Amarantus (AMBS) is a SludgeReports (SR) pick for 2015.
After successfully trading a .04 to .19 position earlier this year, SR sold before a July presentation that would not meet investor expectations. CEO Gerald Commissiong stated only interim data would be presented in this news release the day before that presentation.
Amarantus shareholders are a fickle bunch. Despite all the progress made on many fronts, shareholders have turned on Aramantus at the drop of a hat many times in the past. This time it was simply for presenting interim data on a new version of the Lympro test. Investors had built up their own expectations for a full set of data. In SR’s opinion, the press release was an attempt by Amarantus to reel in those expectations. Nonetheless, the share price tanked as expected on over-hyped market conjecture.
Commissiong addressed the market’s concerns in his last six Chairman’s blogs, yet the market still seems confused and there has been much speculation regarding Amarantus.
While the milestones below have been painstakingly explained in those Chairman’s blogs, they have taken on a new meaning in the 8k just filed. The CEO performance bonus is now tied to a three month plan of execution. SR recognizes that the performance bonus is equivalent to 35% of CEO base salary but believes the larger point made is the intention and preparedness to meet these dates. Some in the market may continue to speculate but shareholders should recognize this as a commitment by the CEO and Amarantus.
SR considers this an opportunity to invest for the long term. A stock beaten down on misinformation created by the market is exactly what finding better investments is about. SR will be adding to the existing position the next few weeks.
|MILESTONES||% OF PERFORMANCE BONUS||COMPLETION TIMING|
|Eltoprazine US IND filed and approved for LID||30%||12/31/14|
|LymPro partner validation of analytical performance package (APP) and CLIA certification||25%||12/31/14|
|MANF Orphan drug designation applications filed and approved for both ocular ischemic syndrome (OIA) and Retinitis pigmentosa||15%||12/31/14|