True. The company burn through 7 million dollars in less than a year or half of all its cash. At that rate the company will go bankrupt in less than a year, unless it does a gigantic dilution and raise cash from vulture investors which always exact huge price from existing shareholders.
Deniers, please read the last 10Q, both the Income Statement, and especially the Cash Flow Statement, and cash from operating activities plus the end of that Statement. Numbers on these SEC pages do not lie; they tell the honest story. That is why the biggest insider, AWM Investments bailed out in September and sold 1/2 million of shares at the measly 2.10. What do these small time retailers know that AWM didn't know? Of course the insider smart money are a lot smarter and it bailed out.
If smart money insiders/beneficial holder, Awn Investments, was only too happy to sell its stake of over 1/2 million shares at 2.10 in September, what do you retail longs know about the company that the largest insider owner didn't? I think Awm knew that that yet another horrible quarter loss will be reported for the Sept. quarter plus the company has to dilute big time: it burned through cash the equivalent of all its sales for 2015, or half of all its cash in less than one year, at that pace it will run out of cash soon enough.
Will Re-enter if there is huge retreat due to market correction. It is still a good value. But, gor now, the stock had its short term run. Until they report in November anything is possible.
Good Luck to all longs.
Is it the recent presentation at Leerink that sparked buying? Is it because the the big shot Agrawal joined the company as director? Is it because Adage decided to buy some more? Or is the jump signaling prospective positive news about the Combination Data?
Who knows, but something positive is definately cooking. Let us see if on Monday there is a follow through on comparable or better volume.
Agree. The Street piece on insider conference + the distinguished biotech guy Agrawal appointment today + conference presentation tomorrow just might do the trick plus uptick in PPS.
Apparently someone is trying to paint the tape after hours. Stock down on minuscule 'one trade only', and in the absence of any news. Or may be some newbie sold his/her stake at market price and after hours. Hope it stay at this AH price so that I may add to my position.
Intra day double from 3 days ago, up 84 percent in 3 days. Only on the prospects of promising result regarding Ovarian cancer announcement at a future prospective European conference.
This is why we take risks in and love high risk equities like CALA. It too could double or intra day triple, if positive news hit the wire.
In March AERI dropped by a whopping 78 percent, from roughly 38 to 8.50, thanks to heavy shorting,; shorts piling on due to less than stellar clinical results. Five months later it vaulted by % 300 percent to 34, thanks to short covering; now at 27.
The same can happen to CALA, if the results are even marginally better than expected, no side effects as in first clinical are reaffirmed. Imagine the pain of covering your short position two hundred percent above where one shorted. SHORTS' cost-benefit calculus can be just as stupid as those of longs.
DISCLOSURE: My average is 6.06. But I did not take the risk in phase one clinical biotech for just 10 - 20 percent. I fully expect a double; intra day triple too can easily happen with heavily shorted CANCER stocks like CALA.
It is better the stock builds a strong clean base above its 50 days moving average, or 6.54. Because, if there is good news between now and the release of Q3 numbers in early November, for example announcement of Partnership, the stock can bolt by gigantic percentage.
Today, Premarket TCON went up as high as double. Given 56 percent short position (% of float) in CALA, intra day or two day double or triple spikes can happen in stocks like CALA on unexpected positive news.
Do you want it to go down on high volume?
The fact that volume on the downside has practically dried up should be positive- good set up for unexpected upside breakout. But it takes a while for the stock to do the back and filling.
The old CITI analyst covering CALA left that firm weeks before the last CALA Conference Call. Yet CITI not only sent another analyst to that Conference Call, it invited CALA to participate in its bioitech conference and to meet with investors CITI had invited. Why?
My strong hunch is that CITI will reiterate its Buy by the new analyst coverage. Otherwise, why continue the Buy rating and invite CALA to meet with hand picked investors?
This could be a very positive event, reaffirming a BUY by a new analyst. I would not be surprised that out of the blue there is yet again a BUY rating. Since in effect the new analyst is putting his/her reputation on the line, it makes it more meaningful.
Who knows, before the avalanche of 'good news' in December prompting insiders to buy at these prices, this could be a credible interim catalyst.
Per the press release, management will be meeting with prospective investors. In 2 -3 days we will know whether this has had positive effect: spark in PPS.
To me still the most positive latest development is smart money insiders adding to the stock. Whenever I come across significant insiders buys, I ask myself: what is that they know that I don't know.
4 Filings and 144 filings almost always provide early clues as to the near term positive developments in the works.
Today VTAE is up 80 percent on phase one clinical antimmune disorder; one can only imagine if CALA reports positive phase one on CANCER no less, and with near half of the float short? It could triple. And what if there is out of nowhere announcement of a Partnership, as the management has hinted at as part of long term strategy?
For shorts, I am afraid, the risk is just unreasonably high, borderline irrational to continue to hold short position; it just doesn't make sense anymore.
Tomorrow after the conference, CALA management will e meeting with investors. Typically, it takes a few days for prospective investors to do their due diligence before they initiate a position. And PPS is likely to reflect that in a few days. For now, judging from the price action the last few days, the next leg is likely will be up.
Why is smart money Adage piling on its position with massive buys? 80 plus K, another buy of 170 K, etc. Is some sort of PARTNERSHIP with big pharma in the works which could propel the stock to stratosphere? Are they very confident that the results of the clinical trails will be game changing; it too will put fire under stock like CALA ?
In short, what do smart money so-called 'beneficial owners' insiders know that we don't?
Yep, here is the LINK: http://www.insiderinsights.com/company/cala/calithera-biosciences-incthe
The question is why? Why the systematic insider buying? Why is the smart money insider Adage adding big time to its position at these prices? What do insiders know that we don't know? May be they are very confident that the results of the clinical trails will be game changing.
Adage bought additional 172,000 in late August at 5.65. Here is the LINK:
This is how I see it: The old citi analyst who covered CALA has left that firm. The one positive silver lining in the Citi September conference is that CITI has not dropped CALA, instead it has invited CALA's management to make the presentation. Therefore, it stands to reason that there will be, there has to be, announcement of coverage by the new CITI analyst mmediately after the September 9 event. This new, reiterated coverage, can really boost PPS due to where it is today, because it will garner attention to the stock, and importantly it will #$%$ shorts big time.
So hang in there for another week or two and the stock will spike. The tape is already giving signals- It has already been gathering strength in the last two - three days and in the face of a difficult market conditions today
Net worth is MINUS five dollars. Thus, at ZERO is is still expensive by 150 percent because in the event of bankruptcy shareholders will not get a dime. That is why insiders are selling, not buying.