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Post by mnkdfann on Dec 20, 2018 21:02:55 GMT -5
Don't read any further if his articles just get you riled up ... seekingalpha.com/article/4229545-mannkind-drops-proposed-share-offering-investors-knowMannKind Drops On Proposed Share Offering - What Investors Should Know MannKind (MNKD) investors are likely not feeling very jolly at the moment. In fact, many feel that a Grinch has swooped in and taken away any holiday cheer. A Christmas rally for MannKind is near impossible now that the company has announced an intent for more dilution. In fact, the possible dilution is 26.66 million shares with the offering, and another possible 26.66 million shares with the associated warrants. I have long assessed the cash situation at MannKind and labeled that situation as one of the major hurdles of this equity. Even with perma-bull MannKind longs calling me every name in the book, I have remained steadfast to what is realistic. Even with a recent cash infusion from a deal with United Therapeutics (UTHR), the company found itself with only getting enough cash to buy itself a quarter or so. With recent price action, the existing 14 million warrant shares which would bring in about $30 million if exercised before mid-April have looked to be more and more of a long shot. With the company essentially admitting that it will miss Afrezza sales guidance by several miles, turning off the ad campaign, and thinning out the number of sales reps on the drug, the news on possible revenue is not looking good. Combine this with news scripts moving in a downward direction in Q4, and there is some writing on the wall regarding the sales situation and the cash the company burns attempting to drive sales. Let's get to what we know. We know the company has only about 55 million shares uncommitted at the moment and thus the maximum amount of shares that this new offering could use is established. Essentially, MannKind is using up every share on the shelf. Incredibly, it was just a year ago that the company sought and received approval for 140 million more shares bringing the total to 280 million. In the last year, the company has managed to use up all 140 million newly minted shares and will have about $68 million in cash as a result ($28 million in cash plus $40 million raised in offering). The rub here is that MannKind lacks the available shares to do anything with this offering that is compelling. See link for the rest: seekingalpha.com/article/4229545-mannkind-drops-proposed-share-offering-investors-know |
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Post by longliner on Dec 20, 2018 21:12:42 GMT -5
Rile, rile, rile......
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Post by tomtabb on Dec 20, 2018 23:05:55 GMT -5
Damn.
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Post by boca1girl on Dec 21, 2018 7:56:43 GMT -5
With only ~ 2M shares remaining, do you think Spencer is correct? Will MNKD request more authorized shares?
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Post by mannmade on Dec 21, 2018 11:03:11 GMT -5
Yes they will have to for four reasons imho:
1. To prevent a hostile takeover
2. For future cash raise should it be necessary
3. For possible direct buy in by Uthr or another firm
And possibly if they desire to acquire RLS or some other entity
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Post by sexychefski on Dec 21, 2018 11:22:39 GMT -5
I thought we still had 10 million preferred shares that we got back when we delisted from the TASE. wouldn't those be the shares that United would purchase if they ever did a buyin?
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Post by mannmade on Dec 21, 2018 11:36:20 GMT -5
I thought we still had 10 million preferred shares that we got back when we delisted from the TASE. wouldn't those be the shares that United would purchase if they ever did a buyin? Am not sure but if true depends on amount of equity purchased and at what price. |
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Post by mnkdfann on Dec 26, 2018 21:51:18 GMT -5
In the comments section of his latest article, SO doesn't exactly come out and say BUY but he does argue that the odds are currently looking good for a trade:
"In a nutshell, if you play smart, you can have a risk of 25% to the downside, but 45% to 60% to the upside in the near term."
"Long ago I stated that I would not trade this equity as long as I write about it. I have missed trading opportunity after trading opportunity in this stock, but I am a man of my word. My last big BUY recommendation was when the company dipped below $1 after the reverse split. Those that took advantage are actually still ahead of the game even if they did not take advantage of the trading ranges subsequent. It is tempting to simply stop covering the equity and buy in for a trade, but alas someone will level some cockamamie accusation that I cover this equity the way I do so that I can buy lower. Thus, I will let this opportunity pass as well, but wanted to give readers a heads up on my thinking while the stock is at these levels."
"To be clear, this does not mean that I feel Afrezza will suddenly turn around, nor that I believe the cash situation is 100% solved. It simply means that the current stock price offers a compelling opportunity. This is still a speculative equity."
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Post by barnstormer on Dec 26, 2018 22:13:43 GMT -5
When are you all going to realize that SO doesn't have a real job, a real life, or any real connection with MNKD. Sure he can run calculations that are generally flawed and he can troll and then contact PB members that have been here for a long time to try and get real information. When are you going to realize that we are here to try to understand and promote MNKD's efforts and all Spencer wants to do is try to make a name for himself on your backs. He is shameless and pathetic. Stop talking about him and he will die like the virus he is.
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Post by sportsrancho on Dec 26, 2018 22:30:32 GMT -5
I thought he didn’t want us to post what he says? Yet people are copying and pasting his comments...
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Post by mnkdfann on Dec 26, 2018 22:43:45 GMT -5
I thought he didn’t want us to post what he says? Yet people are copying and pasting his comments... IIRC, his problem was with those who cut and pasted his entire articles (and often did not even provide a link) so people did not have to go to SA to read them. Unlike some, I never quote the entire article (or lengthy comment), and I also almost always (I'm human, I might forget once in a rare while) provide a link. I think excerpts are allowed under the doctrine of fair use or something like that. The link for this particular SO article is in my first post in this thread. If a mod disagrees with my postings in this thread, I have no problem if it is locked or deleted. |
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Post by lennymnkd on Dec 26, 2018 23:27:12 GMT -5
It has been mention here a couple times us buying RLS , is that a logical consideration at this point , what whould be involved to make it a profitable aquisition .
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Post by mnkdfann on Dec 27, 2018 8:40:32 GMT -5
It has been mention here a couple times us buying RLS , is that a logical consideration at this point , what whould be involved to make it a profitable aquisition . If RLS is going to be the great success some say, I don't see how Mannkind could possibly afford to buy it at this juncture. Unless the people running RLS have come to a realisation that their game plan is not going to work in the current (political, economic, regulatory, etc.) environment, and they try to unload it for cheap. In which case, Mannkind should keep away. |
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