Geron, which announced the offering of 22.5 million shares on Wednesday, priced the stock at $4 per share. The company expects the gross proceeds from this offering to total approximately $90 million, and expects the offering to close on or around Feb. 4.
The company plans to use the net proceeds from the offering in part to fund its research and development, which includes its planned Phase 2 clinical trial of imetelstat in myelofibrosis.
TheStreet Ratings team rates GERON CORP as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GERON CORP (GERN) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its declining revenues."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, GERON CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- GERN, with its very weak revenue results, has greatly underperformed against the industry average of 10.5%. Since the same quarter one year prior, revenues plummeted by 71.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- GERN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 9.88, which clearly demonstrates the ability to cover short-term cash needs.
- This stock has increased by 246.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in GERN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- GERON CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, GERON CORP continued to lose money by earning -$0.54 versus -$0.78 in the prior year. This year, the market expects an improvement in earnings (-$0.29 versus -$0.54).
- You can view the full analysis from the report here: GERN Ratings Report