Cerulean Pharma Inc. (NASDAQ:CERU)

CAPS Rating: 1 out of 5

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12 Outperform
6 Underperform
 

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Top CERU Bull/Bear Pitches

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

ClientNein (99.98)
Submitted March 24, 2017

I wouldn't touch this stock with a ten foot pole with real money, but here I figure I can gamble a bit looking for a dead cat bounce, or possibly a nonsensical price increase. You never know!

jed71 (99.84)
Submitted February 07, 2017

TSIF doesn’t have a comment out yet, so I’ll put out a quick one. This is never a good sign:“Cerulean Pharma announces that its Board is conducting a comprehensive review of strategic alternatives (shares halted) The intention of the strategic review… More

CERU VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from players about CERU.

Recs

1
Member Avatar ClientNein (99.98) Submitted: 3/24/2017 10:26:45 AM : Outperform Start Price: $0.68 CERU Score: -17.80

I wouldn't touch this stock with a ten foot pole with real money, but here I figure I can gamble a bit looking for a dead cat bounce, or possibly a nonsensical price increase. You never know!

Recs

5
Member Avatar jed71 (99.84) Submitted: 2/7/2017 9:55:31 AM : Underperform Start Price: $1.12 CERU Score: +57.61

TSIF doesn’t have a comment out yet, so I’ll put out a quick one. This is never a good sign:

“Cerulean Pharma announces that its Board is conducting a comprehensive review of strategic alternatives (shares halted)

The intention of the strategic review is to evaluate potential alternatives such as the sale of the company, a merger, a business combination, a strategic investment into the company, or a sale, license or disposition of assets of the company. This process may not result in any transaction. In its strategic review, the Board is considering, among other things, Cerulean's clinical assets, NDC platform, and cash reserves as outlined below.”

I have been on the wrong side of “strategic reviews” before, and its possible I am on the wrong side again. Normally this ends up being bad news for shareholders although I must say they do have about $38MM in cash and the market cap is a mere $33MM. But whenever I have tried to play the long side of a bio-tech that has been valued under its cash, I have literally been burned every single time. So, I am taking the opposite approach that there are other things going on here that are probably not positive. They have been at the trough touting their nanotechnology for years and years (since 2005) and haven’t produced anything of value. There’s also this:

“The Hercules Loan Agreement will mature on July 1, 2018. Each advance under the Hercules Loan Agreement accrues interest at a floating per annum rate equal to the greater of (i) 7.30% or (ii) the sum of 7.30% plus the prime rate minus 5.75%. The Hercules Loan Agreement provided for interest-only payments on a monthly basis until December 31, 2015. Thereafter, payments are payable monthly in equal installments of principal and interest to fully amortize the outstanding principal over the remaining term of the loan, subject to recalculation upon a change in the prime rate. Failure to make payments or comply with other covenants as stated in the Hercules Loan Agreement could result in an event of default and acceleration of amounts due. In such case, the Company may not be able to make accelerated payments, and Hercules could seek to enforce security interests in the collateral securing such indebtedness, which includes substantially all of the Company’s assets other than its intellectual property. At the end of the loan term (whether at maturity, by prepayment in full or otherwise), the Company shall pay a final end of term charge to Hercules in the amount of 6.7% of the aggregate original principal amount advanced by Hercules. The amount of the end of term charge is being accrued over the loan term as interest expense.”

The company has secured the clear majority of its assets with this loan. It doesn’t look like they are in any danger of default soon but I just don’t see where there is anything of value here for shareholders. There is much more in their filings, but I’ll let someone else dig into and explain additional red flags.

Recs

0
Member Avatar oscillation (72.47) Submitted: 10/30/2016 10:03:54 AM : Outperform Start Price: $0.80 CERU Score: -43.28

nev

Leaderboard

Find the members with the highest scoring picks in CERU.

Score Leader

jck444

jck444 (91.32) Score: +186.22

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

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
dedy2000 64.86 3/13/2017 Underperform 5Y $2.36 -72.20% +12.34% +84.54 0 Comment
jed71 99.84 2/7/2017 Underperform 5Y $1.12 -41.43% +16.19% +57.61 1 Comment
warrenout2 77.17 11/14/2016 Underperform 5Y $0.85 -22.44% +22.91% +45.35 0 Comment
warrenout 99.77 11/3/2016 Underperform 5Y $0.75 -12.51% +27.03% +39.54 0 Comment
jackhmr 99.99 4/28/2017 Underperform 5Y $0.56 +16.75% +12.07% -4.67 0 Comment
cashsage 94.52 7/5/2017 Underperform 5Y $0.55 +19.27% +9.95% -9.32 0 Comment
ClientNein 99.98 3/27/2017 Outperform 5Y $0.68 -2.96% +14.84% -17.80 1 Comment
oscillation 72.47 10/31/2016 Outperform 5Y $0.80 -18.00% +25.28% -43.28 1 Comment
kartik420 < 20 2/6/2017 Outperform 5Y $1.44 -54.44% +16.55% -71.00 0 Comment
Ted2400 52.05 8/8/2016 Outperform 5Y $2.83 -76.82% +22.14% -98.96 1 Comment

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