- Last Wednesday, a bullish research report on thinly-traded micro cap Pluristem Therapeutics (NASDAQ:PSTI) propelled the stock almost 33% in two days.The report, by Acceleron Equity Research, stated a price target of $21, a seven-bagger from the then-current price of ~$3.
- It appears, though, that Acceleron is just a website. Neither the site or the report identify the authors, but the press release listed a contact under the name of M. Morhamus. According to the website developer, M.E.Garza, Acceleron was started by two former contributors to his biotech news site, BioMedReports, Michael Morhamus and A.J. Deniken. When contacted by reporters, however, Mr. Deniken stated that he was not an owner of Acceleron and didn't profit from the rise in PSTI's stock price. Mr. Mohamus did not respond to requests for comment sent via Twitter.
- Migdal Capital Markets senior biomedical analyst Steven Tepper says that investors don't have enough information about Acceleron to judge its credibility. "It would be irresponsible to make investment decisions on a research report that has no analyst name standing behind it. We need to know who owns this research company, who are the managers, what is its business model. A disclaimer means nothing if there's no analyst name written on the report."
- PSTI is down 12% premarket on mediocre volume.
- Previously: Pluristem surges on bullish research report (Jan. 28)