Asterias (AST)

Sludge

  • started trading ASTY in August 2013 when it was first listed as ASTYV and was subsequently hammered from $4.00 to $2.04
  • Price targets
    • Short term $5 (success)
    • Medium term  $10 to $12 by up-list
    • Long Term $80, this can be a $2.4B company upon approval of AST-OPC1 or AST-VAC2 in the coming years.  Possibly higher as sales and marketing grow.

The Good, the Bad, and the Sludge!

  • Good
    • Asterias is in the stem cell and cancer space.  Huge potential in the coming years.
    •  Short term catalysts to propel the shares
      • Received AST-OPC1 phase 1/2a Clinical Trial FDA Clearance
      • Received matching $14 million grant funding for AST-VAC2
      • Up-listing expected in 2014H2
      • 2015 filled with trials, data, and potential UK partnerships
    • Biotimecurrently owns 70% of Asterias.  Most shares arecurrently locked up!
      • On September 15, 2014,  8 millionBiotime (BTX)  warrants will be distributed at an exercise price of $5.00 per share
        • The warrants will expire on October 1, 2018
        • Exchange is 1.22 BTX for every 1 ASTY
    • Possible short squeeze in play
      • Overheard at the water cooler that GERN shorts who are now short ASTY when it was spun off, need to cover before September 15th warrants
      • Short interest in GERN was 22 to 25 million during ASTY spin off
      • Spin off exchange was 1 ASTY for every 24 GERN with a record date of May 28th and July 22nd ex-dividen
  • Bad
    • There may be short term extreme volatility due to the catalysts, shorts,  and warrants
  • Sludge
    • It’s an OTC stock right now!  No options for hedging or LEAP positions  On the NYSE under AST effective Oct 8th.

Charts

Company Website


 

 

Advertisements

One thought on “Asterias (AST)”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Advertisements

Sifting through the sludge, to find better investments.

%d bloggers like this: