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Post by rockstarrick on Jan 4, 2019 19:17:34 GMT -5
Agree, no investor questions from the list we emailed in ahead of time. And no mention of the hoola dancing vacation. Pretty unbelievable, but actually very predictable. Sounds like you all think that a trip to Hawaii is expensive ... it isn't really unless you stay at a high ended hotel. Airfare is fairly cheap. Putting it in perspective ... my trip to Las Vegas was expensive ... and MNKD and company has been to Las Vegas and no one grumbled. Ha! The cost isn’t the point. Hey, I won’t lose a minute sleep over the trip, I’m behind Mike and the entire mnkd team. But Holiday dilution, along with a Company funded trip to Hawaii, (if it is indeed true), before we are cash flow + is a little over the top in my opinion. Who knows, maybe they had a reason to be there, but the news we all got was it was a vacation on our dime. A little tough to understand the reasoning when you couple the timing, the vacation, and the dilution. But who knows, maybe there is a reason for it that we don’t know. But if there isn’t any need to be there other than to spend mnkd’s $$$, no matter how big, or how small, it was a poor choice. But it isn’t a deal breaker to me. ✌🏻😎 |
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Post by rockstarrick on Jan 4, 2019 19:45:45 GMT -5
Please enlighten those of us who are not familiar with what is happening with a trip to Hawaii. TYIA There was talk around the time of the offering that Employees we’re heading to Hawaii for a vacation on Company money. True ?? I have no idea. i actually was expecting Mike C to put that rumor/or not, to bed as several investors, long and short, were yapping about it the last few weeks. So I was thinking, if it didn’t happen, MC would say so, or if it did happen, MC would explain why this was done, if he could. Intentional or not, it looked like a big “lump of coal” for the Bulls, and another profitable Holiday short for the bears. There was zero clarification during the call on it, and I certainly don’t know if it really happened or not, and if it did, why. |
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Post by mytakeonit on Jan 4, 2019 20:39:48 GMT -5
When I returned from Las Vegas on Dec. 23rd ... I read on the board that Mike C and some of the team was in Hawaii. Then, I heard that they had left. Too bad, I could have saved the Bulls some cash by taking them all out to dinner. I told my wife about it and she responded with ... "And you would have wouldn't you?!!" Oooohhhh !!! Good thing the team left ... and saved my marriage !!!
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Post by rockstarrick on Jan 4, 2019 20:44:05 GMT -5
When I returned from Las Vegas on Dec. 23rd ... I read on the board that Mike C and some of the team was in Hawaii. Then, I heard that they had left. Too bad, I could have saved the Bulls some cash by taking them all out to dinner. I told my wife about it and she responded with ... "And you would have wouldn't you?!!" Oooohhhh !!! Good thing the team left ... and saved my marriage !!! My lovely wife just says, I trust your judgement, and love your Bass playing. Go MNKD. 🎸😎 |
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Post by nylefty on Jan 4, 2019 20:59:49 GMT -5
I have no problem with the company rewarding sales reps who've been doing well with a trip to Hawaii. Besides a reward for good work it also gave them an opportunity to exchange what they've learned about how to sell Afrezza with each other and the company execs.
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Post by morfu on Jan 4, 2019 22:25:26 GMT -5
I believe this is correct. That’s why it’s been called a sloppy transaction. If there wasn’t another component to it, and now we all know there wasn’t. It’s really hard for me to buy the market is so scary scenario, because the market could be just fine for the rest of the year. Or not. Or bad next year... Not saying what Mike and his team did (in respect of this offering) was perfect. But I think it is unfair to say there is no current need for money. Aside from the apparent concern of worsening stock market conditions and the drying of capital market for small caps, as mike noted in the conference call, Mannkind needs to make sure they have sufficient funds to ramp up the commercialization of Afrezza and pursue the pipeline for the next 12-18 months so that they can make the plans for 2019 and beyond. As Mike noted, they can certainly do that at a later point in 2019, but it makes quite a difference when you can have the plan in place and start to execute the plan in full steam right from the start of the new year. Plus, I think t here is a huge physiological difference in the mind of the sales representatives, prescribing doctors and patients when they know the drug manufacturer (Mannkind) has secured funding for the next 18 months (and beyond). Without this additional funding, there appears to be an apparent gap in the funding of Mannkind, which gives an impression that Mannkind may needs additional funding at any time (with cash balance of $70 million vs 30 million at the start of the year, then we need to consider that Mannkind needs to meet the minimum cash balance of $20/25 million at the end of each quarter as required by Deerfield, incoming Deerfield debt payment, insulin purchase obligations and uncertainty of the timing of UTHR milestone payment (i.e., we do not know when the next $12.5 million milestone will come in). At least for me, if I were a sales representative at Mannkind, I will feel much secured at this point (with this offering completed and $40 million in the corporate coffers). Additionally, I still recall Mike is the guy who sold his entire holdings of Mannkind the moment he received the news that Mannkind was partnering up with Sanofi. I have confidence that Mike has much better sense on the big picture of Mannkind than most of us here on this board.  >> Not saying what Mike and his team did (in respect of this offering) was perfect. [..] The more I think about it, the more questionable it seems to me! There is no need for the current cash raise! The potential worries of some doctors of sales rep have to be weighted against the very real loss for the share holders!
Does "and we started the year with approximately $70 million in cash from our balance sheet, the most in three years." sound like a good time to blow away 20% of the company to you? It for sure sounds very suspicious to me! It did before the conference and all the talking did not help, but pointed out the lack of a good reason! Plus, again, there are cheaper options to raise 80 millions!
But lets see what the interest rate is in the next weeks.. maybe the share price stays low and that idea actually helps me to increase my relative piece of the pie!
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Post by straightly on Jan 4, 2019 22:53:08 GMT -5
Not saying what Mike did is perfect. But I think it is unfair to say there is no current need for money. As mike noted in the conference call, Mannkind needs to make sure they have sufficient funds to ramp up the commercialization of Afrezza and pursue the pipeline for the next 12-18 months so that they make the plans for 2019 and beyond. They can certainly do that at later 2019, but it makes quite a difference when you can have the plan and start to execute the plan right from the start of the new year. Plus, I think there is a huge physiological difference in the mind of the sales representatives, prescribing doctors and patients when they know the drug manufacturer (Mannkind) has secured funding for the next 18 months (and beyond). Without this additional funding, there appears to be an apparent gap in the funding of Mannkind, which gives an impression that Mannkind may needs additional funding at any time (with cash balance of $70 million vs 30 million at the start of the year, then we need to consider that Mannkind needs to meet the minimum cash balance of $20/25 million at the end of quarter as required by Deerfield, incoming Deerfield debt payment, insulin purchase obligations and uncertainty of the timing of UTHR milestone payment (i.e., we do not know when the next $12.5 million milestone will come in). At least for me, if I were a sales representive at Mannkind, I will feel much secured at this point. 70 million at the start of the quarter and 80 million on the capital raise correct? Mike, " and we started the year with approximately $70 million in cash from our balance sheet, the most in three years." "Additionally, we expect $37.5 million in milestones from treprostinil in the next 18 months in addition to further sales continuing to grow as December closed on our highest TRx and dollar sales numbers ever." "We’re excited to see the interim analysis presented at the upcoming scientific conferences in 2019. We thought being able to raise $80 million at an average price of $1.55 when you include the warrants, decreases our dependency on the capital markets. This funds our efforts to continue to grow revenue, manage our expenses and bring on more institutional retail investors." compound and all? seekingalpha.com/article/4231518-mannkind-corporation-mnkd-ceo-michael-castagna-investor-conference-call-transcript?part=single"more institutional retail investors." Can I have some of these also, please? |
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Post by mytakeonit on Jan 5, 2019 1:12:06 GMT -5
When I returned from Las Vegas on Dec. 23rd ... I read on the board that Mike C and some of the team was in Hawaii. Then, I heard that they had left. Too bad, I could have saved the Bulls some cash by taking them all out to dinner. I told my wife about it and she responded with ... "And you would have wouldn't you?!!" Oooohhhh !!! Good thing the team left ... and saved my marriage !!! My lovely wife just says, I trust your judgement, and love your Bass playing. Go MNKD. 🎸😎 I just talked to your wife and she said ... "HE SAID WHAT?!!! That lying sack of _ _ _ _ can just go diddle himself from now on !!!" Ahhh ... true love. True love never runs smooth ... |
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Post by galileo on Jan 5, 2019 1:52:01 GMT -5
All this talk about the Hawaii trip which I've had confirmed from a pretty solid source is not so much about money as the optics of it. And, while I don't know about how many from corporate hq went along, it's clear management is a little blind. 2018 was a awful year any way you look at it. This trip just looks bad. But, so too did the bonus payments to management that the company paid this year. While we're on that topic, what would y'all think about management getting bonuses in 2019? Its coming I'll bet. And, probably it'll happen quietly like it did this year.
Management should be ashamed to take the cash. Sadly to say, that kind of integrity died with Al Mann.
As to the CC, Mike does a good presentation with each one. In 2018, I recall feeling upbeat after each one, while the share price just got beat up in the days after. I've lost confidence in this crew. The calls sound good but the results stink. Worse than all that, Mike C shows no modesty in reflection. When looking back, he seems to have a good explanation for everything that happened, kinda like he's good with it. Really?! I've never heard him say, "I/we screwed up." That'd be refreshing.
I have no ability to evaluate the company's plans as announced by Mike in the call. But, I heard nothing that convinced me that he learned some new thing from the 2018 results to alter the strategy in 2019.
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Post by mytakeonit on Jan 5, 2019 7:34:51 GMT -5
Oh contraire ... Mike C and team did a really great job and we are headed in the right direction and picking up steam. I really look forward for developments in 2019.
MNKD has many stars and I'm surprised that you don't see them galileo.
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Post by mnholdem on Jan 5, 2019 7:51:57 GMT -5
In regards to the offering, why not have your bookmaker simply sell your authorized shares on the open market? Novavax, for example, recently announced a $100 million stock offering (no warrants) for developing their pipeline and operations. The announcement came after hours and the next day their share price jumped 7%.
It was MannKind's pricing of 1 common share + 1 warrant that tanked the share price the next day. There's currently a daily volume of about 2 million shares and it would have taken several weeks to sell stock on the open market but that would've been a much better way to raise $$$. Couple that with a experienced bookmaker that uses HST to maintain stock price and they'd have their cash without the crash.
Somebody gave management some very bad advice, perhaps even suckering them into believing dire predictions. I don't disapprove of securing additional funding for developing clinical trials of pipeline drugs, but I would have thought that a CFO as seasoned as Steve Binder would have chosen a better option. This was as poorly a thought out and executed cash raise as I've ever seen in my 25 years in the stock market.
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Post by sportsrancho on Jan 5, 2019 8:02:05 GMT -5
Yes! Exactly, well said! And we did not get an explanation for why we got a deal that holds the stock price down! And where was the CFO on the call?
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Post by sportsrancho on Jan 5, 2019 8:12:04 GMT -5
All this talk about the Hawaii trip which I've had confirmed from a pretty solid source is not so much about money as the optics of it. And, while I don't know about how many from corporate hq went along, it's clear management is a little blind. 2018 was a awful year any way you look at it. This trip just looks bad. But, so too did the bonus payments to management that the company paid this year. While we're on that topic, what would y'all think about management getting bonuses in 2019? Its coming I'll bet. And, probably it'll happen quietly like it did this year. Management should be ashamed to take the cash. Sadly to say, that kind of integrity died with Al Mann. As to the CC, Mike does a good presentation with each one. In 2018, I recall feeling upbeat after each one, while the share price just got beat up in the days after. I've lost confidence in this crew. The calls sound good but the results stink. Worse than all that, Mike C shows no modesty in reflection. When looking back, he seems to have a good explanation for everything that happened, kinda like he's good with it. Really?! I've never heard him say, "I/we screwed up." That'd be refreshing. I have no ability to evaluate the company's plans as announced by Mike in the call. But, I heard nothing that convinced me that he learned some new thing from the 2018 results to alter the strategy in 2019. I agree with a lot of this, Hawaii was about teambuilding, but it did not look good. In addition to that something seems off, I’ll bet you there are a lot of people on the BOD that aren’t agreeing about what should be done. This is a big spend...another big push; for a new marketing direction, so we’ll see what they decide to do within 3 to 6 months. |
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Post by mnholdem on Jan 5, 2019 8:20:48 GMT -5
I'm in total agreement with joeypotsandpans that rewarding your top sales people is a good thing in terms of retaining talent. If it hadn't been for the share offering I doubt many would be so riled up by the Hawaii reward. |
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Post by rockstarrick on Jan 5, 2019 8:42:53 GMT -5
I'm in total agreement with joeypotsandpans that rewarding your top sales people is a good thing in terms of retaining talent. If it hadn't been for the share offering I doubt many would be so riled up by the Hawaii reward. Or visaversa, the two coupled together doesn’t look good, and the timing. not a well thought out move. Hopefully we all learn something from this. |
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