Galena and CytRx stock promotion behavior scrutinized

SA contributor Richard Pearson publishes his investigation into Galena (GALE -6.2%) and CytRx's (CYTR -8.8%) relationship with The Dream Team Group.

He concludes that management has had a central role in reviewing and editing numerous bullish articles published on financial websites under various aliases.

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Comments (12)
  • WilsonWagwa
    , contributor
    Comments (86) | Send Message
    This makes for good press for your Seeking Alpha company doesnt it. I guess if your company S.A would have done the proper DD you would have discovered these people writing had different aliases but you didnt. In either case. Galenas drug and pipeline are real and all the noise you have created with this nonsense will be forgotten soon. But then again you got you face on all of the companies headlines sites. Isnt that what its all about for you Eli?
    13 Mar 2014, 11:38 AM Reply Like
  • cmblanch
    , contributor
    Comments (77) | Send Message
    I believe that SA is complicit in this kind of market manipulation. Pulling articles after the fact means pulling articles after the damage is done. Shame on you.
    13 Mar 2014, 11:52 AM Reply Like
  • dakotadao
    , contributor
    Comments (23) | Send Message
    This guy has zero credibility. He pumped Gale in his article few weeks ago, contradicting his pal Fartstain.


    What a joke.
    13 Mar 2014, 12:12 PM Reply Like
  • Brian Grosso
    , contributor
    Comments (948) | Send Message
    "I am currently evaluating each of these stocks above to determine what has been and what will continue to drive the stocks going forward. Until then I am withholding my investment views.


    At the time of publication the author held no positions in any of the stocks mentioned."
    13 Mar 2014, 02:42 PM Reply Like
  • MichaelJ8
    , contributor
    Comments (883) | Send Message
    All in GALE!
    13 Mar 2014, 03:30 PM Reply Like
  • prem99
    , contributor
    Comments (10) | Send Message
    Looks like MM is making money on BULL/ BEAR based on these articles small investors like me are getting slaughtered, Before publishing any article they should verify authenticity or identity of a person then publish the article, Looks even SA is making money on both side. Unfortunately retail investors are getting burned by reading the articles.
    13 Mar 2014, 04:38 PM Reply Like
  • Ron Reed
    , contributor
    Comments (346) | Send Message
    As an author I can assure you SA tracks, records, and verifies each author. With that being said, yes you can make false ID's and false bank accounts, but you cannot expect them to dig that deep, they are after all a company not the gov't.


    Beyond all that, the articles are opinion based, if they are factually incorrect and presented as facts, the company and investors can and do file lawsuits to recover losses.


    Anyone who trades based strictly on either one article with no way to back up the data, or who trades based on one guy's comments, or who trades without doing their own due diligence is subject to losses that are the fault of YOU the investor.


    If an article is factually incorrect, and losses are due to that, the market will recover those losses and you should consider it a buy in time and laugh at the losers.


    And before anyone tries to make some stupid comment about who I am, I am only part of SA as an author, I do not write often, I receive no compensation for my comments other than the articles I have written. I have no stake in Gale at this time, I have no plans to have a stake in Gale in the near future. I do follow them as interesting, but nothing beyond that at this time. I have made money running options on Gale.
    13 Mar 2014, 06:17 PM Reply Like
  • MichaelJ8
    , contributor
    Comments (883) | Send Message
    his article is this: GALE editied and approved articles.... and this means nothing on its own.


    Then he goes on to say that the articles had no disclosure. My question is.... why should GALE enforce other companies disclosure policies. It sounds like to me that GALE paid DTG to do a job, and DTG simply didn't do the job correctly....


    So, imo DTG should be under scrutiny, not GALE. In fact GALE should sue DTG for, most likely, violating their contract(although I do not know the exact requirements of the contract).
    13 Mar 2014, 06:36 PM Reply Like
  • amazen
    , contributor
    Comments (60) | Send Message
    pump and dump ? i think not. hold on though i think supper will be served
    14 Mar 2014, 11:19 AM Reply Like
  • MortyLong
    , contributor
    Comments (191) | Send Message
    The Galena BOD will face Derivitive lawsuits if they were in fact complicit in anyway in regards to insider trading, this is the big issue. However, this type of lawsuit means the directors themselves will face the legal fees, any fines, reimbursements and possible replacement if they failed to perform their fiduciary responsibilities for the company it's shareholders. They filed the appropriate SEC forms and did not hide their selling. I question their judgement, but having law firms file a bunch of suits is not indicative of action. Having bought Biotech stocks for years and selling at large profits, I have rarely NOT seen a bunch of law firms looking for plaintiffs, in these cases where upwards of 500% was made for the shareholder, the lawyers file the same lawsuit claiming management accepted too low an offer, violated their fiduciary responsibility to he shareholders ... Just see how many are trolling for plaintiffs, this is big business for them and the shareholder will see nothing, the firms however generate fees for themselves as do class action complaints. Look at Insys, they were investigated by the SEC, were found to have made forward looking statements that were considered not truthful and utilized the Safe Harbor protections afforded them and they don't seem to be hurting. They have currently one drug and these lawsuits on promotion and marketing (done by most every other pharmaceutical company) has not held the company down. If the GALE board acted in concert and on true insider trading, they should be penalized. They will face the fees/fines personally, but it appears that Mark Ahn, from his actual SEC filings, did only divest of the 20% he stated. The board members who sold all of their stock may just have something to worry about but I think this will pass and earnings will dictate GALE's success (it should) and Mr. Pearson using his investigation to short the position, IMO, hurt the credibility of the strength of his conviction (no pun intended). Company shares should be bought based on DD and not on the opinions of others. However where SA is concerned, they failed to listen to a number of concerns regarding the contributors, I myself wrote in numerous times only to find more time was spent deleting posts that simply countered the ones posted. It will be hard to police these boards however it sure seemed like an onslaught of well timed "opinions" that certainly raised my curiosity and I'm not a professional analyst!
    14 Mar 2014, 12:32 PM Reply Like
  • amazen
    , contributor
    Comments (60) | Send Message
    they new there actions would be watched .
    15 Mar 2014, 08:23 AM Reply Like
  • lande45786
    , contributor
    Comment (1) | Send Message
    Big, big volume of trading before and after ER. I think if Gale;s numbers are just a little better it can send the stock price higher, there is a lot publications and lots of investor awareness all over the place.
    17 Mar 2014, 08:34 AM Reply Like
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