Cara Therapeutics Inc (CARA)

[UmphreysMcgee]

Appears to be a Strong Buy.....

First post here so bear with me. This stock has been on my radar and I recently bought in last week.

I like CARA for several reasons. They have a great looking balance sheet. A lot of cash - about a 100 million. They have zero long term debt. They have an excellent current ratio.

There has also been significant insider buying.

From my understanding the FDA put one of their drugs (that was currently in phase 3) on hold. However, I've been reading around and some article explained the FDA's decision to put it on hold and from my interpretation, as well as seemingly the analyst, the issue is expected to be easily resolved. From what I remember from the article, the only 'issues'/reasons the FDA placed the drug on hold is because their highest potency of this drug appeared to cause dehydration in 4/22 patients. Here is a link to the article I'm talking about:

[http://www.streetinsider.com/Analyst+Comments/Caras+%28CARA%29+Clinical+Hold+is+a+Buying+Opportunity+-+Piper+Jaffray/11364955.html][/url][tag] Relevant Article Here[/tag]

That article is old (Feb2016) but it is right after the FDA put it on hold, and the shares thus lost value.

I'd love to hear your guys' opinion on CARA.

-UmphreysMcgee