising and holding a sizable number of shares, then Porter continuing to buy, I believe we can all feel confident the filing for MM398 is proceeding as scheduled. Remember it is a rolling submission, so it may be nearly complete.
Sounds about right to me as well. The gain on the exercised options are immediately taxable as income in the current year - no way to escape that unless these are special incentive options. So, to sell about 1/4 of the shares would work out to cover the tax liability on all of the options (assuming his overall (not marginal) income tax rate after deductions is 25%). Now his remaining shares have a cost basis of 11.13.
We had this discussion previously on this board - just wanted to add that when you exercise you get taxed for that tax year. Your exercise and possible subsequent sale of shares are two distinct and separate transactions in the eyes if the IRS. When you exercise and acquire the shares, that's one transaction where the gain is taxed as income. Now if you decide to immediately sell those shares, that's a separate transaction subject to the short term cap gains rate (as income). However, because you immediately sell, the cap gains is likely zero. That's why my Schwab statement just showed a bunch of sales where I made or lost a couple pennies on each one, effectively owning no tax on the sale of the shares.