Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
We are reiterating our Outperform rating on shares of ARRY and
increasing our price target to $28 following review of BEACON data
in mCRC for encorafenib + binimetinib. Results are better than
expected, should support a new standard of care for BRAF colorectal
cancer and should conservatively support peak sales of $2.2B, not
reflected in current valuation.
? The Wells Fargo Securities biotechnology team attended an investor
event hosted by Array BioPharma (ARRY) at the European Society
for Medical Oncology (ESMO) over the weekend in Madrid, Spain.
Focus of the meeting was on a 30 patient lead-in phase of the
BEACON phase 3 study of ERBITUX + encorafenib +/- binimetinib
(EEB) in 29 patients with V600E BRAF+ melanoma and expert
feedback on the results.
? Results were better than expected with 41% overall response rate
(ORR), 52% stable disease rate, and 93% disease control rate
(DCR) , and 100% disease control rate (DCR) in 27 evaluable
patients with 2nd-line+ treatment. For 2nd line patients results were
particularly strong with 57% ORR. Progression free survival (PFS)
data was not yet mature, but 12 of 29 patients had disease control
duration beyond 6 months, and expert feedback suggested that it
would be statistically improbable for PFS to be less than 6 months.
? Results are well beyond ORR for standard of care of 4% to 6%, and
21% ORR for other RAF/MEK/ERBITUX combinations. With PFS
potentially beyond 6 months, we would note standard of care PFS of
just 2 months, and overall survival (OS) of only 6 months. Expert
feedback at the meeting suggests that ERBITUX + encorafenib +
binimetinib (EEB) data are transformational, and should quickly
become a standard of care 2nd-line and likely migrate quickly to
frontline use. Based on expert feedback we expect BEACON to enroll
very rapidly with data likely well before our current 3Q19 estimate.
Array BioPharma: Data Updates Point To Continued Upside
https://seekingalpha.com/article/4105699-array-biopharma-data-updates-point-continued-upside
Harry Boxer
After forming a base at $7.50 within a rising channel since April, price finally broke out above the $9 lateral resistance level on Wednesday on no apparent news. If price can rally above the $10.30 zone, next targets are $12 and $13.50, with $15 targeted in the longer term.
https://www.thetechtrader.com/chartsoftheday/ARRY-COOL-ONCE-TRTN-201708231970.html
Verastem crashes the lymphoma party
Verastem's big iron in the fire is a PI3K-delta/gamma inhibitor called duvelisib, which follows in line with Gilead's (NASDAQ:GILD) idelalisib. Unsurprisingly, VSTM is making its first big push for duvelisib in the treatment of chronic lymphocytic leukemia (CLL).
The phase 3 DUO study is the registrational trial that the company hopes to use for seeking approval in the treatment of relapsed/refractory disease. And recently VSTM announced top-line data from the study.
These findings showed that duvelisib beat out the second-generation CD20 inhibitor ofatumumab in terms of progression-free survival, both for the whole population (9.9 months versus 13.3 months for ofatumumab and duvelisib, respectively) and in the subgroup of patients with 17p deletion (9.0 months versus 12.7 months), which is typically a sign of poor prognosis.
VSTM stated that it intends to seek approval in 2018 on the basis of these findings. Importantly, it was also safe as a monotherapy, with no outsized risk of infection.
Looking forward: You know, when the failure of idelalisib took down GILD's initial hopes for dominance in non-Hodgkin lymphoma, I kind of figured that would be the end for the drugs targeting these isoforms of PI3K. That was myopic, in hindsight, as now we've seen the emergence of a few effective and seemingly safe PI3K inhibitors in the space. Undoubtedly, if VSTM gets approval here, it'll be poised to make a pretty big case for itself.
https://seekingalpha.com/article/4105517-3-things-biotech-learn-today-september-9-2017?app=1&uprof=51&isDirectRoadblock=false
'BobDoleYahoo
To the friggen moon!!!!!!!!!!!!
There are other competing biotech companies that have phases 2/3 ongoing trials with similar or better drug trial results, so that`s why the stock may not be held after a run.
Verastem is promising but still`s a long way out from being on the commercial market and generating sales. One should take some profit and wait for a better entry. GLTU
BTW-Can someone enlighten me? 5X`s MSB.AX equals 1 MESO.ADR Share
MESO.NASDAQ ADR`s have 94.1M,
MSB.AX has 424.72M outstanding shares
I hold positions in both.............
Phase 3 COLUMBUS Part 2 Results in BRAF-Mutant Melanoma Presented at European Society for Medical Oncology Congress
Sat September 9, 2017 9:30 AM|PR Newswire|About: ARRY
https://seekingalpha.com/pr/16935982-phase-3-columbus-part-2-results-braf-mutant-melanoma-presented-european-society-medical
Array Bio's binimetinib and encorafenib show encouraging treatment effect in initial phase of late-stage study in treatment-resistant colorectal cancer.
Mesoblast Limited
/s/ Charlie Harrison
Charlie Harrison
Company Secretary
Dated: September 07, 2017
INDEX TO EXHIBITS
Item
99.1
Change of Director’s Interest Notice, Silviu Itescu.
Exhibit 99.1
Appendix 3Y
Change of Director’s Interest Notice
Rule 3.19A.2
Appendix 3Y
Change of Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/09/01 Amended 01/01/11
Name of entity Mesoblast Limited
ABN 68 109 431 870
We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.
Name of Director
Silviu Itescu
Date of last notice
24 December 2010
Part 1 - Change of director’s relevant interests in securities
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
Direct or indirect interest
Indirect interest
Nature of indirect interest
(including registered holder)
Note: Provide details of the circumstances giving rise to the relevant interest.
Tamit Nominees Pty Ltd (Silviu Itescu is sole director and shareholder).
Date of change
4 September 2017
No. of securities held prior to change
Direct: 67,756,838 ordinary shares
Indirect: 487,804 ordinary shares
Class
Ordinary Shares
Number acquired
Indirect: 714,286 ordinary shares
Number disposed
Zero
Value/Consideration
Note: If consideration is non-cash, provide details and estimated valuation
A$1,000,000.40 (A$1.40 per share)
+ See chapter 19 for defined terms.
01/01/2011 Appendix 3Y Page 1
Appendix 3Y
Change of Director’s Interest Notice
No. of securities held after change
68,958,928 ordinary shares, held as follows:
•Direct: 67,756,838 ordinary shares; and
•Indirect: 1,202,090 ordinary shares
Nature of change
Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back
Participation in entitlement offer announced on 25 August 2017.
Part 2 – Change of director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
Detail of contract
N/A
Nature of interest
N/A
Name of registered holder
(if issued securities)
N/A
Date of change
N/A
No. and class of securities to which interest related prior to change
Note: Details are only required for a contract in relation to which the interest has changed
N/A
Interest acquired
N/A
Interest disposed
N/A
Value/Consideration
Note: If consideration is non-cash, provide details and an estimated valuation
N/A
Interest after change
N/A
Part 3 – +Closed period
Were the interests in the securities or contracts detailed above traded during a +closed period where prior written clearance was required?
No
If so, was prior written clearance provided to allow the trade to proceed during this period?
N/A
If prior written clearance was provided, on what date was this provided?
N/A
+ See chapter 19 for defined terms.
01/01/2011 Appendix 3Y Page 2
Appendix 3Y
Change of Director’s Interest Notice
+ See chapter 19 for defined terms.
01/01/2011 Appendix 3Y Page 3
Mesoblast limited (MESO) Given a $14.00 Price Target at Maxim Group
Posted by Jennifer Salazar
Mesoblast limited
Maxim Group set a $14.00 target price on Mesoblast limited (NASDAQ:MESO) in a research note issued to investors on Wednesday. The firm currently has a buy rating on the stock.
Mesoblast reported year-end (FYE June 30) with a net loss of $77M and ended the period with $46M in cash. The company completed a $40M raise on August 29, 2017 and currently has $84M in cash on the balance sheet the firm’s analyst commented.
Several other equities research analysts have also issued reports on the stock. Cantor Fitzgerald reiterated a buy rating on shares of Mesoblast limited in a research note on Wednesday. BidaskClub lowered shares of Mesoblast limited from a sell rating to a strong sell rating in a research note on Friday, July 28th. Credit Suisse Group set a $11.00 price target on shares of Mesoblast limited and gave the company a hold rating in a research note on Tuesday, July 18th. Finally, Zacks Investment Research upgraded shares of Mesoblast limited from a sell rating to a hold rating in a research note on Saturday, June 24th. One research analyst has rated the stock with a sell rating, three have given a hold rating and two have assigned a buy rating to the stock. The company has a consensus rating of Hold and a consensus target price of $12.70.
Mesoblast limited (NASDAQ MESO) opened at 6.24 on Wednesday. The company has a 50-day moving average price of $7.20 and a 200-day moving average price of $8.23. The firm’s market cap is $529.68 million. Mesoblast limited has a one year low of $4.01 and a one year high of $12.50.
A hedge fund recently raised its stake in Mesoblast limited stock. Princeton Capital Management Inc. boosted its stake in Mesoblast limited (NASDAQ:MESO) by 15.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 155,700 shares of the company’s stock after buying an additional 20,945 shares during the period. Princeton Capital Management Inc. owned about 0.20% of Mesoblast limited worth $1,398,000 at the end of the most recent quarter. 2.95% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Actions: Oppenheimer Starts Mesoblast at Outperform, $16 PT
08/31/2017 10:52 AM EDT
10:52 AM EDT, 08/31/2017 (MT Newswires) -- Oppenheimer on Wednesday initiated coverage on Mesoblast (MESO) with an outperform rating and a fair valuation of $16 on the stock.
In a note to clients, the research firm said that the rating was based on its conviction that the company and its partners can successfully commercialize multiple clinical-stage cell therapy programs, with first U.S. regulatory approval anticipated in 2018.
"While we think MSCs [mesenchymal stem cell therapies) have been dragged through the mud in recent years by a combination of inconsistent manufacturing, underpowered trials, and poorly-chosen indications, Mesoblast's products have demonstrated clinical efficacy across multiple indications in randomized trials, and we believe the company is zeroing in on a viable formula for regulatory and commercial success," Oppenheimer said.
Mesoblast Limited looks a long way from take off
Tom Richardson | August 30, 2017 | More on: MSB
This morning regenerative medicine business Mesoblast Limited (ASX: MSB) reported a net loss before income tax benefits of US$90.2 million (A$113 million) for the financial year ending June 30, 2017. The biotech posted revenues for the year of US$2.4 million and after recently raising US$40 million now has cash on hand of US$84 million.
While the huge losses look bad the company is still valued at more than $600 million thanks to what some consider to be its large potential to generate commercial sales for its regenerative medicine stem cell therapy treatments for the likes of back pain, rheumatoid arthritis,…
https://www.fool.com.au/2017/08/30/mesoblast-limited-looks-a-long-way-from-take-off/
Why the Mesoblast limited share price plunged 10% this morning
Sean O'Neill | August 29, 2017 | More on: MSB
The Mesoblast limited (ASX: MSB) share price plunged 10% after the company returned to trade this morning:
Mesoblast has been in a trading halt since Friday, raising capital from institutional investors in a 1-for-12 issue. Management announced this morning that the company had completed the $38 million capital raising from institutional investors, although it was not clear how much was contributed by external investors and how much was carried by the underwriter, Bell Potter. Retail investors who hold Mesoblast shares as of 7pm this evening will be invited to participate in the $12 million retail capital raising under the same terms as institutions.
The funds will go towards the ongoing costs of the company’s research, with several treatments currently in Phase 3 trials. At least one trial is expected to complete in the second half of 2018. If successful, the next step could be to achieve FDA registration and commence sales.
Is Mesoblast a buy?
In my opinion, the current price of $1.45 – a $700 million market capitalisation – is obviously the wrong price for Mesoblast. In simple terms either its trials will not succeed, in which case the company is hugely overvalued, or they will succeed, in which case the company is likely considerably undervalued. The trouble for ordinary shareholders is that it is very difficult to know which is the case before the results. Additionally, even if successful, the company has a long road ahead even after registration as it will have to actually sell its product, which requires investing in sales infrastructure and so on.
In my opinion, any purchase of Mesoblast today should be considered high risk and speculative, and kept as only a small part of a diversified portfolio.
Trading volume has been low the past few days and that usually means the selling is exhausted which the shorts created, yet the shorts still have a hold on this. They may of covered some of their positions during this recent downtrend. So any buying interest that is sustained will drive the stock higher with little resistance. Any heavy buying or expected news released will move the stock more likely to the upside filling the gap created. That would be a decent gain from todays trading price.
Of course the shorts could take a larger position here and that would hinder any upward move.The institutional shorts have no idea what this stock is, the algorithms just caught the large up move and shorted it.
It`s technical not fundamental trading except for the news expected to come out on trials.
Hope that helps.
Shorts keeping a tight leash on this still but charts say this could spring higher on good buying volume.
Sellers exhausted and a oversold chart, now needs to fill gap from the selloff. Looks to be a good trade in here or a buy and hold, then wait on the news. Lighter volume past few days and markets need to start to rotate into the biotechs more after today's market indexes moves.
Biotech ETF Industry Outlook for Second Half 2017
July 24, 2017, 06:40:00 PM EDT By Zacks Equity Research, Zacks.com
Biotech stocks have had a strong run so far in 2017 with the NASDAQ Biotechnology Index soaring 19.4% year-to-date (YTD). This is in sharp contrast to last year's performance when the Index was down 19.1%. There were several reasons for the sector's dismal performance last year foremost being the drug pricing controversy.
Apart from drug pricing, there were several other factors that impacted the sector -- 2016 was disappointing from an R&D perspective with a fewer number of drugs managing to gain FDA approval. There were some high-profile pipeline failures as well. Other factors that weighed on the sector include mixed results, slower-than-expected new product launches and increasing competition. (Read: Forget Big Tech; Biotech ETFs are Soaring Higher )
Recovery on the Cards
With the biotech sector performing well this year, it looks like the sector is set for a recovery. New product sales ramp up, R&D success and innovation, strong results, a higher number of FDA approvals and continued strong performance from legacy products are some of the factors that could contribute to a sustained recovery in the sector. Tax reforms and cash repatriation would support a recovery as well.
Importantly, investors now seem to be more comfortable with the drug pricing scenario and are willing to look at the fundamentals of the sector. Expectations are that steps taken by the Trump administration to drive down drug prices will not be as draconian as previously expected. (Read: 5 Reasons Why Biotech ETFs are Surging )
Deregulation and increased competition seem to be some of the ways that will be used to control drug prices. The FDA is working on a plan to lower healthcare costs by speeding up the development of next-generation treatments, especially for rare diseases or targeted cancer therapies.
Biosimilars Pose a Threat
Although biosimilars are yet to pick pace, they remain a major threat for biotech stocks specially companies that are set to lose patent protection for major blockbuster drugs in the next few years. While a relatively new area, the market for biosimilars is huge and highly lucrative with several blockbuster biologics including Humira and Lantus slated to lose patent protection by 2020. Biosimilars are expected to reduce healthcare costs and provide a large number of patients with access to much needed biologic treatments. Biosimilars are also gaining acceptance across formularies.
M&As to Pick Pace in 2H17?
Expectations are high that the biotech sector will witness an increase in M&As as the year progresses -- potential tax reform and cash repatriation are expected to lead to a boost in this area. However, not many deals have been announced this year -- a key reason could be a "wait and watch" approach regarding the drug pricing situation as well as tax reforms. Another deterrent could be high valuations with companies remaining wary of bidding wars leading to over-priced deals.
That being said, companies with innovative technologies and pipelines are highly sought after. Niche disease areas like nonalcoholic steatohepatitis (NASH), immuno-oncology and multiple sclerosis are in demand. Treatments for orphan diseases are also much sought after with quite a few deals being signed in these areas. Biotech companies like Incyte and Exelixis are often considered attractive takeover targets.
Faster Drug Approval Process
The FDA is working on streamlining the development process for drugs for rare diseases as well as for targeted cancer therapies. The agency is also working on clearing up a backlog of orphan drug applications.
So far in 2017, the FDA has given its nod to 23 new drugs, already surpassing last year's total tally of 22. Among this year's approvals, drugs like Kevzara (adult rheumatoid arthritis) and Dupixent (eczema) have blockbuster potential.
According to an IMSQuintiles report, the late-phase R&D pipeline for the industry indicates that there should be about 40-45 new brand launches every year through 2021.
Innovative Pipelines & Catalysts
Biotech companies continue to work on bringing innovative new treatments to market, and there could be significant catalysts in the coming quarters in the form of important new product approvals as well as major data read-outs especially in key therapeutic areas like immuno-oncology, Alzheimer's, hepatitis C virus (HCV), central nervous system disorders, and immunology/inflammation.
Cancer especially immuno-oncology remains a key area of interest. According to IMSQuintiles, 68 new cancer drugs were approved for 22 indications from 2011 to 2016 while worldwide costs for cancer therapeutics and supportive care drugs shot up from $91 billion in 2012 to $113 billion in 2016. More than 600 molecules are in late stage development with the majority being targeted therapy.
ETFs in Focus
Highlighted below are some biotech ETFs -- ETFs present a low-cost and convenient way to get a diversified exposure to the sector.
iShares Nasdaq Biotechnology ( IBB )
IBB, launched in Feb 2001 by BlackRock Investments LLC, tracks the Nasdaq Biotechnology Index. The fund mainly covers biotech stocks (82.5%) with pharma accounting for 10.1%, life sciences tools & services for 6.9%, Health care technology for 0.08%, Health care equipment for 0.26% and Health care supplies for 0.04%. The top 3 holdings include Celgene Corporation (8.46%), Amgen Inc. (8.09%) and Biogen Inc. (8.05%). The total assets of the fund as of Jul 13, 2017 were $9.69 billion representing 162 holdings. The fund's expense ratio is 0.47% while dividend yield is 0.21%. The trading volume is roughly 2,033,019 shares per day.
SPDR S&P Biotech ETF ( XBI )
XBI, launched in Jan 2006 by State Street Global Advisors, tracks the S&P Biotechnology Select Industry Index. The fund covers health care stocks only. The top 3 holdings include Vertex Pharmaceuticals, Inc. (3.03%), Ionis Pharmaceuticals, Inc. (2.75%), and Exact Sciences Corp. (2.72%). The total assets of the fund as of Jul 13, 2017 were $3.76 billion representing 92 holdings. The fund's expense ratio is 0.35% while dividend yield is 0.23%. The trading volume is roughly 8,983,119 shares per day.
First Trust NYSE Arca Biotech ETF ( FBT )
FBT, launched in Jun 2006 by First Trust Advisors, tracks the NYSE Arca Biotechnology Index. The top 3 holdings include Alnylam Pharmaceuticals, Inc. (4.78%), Myriad Genetics, Inc. (4.26%), and Regeneron Pharmaceuticals, Inc. (4.03%). The total assets of the fund as of Jul 12, 2017 were $1 billion representing 30 holdings. The fund's expense ratio is 0.56% while dividend yield is nil. The trading volume is roughly 55,387 shares per day.
VanEck Vectors Biotech ETF ( BBH )
BBH, launched in Dec 2011 by Van Eck, tracks the Market Vectors US Listed Biotech 25 Index. The fund covers health care stocks. The top 3 holdings include Amgen Inc. (12.02%), Celgene Corporation (11.09%) and Gilead Sciences Inc. (10.12%). The total assets of the fund as of Jul 13, 2017 were $676.2 million representing 25 holdings. The fund's expense ratio is 0.35% while dividend yield is 0.21%. The trading volume is roughly 31,428 shares per day.
PowerShares Dynamic Biotech & Genome ETF ( PBE )
PBE, launched in Jun 2005 by Invesco PowerShares, tracks the Dynamic Biotech & Genome Intellidex Index. The top 3 holdings include Alexion Pharmaceuticals Inc. (5.72%), Celgene Corp. (5.16%), and Ionis Pharmaceuticals, Inc. (5.06%). The total assets of the fund as of Jul 13, 2017 were $244.8 million representing 31 holdings. The fund's expense ratio is 0.50% while dividend yield is 0.91%. The trading volume is roughly 15,840 shares per day.
Conclusion
Although the drug pricing issue will remain in the headlines until the administration comes out with a policy for controlling drug prices, investors seem to be more comfortable with the issue and are focusing on the fundamentals of the sector. Pipeline success in innovative and important therapeutic areas, cost-cutting, share buybacks, new products, increased pipeline visibility and appropriate utilization of cash are some of the factors that will help restore investor confidence in biotech stocks.
http://www.nasdaq.com/article/biotech-etf-industry-outlook-for-second-half-2017-cm820583
That was the best CC i`ve heard from TGTX in the 3+ years of owning and trading shares. To be honest that was a great CC with excellent trials end results and timelines going forward. Stock deserves a higher valuation yet its great to still be able to accumulate in the low teens.
TG Therapeutics' (TGTX) CEO Mike Weiss on Q2 2017 Results - Earnings Call Transcripts
https://seekingalpha.com/article/4098270-tg-therapeutics-tgtx-ceo-mike-weiss-q2-2017-results-earnings-call-transcript
With the shorts taking on more of a position I don`t see this as a bear trap but as a buying speculation opportunity against them that the company releases good upcoming results. Risks are 75% in our favor.
We can be assured the institutional shorts will continue to be in play on this stock as they hold a high position and will continue to manipulate the price in their favor. Good to have a core and trading position in this stock.
Soon they will get washed out in our favor.
I`ve been picking up blocks since yesterday as this could turn quick. Only thing that bothers me is the shorts that took a larger position last month. With the gap down looks to be they picked up more positions. We`ll see if they cover with the upcoming trial results or any other news. I`m buying down to the $2.40 level.
So did I. like being able to pick up shares below $10.00
Good area to pick up some trading shares. Only reason I can find for being down today is the institutional shorts activity. Gap today will get filled.
Director Timothy J. Barberich bought 30,000 shares in May at an average cost of $2.45 per share.
Short Interest
July 2017 Current Month
1.1M
Previous Month
349.5K
Percent of Float 3.32%
Days to Cover 0.3116 Days
Two new articles posted today for those that have not read them:
Clinical-stage victories announced in June continued to lift the oncology focused biotech stock.
Aug 7, 2017 at 5:04PM
https://www.fool.com/investing/2017/08/07/whats-behind-tg-therapeutics-incs-144-rally-in-jul.aspx?yptr=yahoo
3 Things In Biotech You Should Learn Today: August 7, 2017
https://seekingalpha.com/article/4095647-3-things-biotech-learn-today-august-7-2017
http://reversemortgagedaily.com/2017/07/20/ocwen-to-shell-out-56-million-in-class-action-settlement/
I want clarification from management next conference call as to what the stock received and monies paid to
Ocewn come down to. They've been quite on that matter and on the CC they said they would have it resolved and update us. I'd be happy if the whole thing never becomes a done deal. As the link above doesn't shine a good light on Ocewn with their many ongoing problems.
http://bit.ly/2uxQY4C
Good article posted over at Seeking Alpha.
Shorts may be elsewhere and the algorithms have a crossed wire, hopefully some decent upside for the rest of the week. Be a nice change.
JULY 12, 2017 / 12:14 PM / 4 DAYS AGO
Pimco sues Wells Fargo, claims MBS trustee ‘looted’ trusts to pay legal fees
Alison Frankel
Click on complaint in article link to read court filing.
https://www.reuters.com/article/us-otc-pimco-idUSKBN19X2NV
(Reuters) - Several Pimco investment funds are accusing the mortgage-backed securities trustee Wells Fargo of misusing noteholder money to pay its own legal expenses.
In a newly filed complaint in Manhattan State Supreme Court, the Pimco funds are asking for a declaratory judgment that Wells Fargo is not entitled to use MBS trust money to fund its defense against noteholder claims that the bank breached its duties as an MBS trustee. Pimco’s lawyers at Bernstein Litowitz Berger & Grossmann allege that Wells Fargo has improperly reserved about $95 million across 20 MBS trusts.
The Pimco complaint is the latest wrinkle in increasingly complex litigation between MBS noteholders and trustees. Pimco is one of several major institutional investors pursuing Wells Fargo, Deutsche Bank, HSBC and other MBS trustees for supposedly failing to take action against MBS sponsors as the trusts began to lose money. As I’ve reported, noteholders have managed to get past trustee dismissal motions in several big cases in state and federal court, but still face the considerable obstacle of providing loan-specific proof that trustees were obliged to demand the repurchase of deficient underlying mortgages and didn’t live up to that obligation.
The trustees have aggressively defended the cases. In May, for example, Wells Fargo’s lawyers at Jones Day filed third-party complaints in Manhattan federal court against the advisory arms of three of the funds suing the trustee, claiming that the advisory firms knew as much as Wells Fargo about problems in the MBS market and should be jointly liable if the trustee is socked with a judgment for tort damages.
The new Pimco complaint alleges that Wells Fargo is improperly paying its lawyers in the trustee breach cases with money that rightfully belongs to noteholders. The trustee’s litigation reserves were exposed in April, according to the complaint, when an entity called New Residential Investment Corp exercised rights to call in Wells-overseen trusts with an unpaid principal balance of about $309.5 million. The complaint alleges that Wells Fargo withheld $57.2 million to establish “trustee reserve accounts” to cover legal expenses stemming from litigation over its conduct as trustee. (Nomura analysts disclosed the Wells Fargo reserve accounts in a report in June.)
Pimco contends Wells Fargo is not permitted, under the MBS contracts for the 11 trusts at issue in its suit, to use trust money to defend against allegations of willful wrongdoing, bad faith or negligence. Those are precisely the claims at issue in noteholder litigation against the MBS trustee, according to the complaint. “Neither the (MBS contracts) nor the law permit Wells Fargo’s taxing of the investors it was supposed to protect to indemnify itself and to finance its actual and expected defense costs,” the complaint said.
Pimco’s suit isn’t the first time a noteholder has raised questions about the funding of an MBS trustee’s defense in this wave of investor litigation. In March, lawyers for Royal Park Investment (RPI) moved for a court order requiring MBS trustee Deutsche Bank to disclose any legal fees and expenses it had billed to MBS trusts at issue in RPI’s case against the trustee. Like Pimco in the new Wells Fargo case, RPI and its lawyers from Robbins Geller Rudman & Dowd claimed that the trust contracts did not indemnify Deutsche Bank for claims of negligence or misconduct.
Deutsche Bank’s lawyers from Morgan Lewis & Bockius countered that the trust agreements expressly indemnify the MBS trustee from fees and costs associated with its duties as trustee. The judge overseeing the dispute, U.S. Magistrate Barbara Moses of Manhattan, ruled that RPI’s request was outside the scope of her jurisdiction. She suggested that if RPI wanted to pursue the matter, it should file a preliminary injunction motion – although she also warned at oral argument that if she were RPI, “I wouldn’t be terribly optimistic about the outcome of that motion.” (There’s no indication in the RPI docket that Robbins Geller filed a preliminary injunction motion on Deutsche Bank’s legal fees.)
Wells Fargo sent an email statement on the new Pimco suit. The bank said that as an MBS trustee, it “is entitled to indemnification of its legal fees and expenses under the contractual agreements at issue. We believe the lawsuit filed by the Pimco funds has no merit and will be vigorously defending the claim.”
Pimco counsel Blair Nicholas of Bernstein Litowitz declined to provide a statement.
You`ll have to wait until these major holders divest some of their holdings I would think to get back to that share price, but best of luck.
Notable Holders of NEW RESIDENTIAL INVESTMENT CORP (NRZ)
https://www.streetinsider.com/holdings.php?q=NRZ
Agree it`s really valued in holding long term to capture the benefits of the dividend. News is noise, dividend is real.
https://seekingalpha.com/article/4087830-12_9-percent-yielding-mortgage-reit-sale-just-get-enough#alt2
New Residential Investment Stock Sees Short Interest Decline 33.8%
MarketNewsVideo.com Jul 13, 2017 1:23 PM EDT
https://www.thestreet.com/story/14227768/1/new-residential-investment-stock-sees-short-interest-decline-338.html
Regenerating the Body With Stem Cells – Hype or Hope?
http://labiotech.eu/stem-cell-therapy-review/
Ex-dividend date Amount Record date Pay date
June 29, 2017 $0.50 July 3, 2017 July 28, 2017
Yes do to ongoing news that may or may not be pertinent to the company itself.
Record date is what matters if you hold the stock, that is the day you will get the dividend that is paid on the pay date and a dividend stock will usually sell off to reflect this $0.50.. After July 28th the stock will resume on it`s own merits not the dividend included in the quarter. This is the nature of dividend paying stocks.
So if you don`t hold a lot of dividend stocks and are trading you should of sold on the record date to of locked in the dividend and any gains in share price.
Hope that explains it a little better than my previous post.
Holding this play has been pretty good with all the news being thrown at it.
Dividend stocks usually sell off before the Pay date after the record date and this stock is no different.
Looks like Management is going to work the system big time. They probably will execute this pretty fast to capture the current stocks price range. I`m out till the dust settles..........
July 10 (Reuters) - Mesoblast Ltd (MSB) :
Mesoblast Ltd - files for $180 million American depositary shares representing ordinary shares
Source text: (http://bit.ly/2u50ziE)
((Bangalore.newsroom@thomsonreuters.com;))
New Residential Investment Corp. (NYSE:NRZ) Earning Positive Media Coverage, Report Finds
Posted by Shayan Afkhami on Jul 6th, 2017
https://www.mideasttime.com/new-residential-investment-corp-nysenrz-earning-positive-media-coverage-report-finds/1835963.html
A number of research firms have issued reports on NRZ. Zacks Investment Research raised New Residential Investment Corp. from a “hold” rating to a “buy” rating and set a $17.00 price target on the stock in a research report on Tuesday. BidaskClub lowered New Residential Investment Corp. from a “buy” rating to a “hold” rating in a research report on Thursday, June 29th. Keefe, Bruyette & Woods set a $17.00 price target on New Residential Investment Corp. and gave the company a “buy” rating in a research report on Tuesday, June 6th. ValuEngine lowered New Residential Investment Corp. from a “strong-buy” rating to a “buy” rating in a research report on Friday, June 30th. Finally, Wedbush lowered New Residential Investment Corp. from an “outperform” rating to a “neutral” rating and reduced their price target for the company from $17.00 to $16.50 in a research report on Tuesday, June 20th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and eight have issued a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus target price of $16.62.
About New Residential Investment Corp.
New Residential Investment Corp. is a real estate investment trust (REIT). The Company focuses on investing in, and managing, investments related to residential real estate. The Company’s segments include investments in excess mortgage servicing rights (Excess MSRs); investments in mortgage servicing rights (MSRs); investments in servicer advances; investments in real estate securities; investments in residential mortgage loans; investments in consumer loans, and corporate.