Three red flags for Galectin Therapeutics Inc.
Bleeker Street Research points out three glaring red flags regarding Galectin Therapeutics Inc. (NASDAQ:GALT) as an investment.
First, Galectin has a well-established relationship to a number of stock promoters. Furthermore, the company has recently been paying for campaigns targeting smaller retail investors and retirees. Even worse, the company has consistently undertaken significant capital raises on the back of these promotions. Since these promotions have began more than a year ago, GALT’s stock has increased by well over 100% and daily trading volume is up dramatically.
The second major red flag is that Galectin Therapeutics Inc. (NASDAQ:GALT) insiders have been selling their stock during this campaign to promote the stock to retail investors and retirees.
Third, and perhaps most troubling to long investors in the supposed biotech concern, is that since becoming Galectin in 2011, the company has never spent more on R&D than on G&A.
Stock doubled since Galectin Therapeutics Inc. (NASDAQ:GALT) stock promotion began
Bleeker Street points out that Galectin was a low-volume sub-$5 stock from its inception from the stub of bankrupt Pro-Pharmaceuticals in 2011. Over the last year since the promotion by hired-gun TDM Financial began, GALT’s stock has nearly tripled. Of particular note, Galectin chose to take advantage of the strength in its stock price to pull the trigger on a $100 million secondary offering including the sale of 500,000 shares from insider Richard Uhilein.
Somewhat stunningly, TDM Financial has even provided a “case study” on its website of the Galectin Therapeutics Inc. (NASDAQ:GALT) promotional campaign complete with a glowing quote from GALT’s chairman.
As of 2:30 PM ET today, Galectin Therapeutics Inc. (NASDAQ:GALT) shares were trading down 57 cents at $14.75.
