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  • KaloBios Pharmaceuticals IPO Revision

    Yesterday, KaloBios Pharmaceuticals Inc. (NASDAQ:KBIO) increased the amount it hopes to raise in its initial public offering, according to the amended S-1 filling with the Securities and Exchange Commission.

    The company said it plans to sell 9.48 million shares for between $8 and $9 a share, valuing the deal at as much as $85.39 million. The company previously filed with the SEC that it planned to sell 3.85 million shares at between $12 and $14 a share, for a maximum deal size of $53.9 million.

    Primary Cause to Revision

    KaloBios boosted the size of its offering after two other health-care IPOs over the past week have posted double-digit percentage gains on Day One.

    On Tuesday, biopharmaceutical company Stemline Therapeutics Inc. (NASDAQ:STML) raised its deal size and still managed an 18% first-day rise. Further, last week, LipoScience Inc. (NASDAQ:LPDX) gained 16% on its first day trading.

    Management at KaloBios realized the immediate return from their IPO will likely be higher based on the past two similar companies IPO around this time.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Jan 31 11:44 AM | Link | Comment!
  • Amazon Jumps On Earnings Report

    Amazon (NASDAQ:AMZN) reported Q4 EPS of $0.21, $0.06 worse than the analyst estimate of $0.27. While, revenue for the quarter rose 22$ to $21.27 billion versus the consensus estimate of $22.27 billion. Shares are up 11% at $290 AMC.

    Positive Catalysts in Report

    1. Operating income was reported up 56% year-over-year - above high end of guidance
    2. Jeff Bezos, founder and CEO of Amazon.com commented that "We're now seeing the transition we've been expecting. After 5 years, eBooks is a multi-billion dollar category for us and growing fast - up approximately 70% last year. In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5%. We're excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection."
    3. Net sales increased 27% to $61.09 billion, compared with $48.08 billion in 2011. Excluding the $854 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales grew 29% compared with 2011.

    First Quarter 2013 Guidance

    Net sales are expected to be between $15.0 billion and $16.6 billion, or to grow between 14% and 26% compared with first quarter 2012. which is slightly below expectations according to AMZN)+Misses+Q4+EPS+by+6c%3B+Guides+Q1+Light+of+Views/8040004.html" target="_blank" rel="nofollow">Street Insider.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Tags: AMZN, earnings
    Jan 29 5:23 PM | Link | Comment!
  • Ruby Tuesday Taking A Hit

    Today on CNBC's "Squawk On The Street", Jim Cramer asked, "When is Ruby Tuesday (NYSE:RT) gonna get it together, I happen to like their salad bar." Since the Company reported its earnings on January 10th the stock has dropped over 8%. and has been stagnating at this level for the past two weeks. So where are they headed?

    Why Ruby Tuesday is Overpriced at $8.00 a share

    1. This Morning, Credit Suisse Downgraded Ruby Tuesday to Neutral based on Macro Headwinds, and its Real Estate Valuation. Credit Suisse noted that Sale-leasebacks are a good strategy, but lower the value of remaining owned real estate, and with shares up from the $6-$7 range, real estate offers less compelling downside support. Additionally the firm cited macro pressures adding an additional headwind, with exposure to a lower-end consumer, leaving the restaurant chain particularly vulnerable.

    2. In its past conference call, the company reported earnings and revenue which were below Wall Street analysts' consensus estimates. In the after hours trading session, the stock was last trading down around 8.50 percent to $7.60. Ruby Tuesday reported a second-quarter net loss of $15.1 million or $0.24 per share, compared to a loss of $2.0 million or $0.03 per share for the year ago period.

    3. The Company's outlook was also lowered in the past earnings report. Ruby Tuesday said looking ahead to fiscal 2013, that it anticipates earnings on an adjusted basis, between $0.24 and $0.30 per share for fiscal 2013. In the Q1 2013 report, the company had guided adjusted earnings in a range between $0.24 and $0.34 for the fiscal year.

    4. Short Interest for the company is at a staggering 5% as of January 15, 2013. Additionally, a lot of selling from insiders at the company took place when the stock hit $8.00.

    5. The Company has been underperforming its sector by 60% over the last two years, and by 80% compared to the S&P.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Tags: RT, short-ideas
    Jan 29 5:18 PM | Link | Comment!
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