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Post by awesomo on Jul 18, 2019 15:45:47 GMT -5
DF has Mike by the balls and wants some value for their warrants. DF is interested in cash flow only, not being the kind and benevolent lender some people on the board claim they are.Exaggerate much? "Some people?" Who? mytakeonit consistently calls Deerfield as a “friend”, which they most certainly are not to MannKind shareholders. They might be his friend though.
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Post by ktim on Jul 18, 2019 15:47:49 GMT -5
Management did not at ALL telegraph it. Management has consistently done exactly the opposite. Always trying to convince investors there will be no further dilution. Or in this case delaying debt stating it was to avoid giving shares to DF at the then low price... only to then within weeks give DF shares at even lower price. I will not feign shock over the dilution that occurred now because, indeed, I've long recognized that management is often disingenuous about this topic. I am, however, in awe over management's gall at times. Yet another self inflicted wound to credibility. Too funny. JMHO If you cannot see that, except for surprise financing ventures like the $6 one a couple years ago and the UTHR deal last year, capital raises through dilution are a necessary evil, then....well...prepare to be surprised again and again. And it's not bad management that causes it, it's the situation the company has been digging itself out of for the last 2 1/2 years. From the RS on, dilution has been telegraphed. I just said exactly the opposite, that I was not surprised. I am fully aware that MNKD likely has little options other than continued dilution for quite some time to come. Can't understand why management is constantly setting themselves up for attack and erosion of credibility by trying to set expectations otherwise. It doesn't help that here on proboards those pointing out the reality of finances (here and people like SO) are constantly attacked for saying dilution is the probable outcome. Those attacks by the, shall we call them MNKD cheerleaders, combines with management's spin to convince some (but not me) that dilution is unlikely. That may create surprise in some... though not me. I was not surprised by any of the recent rounds of dilution. I would be very surprised (though happily so) if we don't have significant additional dilution in the future. Just wish management didn't shoot themselves in the foot constantly by trying to set unrealistic expectations with shareholders.
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Post by cedafuntennis on Jul 18, 2019 15:58:20 GMT -5
Sure they will. Buy them for .13, unlock the shares and sell them for $1.04 and bring the SP down even more. Not too good for the shareholders...
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Post by mytakeonit on Jul 18, 2019 16:00:10 GMT -5
I consider DF to be a friend because ... MNKD wouldn't be here if they didn't "help" us out of a jam.
I also wait for the end of August where we pay DF off and can move on to greener pastures. ALOHA !!! Then it's September !!!
But, that's mytakeonit
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Post by mymann on Jul 18, 2019 16:34:35 GMT -5
September? What happened to July? I already ordered my giant telescope to put on top of my roof since protester's trying to stop the new telescope.
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Post by oldfishtowner on Jul 18, 2019 16:46:01 GMT -5
Maybe because they knew the warrants weren’t going to get exercised? If warrants are not exercised they get underlying shares back by default. Why pay .13 for something that you will get back for free in December? Because those shares will be worth more than $1.73 before December... To make sense, you have to look at the two transactions together.
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Post by rtmd on Jul 18, 2019 16:47:45 GMT -5
Can someone explain why they repurchased the warrants? So they can sell the shares locked by the warrants. Possibly, but they were worth only -- what -- 3-4 million shares? Not all that many and it's only 5 more months before they would have expired anyway. Someone suggested it was because MNKD expected they would be worth a lot more, but why would MNKD care? It would still be cash in their coffers. I don't get paying 433,000 dollars for what are currently worthless pieces of paper.
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Post by buyitonsale on Jul 18, 2019 17:28:48 GMT -5
If warrants are not exercised they get underlying shares back by default. Why pay .13 for something that you will get back for free in December? Because those shares will be worth more than $1.73 before December... To make sense, you have to look at the two transactions together.
I don't know what that means. Why did MNKD pay .13 for shares they will be getting back for free in December when warrants expire?
If warrants are exercised they will get $1.60 per share.
MNKD currently has plenty of authorized shares to sell at their disposal without needing those 3.3MM shares they just bought back...
Please explain their reasoning and be specific ...
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Post by falconquest on Jul 18, 2019 17:43:20 GMT -5
If you cannot see that, except for surprise financing ventures like the $6 one a couple years ago and the UTHR deal last year, capital raises through dilution are a necessary evil, then....well...prepare to be surprised again and again. And it's not bad management that causes it, it's the situation the company has been digging itself out of for the last 2 1/2 years. From the RS on, dilution has been telegraphed. I just said exactly the opposite, that I was not surprised. I am fully aware that MNKD likely has little options other than continued dilution for quite some time to come. Can't understand why management is constantly setting themselves up for attack and erosion of credibility by trying to set expectations otherwise. It doesn't help that here on proboards those pointing out the reality of finances (here and people like SO) are constantly attacked for saying dilution is the probable outcome. Those attacks by the, shall we call them MNKD cheerleaders, combines with management's spin to convince some (but not me) that dilution is unlikely. That may create surprise in some... though not me. I was not surprised by any of the recent rounds of dilution. I would be very surprised (though happily so) if we don't have significant additional dilution in the future. Just wish management didn't shoot themselves in the foot constantly by trying to set unrealistic expectations with shareholders......and that's why I got out. When management can show me they earn a profit then I will get back in. Not until then. Sometimes the "cheerleaders" remind me of the Stockholm syndrome. "Hey, this lower share price allows me to lower my cost basis", yeah good luck with that!
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Post by pat on Jul 18, 2019 17:47:56 GMT -5
I continue to buy
And continue to lower my cost basis
and continue reading this noise cuz I’m bored
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Post by ktim on Jul 18, 2019 18:26:51 GMT -5
Continual doubling down can be a winning strategy even at Vegas roulette table... provided one has an unlimited amount of capital (and stop once you're ahead and don't hit a bet limit imposed by the casino). Assuming MNKD eventually succeeds, if one has almost unlimited money to invest then constantly buying (perhaps constantly increasing buying) could eventually pay off. Most of us don't have the luxury of that (unlimited capital) strategy and must try to be a bit more circumspect in timing of investments/bets in speculative pre-profit opportunities such as MNKD.
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Post by jkendra on Jul 18, 2019 18:28:03 GMT -5
I continue to buy And continue to lower my cost basis and continue reading this noise cuz I’m bored Same.
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Post by traderdennis on Jul 18, 2019 18:42:00 GMT -5
If warrants are not exercised they get underlying shares back by default. Why pay .13 for something that you will get back for free in December? Because those shares will be worth more than $1.73 before December... To make sense, you have to look at the two transactions together. .13 looks about the fair market value of the options using a black scholes calculator at a 100% implied volatility. DF has always been risk adverse so they just want to be cashed out with fair market value. they probably already shorted the stock from the 1.80's three months ago with the warrents as the hedge. Cover that short with the dilution and get a few pennies from selling the warrants back. Its good to be Deerfield. www.mystockoptions.com/black-scholes.cfm?ticker=&s=1.04&x=1.60&t=0.411&r=5%25&v=100%25&calculate=Calculate
It would take a 60% increase in the stock price to achieve it. I doubt that management is thinking that direction. It was a concession to keep DF happy.
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Post by sayhey24 on Jul 18, 2019 18:59:06 GMT -5
Maybe it was part of the deal to delay payment but maybe Mike knows something and fully expects the share price to spike and just screwed DF. I am hoping for the latter but I am a little delusional today.
Then again, who knows maybe both are true.
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Post by mnholdem on Jul 18, 2019 19:24:30 GMT -5
Maybe because they knew the warrants weren’t going to get exercised? If warrants are not exercised they get underlying shares back by default. Why pay .13 for something that you will get back for free in December? Because those shares will be worth more than $1.73 before December... In your scenerio (above) the warrants would be exercised at $1.60 that goes into MannKind’s cash account. Why, then, would MannKind buy them back and immediately use the shares to pay off the debt at a value of $1.06? It does not make sense.
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