Galectin Therapeutics Inc. (GALT)

[Chess Master]

Technicals vs Fundamentals. You can throw both away right now. There is a bigger battle being waged and no one here has said anything about it.

Technically no one can explain why on 3/24 the stock go thrashed only to come back. Then the next day the company announced they were going to announce and then the stock trades 3.4 mil and then retreats midday with the exact release of the Fuerstein article. It went through 3.5 standard deviations in 2 days. Now the stock is crawling along the bottom of the first std dev of the 50 day moving average. The volume on the date of the release was 2.2 mil shares and now we are pushing maybe 250K shares. So technically something is about ready to happen. Whoever got their short position in will want to cover soon. If they cant shake anymore people out they are going to cover.

Fundamentally - what better data could we have had in the first cohort. A reversal of fibrosis at 2 mg/kg a definite phase II study in the works based on hitting it out of the park on the safety data. What is the only fundamental drag - yep let me say it. The perceived 100 mil financing. That is the only thing that shorts have to hang their hat onto. Next cohort results slated for Jul. Their 3 month notice on these results hit right on time. I think about a month of delays are built into expectations. In that time I don't expect to see a single share sold down at these levels. So what does that mean. That means when the fear mongering goes away this stock will start rising again. Look $37 mil gets them through a phase II on this drug. Did anyone register that comment about none of the drug companies expect such good results in the first cohort that is why he exceeded expectations. What do you think that is about? Perhaps a renewed interest in doing a big pharma deal? That sounds like a positive and the more time that passes the more likely a deal could be done.

The other fundamental drag is the whole biotech sector in a slump.

So now let me get to the battle. The battle is between the long term people who see that there is a very high likelihood that the second corhort showing good news and then the unexpected upside of a license or big pharma deal. Who is on the other side? Yep Feurnstein and friends. Their only hope is that the company sells more shares. Where did they sell last time $12. If they were gonna sell do you think the CEO would say we don't have any imminent plans to sell? I just don't see the short case here in the long run. Feurstein and buddies hijacked the results and downplayed it as a pump and when long term investors saw prices go down they panicked sold first and asked questions later. This was a longshot and they cashed in big time but the smart money is stepping in and buying at these levels. Something is going to spark a new rally and I don't know what but it sure looks like it is around the corner based on the agonizing slow pace of volume. This was a hack job but hack jobs typically are short lived. So hoping for a rebound next week back to 14 - 15 area. It wont take much.

Every day we draw closer to another announcement. What if the Portland guys start the Melanoma Trial? What if the 2nd cohort enrolls their first patient? What if a drug deal surfaces? What if we get analyst coverage? Perhaps another Poster presentation? Maybe a redchip update?

What do the shorts have only one thing - a form 4 filing that the company sold some stock. Don't hold your breath for that one.