The common stock of PolarityTE™, Inc. ("Polarity") ( NASDAQ : COOL), the biomedical company, have exploded up the charts this year. The company's shares were worth $4 in the beginning of January and are trading as of April 25, 2017 at a price of $11.23. The home run investment returns started after the company merged to become a biomedical business and changed its name from Majesco Entertainment Company to PolarityTE™, Inc. The company made this move to reflect the new business of the company. In this article, we have provided a complete analysis to understand the press releases to excite investors in such a way. Have a look at this year's price action.SourceThe company only received good newsFirst of all, let's have a look at the information that the market got to know in the last three months. The name change was reported on January 10, 2017. Just one day before this change, the company commenced to add surgical specialists to its clinical advisory board hiring Drs. Bentz, Bluebond-Langner, plastic and reconstructive surgery leader. Once month later, Steve Gorlin was added to the Board of Directors as well. The CEO said the following about Mr. Gorlin:
"We are extremely excited to announce Steve Gorlin as a new member of the PolarityTE™ Board of Directors. With over 40 successful years in the field, he remains a leader and serial entrepreneur in regenerative medicine, biotechnology, and wound care. Having founded and managed a variety of cell therapy, pharmaceutical, and medical device companies, including MiMedx, EntreMed, Hycor, Medivation, Medicis and NantKwest, he is without a doubt a truly valuable innovator" Source
This new addition created a tremendous reaction on the share price. The share price started in February at the level of $4.10 per share and went to $8 per share in only one month. Some other executives were added this month as well.
- Jon Mogford, PhD added to the Board of Directors
- Burke Powers as Vice President of Product Development
Additionally, in February, the company noted as well that it had regained compliance with the Nasdaq Listing Rule as it had added two new independent directors: Mr. Steve Gorlin, and Dr. Jon Mogford.March was also a very busy month, as the shareholders approved the merger and Jeff Dyer, MBA, PhD, expert in business strategy and innovation, and Dr. Stephen Milner from "drstephenmilner.org", were also added to the company.Finally, in April, the most important development was the announcement of the completion of the merger and the acquisition of intellectual property. Additionally, the company recruited six new members to the team to help with the FDA trials and signed an agreement with Cell Therapy and Regenerative Medicine ("CTRM") at the University of Utah School of Medicine.Our takeThe company has delivered large amount of good news in a period of just four months. In total, the investment analysts had to assess 13 press releases in a short period of time. Additionally, all were good news. If you are a savvy investor, you may be wondering whether this is all smoke created by the company to make novice trader buy company's shares. When this happens, we normally check the money, since it is the part of the businesses that it doesn't lie, or lies less. Let's put it this way. We wanted to check, what insiders are doing with their shares. Let's see.Insider Activity and Institutional holdingsWell, good news again. The insiders are buying or have received shares and did not sell them yet. Have a look. Also, these business executives are also buying at the level of $12.29. Hence, they expect the share price to keep the uptrend going.InsiderTransactionTypeValueDateShares
BEEGHLEY MICHAEL MARTINDirector
Purchase at $12.29 per share.Indirect122,899Apr 17, 201710,000
BEEGHLEY MICHAEL MARTINDirector
Purchase at $12.94 per share.Indirect129,400Apr 13, 201710,000
BEEGHLEY MICHAEL MARTINDirector
Purchase at $13.36 per share.Indirect267,200Apr 5, 201720,000
DYER JEFFREY HANSENDirector
Purchase at $11.24 - $11.72 per share.Indirect36,000Mar 29, 20173,140
DYER JEFFREY HANSENDirector
Purchase at $10.34 per share.Direct50,790Mar 28, 20174,912
HONIG BARRY CBeneficial Owner (10% or more)
Purchase at $7.71 per share.Direct19,275Feb 24, 20172,500
GORLIN STEVEDirector
Statement of OwnershipDirectFeb 8, 201750,000
MOGFORD JONDirector
Statement of OwnershipDirectFeb 8, 201750,000SourceAdditionally, relevant investment funds are also invested, which is a very good sign that we appreciate.HolderSharesDate Reported% OutValueDSC Advisors, L.P.67,218Dec 31, 20161.58%217,786Renaissance Technologies, LLC36,485Dec 31, 20160.86%118,211Geode Capital Management, LLC27,631Dec 31, 20160.65%89,524KCG Holdings, Inc.27,190Dec 31, 20160.64%88,095Vanguard Group, Inc. (The)23,823Dec 31, 20160.56%77,186UBS Group AG3,343Dec 31, 20160.08%10,831SourceSome of the big boys that we could identify there were Renaissance Technologies, LLC, the famous quantitative hedge fund managing $65 billion and KCG Holdings, Inc., which is another quantitative firm. In addition, Vanguard Group, Inc, DSC Advisors, L.P. and Geode Capital Management, LLC are mutual funds.ConclusionIn 2017, Polarity made a lot of strategic moves and and restructured the company in a way that the market appreciated. Among them, the most remarkable announcements were the completion of the merger, name change and the election of key personnel. Finally, we decided to check what other stakeholders, including insider and institutions were doing with their shares. We discovered that both groups seemed to be very bullish about the stock. To sum up, there's a lot happening with COOL and it pays to stay on top of the latest developments. We will be updating our subscribers as soon as we know more. For the latest updates on COOL, sign up below!Disclosure: We have no position in COOL and have not been compensated for this article.
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