David Sterman
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It's been roughly one month since I added shares of Celsion (Nasdaq: CLSN) to my $100,000 Real-Money Portfolio, and they're already up nearly 25%. 

In fact, this stock has more than tripled from its 52-week low, and for some early investors who have already seen a huge move, the thought of booking profits must be quite tempting. 

But that would be a mistake.  

Take a look at this stock's impressive run in the past month...

Management's moves in the next few months are crucial in establishing the kind of value this company deserves, so exiting this stock now would be quite premature. 

In a moment, I'll explain the catalysts ahead for this surging biotech, but first, let's address a key near-term headwind.

On Aug. 13, a few days before I added Celsion to my portfolio, the company filed a $75 million "fixed shelf offering. "This means the company now has the authorization to raise that much money in the form of new stock, debt, or some combination of both. Yet investors hate to see this kind of financial action. Just look at what happened to shares of biotech firm Pluristem (Nasdaq: PSTI) when the company announced it was selling shares to raise more money.

That's why you need to brace for a hiccup in Celsion if the company makes a similar announcement. The fact that shares are moving up quickly means management may be tempted to "strike while the iron is hot."

To put things in context, Celsion currently has 33.24 million shares outstanding. If the company had proceeded with a capital raise back in August (with shares trading at $3.28), then that would have swelled the share count by 22.9 million shares, in effect diluting existing shareholders by 70%. Now with shares approaching $5.50, a $75 million capital raise would lead to the issuance of 13.6 million new shares, or roughly 40% dilution.

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David Sterman

David Sterman has worked as an investment analyst for nearly two decades. He is currently an analyst for StreetAuthority.com