ReedeMoore Idiom Update – Don’t Look a Gift Horse In the Mouth

Old Idiom – Don’t look a gift horse in the mouth.

 

Don't Look!

 

 

Translation – Don’t be an ungrateful jerk.  Be thankful for the things you are given and don’t criticize free things.  Basically.

Applicable Situations – When I used to complain at law firm lunches if there was no hot food; when people complain when you take them to the skybox of a baseball game that they can’t really see the field; when people complain that the portion size of the free supermarket samples aren’t big enough; When I gave some kid my old Playstation 2 and he looked at it, and then looked at me, and then looked at it again, and then looked back at me without once showing any emotion in his face; When sports journalists complain about anything (your job is to write and go on TV to talk about whether grown men ran, jumped and caught a ball to your liking, just be happy).

Origin – Much like you can tell the age of trees from the rings, people can gauge the relative age of a horse by how far its teeth tend to protrude due to the recessing of a horse’s gums as it ages.  If you are looking into the mouth of the horse, you are doing so to assess it’s relative age and health.  And for some reason, you aren’t supposed to do that.  You are supposed to just accept an old horse.  What if it’s wormy or something.  Like, ok, thanks for pawning off your old horse on me and leaving me with a vet bill, that’s exactly what I wanted, an elderly horse.  

First of all, who the hell was giving away all these horses in the first place?  This is an idiom in desperate need of an update…I supply the choices, you supply the votes…Vote I said!

Investor Education

I was doing some research on a class that I will be teaching about securities and understanding various financial instruments when I came across this.  http://www.osc.gov.on.ca/Investor/Resources/res_characteristics-of-securities_en.pdf

I’m was a Securities litigator, General Counsel to an asset management company and launched a mutual fund, and this didn’t really help me out so much.  Wait a minute, let me tilt my head to the side a little…ok,  OH, OK, now I get it.

Forcing Lenders to the Negotiating Table in Nevada

Forcing Lenders to the Negotiating Table:

How A New Nevada Law Can Help Prevent Foreclosures

 

Introduction

For millions of American families, the word “foreclosure” is more than just a media headline, it is a very real prospect with dire consequences.   Homeowners looking for answers from the “experts” have found frighteningly few and although the Obama administration rolled out a $75 billion program to help stem the tide of foreclosures by incentivizing mortgage lenders to modify loans to make them more affordable, as of now, most troubled homeowners put loan modifications in the same category with unicorns, Santa Claus, and the Tooth Fairy; nonexistent. 

 

All too common these days

 

 

To bolster federal efforts, over several states have begun to tackle the housing crisis by passing legislation to help restore the American dream that for many has turned into a very un-American nightmare.  In Nevada, help to homeowners came from the state legislature in the form of Assembly Bill 149, signed into law by Governor Jim Gibbons on May 29^th.  In short, AB 149, which covers only owner-occupied homes served with a Notice of Default after July 1, 2009, forces mortgage lenders to offer mediation with homeowners to discuss a modification of the delinquent loan as a prerequisite to pursuing foreclosure.  Overall, the new law is a plus for homeowners trying to navigate the labyrinthine route to loan modification, but is laden with several procedural pitfalls and landmines that may trip up some borrowers.

Under the current “system”, which is ad hoc at best, finding a person at a bank with the authority to negotiate a loan modification is not always an easy proposition, even in institutions that have dedicated Loan Modification Departments.  Even if a borrower can burrow through their mounds of loan documentation to find appropriate contact information, they then begin the oft times frustrating gauntlet of bank personnel and transferred phone calls all to ask one question: How can I save my house?

 

City of Foreclosure: Population 2,200,000

 

 

 

Devil In the Details

If the housing market in Nevada (and elsewhere) is like a plane crash, AB 149 helps illuminate the path to the emergency exit rows by establishing certain ground rules for reaching a non-foreclosure solution.  AB 149 amends Section 107 (Deeds of Trust) of the Nevada Revised Statutes to place several restrictions on mortgage lenders before they can foreclose on a home with the end goal of staving off another wave of foreclosures in the Silver State.

At the heart of AB-149 is the oft-elusive loan modification.  The bill requires two very important requirements of lenders before they can foreclose on a home loan including:

-                Providing homeowners the contact information of a person with authority to negotiate a loan modification on behalf of the lending institution

 

-                Provide an offer of in person mediation to discuss a loan modification.  Lenders must also provide form upon which the borrower may choose to accept or refuse the offer of mediation

AB 149 requires this information to be sent along with the Notice of Default and Election to Sell.  Under the current framework, the Notice of Default and Election to Sell is seen as the formal beginnings of the foreclosure process.  This document is typically sent after a homeowner is 90 days behind on their home mortgage and informs them that they have 35 days to get current with the mortgage or face forclosure.  Under the new law, the borrower has 30 days to file the form accepting mediation.  Once accepted, no action can be taken towards foreclosing on the home until mediation has occurred. 

Rules governing the mediation process are expected to be finalized by June 29, however, the proposed rules that have been released require mediations to be scheduled no later than 80 days after the Notice of Default is sent and require lenders to send a representative to the mediation that has the power to negotiate a loan modification.  Lenders are also required to bring a copy of the home mortgage.  If a lender does not send an authorized individual or fails to bring the appropriate documentation, the proposed rules give judges the authority to modify the home loan. 

While the bill provides added clarity to the process and responsibility on the part of lenders, it also confers certain responsibilities on homeowners seeking loan modifications.  If a homeowner refuses mediation, fails to respond to the offer of mediation or does not attend mediation, the lender is discharged from its responsibility to mediate with the homeowner and the homeowner will probably face a significant hurdle in seeking further remedy to stave off foreclosure. 

 

Barbara Buckley: She wrote the bill. Thank/blame her.

 

 

Clarity does come at a price, however.  The $400 cost of mediation will be split between the borrower and lender, and more likely than not, borrowers will need professional representation before, during and after the mediation to organize the various documents and advocate for the homeowner during the process.  The rules, as written, will probably not read very clearly to untrained eyes, although in addition to professional services and attorneys to help guide borrowers, there are government approved housing counseling agencies that can also help homeowners in need.

Other Benefits

            An ancillary benefit of the passage of the new law is that it should serve to push many of the fraudulent people and practices out of the loan modification business in Nevada.  High anxiety, lack of clear rules and an endless supply of foreclosures is a petri dish for fraud.  The new Nevada foreclosure law helps to inoculate homeowners from would be fraudsters by inserting a quasi-judicial process and places homeowners directly in front of mortgage lenders, thereby reducing the ability of false promises and fraudulent schemes to dominate the pre-foreclosure housing market. 

            Borrowers should view the passage of AB 149 as a helping hand, but not as a panacea.  Although lenders will be forced to the negotiating table, they are not forced to make deals and modify loans, although more loan modifications are likely to result with a more detailed and sophisticated structure that the bill provides.  One question that has been asked is whether or not the mediator will have any decision-making role in the mediation.  The role of the mediator will not be to choose sides or make rulings, but rather to ensure that both parties make a “good faith effort” to resolve the mortgage loan issues. 

            The largest pitfall for homeowners is the procedure of the mediation process.  There are various timelines and deadlines that could trip up a borrower and extinguish their right to mediation.  These procedures will need to be followed meticulously by any homeowner looking to guide the process on their own, but most would be best served by enlisting the help of a professional or non-profit organization well versed in the new law.

Why Didn’t I Buy That? Friday, March 6, 2009

The market was mixed today, but our three “Why Didn’t I Buy That” stocks weren’t. They went up an average of 33.24%

#1. Bowne and Co. (BNE) +36.75%

#2. Brookdale Senior Living, Inc. (BKD) +32.94%

#3. ArcSight, Inc. (ARST) +30.03%

 

#1. Bowne and Co. (BNE – $1.60) www.bowne.com

Shares of BNE were up 36.75% on trading volume of 446K shares.  Bowne’s 52-week high was $17.23 reached on May 8 of last year.

Who Are They?

Bowne provides financial, marketing and business communications services to their clients worldwide.  They file regulatory and shareholder communications online and in print as well as create and distribute customized, one-to-one communications on-demand. They employ 3,200 people out of 60 worldwide offices and their CEO, David Shea, made 1.26M last year. 

Why’d They Go Up So Much Today?           

It’s a little unclear.  Most stocks on our daily list that experience significant one-day growth have a clear catalyst, either an earnings call or a buyout, their CEO saved a young child from drowning…something.  They also normally have 6-7 times the trading volume that day.  Bowne had no major news emerge today and the 446K shares traded is less than 2 times the stocks normal trading volume of 274K shares.

What About the Fundamentals?

-       Capitalization: $44M

-       P/E Ratio: N/A

-       Earnings: $0.28

-       Cash: $16.33M

-       Debt: $116.53M

-       Book Value: $8.54

-       Short %: 2.9%

-       Last 52 Week Performance: -91%

 

#2. Brookdale Senior Living, Inc. (BKD –  $3.39) www.brookdaleliving.com

Brookdale’s stock shot up 32.94% today on volume of 1.26M shares traded.  The stock’s 52 week high was $27.22 dollars reached on May 2 of last year.

 Who Are They?

 Don’t let grandma see you reading this.  You know what Brookdale does.  Brookdale makes middle aged Americans guilty about having to send their elderly parents to live with other elderly people who’s middle aged children have sent them to live in the same place.  They run Old Folks Homes..ok, I said it…does that make you happy now?  Their CEO, W.E. Sherrif, was the 4th highest paid executive in the company last year, pulling in $196K.  Executive VP/General Counsel Andrew Smith made $396K.

 

Why’d They Go Up So Much Today?

 This is the day of the non-catalyst.  There was no earth shattering news item on BKD today.  Sometimes that’s life. 

 

What About the Fundamentals?

-       Capitalization: $345M

-       P/E Ratio: N/A

-       Earnings: $-1.41

-       Cash: $55.88M

-       Debt: $2.47B

-       Book Value: $9.44

-       Short %: 5.2%

-       Last 52 Week Performance: -86.54%

 

#3 ArcSight, Inc. (ARST – $11.43) www.arcsight.com

ArcSight shares secured a top 3 spot on today’s list by jumping 30% on volume of 2.8M shares traded, 13 times more than their normal trading volume of 210K shares.  The company’s 52 week high was $13 reached on August 6 of last year.  ArcSight has been a bright spot in a blighted market with an increase n value of 39% over the past year.

Who Are They?

ArcSight provides compliance and data security solutions to businesses and governmental agencies.  They use phrases like “Enterprise Security”, “Compliance Automation”, “Log Management” and “Configuration Audit Provisioning” to let you know they don’t mess around when it comes to corporate privacy.  Their CEO, Tom Reilly, made $525K last year. 

Why Did They Go Up So Much Today?

ArcSight released third quarter earnings on Friday that were larger than analysts expectations.  Wall Street professionals expected the company to come in at earnings of 8 cents per share; however, they crushed that number with earnings of 21 cents per share prompting at least one analyst from Needham & Co. to raise his price target on the company from $11 to $13.

 What About the Fundamentals?

-       Capitalization: $360M

-       P/E Ratio: 233.27

-       Earnings: $0.05

-       Cash: $75.68M

-       Debt: $0

-       Book Value: $2.13

-       Short %: 1.4%

-       Last 52 Week Performance: 39.39%

 

AS ALWAYS: This is not, I repeat, NOT stock advice.  This is merely informative and indicative of the types of gains that are being made on a day-to-day basis in the market.  This is NOT an invitation to day trade, which I do not recommend for the average Joe or Joanna.

 

Short Selling Primer – Fun!

How are people making money right now in the stock market?  3 Answers.  1) They’re getting lucky.  2) They aren’t. 3) Short Selling!! Ever wonder what that really means?  Watch and learn.  

Everyday Money 3-5-09 – “Rule of 72″

 

You Love it

Ever wonder how to figure out how long it will take to double your money? It’s called the “Rule of 72″ and this is how it works. You take the interest rate that you are making from your investment and divide that number into 72.  The resulting number is the number of years it will take to double your money at that interest rate.  

 

The number is approximate and the rule is more for getting a ballpark figure and impressing your friends, and really, isn’t that what it’s actually about?

 

EXAMPLE:

Let’s say you have a CD (Certificate of Deposit) with an interest rate of 2.5%.  with this interest rate, you would double your money in approximately 28 years and 10 months.  

How’d we get that?  Take 72 and divide it by 2.5.  The answer is 28.8.  If you were getting 2 times the interest rate, or 5%, then it would take you have the time to double your money, approximately 14 years.

Why Didn’t I Buy That? Thursday, March 5, 2009

On a day where almost nothing saw positive territory, these names soared an average of 41.15% today. 

#1. Gevity HR, Inc. (GVHR) +82.24%

#2. Financial Bear 3X (FAZ) +24.39%

#3. UltraShort Financials ProShares (SKF) +16.82%

#1. Gevity HR, Inc.  (GVHR – $3.74) www.gevityhr.com

No jobs, tell that to Gevity

Shares of GVHR soared 84.24% today on volume of 4.6 million shares leaving the stock -57.9% off it’s 52-week high of $8.89 reached on March 24 of last year. 

Who Are They?

Gevity is a Bradenton, Florida based company that provides payroll, insurance and HR outsourcing to small businesses.  CEO Michael Lavington made $306K last year, and was the third highest employee in the company.  CFO Garry Welsh and CIO Paul Benz (no relation to the car) both made more. 

Why’d They Go Up So Much Today?

They were bought out.  Although there is not much M&A activity going on these days, Gevity managed to be bought out for $99M by the TriNet Group.  TriNet does exactly what Gevity does, but its bigger and private.    

What About the Fundamentals?

Since they were acquired and are being taken private, they’re fundamentals are none of our worry anymore. 

 

#2. Direxion Financial Bear 3X (FAZ – $99.5)

www.direxionfunds.com

300% on a down day is a great day

Direxion Financial’s Bear 3X shares went up 24.39% on volume of 18M shares traded leaving the stock -39.8% off its high of $165.48 reached on November 20 of last year.

Who Are They?

 The Financial Bear 3X is an Exchange Traded Fund (ETF) that seeks to achieve the reverse of the Russell 1000 Financial Services Index times 3.  In other words, for every $1 the Russell 1000 Financial Services Index goes down, FAZ goes up $3.

Why’d They Go Up So Much Today?

 The market at a whole went down 4% today and the Russell 1000 Financial Services Index performed much worse than the broader market, sending FAX up, up and away.

#3 UltraShort Financials ProShares (SKF – $242.85)

www.proshares.com

Financials ProShares went up 16.82% on volume of 24M shares traded leaving the find -7.4% off its high of  $262.45 reached on November 20 of last year.

Who Are They?

Ultrashort Financials ProShares is similar to Direxion Financial Bear 3X.  UltraShort Financials ProShares seeks to obtain the reverse of the Dow Jones US Financials Index.      

Why Did They Go Up So Much Today?

See above.

AS ALWAYS: This is not, I repeat, NOT stock advice.  This is merely informative and indicative of the types of gains that are being made on a day-to-day basis in the market.  This is NOT an invitation to day trade, which I do not recommend for the average Joe or Joanna.

Why Didn’t I Buy That? Wednesday, March 4, 2009

Today’s three stocks went up an average of 45.2% today.  Over the last year, these stocks returned an average of -81.58%.

#1. Eagle Bulk Shipping, Inc. (EGLE) +51.69%

#2. Gerber Scientific (GRB) +43.24%

#3. Resource Capital Corp (RSO) +40.67%

 

#1. Eagle Bulk Shipping, Inc. (EGLE – $4.49) www.eagleships.com

Shares of EGLE soared 51.69% today on volume of 7.7 million shares traded.  Even with the jump in price, EGLE remains 87.6% off of it’s past year high of $36.24 reached on May 8 of last year.

Who Are They?

Well, the name kind of says it all.  Eagle Bulk Shipping ships iron ore, coal, grain, cement and fertilizer across seas.  Their found, Sophocles Zoullas (his real name is Sohpocles, the ancient playwright) is 43 and made $719,000 last year.

Why’d They Go Up So Much Today?

Eagle had a great 4^th quarter earnings call yesterday.  They reported $15.1 million in net income with a 99.5% fleet utilization rate, a measure akin to inventory turns in the retail sector.  Their fleet includes 23 ships and already has 74% of their fleet’s available shipping days covered by contract. 

What About the Fundamentals?

-       Capitalization: $211M

-       P/E: 3.07

-       Earnings: $1.46

-       Cash: $32.98M

-       Debt: $741.97M

-       Book Value: $10.87

-       Short %: 14.1%

-       Last 52 Week Performance: -88.52% (S&P 500: -47.52%)

#2. Gerber Scientific (GRB – $2.65) www.gerberscientific.com

Gerber Scientific went up 43.24% on volume of 116,582 shares.  Today’s increase  leaves GRB 79% off of its past year high of $12.64 reached on June 19 of last year.

Who Are They?

 Gerber Scientific is not that Gerber.  That Gerber is a subsidiary of Nestle.  Gerber Scientific is a sign making and graphics company headquartered in South Windsor, CT.  Their CEO, Marc Giles, made $849,000 last year.

Why’d They Go Up So Much Today?

 There was no significant news on the stock today, although investors are most likely anticipating a good conference call from GRB tomorrow, March 5, 2009.  The company will be releasing its earnings for the fiscal 3rd quarter before the market opens.  You can listen in on the call at 719-325-4834, access code 6834862.

What About the Fundamentals?

 -       Capitalization: $63.95M

-       P/E: 3.93

-       Earnings: mce_marker.67

-       Cash: $16.4M

-       Debt: $84M

-       Book Value: $6.25

-       Short%: 1.7%

-       Last 52 Week Performance: -76.22% (S&P 500: -47.52%)

 

#3. Resource Capital Corp (RSO – $2.11) www.resourcecapitalcorp.com

Resource Capital shares went up 40.67% on volume of 275,909 shares.  Resource Capital shares are now trading at 80% less than its past year’s high of $10.54 reached on May 12 of last year. 

Who Are They?

Resource Capital is a New York based Real Estate Investment Trust (REIT) that focuses on commercial real estate in the US.  CEO Jonathan Cohen, is just 37, and actually took no salary last year.

Why Did They Go Up So Much Today?

RSO reported net income of .44 cents per share compared to .46 cents last year.  Although the company’s earnings slipped from last year, in this environment, any positive earnings are seen as positive. 

What About the Fundamentals?

-       Capitalization: $53.41M

-       P/E Ratio: 6.78

-       Earnings: $.31

-       Cash: $12.11M

-       Debt: $1.73B

-       Book Value: $9.633

-       Short %: 2.4%

-       Last 52 Week Performance: -80% (S&P 500: -47.52%)

 

AS ALWAYS: This is not, I repeat, NOT stock advice.  This is merely informative and indicative of the types of gains that are being made on a day-to-day basis in the market.  This is NOT an invitation to day trade, which I do not recommend for the average Joe or Joanna.

Why Didn’t I Buy That? Tuesday, March 3, 2009

Today’s three stocks went up an average of 21.2% today while the Dow and Nasdaq fell .55% and .14% respectively.  Over the last year, these stocks returned an average of -58.81%, while the S&P 500 was down -47.36% over the same time period.

#1. ABM Industries, Inc. (ABM) +23.75%

#2. PDL BioPharma, Inc. (PDLI) +20.57%

#3. Blackstone Group (BX) +19.29%

 

#1. ABM Industries (ABM - $14.59) www.abm.com

Shares of ABM increased 23.75% today on trading volume of 2 million shares.  ABM average daily trading volume is 381,000 shares. 

Who Are They?

ABM Industries keeps your office clean, helps you park at work and keeps you safe in your desk all at the same time with their Janitorial, Parking, Security and Engineering units.  Perhaps best known for their 1,633 airport parking lots, ABM employs 100,000 people and is headquartered in Manhattan.

Why’d They Go Up So Much Today?

ABM announced earnings of $30.3 million for the first quarter, a 27% percent increase over the same quarter last year.  In addition to announcing the increased earnings during this harsh economic environment, the company also announced that they had over $100 million available on its credit facility, meaning that the credit crunch will not effect their operations.  To top it off, the company announced its 172^nd consecutive dividend payment.  News like this would receive a positive response in any environment, and sounds like a God send these days.

What About the Fundamentals?

-       Capitalization: 752M

-       P/E: 16.69

-       Earnings: mce_marker.88

-       Cash: 710K

-       Debt: 230M

-       Book Value: $12.64

-       Short %: 6.2%

-       Last 52 Week Performance: -40.69% (S&P 500: -47.36)

 

#2. PDL BioPharma, Inc. (PDLI – $6.74) www.pdl.com

PDL BioPharma shares rose 20.57% on volume of 7.5 million shares, 3.4 times its normal trading volume of 2.2 million shares.

Who Are They?

PDL BioPharma is a biopharmaceutical company that develops antibodies for oncology and immunologic diseases.  PDL represents youth at the highest level with 38 year old Chief Legal officer Francis Sarena.

Why’d They Go Up So Much Today?

 PDL announced Monday after trading hours that they beat analysts’ earnings estimates for the 4th quarter.  In addition, JMP Securities reaffirmed a Market Outperform rating on the stock and set a price target of $9 for the stock.

What About the Fundamentals?

 -       Capitalization: $805M

-       P/E: 50.3

-       Earnings: mce_marker.13

-       Cash: $555.31M

-       Debt: $533.76M

-       Book Value: mce_marker.56

-       Short%: 8.8%

-       Last 52 Week Performance: -65.13% (S&P 500: -47.36%)

 

#3. Blackstone Group (BX – $5.69 ) www.blackstone.com

Blackstone shares went up 19.29% today on trading volume of 6.5 million shares.  BX average daily trading volume is 1.8 million shares.

Who Are They?

Blackstone is a publicly traded private equity investment shop.  When you buy shares in Blackstone, you have a stake in each of the deals that they are a part of.  Blackstone operates in four segments.  Corporate Private Equity, Real Estate, Marketable Alternative Asset Management and Financial Advisory.  Blackstone makes investments in any and all stages of the corporate life cycle from start-ups to leveraged buy-outs.

Why Did They Go Up So Much Today?

Investors may have liked the reports that came out today indicating that top brass at Blackstone, including CEO Stephen Schwarzman, took a 99% pay cut in 2008.  It could also be that Blackstone’s stock received an upgrade to Outperform from Market Perform by analysts at KBW.  Even with today’s jump, Blackstone shares are still off 81.6% from the 2007 IPO price of $31. 

What About the Fundamentals?

-       Capitalization: 1.55B

-       P/E Ratio: N/A

-       Earnings: -$3.50

-       Cash: 1.13B

-       Debt: 986M

-       Book Value: $13.99

-       Short %: 2.2%

-       Last 52 Week Performance: -70.63% (S&P 500: -47.36%)

 

 

AS ALWAYS: This is not, I repeat, NOT stock advice.  This is merely informative and indicative of the types of gains that are being made on a day-to-day basis in the market.  This is NOT an invitation to day trade, which I do not recommend for the average Joe or Joanna.

Why Didn’t I Buy That? 3-2-09

Even though we are in the midst of the greatest financial downturn since the Great Depression, you may be surprised to know that there are a number of stocks that do extraordinarily well each and everyday.  I like to call these stocks “Why Didn’t I Buy That?” Stocks.  These are stocks that had large one-day gains.  I’ll highlight three such stocks everyday and give you some hope in the process (or regret, you know, either one).

I will only be mentioning stocks that trade on the NASDAQ, AMEX and NYSE with average daily trading volumes of over 100,000 shares per day.  In other words, no penny/obscure stocks that no one has ever heard of that went up .02 cents and doubled its value.

NOTE: This is not, I repeat, NOT stock advice.  This is merely informative and indicative of the types of gains that are being made on a day-to-day basis in the market.  This is NOT an invitation to day trade, which I do not recommend for the average Joe or Joanna.

Why Didn’t I Buy That?  Monday, March 2, 2009

#1. Synta Pharmaceuticals Corp. (SNTA) +87.5%

#2. Pluristem Therapeutics, Inc. (PSTI) +31.43%

#3. Energy Bear 3X (ERY) +20.71%

 

#1. Synta Pharmaceuticals Corp. (SNTA – $2.55) www.syntapharma.com

Synta Pharma shares went up 87.5% on Monday on trading volume of almost 3.3 million shares, 14 times more than it’s normal daily trading volume.

Who Are They?  Synta Pharma is a biopharmaceutical company that specializes in developing drugs that help alleviate severe medical conditions like cancer and severe arthritis.  The company had a strategic alliance with Glaxosmithkline for the development of elesclomol, a drug for the treatment of metastatic melanoma until the company suspended development o the drug last Friday.  Their motto is “Quality of science.  Speed of Execution.  Passion for improving the lives of patients.”  It’s true.

Why’d They Go Up So Much Today?  On Friday, February 27, shares of Synta fell 79% in one day and closed at an all time low of $1.36 on news that they suspended development of elesclomol due to safety concerns.  This caused several analysts to reduce their price target to $2.00.  The 87.5% move on Monday was mostly due to opportunistic buying and it’s closing price of $2.55 still represented a 60% drop from the stock’s Friday opening price of $6.39.

What About the Fundamentals?

-       Capitalization: $86.49M

-       P/E Ratio: N/A

-       Earnings: -2.44

-       Cash: $58.4M

-       Debt: 4.71M

-       Book Value: -1.02

-       Short %: 13.8%

-       Last 52 Week Performance: -69.09% (S&P 500: -47.36)

#2.  Pluristem Therapeutics, Inc.  (PSTI – $1.38) www.pluristem.com

Pluristem Therapeutics shares increased 31.43% Monday on volume of 480,000, 4.5 times more that its normal trading volume of 108,000 shares.

Who Are They? 

Pluristem is a biotherapeutics company (not to be confused with a biopharmaceutical company) that researches, produces and develops “unrelated donor-patient cell therapy products derived from the human placenta (I know, pleasant).    

Why’d They Go Up So Much Today?

On Monday the FDA cleared the company’s Investigational new drug application to initiate a Phase I clinical trial for the treatment of Critical Limb Ischemia (CLI), the end stage of peripheral artery disease (PAD), using Pluristem’s PLX-PAD drug.  The trial will be the first of its kind for this type of drug and was met with open arms by the investment community.

What About the Fundamentals?

-       Capitalization: 16.23M

-       P/E Ratio: N/A

-       Earnings: -1.13

-       Cash: 2.19M

-       Debt: 28K

-       Book Value: .29

-       Short %: .4%

-       Last 52 Week Performance: -48.89% (S&P 500: -47.36%)

 

#3. Energy Bear 3X (ERY – $58.70)

Who Are They? The Energy Bear 3X is an Exchange Traded Fund sponsored by Direxion that seeks to achieve 3 times the inverse daily performance of the Russell 1000 Energy Index.  In other words, for every $1 the Russell 1000 Energy Index goes down, the Energy Bear 3X ETF goes up $3. 

Why’d They Go Up So Much Today?

The Russell 1000 Energy Index, along with the rest of the market, took a spill today, and ERY benefited to the tune of 3 times the downturn.  Right place on the right day.

What About the Fundamentals?

 ERY is a little over 3 months old and has reached net assets of 22 million.

 

Check in Tomorrow for 3 more mega stocks.