AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO)

CAPS Rating: 1 out of 5

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How do you think AVEO will perform against the market?

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All Players

78 Outperform
40 Underperform
 

All-Star Players

11 Outperform
26 Underperform
 

Wall Street

0 Outperform
1 Underperform
 

Top AVEO Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

zzlangerhans (99.85)
Submitted December 15, 2013

I threw in the towel on my Aveo trade just recently, sold almost all my shares for a huge loss, and switched to a red thumb. I have to say it was a good move because the stock continued to perform weakly despite having more cash than market… More

jed71 (99.84)
Submitted June 09, 2015

If I were a shareholder here, I’d be extremely concerned about this company’s recent actions through its SEC filings. Recent 8-K:“On May 28, 2015, the Company filed a certificate of amendment to its Restated Certificate of Incorporation (the… More

AVEO VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from players about AVEO.

Recs

0
Member Avatar Under5 (< 20) Submitted: 10/2/2017 11:20:10 AM : Outperform Start Price: $2.21 AVEO Score: -17.67

Nice run!

Recs

0
Member Avatar superstar (99.94) Submitted: 6/23/2017 12:28:59 PM : Underperform Start Price: $1.30 AVEO Score: -44.83

I'm not impressed with tivozanib

Recs

4
Member Avatar jed71 (99.84) Submitted: 6/9/2015 11:55:48 AM : Underperform Start Price: $2.19 AVEO Score: +34.53

If I were a shareholder here, I’d be extremely concerned about this company’s recent actions through its SEC filings. Recent 8-K:

“On May 28, 2015, the Company filed a certificate of amendment to its Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of the State of Delaware to increase the number of authorized shares of the Company's common stock, par value $0.001 per share, from 100,000,000 shares to 200,000,000 shares.”

So they just doubled the amount of stock they could issue from 100MM to 200MM common shares. This by itself isn’t a big deal. But add on the next few items, and I start to become worried. So why did they need to increase authorized shares so dramatically? Here’s one reason:

“As disclosed in the Current Report on Form 8-K of AVEO Pharmaceuticals, Inc. (the "Company") that was filed with the Securities and Exchange Commission on March 24, 2015, and which is incorporated by reference herein (the "Prior 8-K"), the Company has an annual cash incentive program, which is designed to provide cash bonus awards to the Company's employees, including the Company's executive officers. Corporate goals under the Company's annual cash incentive award program for the year ending December 31, 2015, which are set forth in the Prior 8-K, account for 100% of the performance metrics against which the Chief Executive Officer's eligibility for an annual cash incentive award will be measured. For all other executive officers of the Company, the corporate goals account for 80% of the performance metrics against which the annual cash incentive award will be measured, and individual goals account for the other 20%.”

If you dig through their financials, it’s pretty obvious the company will need additional capital in order to bring even one of their drugs to fruition. What else is there? Well, there’s this:

“Two class action lawsuits have been filed against the Company and certain present and former officers and members of the Company’s board of directors, (Tuan Ha-Ngoc, David N. Johnston, William Slichenmyer and Ronald DePinho), in the United States District Court for the District of Massachusetts, one captioned Paul Sanders v. Aveo Pharmaceuticals, Inc., et al., No. 1:13-cv-11157-JLT, filed on May 9, 2013, and the other captioned Christine Krause v. AVEO Pharmaceuticals, Inc., et al., No. 1:13-cv-11320-JLT, filed on May 31, 2013. On December 4, 2013, the District Court consolidated the complaints as In re AVEO Pharmaceuticals, Inc. Securities Litigation et al., No. 1:13-cv-11157-DJC, and an amended complaint was filed on February 3, 2014. The amended complaint purports to be brought on behalf of shareholders who purchased the Company’s common stock between January 3, 2012 and May 1, 2013. The amended complaint generally alleges that the Company and certain of its present and former officers and directors violated Sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making allegedly false and/or misleading statements concerning the phase 3 trial design and results for our TIVO-1 study in an effort to lead investors to believe that the drug would receive approval from the FDA.”

And this…

“On April 4, 2014, Karen J. van Ingen, a purported purchaser of AVEO stock, filed a derivative complaint allegedly on behalf of AVEO in the United States District Court for the District of Massachusetts, Civil Action No. 1:14-cv-11672-DJC, naming AVEO, as a nominal defendant and also naming as defendants present and former members of the Company’s board of directors, including Tuan Ha-Ngoc, Henri A. Termeer, Kenneth M. Bate, Anthony B. Evnin, Robert Epstein, Raju Kucherlapati, Robert C. Young, and Kenneth E. Weg. The complaint alleges breach of fiduciary duty and abuse of control between January 2012 and May 2013 with respect to allegedly misleading statements and omissions regarding tivozanib. The complaint seeks, among other relief, unspecified damages, costs and expenses, including attorneys’ fees, an order requiring the Company to implement certain corporate governance reforms, restitution from the defendants and such other relief as the court might find just and proper. On July 25, 2014, defendants filed a motion to dismiss the derivative complaint with prejudice. Plaintiff filed an opposition to the motion to dismiss on September 23, 2014, and the Company filed a reply to the opposition on October 23, 2014.”

And, of course, the SEC has stepped in…

“On July 3, 2013, the Company received a subpoena from the SEC, requesting documents and information concerning tivozanib, including related communications with the FDA, investors and others. The Company is fully cooperating with the SEC regarding this fact-finding inquiry. The SEC has informed the Company that this inquiry should not be construed as an indication that any violations of law have occurred or that the SEC has any negative opinion of any person, entity or security.”

None of this means the company has done anything wrong, but, in my view, there are piles of red flags on this issue. There are quite a few other items I could point out here but I will leave my pitch to these few items. I would highly recommend you understand the share dilution that is coming and their financial situation prior to buying shares. I would also spend some time understanding how many shares they are issuing to executives, which is quite "enlightening." I would personally avoid this stub.

Leaderboard

Find the members with the highest scoring picks in AVEO.

Score Leader

mdriver78

mdriver78 (65.98) Score: +293.39

The Score Leader is the player with the highest score across all their picks in AVEO.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
Tastylunch 28.79 10/5/2010 Underperform 5Y $14.43 -86.44% +125.08% +211.52 0 Comment
Smog79 < 20 10/5/2010 Underperform 3W $14.27 -86.28% +123.68% +209.96 0 Comment
BadCopNoDonuts < 20 10/12/2010 Underperform 5Y $15.90 -87.69% +122.23% +209.93 0 Comment
MGsPicks < 20 10/12/2010 Underperform 5Y $15.90 -87.69% +122.23% +209.93 0 Comment
DDD424 < 20 10/12/2010 Underperform 5Y $15.79 -87.61% +122.02% +209.63 0 Comment
mainakn 71.59 10/11/2010 Underperform 1Y $16.01 -87.78% +121.72% +209.50 0 Comment
emeraldvale < 20 10/11/2010 Underperform 5Y $15.89 -87.69% +121.62% +209.31 0 Comment
alexdowns77 96.08 10/6/2010 Underperform 5Y $14.26 -86.28% +122.71% +208.99 0 Comment
MisterCHW 99.92 10/5/2010 Underperform 5Y $13.97 -85.99% +122.56% +208.55 0 Comment
HedgeFund007 94.88 12/6/2010 Underperform 1Y $15.06 -87.01% +110.71% +197.71 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackRBCCapMkts 86.98 12/16/2013 Underperform NS $1.62 +13.58% +16.19% +2.61 3/9/2015 @ $1.84 0 Comment
TrackJimCramer 85.22 4/26/2013 Underperform 3W $7.53 -74.02% +63.29% +137.31 0 Comment
TrackCanaccord 69.06 4/30/2012 Outperform NS $11.42 -76.53% +15.31% -91.84 5/3/2013 @ $2.68 0 Comment
TrackRBCCapMkts 86.98 11/30/2010 Outperform NS $17.93 -90.96% +52.22% -143.19 12/16/2013 @ $1.62 0 Comment
TrackMPAdvisors < 20 11/29/2010 Underperform NS $15.13 +17.78% +13.51% -4.27 5/13/2011 @ $17.82 0 Comment
TrackJPMorgan 87.02 4/21/2010 Outperform NS $9.54 -0.84% -1.77% +0.93 4/30/2010 @ $9.46 0 Comment

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