Seeking Alpha

Galena Biopharma responds on stock-promotion allegation

  • Galena Biopharma (GALE -14.3%) late today publicly responds to its shareholders, amplifying what were brief dismissals of Adam Feuerstein's Wednesday article on the firm and stock-promotion allegations, and calling his work "tabloid-like."
  • "The only facts in Mr. Feuerstein's most recent article that are remotely accurate," writes CEO Mark Ahn, "are that Galena previously engaged the DreamTeamGroup and that insiders at the company, including me, divested shares in mid January."
  • Volume of more than 40M shares today was nearly four times the company's average; after-hours shares were tracking slightly higher from the close, +0.5%.
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Comments (19)
  • Houdini10
    , contributor
    Comments (48) | Send Message
     
    Jim Cramer strikes again. Galena was Deep Captured
    14 Feb, 06:00 PM Reply Like
  • Investing 501
    , contributor
    Comments (104) | Send Message
     
    40M shares traded today. 103M in the float.. That is a lot of "investing" going on today.

     

    100M shares traded in last 5 days.

     

    So much for investing in the long-term potential of the company's products..
    14 Feb, 06:41 PM Reply Like
  • BioDoubt
    , contributor
    Comments (16) | Send Message
     
    Uhh, the fact that GALE used a stock promotion service to drive the share price up and then insiders dumped the stock was the whole point of the article. Nice try at diversion though with the whole tabloid bit.
    15 Feb, 01:10 PM Reply Like
  • KCODD
    , contributor
    Comments (3) | Send Message
     
    If you want do some research, the shares that were sold by insiders were options that were set to expire worthless if they weren't exercised. Lots of times insiders are paid with stock options instead of cash. If I had options that were set to expire and I could make money i would've sold too. I don't think any crime was committed. They paid a company to hype the company. Who doesn't want to toot their own horn?
    16 Feb, 01:30 PM Reply Like
  • pat45
    , contributor
    Comments (338) | Send Message
     
    Yeah but to toot horn then blow snot on your shareholders should be illegal. Too much pump n dump and short then scream bloody fire in this market. Not in gale but watchin.
    17 Feb, 11:16 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    KCODD,

     

    You are making an argue against yourself. "Insiders had options that were set to expire worthless". So the insiders proceeded to pump the stock to make their "worthless" options WORTH something. This is basically fraud at shareholder expense plain and simple. Insiders knew something that shareholders should have known about. Classic insider trading violation. Also classic pump and dump scheme. Pretty much classic everything that is despicable about penny stocks. The fact that one of the shareholders is returning profit basically says they knew what they were doing was absolutely wrong. If they SEC gets off of their ass the hammer will fall.
    18 Feb, 10:17 AM Reply Like
  • P Man
    , contributor
    Comments (1201) | Send Message
     
    What is this 'something' that the insiders know about that we don't know about? There has been no press release or any bit of information to cause the share price to go down. You are accusing them of something that hasn't happened. Which in itself is a crime.
    18 Feb, 05:10 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    Insiders did not disclose their relationship with DreamTeam, and DreamTeam did not disclose their relationship with Galena. Also the SA articles that pumped GALE were written as if they were coming from retail investors instead of a promotion firm. None of this is even disputed. Given that Galena engaged DreamTeam to do a job I'll imagine that DreamTeam did so at Galena's specifications which I am sure . Also as I mentioned one of the insiders has returned profit from the trades which just screams that the gains were ill gotten. It is called STOCK SCALPING and it is illegal. P Man prosecute me why don't you.
    18 Feb, 05:34 PM Reply Like
  • P Man
    , contributor
    Comments (1201) | Send Message
     
    Was anything written not true?
    18 Feb, 05:38 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    All it takes is exaggerated claims of profitability and success in the undisclosed promotional scheme. Management obviously sold their shares because they knew the stock was over valued. If it can be proved that this was by management's design then you have a price manipulation scheme which is indeed illegal.
    18 Feb, 05:49 PM Reply Like
  • gatlingg
    , contributor
    Comments (380) | Send Message
     
    so every company with an outside PR firm is evil. This company rose on a great volume of articles written by legitimate sources AND a number of successfull events. Analysts following it gave it a buy and set price targets in the teens. It fell on no negative event except comments by Cramer & AF, negative articles by folks who acknowledged they were shorting the stock (at least one individual wrote multiple misleading articles) NOT bad news from any of their trials nor the sales of ABstral nor the company & its pipeline they had just acquired. Nor do I consider a stock selling between $3 - $7 with a rich pipeline and an FDA approved drug they have just begun selling as a "penny stock"
    18 Feb, 06:05 PM Reply Like
  • P Man
    , contributor
    Comments (1201) | Send Message
     
    Let me see if I understand your point. In a one-year period, GALE's stock price went from around $2 to a little over $7, which was a $500 million increase in equity. In that same 2013 to 2014 time period, 40 articles were written about GALE on Seeking Alpha.

     

    2 of these articles were written by a marketing group that got paid $50,000 by GALE to promote the company.

     

    So, you're saying that although this group represented less than 5% of the 'press' on GALE, and were paid only $50K, they are responsible for a half a billion dollar increase in market cap?

     

    They must really be the dream team. A 10,000% improvement? That's the greatest return on money in the history of mankind.
    18 Feb, 06:11 PM Reply Like
  • countdodo
    , contributor
    Comments (5) | Send Message
     
    The option are options to buy, not sell. You will have to refer me to the company procedure on options for their executives. It should be in their policy and procedures regarding stock incentives. I am quite sure that they did not HAVE TO sell.
    18 Feb, 09:31 PM Reply Like
  • P Man
    , contributor
    Comments (1201) | Send Message
     
    Nobody 'buys' their options. This 'well, they could have just bought them' argument is just stupid.
    19 Feb, 11:14 AM Reply Like
  • ar42
    , contributor
    Comments (47) | Send Message
     
    If a little guy like me knows about these shenanigans then so should the SEC. Why are they silent? What further catalyst do they need to launch an investigation?
    18 Feb, 12:09 PM Reply Like
  • gatlingg
    , contributor
    Comments (380) | Send Message
     
    because you actually don't know & if the SEC was to investigate it likely wouldn't consult you.
    18 Feb, 06:08 PM Reply Like
  • phaedrus9
    , contributor
    Comments (3) | Send Message
     
    Galena seems to have a tenuous handle on some technology that may have promise, but Mark Anh and company have milked it for way more than it is presently worth and we, fellow investors, provided the milk. Whether the stock goes up or down from here is a "FIIK" guess. Cantor Fitzgerald Advisors says sell, and they have more credability than Ahn.
    18 Feb, 12:10 PM Reply Like
  • P Man
    , contributor
    Comments (1201) | Send Message
     
    Oppenheimer sales 'buy', and they have more credibility than Cantor Fitzgerald.
    18 Feb, 05:12 PM Reply Like
  • countdodo
    , contributor
    Comments (5) | Send Message
     
    Let's get an update from Oppenheimer.
    18 Feb, 09:31 PM Reply Like
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