(GuruFocus, September 26, 2009)Bio-tech joint Cell Therapeutic (CTIC, Financial) is in business of developing, acquiring and commercializing new treatments for cancer.
It has a market cap of $694.4 million; its shares were traded at around $1.24 with and P/S ratio of 60.8.Ă‚
According to GuruFocus data, On September 25, there were a host of insider selling activities, involving five of the companies insiders: CEO James A Bianco (sold 318,621 shares), President Craig Philips (211,500 shares), EVP, Finance & Administration Louis A Bianco (105,580 shares), EVP, Corporate Communications Daniel G Eramian (104,276 shares), and EVP, Chief Medical Officer Jack W Singer (101,380 shares).
In the Form 4 forms filed with SEC for the transaction happened on September 25, 2009, it was market “ ( 1 ) Proceeds from the sale were primarily used to cover taxes related to the vesting of restricted stock on 9/25/2009.”
Separately, two weeks ago, CEO James A Bianco sold 1,366,108 more shares of CTIC stock on 09/11/2009 at the average price of $1.43, and back on August 14, 2009 Director Phillip M Phd Nudelman sold 164,000 shares of CTIC stock at the average price of $1.57.
No reason was given for the earlier sales.
On August 6, 2009, Cell Therapeutics announced for the quarter ended June 30, 2009, total net operating expenses decreased approximately 24% to $21.7 million, compared to $28.7 million for the same period in 2008. The decrease is mainly a result of a 54% reduction in research and development expenses for the quarter ended June 30, 2009, compared to the same period in 2008.
At the time, CTIC had approximately $12.0 million in cash and cash equivalents, securities available-for-sale, and interest receivable as of June 30, 2009. This does not include approximately $41.7 million, net of underwriting discount, the Company received in July 2009 in connection with an underwritten offering of common stock and warrants.
At the same time, the company announced it reduced outstanding debt by $52.9 million, representing 44.5% of outstanding debt, through exchange offers completed in June 2009, resulting in an estimated savings in future annual interest expense of approximately $3.3 million. In another words, debt to equity.
Then on August 21, 2009, the company announced it received $28.2 million from a sale of stock to a single investor. The investor bought Series 2 Preferred Stock shares, which were then converted to 18.9 million shares of common stock.
Its financing activities that involved the debt holders and outsider show investors do not lack confidence in the company, but the insider activities suggest the insiders have something else in their minds.
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It has a market cap of $694.4 million; its shares were traded at around $1.24 with and P/S ratio of 60.8.Ă‚
According to GuruFocus data, On September 25, there were a host of insider selling activities, involving five of the companies insiders: CEO James A Bianco (sold 318,621 shares), President Craig Philips (211,500 shares), EVP, Finance & Administration Louis A Bianco (105,580 shares), EVP, Corporate Communications Daniel G Eramian (104,276 shares), and EVP, Chief Medical Officer Jack W Singer (101,380 shares).
In the Form 4 forms filed with SEC for the transaction happened on September 25, 2009, it was market “ ( 1 ) Proceeds from the sale were primarily used to cover taxes related to the vesting of restricted stock on 9/25/2009.”
Separately, two weeks ago, CEO James A Bianco sold 1,366,108 more shares of CTIC stock on 09/11/2009 at the average price of $1.43, and back on August 14, 2009 Director Phillip M Phd Nudelman sold 164,000 shares of CTIC stock at the average price of $1.57.
No reason was given for the earlier sales.
On August 6, 2009, Cell Therapeutics announced for the quarter ended June 30, 2009, total net operating expenses decreased approximately 24% to $21.7 million, compared to $28.7 million for the same period in 2008. The decrease is mainly a result of a 54% reduction in research and development expenses for the quarter ended June 30, 2009, compared to the same period in 2008.
At the time, CTIC had approximately $12.0 million in cash and cash equivalents, securities available-for-sale, and interest receivable as of June 30, 2009. This does not include approximately $41.7 million, net of underwriting discount, the Company received in July 2009 in connection with an underwritten offering of common stock and warrants.
At the same time, the company announced it reduced outstanding debt by $52.9 million, representing 44.5% of outstanding debt, through exchange offers completed in June 2009, resulting in an estimated savings in future annual interest expense of approximately $3.3 million. In another words, debt to equity.
Then on August 21, 2009, the company announced it received $28.2 million from a sale of stock to a single investor. The investor bought Series 2 Preferred Stock shares, which were then converted to 18.9 million shares of common stock.
Its financing activities that involved the debt holders and outsider show investors do not lack confidence in the company, but the insider activities suggest the insiders have something else in their minds.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and company insiders for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
