Seeking Alpha

Galena Biopharma pounded in wake of stock-scheme allegation

  • Galena Biopharma (GALE -16.4%) was roughed up today in the wake of an Adam Feuerstein article saying promotional firm DreamTeamGroup undertook a brand promotion campaign on GALE's behalf that resembled "nonstandard" stock promotion schemes.
  • Feuerstein links the firm to two pieces removed from Seeking Alpha that were published in August and November 2013 and positive on Galena's prospects. The pieces were removed for violating SA terms of use -- despite coming from separate contributor accounts, they were written by the same person.
  • Galena was to present its corporate update this afternoon at the Leerink Global Healthcare Conference.
  • Shares regained some minimal ground after hours, +0.5%.
Comments (53)
  • Robert.from.Ct
    , contributor
    Comments (380) | Send Message
     
    I wonder who was short GALE today??????????
    12 Feb, 06:29 PM Reply Like
  • globebag
    , contributor
    Comments (17) | Send Message
     
    Fuerstein belongs in jail with Mardona
    12 Feb, 08:09 PM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2543) | Send Message
     
    Guys, what about the sleazeball who wrote the pro Galena articles? I would assume GALE would approve any marketing on their behalf, prior to it being executed. And if that is true, the sales of insider shares takes on a much darker meaning for me. Pump and dump. Why are we looking at only one side of the coin? Where there's one cock roach, there's probably more.

     

    Still long GALE, but not sure for how much longer.
    12 Feb, 06:38 PM Reply Like
  • zeeman1
    , contributor
    Comments (94) | Send Message
     
    when you own a stock, its very difficult to retain that constructive logical thought process and ability see both sides. Only a few people have that gift
    12 Feb, 06:48 PM Reply Like
  • jeremyhein
    , contributor
    Comments (16) | Send Message
     
    The "insider sales" were simply exercised options they received for compensation, issued and exercised on the same day. I wouldn't consider that to be much of a red flag considering I likely would have done the same thing in their position. And also, micro-cap companies hire PR firms ALL the time to promote their stock - that doesn't make any logical sense to me why that would be considered negative. There is no factual evidence showing that GALE actually commissioned that person to write those articles under multiple names. Not only that, but there are many, many more articles with a bullish outlook on GALE - I have a hard time believing those three articles alone pushed the stock up all that much. The fact still remains that all of the professional analysts working at reputable firms still rate this company as a buy, and I put much more faith in their judgement than AF and TheStreet who apparently bash companies on a regular basis, and aren't exactly what one would consider a reputable source of objective information. Just my two cents.
    12 Feb, 06:56 PM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2543) | Send Message
     
    "Who gives a rats rear end. You are pretty shady yourself Bryce."
    I got into LINE before I knew anything about MLPs. The facts on LINE are that they had to change the terms they use to describe their non-GAAP financial measures. They consider all puts purchased to protect cash flows, on newly acquired reserves, as well as existing reserves as growth cap ex. That doesn't wash.
    Under GAAP and tax accounting the transaction costs of investments, i.e. the put premiums, are included in the realized gain or loss of the put option, with a net realized gain or loss being the end result. In other words,on both, an accrual and cash basis of accounting, the put premiums are included in the calculation of the gain or loss realized on the put transaction. IMO, that's why the Adjusted EBITDA calculation now includes the put premiums for all put option transactions that settled during the period. IMO, the SEC required this, in conformity with GAAP and tax accounting, and common sense. The put premiums are part of the cost of a put option transaction, and as such, are included in the calculation of the gain or loss of a put option transaction.
    "Adjusted EBITDA will no longer include adjustments for cash flows from acquisitions and divestitures between the effective date and the closing date and will deduct the premiums paid for put options that settled during the period." (See page 249 of the Form S-4/A)
    http://bit.ly/1dJoi4S
    But, LINE does the opposite, including the realized gain or loss of the put option in calculating available cash for distribution without deducting the cost of the put premiums. I don't agree with that. That could come back to bite them eventually, through too high a debt load, too much dilution and too little earnings. I don't believe they have sufficient earnings to pay out all the distributions. I didn't understand that when I first purchased LINE stock, but I do now. So, yes I have changed my mind on LINE. IF that makes me "shady" so be it.
    I consider Regarded Solutions a reputable person with integrity, and still do. I got into GALE from reading his articles. I care about ethics and always have, both in my professional career and my personal life. Money isn't the bottom line for me and never has been. I'd like to think that the folks who run and manage Galena have some ethics, but I am losing faith.
    If I were President of Galena, no marketing would be executed without my marketing executive or myself approving it first. Since DreamTeam is responsible for the SA articles which were pulled, I assume that GALE was aware of them before they were published. That's why I am suspicious of GALE after reading today's article connecting GALE with the DreamTeam Group. I'd rather see monthly or quarterly sales of stock options for compensation, something on a regular consistent basis, not a huge amount exercised all at once by 5 or 6 officers/directors. To me that would be a better indicator that the sales were for compensation. I don't know what the facts are, but it doesn't look good for GALE at this point to me. So, if changing my mind after learning new facts makes me "shady", so be it.
    12 Feb, 08:19 PM Reply Like
  • Robert.from.Ct
    , contributor
    Comments (380) | Send Message
     
    I agree with you completely think the professional analysts are more objective in judging a stock than a political science major.Their jobs and creds are on the line

     

    I wonder WHO knew this article was being published and made ALOT of money as a result?
    If the SEC does not investigate this then a private attorney who specializes in this type of law should be hired to represent shareholders who were financially damaged like I was
    As a matter of fact in the NYC metro area one advertises on Bloomberg radio. I am considering giving him a call.

     

    Regards,Robert
    12 Feb, 09:03 PM Reply Like
  • Robert.from.Ct
    , contributor
    Comments (380) | Send Message
     
    AT this point in time no one knows if GALE"s management had any knowledge that the PR firm they hired posted those articles on Seeking Alpha.

     

    The insider sales are disturbing though.
    Regards,Robert
    12 Feb, 09:17 PM Reply Like
  • yale1066
    , contributor
    Comments (165) | Send Message
     
    I found it interesting that the AF hit piece was released at 9:49 am....past the magical 15 minute circuit breaker time.
    12 Feb, 11:58 PM Reply Like
  • jeremyhein
    , contributor
    Comments (16) | Send Message
     
    Again, there is no factual information that concretely links DreamTeam to the author of the articles. All you have is some guy accusing them of it without any proof - It could have been anybody and Galena's management has no authority who writes opinion pieces on their company.
    13 Feb, 10:39 AM Reply Like
  • John Hemmer
    , contributor
    Comments (23) | Send Message
     
    What if the sleazeball who wrote the pro Galena articles worked for TheStreet?
    14 Feb, 10:31 AM Reply Like
  • Daniel5150
    , contributor
    Comments (125) | Send Message
     
    I agree with that Bryce.There are 2 sides to every coin involved here. I have no position at the moment because of the uncertainty that seems to lurk around the corner every week it seems
    12 Feb, 06:45 PM Reply Like
  • Dr Joseph Haluska
    , contributor
    Comments (295) | Send Message
     
    Is the person who violated SA's terms of use still writing for SA?
    12 Feb, 06:46 PM Reply Like
  • jonomatic_2000
    , contributor
    Comments (22) | Send Message
     
    picked up some more shares today and still long and confident.
    12 Feb, 06:51 PM Reply Like
  • Leroy Jackson
    , contributor
    Comments (83) | Send Message
     
    Looking to buy more. I sold 75% of my original shares at around 7.20. It went up more from there then went down. I was in for just under 2 bucks. I do not blame anybody for selling after a 300% gain. I went back in on a dip. It dipped even more but then went back up. I sold the high shares for a small profit but now will probably get back in. All the hype aside I believe the company has something going. The articles attacking GALE are doing so aside from claims of bankruptcy. It was so much calmer back in "the good old days ". The stock price was more related to how the company was actually doing or what potential it had rather than all the hype. I guess we shall see but I am going to bet GALE is worth at least 5 bucks. Other things could make it go up but if it stays under that I will be looking to get back in for a few hundred shares to play on a trade up to 6.
    12 Feb, 07:33 PM Reply Like
  • Daniel5150
    , contributor
    Comments (125) | Send Message
     
    Whatever MichaelJ8
    I rode this stock from $2.22 to $7
    I am content bro
    12 Feb, 07:50 PM Reply Like
  • Robert.from.Ct
    , contributor
    Comments (380) | Send Message
     
    ya bro whatever floats ur boat
    12 Feb, 09:27 PM Reply Like
  • MichaelJ8
    , contributor
    Comments (604) | Send Message
     
    if your trading, thats awesome. I sold some of mine position on the way up too. This is a good buying opportunity as ever, once the dust settles and everyone realizes nothing will come of this... like.. as in the case of LINE * ) @ bryce)
    16 Feb, 05:23 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2543) | Send Message
     
    MichaelJ8,

     

    " like.. as in the case of LINE * ) @ bryce) "

     

    You are drinking the LINE kool-aid. Should anything happen to LINE, you aren't likely to see it coming unless you are using standard MLP cash flow measures and GAAP measures adjusted for distortions, NOT LINE's UNIQUE MLP CASH FLOW MEASURES USED BY NO OTHER COMPANY IN THE MLP SPACE. Take a look at a recent example: Boardwalk Pipeline Partners.

     

    http://bit.ly/1cSrUC0

     

    I advise you to use standard MLP Cash flow measures, not LINE'S. Under those measures they are paying out more in distributions than cash available, and accumulating debt and diluting shareholder value in the process. But, it's impossible to use such measures now because LINE doesn't provide all the info needed to calculate it. You gotta ask why not. Keep drinking the Kool-aid.
    17 Feb, 06:58 PM Reply Like
  • fidelity comment
    , contributor
    Comments (79) | Send Message
     
    When the pieces were removed, did SA inform the community at that time? Whats SA transperacy policy to preserve the integrity of their operations and content? Im not concerned with GALE's issue but with possible taint to an information source.
    12 Feb, 07:55 PM Reply Like
  • globebag
    , contributor
    Comments (17) | Send Message
     
    Does anyone think the SEC should investigate for stock manipulation? Investigate The Street and SA?
    12 Feb, 08:10 PM Reply Like
  • Robert.from.Ct
    , contributor
    Comments (380) | Send Message
     
    GREAT IDEA
    12 Feb, 09:19 PM Reply Like
  • globebag
    , contributor
    Comments (17) | Send Message
     
    typical pump then dump by SA and the Oz firm.
    12 Feb, 08:10 PM Reply Like
  • JoeMRI
    , contributor
    Comments (18) | Send Message
     
    Can't believe GALE is not responding. Communication strategy failed. On the fence as to stay or leave and move on. Hmmmm...
    12 Feb, 08:15 PM Reply Like
  • yale1066
    , contributor
    Comments (165) | Send Message
     
    If you listened to todays update from Ahn he made a direct comment regarding AF.
    12 Feb, 11:55 PM Reply Like
  • cicciogagiotto
    , contributor
    Comments (12) | Send Message
     
    giving the fact they are a listed company they have to work on it. they can't just say bla bla bla but they have to fill a statement as SEC requires
    13 Feb, 03:07 PM Reply Like
  • Octogenarian
    , contributor
    Comments (64) | Send Message
     
    Author's other articles must be pulled and made public ... and report to SEC asap.
    12 Feb, 08:28 PM Reply Like
  • davidjlevey
    , contributor
    Comments (4) | Send Message
     
    Where is the SEC in all this? If I was to write BS like this to gain an upper hand to manipulate a stock, I'm sure the SEC would escort me out of my place with nice chrome bracelets on my wrists.
    12 Feb, 08:56 PM Reply Like
  • GlennLangohr
    , contributor
    Comments (37) | Send Message
     
    I put Gale on my radar after seeing an article about why to short GALE. I watched it get absolutely clobbered for a few days and low and behold another article came out touting GALE with that READ, INVEST headline with the interview… I bought and rode the pop. This is just a speed bump. Going to get back in at the low 4 range. Good company.
    12 Feb, 08:57 PM Reply Like
  • russleehowe
    , contributor
    Comments (54) | Send Message
     
    Based on a successful Phase 2 trial, which achieved its primary endpoint of disease-free survival (DFS), the FDA granted NeuVax a Special Protocol Assessment (SPA) for the Phase 3 study. All the people in the Phase 2 trial had no recurrence of breast cancer. 9 of 9 analysts have a BUY on GALE. The short manipulators are working hard to wreck this stock.
    12 Feb, 09:54 PM Reply Like
  • Abraxix
    , contributor
    Comments (339) | Send Message
     
    Company statement, pulled from the Yahoo board:

     

    "We understand your concern and appreciate your support of Galena. Adam Feuerstein clearly has an agenda when it comes to Galena, as evidenced by his numerous, tabloid-like articles on the company that are sensational but largely devoid of true information. Today’s article is just another in the line, which for us have become noise. Rather, we’re 100% focused on transforming Galena into a leader in providing therapeutics across the entire cancer-care spectrum, as evidenced by our successful launch of Abstral, the advancement of our Phase 3 study of NeuVax, the initiation of our Phase 2 study of GALE-301, the acquisition of Mills Pharma and GALE-401, and the licensing agreement with Dr. Reddy’s…all of which happened to occur during past four months. Adam’s logic that insider selling had anything to do with the DreamTeam Group is specious and unworthy of further discussion. We used the Dream Team Group to help support our investor relations efforts, and no longer work with the firm. We also recently requested that all materials on Galena be removed from the firm’s website given that none of the materials were authorized or approved by Galena."
    12 Feb, 10:23 PM Reply Like
  • billeebong
    , contributor
    Comments (169) | Send Message
     
    ...is the Yahoo board the standard rebuttal location of companies countering cheap shots? If their rebuttal is true, then Feuerstein should also go under the microscope, especially if he had short interest in GALE before he posted his poison pen letters.
    13 Feb, 02:39 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2543) | Send Message
     
    That doesn't really address the articles published by the DreamTeam, IMO. They no longer work with them, fine, but when did they stop working with them? You didn't resolve what the article brought up, rather you dodged it. Saying they "recently" requested all materials be removed..........what, in the last 30 days? Still doesn't address the articles which the DreamTeam published on SA. Did Galena or did Galena not approve them? Simple question. The above doesn't address it.
    Word of advice, Galena, on the cashing in of options for compensation, or diversification of your investments. Have only one or two insiders do it at a time, and in dribbles, not in huge chunks. Otherwise it's going to look like something other than the options were cashed for compensation. Use your brain.
    Fidelity Investments says that $14 million in stock was sold recently, when the average, they say, is $700,000. So, the sales by 5 or 6 insiders, at the least, has the appearance of something other than standard options exercising.

     

    My apologies to the longs if I ruffle feathers, but the above statement doesn't satisfy me in regards to Feuersteins's article.
    13 Feb, 04:02 AM Reply Like
  • Zankudo
    , contributor
    Comments (223) | Send Message
     
    Don`t agree that necessarily indicates anything. I do not know, but Galena having hired a PR firm for $50 grand is not a lot of money on one side and there is no evidence they have control over what they publish. 14 million is not a big sale either spread over 6-7 people who receive the options as part of compensation. This all begs the question which is, why do 7 analysts recommend buy if the company is rotten to the core. Why do the medical guys believe this is a promising drug in phase 3. Make your judgment on facts pertinent to the value of what the company produces. The rest of this is nonsense by this Feuerstein guy who like the other one Gravitt on SA wrote the article full of holes. What drives their animus is anybody's guess but I would say a quick buck. Furthermore, SA left standing Gravitt's article, now in Swiss cheese status and even touted it as a big deal and look what the stock did afterward. Not particularly a laudatory example for SA to tout in my opinion.
    13 Feb, 07:48 AM Reply Like
  • jeremyhein
    , contributor
    Comments (16) | Send Message
     
    Exactly... By all means, form your own opinions. But you should absolutely be doing your diligence with much more reputable sources than SA. Good place for generating ideas and gauging market sentiment, but that'a about the extent of it.
    13 Feb, 10:50 AM Reply Like
  • Robert.from.Ct
    , contributor
    Comments (380) | Send Message
     
    I am long GALE with MANY thousands of shares.
    A Yahoo chat room IS NO PLACE TO RESPOND TO THE CHARGES AF WROTE ABOUT
    IS management THAT STUPID?
    A proper response would have been a press release
    Regards,Robert
    13 Feb, 01:18 PM Reply Like
  • Robert.from.Ct
    , contributor
    Comments (380) | Send Message
     
    I am loosing respect for Seeking Alpha
    Many pump and dump articles
    Do the folks who run Seeking Alpha,who see all articles BEFORE they are published,have any restrictions on buying,selling,or shorting stock????
    I wish ALL of you will ponder this question
    I ONLY rely on certain authors who I believe are reputable and honest concerning buying or selling a stock
    Regards,Robert
    13 Feb, 01:30 PM Reply Like
  • cicciogagiotto
    , contributor
    Comments (12) | Send Message
     
    agree with u mate
    13 Feb, 03:07 PM Reply Like
  • mrmookie123
    , contributor
    Comments (72) | Send Message
     
    Got the same response when I contacted Investor Relations at Gale.
    14 Feb, 08:29 AM Reply Like
  • massawe
    , contributor
    Comments (8) | Send Message
     
    At least they came out with the statement unlike $PVCT
    12 Feb, 11:38 PM Reply Like
  • blickster66
    , contributor
    Comments (12) | Send Message
     
    Hard to believe that a couple of articles could affect the.price of the stock so much. If this stock is a dog they why are some of the large investment firms recommending it? I doubt that they were swayed by some unscroupulous person or persons. Stay long.this is a goo company.
    13 Feb, 03:12 AM Reply Like
  • mreits4ever
    , contributor
    Comments (122) | Send Message
     
    As I recall Seeking Alpha made the issue public knowledge at the time they pulled the articles. Suddenly it is now a huge issue? Would not be surprised if the stock recovers... If there is an investigation all sides need to be included.
    13 Feb, 08:49 AM Reply Like
  • Robert.from.Ct
    , contributor
    Comments (380) | Send Message
     
    If there is an investigation ALL SIDES NEED TO BE INCLUDED,which of course includes Seeking Alpha.
    Regards,Robert
    13 Feb, 01:35 PM Reply Like
  • InShanghai
    , contributor
    Comments (9) | Send Message
     
    I've held Galena since receiving RXII shares from Cytrx and I acquired a sizable amount at that time. I've never averaged down with purchases, but I'm comfortable with just waiting it out. I've learned not to get caught in the hype. Just like with Cytrx, or any small biotech, unless you're a day trader, you might as well save yourself the grief. Wait until the larger institutions start pumping money in or a buyout occurs.
    13 Feb, 09:09 AM Reply Like
  • cicciogagiotto
    , contributor
    Comments (12) | Send Message
     
    I m long on Gale. The thing is i didn't buy the stock only reading seeking alpha articles that sometimes are very interesting. i bot Gale on brokers recomendation. I think they should come out with a statement trying to explain what happened. i still believe in Gale cos it is a very good story.
    13 Feb, 03:07 PM Reply Like
  • cicciogagiotto
    , contributor
    Comments (12) | Send Message
     
    even Balckrock bot the stock (6million shares) and i think they didn't buy those on these articles
    13 Feb, 03:07 PM Reply Like
  • mrmookie123
    , contributor
    Comments (72) | Send Message
     
    It's simple, AF and the rest of the Cronies at the Street.com have it out for GALE. I'm long and holding adding more today if possible. I don't listen to anything AF or the street.com has
    to say. We all will see how things look when they announce Quartley earnings on March 11th or 12th. That's the real bottom line. Everyone have a great day.
    14 Feb, 08:32 AM Reply Like
  • BuyToSell
    , contributor
    Comments (215) | Send Message
     
    SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Galena Biopharma, Inc. - GALE

     

    http://yhoo.it/1ezKSwH
    14 Feb, 05:22 PM Reply Like
  • jonomatic_2000
    , contributor
    Comments (22) | Send Message
     
    What shall investors do concerning this ?
    14 Feb, 06:01 PM Reply Like
  • BuyToSell
    , contributor
    Comments (215) | Send Message
     
    I am posting it in an informational capacity. I would suggest that if one has information pertinent to the action, one use the contact information in the release to communicate with the attorneys.
    14 Feb, 07:29 PM Reply Like
  • BuyToSell
    , contributor
    Comments (215) | Send Message
     
    Galena Biopharma Issues Letter to Shareholders

     

    http://bit.ly/1eX9QfK
    14 Feb, 05:23 PM Reply Like
  • Sammyboy12
    , contributor
    Comments (50) | Send Message
     
    Agree with you Robert. More than just the writer should be answerable. No doubt this comment will be pulled.
    15 Feb, 03:28 PM Reply Like
  • Mking30
    , contributor
    Comments (139) | Send Message
     
    Remember AF semi-thrashed CHTP and the stock got cut in half. I think it went from 4.40 down to 2.20...Four days later when FDA day came th sp was around 5, I seen right thur that.
    17 Feb, 05:49 PM Reply Like
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