Why Geron Corporation Shares Skyrocketed

Geron shares soar after the FDA gives the company some "partially" positive news.

Jun 12, 2014 at 2:09PM

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 Geron (NASDAQ:GERN), a clinical-stage biopharmaceutical company focused on developing therapies to treat hematologic malignancies, skyrocketed as much as 33% after announcing that the Food and Drug Administration had removed the partial clinical hold on imetelstat in its myelofibrosis investigator-sponsored trial.

So what: As a refresher, the partial clinical hold was put in place by the FDA in March due to concerns of imetelstat-driven liver damage. Per its press release, Mayo Clinic investigator Dr. Ayalew Tefferi needed to supply the FDA with additional safety information regarding imetelstat as a treatment for myelofibrosis. With that being done and the partial hold now lifted, its IST can continue as planned. However, Geron notes that the FDA still has a full clinical hold in place for its polycythemia vera and multiple myeloma indications.

Now what: I'm not too shocked with today's press release as imetelstat had delivered meaningful clinical responses in its myelofibrosis investigator-sponsored trial which likely merited further research. In fact, this was right along the lines of what I expected would happen. However, we have to consider that imetelstat is Geron's only clinical compound, so if it continues to experience safety issues, is unable to get its full clinical hold removed for its two additional indications, or it simply fails to meet its primary endpoint in trials, then Geron's share price is likely going to be crushed. Companies with single drug clinical pipelines are far too risky for my blood and I'd suggest you also consider looking elsewhere for investing ideas.

Geron may have soared today, but it probably has a slim chance of being able to keep up with this top stock over the long run
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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.

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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." 

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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.

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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.

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