Why TG Therapeutics, Inc. Shares Jumped

TG Therapeutics shares vault higher after a single institutional investor purchases an underwritten common stock offering. Is this a sign that its shares could head even higher?

Mar 12, 2014 at 1:53PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of TG Therapeutics (NASDAQ:TGTX), a clinical-stage biopharmaceutical company focused on developing therapies to treat cancer, jumped as much as 17% after announcing the sale of common stock to a single institutional investor after the closing bell last night.

So what: According to the press release from TG Therapeutics, it sold 2,702,809 shares of common stock at $6.71 (yesterday's closing price) to JPMorgan Asset Management's Global Healthcare Fund. The gross proceeds from the underwritten sale are approximately $18.1 million, which the company plans on using to fund the clinical development of TG-1101, a monoclonal antibody geared at treating B-cell proliferative disorders, and TGR-1202, a PI3K delta inhibitor that's being targeted at single-agent heme malignancies, as well as for general corporate purposes. The offering is expected to close on or before March 17.

Now what: Normally you don't see companies rally when they issue common stock, but given that shares are being underwritten at yesterday's closing price, it demonstrates that there's demand for the shares. In addition, the simple fact that one institutional fund is purchasing $18 million worth of TG Therapeutics has to be encouraging from a shareholder perspective. Including gross proceeds, this underwritten sale should move TG Therapeutics to around $68 million in cash on hand. I still would urge caution from shareholders, though, as TG Therapeutics' pipeline is fairly young and small. The aforementioned two experimental therapies represent the sum of its current studies, and only TG-1101 has completed its phase 1 study where it was deemed safe and early clinical activity was noted. I would suggest waiting for much more concrete data before diving into TG Therapeutics.

TG Therapeutics shares may be rocketing higher, but chances are it'll have a hard time keeping up with this top stock in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool has no position in any companies mentioned in this article. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information