Before I invested in $CARA, as I was doing my DD,

Before I invested in $CARA, as I was doing my DD, I put in the Red Flag category the EXCESSIVE executive pay at CARA. CT is an expensive place to live, sure, but does the CEO of a pre-clinical biotech really need to be paid almost $900K?!?

Anyway, I bought a small position in CARA at $13.30 and have watched it shoot up since. Today they posted earning and it was a HUGE miss. Looks like they didn't even try to control spending. And, frankly, I think I know why.

IMHO I think the data they are about to produce on FOUR clinical trials in the next four months is going to knock it out of the park. They saw no need whatsoever to restrain spending.

Not great long run. Not professional. I'm sure they are all high fives and cigars in CT this weekend.

Doesn't matter to me. I fully expect them to be bought out based on good trial data.

Quote:

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In midmorning trading on the stock market today, Cara stock dropped 9.4% to 15.84, after its late Thursday quarterly results. Cara reported no sales, a repeat of both the year-earlier and prior quarters. Analysts expected $190,000.

R&D expenses also doubled sequentially, leading to an adjusted loss of 81-cents a share, missing the consensus of analysts polled by Thomson Reuters for a 48-cent loss. That figure more than doubled from a 35-cent loss in the year-earlier period.

But analysts remained bullish on the stock early Friday. Janney analyst Ken Trbovich kept his buy rating and boosted his price target on Cara stock to 20 from 18. Over the next four months, Cara is scheduled to have updates on four clinical trials.

Data from a phase 2/3 trial in uremic pruritus are expected later this month. Uremic pruritus is caused by kidney failure and results in itching. Cara's drug, known as CR845, showed a 54% greater reduction in the worst itching vs. those using a placebo.

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Falling Biotechs: Cara Reports Zero Sales, Ionis Downgraded

http://www.investors.com/news/technology/biot...owngraded/