Diamonds and Dogs
June 19th, 2014Diamond: StemCells, Inc. (STEM)
The Biotechnology remains in the spotlight today as the diamond for the day is StemCell, Inc. The StemCell therapeutics developer had positive results from its Phase I/II clinical trial for a neural stem cell platform. The platform is used for age-related macular degeneration. Tests resulted in improvement in visual function and slowed the progression of the disease. A 70% decrease in the rate of retinal tissue was a great result from the trial, and Maxim Group even stated that these results "could be transformational for the company." StemCell's stock price rose more than 30% on the news to a 52-week high of 2.10. Maxim Group's coverage of the company states that the company is a "buy" with a price target of $2.50.
Dog: Pier 1 Imports, Inc. (PIR)
The dog of the day is the home furnishing retailer, Pier 1 Imports Inc. The company reported below-consensus earnings for the quarter along with poor guidance for FY15. Before the morning bell, Pier 1 reported EPS of 16 cents a share compared to the analyst estimate of 20 cents. Along with this, the company announced revenues $3 million below the expectations. If this wasn't enough, management lowered earnings guidance to between $1.14 and $1.22 for the fiscal year of 2015. The price of the company's stock finished the day down approximately %13 and hit a 52-week low of 15.70. Investors are now waiting to see a boost in sales, hopefully fueling a comeback from this relatively strong stock.