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Post by mikesmilitaria on Dec 30, 2018 13:12:00 GMT -5
I emailed MNKD this today--it's time to put some heat to their feet.
_______________________________________-
I am writing to express my frustration and disappointment with my MNKD investment.
I participated in the IPO on 7/28/2004 as a "family/friend member" and I've watched my investment sink into the abyss.
I continued to accumulate over the yrs. having a total of 40k shares which is now 8k of "penny" stock thanks to the RS and critical decisions that were highly flawed.
The key managers are stealing from the shareholders with inappropriately high salaries with zero return to those who own the company.
This recent dilution is the last straw unless something of huge value is announced on 1/4 and the subsequent pps reflects good news.
I have witnessed progress BUT that progress has not translated into shareholder value. It is fundamental that management deliver to shareholders and if not they should be held accountable; that time has arrived. If 2019 starts out status quo I can assure you an uprising will come and members of management and the entire BODs will see a revolution.
This company was founded in 1991, public in 2004 and the pps is $1 while key salaries are over $1mm.
This radiates arrogance and a very poor moral compass to the reality of those who elected to invest in this organization.
Sadly but sincerely, MLJ
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Post by uvula on Dec 30, 2018 13:18:27 GMT -5
I'm not saying I disagree with anything you said, but I'm curious what the "last straw" is. We are all in the same boat. No point in selling because our investment has already lost most of its value.
edit: My answer was dumb.
"The last straw": a further difficulty or annoyance, typically minor in itself but coming on top of a whole series of difficulties, that makes a situation unbearable.
The OP was not threatening to do something because of the dilution. The OP was just expressing the way we are feeling.
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Post by sportsrancho on Dec 30, 2018 13:41:14 GMT -5
To me it’s very clear what the last straw was, it was this equity raise, which was probably the biggest mistake they’ve ever made, which is unveiling other mistakes. So unless there’s a huge catalyst to go along with it, things seem to be unraveling. So I’m glad that people are bringing it to their attention how shareholders feel, that way it gives Mike a chance to put shareholders fears to rest.
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Post by awesomo on Dec 30, 2018 13:50:14 GMT -5
If there was a huge catalyst coming, they would have waited to raise money. Pretty sure the call will just be Mike repeating the same stuff he’s been responding with over social media.
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Post by tz on Dec 30, 2018 13:51:17 GMT -5
I agree with you no more. Yes, unless a convincing reason, the people who made this decision should resign. Someone needs to take responsibility, I don't care who he is. No commitment, no high compensation. That is the rule.
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Post by brotherm1 on Dec 30, 2018 14:23:09 GMT -5
On the other hand, the world economy is unraveling. US unemployment is at a relatively record low, employers are needing to pay higher wages to find employees which is leading to inflation. Real estate and Stocks are bubbled again. Retailers are dropping like flies. Consumers driving $60K luxury trucks on loan. Consumer credit running out. The bubble is going to pop and it could be anytime now. Remember the run on banks 11 years ago?
Regarding executive pay, much of it is equity. Even if their pay was cut in half, it would just give us around one more month of cash every two years. We have good talent. Good talent cost good $.
I hope Mike’s not being beat up so bad that he’ll be stuttering on the 5th and lose more investor confidence. I feel Mike and MNKD is making very good progress with the limited resources we have.
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Post by brotherm1 on Dec 30, 2018 14:55:10 GMT -5
My point is it may very well turnout this cash raise now was very wise.
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Post by longliner on Dec 30, 2018 16:02:53 GMT -5
My point is it may very well turnout this cash raise now was very wise. I sincerely hope this is correct. Two issues burn a bit, one being told on the last conference call that recapitalization was complete, and the second I remember Mike saying the shelf share amount was picked (I don't remember the exact phrase) but to me is resembled out of thin air and was not overly relevant. So what changed? Did we buy something? Did someone accumulate shares in preparation for a buy in / out? Spin off? To repeat another posters concern, if this is just business as usual funding, what is left on the shelf to protect us from a hostile takeover? Try as I might I am unable to invest at the pace Mannkind dilutes. Oh, I almost forgot "How was Hawaii"? |
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Post by mnholdem on Dec 30, 2018 16:07:14 GMT -5
Based on what I've read over several days from retail investors and a few fund managers, it seems that more shareholders are angry about the way in which the offering was executed (triggering the stock price to plummet) than they are about the company raising cash...
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Post by agedhippie on Dec 30, 2018 16:19:49 GMT -5
Based on what I've read over several days from retail investors and a few fund managers, it seems that more shareholders are angry about the way in which the offering was executed (triggering the stock price to plummet) than they are about the company raising cash... What were the objections? The warrants? |
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Post by mnholdem on Dec 30, 2018 16:32:17 GMT -5
It seems there were multiple reasons. The initial filing was incomplete, followed by an offering priced at 1 share + 1 warrant for the total price of $1.50 which was announced when the daily market price was around $1.70 per common share. One fund manager factored the dilution with the bargain price and stated that the share price should have dropped to around the $1.30 area. Wall Street disagreed and there was no information whatsoever provided by management to allay any fears while the stock was dropping to a buck. Those seem to be the most common, although several shareholders have brought up the CEO's recent statement about not needing any dilutive financing any time soon.  |
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Post by agedhippie on Dec 30, 2018 16:53:45 GMT -5
It seems there were multiple reasons. The initial filing was incomplete, followed by an offering priced at 1 share + 1 warrant for the total price of $1.50 which was announced when the daily market price was around $1.70 per common share. One fund manager factored the dilution with the bargain price and stated that the share price should have dropped to around the $1.30 area. Wall Street disagreed and there was no information whatsoever provided by management to allay any fears while the stock was dropping to a buck. Those seem to be the most common, although several shareholders have brought up the CEO's recent statement about not needing any dilutive financing any time soon. The units were sold at an 11.7% discount to the share price, the raise in April sold the units at a 15.9% discount. The 2017 raise was not comparable since it was stock only. 2016 was sold at a 22% discount to the stock price. I don't think they should have been surprised by the pricing, it's actually a bit better than normal. My calculation was that the share price should have dropped to $1.19 pricing in the warrants value and the dilution when they are exercised in addition to the immediate dilution. If the warrants are not exercised I got $1.23 as the price, but I expect them to be exercised so I would price on the lower basis to avoid being caught later. |
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Post by mytakeonit on Dec 30, 2018 17:38:15 GMT -5
No shares have traded hands yet ... so, wait till Friday to hear what the plan is. I believe it is for a partnership. Something that can't be bad if we are going international.
I also believe that Mike C will make his statements about the plan ... and no questions will be taken. Or, a couple from a "plant" that will ask the questions that he wants answered in specific areas.
I think ... das is good ... das is fine.
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Post by sportsrancho on Dec 30, 2018 17:44:52 GMT -5
No shares have traded hands yet ... so, wait till Friday to hear what the plan is. I believe it is for a partnership. Something that can't be bad if we are going international. I also believe that Mike C will make his statements about the plan ... and no questions will be taken. Or, a couple from a "plant" that will ask the questions that he wants answered in specific areas. I think ... das is good ... das is fine. 🤞👍🏻 |
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Post by ilovekauai on Dec 30, 2018 17:50:53 GMT -5
Okay, I'll bite but hate to ask; what does Michael C pull down a year and Dr. Kendall currently? Do we have that info handy? Thanks.
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