This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cell Therapeutics' Deal Begs $18 Million Questions

But if Bianco is so confident about Stellar 3, then why is he directing the company to raise cash three months or so before Xyotax's moment of glory? And, presumably, before Cell Therapeutics' stock price moves significantly higher? And why is Cell Therapeutics raising money at such a steep discount to the market price?

These are questions I'd be asking if I owned the stock. It might be that Cell Therapeutics is feeling the pressure of its less-than-stellar financial position. The company's $103 million in cash and marketable securities at the end of the third quarter is only expected to last into the first half of 2005. The company is also carrying about $190 million in debt on its balance sheet.

Tuesday, the company said it will receive another $25 million plus $5 million in services by selling a royalty stream based on future sales of its drug Trisenox to Quintiles Transnational. This is the financing move the company told shareholders to expect on its last quarterly conference call, so why do this royalty deal and the stock sale? (On a positive but unrelated note, CEO Bianco finally repaid a delinquent $3.5 million corporate loan plus accrued interest on Oct. 22.)

Whatever the reason for Monday's quickie stock sale, it just doesn't foster confidence coming so soon before the crucial Xyotax data event expected at the end of March. Cell Therapeutics' shareholders had better hope that the Xyotax Stellar 3 trial is a success, because if it fails, a stock sale at a 19% discount to the market price will be the least of their worries.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,079.27 +49.06 0.27%
S&P 500 2,089.86 +7.98 0.38%
NASDAQ 4,802.2370 +28.7650 0.60%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs