This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

The 5 Dumbest Things on Wall Street This Week: June 7

Stocks in this article: SMG SNTA GOOG CLWR AVEO

Aveo Insanity

Oy vey Aveo (AVEO - Get Report)! What on earth are you folks doing up there?

The flagging oncology company canned 140 middle- and lower-level employees Tuesday, totaling 62% of its workforce, in order to preserve the salaries and bonuses of the executives that drove the biotech's stock into the low single digits. Last month, an FDA advisory panel excoriated the data for its kidney cancer drug tivozanib, and told the FDA to reject the drug, sending Aveo shares plummeting by more than 60%. The FDA is expected to follow through on the negative advice of the panel and reject tivozanib next month.

"This is an incredibly sad day for Aveo," said CEO Tuan Ha-Ngoc on Wednesday's conference call.

Take off, Tuan! You get to keep your $567,875 per year salary, bonus and other perks even though you were in charge when Aveo conducted its poorly designed phase III trial for tivozanib. You were also calling the shots when the FDA raised concerns about the tivozanib study and recommended the company run another one. Nevertheless, you chose to sit on this information and ignore the FDA's advice instead.

"Tuan did not offer his resignation to the board. The company doesn't discuss conversations that took place in the board room, only outcomes," said Aveo spokesman Dan Budwick.

That's bush-league, Budwick, and you know it. Even worse is the fact that only a single Aveo executive, Chief Operating Office Elan Ezickson, is leaving the company and, according to TheStreet's biotech ax Adam Feuerstein, he's resigning on good terms after pocketing $1 million in 2012.

Last week, Adam reported that Aveo Chairman Henri Termeer confirmed that there would be "severe consequences" for the company stemming from the failure of tivozanib. So much for that.

You take off, too, Termeer. We're tired of your cronyism.

Congratulations to Jeremy Segal from Andover Massachusetts for winning our "Make Summer Dumber" Quiz! Thanks to all the readers who sent their entries. Here are the answers: 1.) B, 2.) D, 3.) A, 4.) D, 5.) D, 6.) C, 7.) A, 8.) A, 9.) D, 10.) B, Bonus: A.

-- Written by Gregg Greenberg in New York

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,298.71 -118.14 -0.68%
S&P 500 2,006.20 -15.05 -0.74%
NASDAQ 4,665.3750 -18.0320 -0.38%

Partners Compare Online Brokers

Free Reports

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