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Post by peppy on Jul 24, 2019 10:27:25 GMT -5
Deerfield are BOTTOM FEEDERS. They prey on vulnerable companies. They are LOAN SHARKS. They are a HIGH RISK HIGH REWARD SHOP. If the borrower survives like MNKD they make a killing. If they Default....DF owns the company. It's pretty simple. They charged a high but not crazy rate but it's the other caveats where they make their money. Most people focus on the rate but its the caveats where they get their reward for the risk. If you go back to their founding and look at their deal stream over time, they have loaned money to some very substantial companies at slightly below market rates hoping to make an outsized profit on their securities, usually through convertibility. They are a bond fund, not an equity fund, and the name of the game for any bond fund is to protect their capital since they have large fixed obligations to their investors. This is no different than what happens when an individual buys a house with a mortgage; the bank puts the borrower through the wringer to insure that they can sell the paper to FannieMae or into the secondary market. However, just like the mortgage company, when things don't work out then the institution gets tough on the borrower. If MNKD had performed as expected, the DF covenants would have been little more than a rounding error on the balance sheet, but that is not what happened. See what happens when the borrower of a 30 year mortgage with 20 years to run loses their job and has a hard time finding new employment; the discussions get ugly very quickly. DF gets aggressive precisely because they don't want to own the companies they loan money to; they are a bond fund and not a biotech management company. When Dendreon declared bankruptcy, despite annualized sales of more than $300 million, DF did not make a more to foreclose on that collateral choosing instead to recover what they could in bankruptcy court when the assets were auctioned (they lost more than $100 million on that loan). That is not the behavior of a predatory lender. DF knows how to play the game, and they play rough when necessary, but they are not as bad as everyone makes them out to be. Few commercial lenders are pleasant to deal with when results are not as expected. NEW YORK (Reuters) - Two former partners of the hedge fund Deerfield Management were sentenced to three years in prison on Thursday after being convicted of taking part in what prosecutors have described as an insider trading scheme based on leaks from within a federal healthcare agency.A spokesman for Deerfield also declined to comment. www.reuters.com/article/us-usa-crime-healthcare-insidertrading/ex-deerfield-partners-get-prison-in-case-over-u-s-agency-leaks-idUSKCN1LT2YG |
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Post by longliner on Jul 24, 2019 10:54:59 GMT -5
As the price rises, I look forward to the day when shorts begin to refer to (us) as greedy longs.😎
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Post by mytakeonit on Jul 24, 2019 11:50:36 GMT -5
longliner - Are you talking about my daughter?!!! AND ... peppy is still so bad. BTW, DF only did what any true day trader would have done. We just didn't have the same info from SO.
But, that's mytakeonit
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Post by sportsrancho on Jul 24, 2019 13:39:15 GMT -5
As the price rises, I look forward to the day when shorts begin to refer to (us) as greedy longs.😎 I look forward to the day a certain poster under Spencer‘s comment section eats his words and I’m not referring to RisingSkeptic. |
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Post by peppy on Jul 24, 2019 13:45:03 GMT -5
As the price rises, I look forward to the day when shorts begin to refer to (us) as greedy longs.😎 I look forward to the day a certain poster under Spencer‘s comment section eats his words and I’m not referring to RisingSkeptic. Heh. Me too. Beep Beep. Honk Honk. |
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Post by kc on Jul 28, 2019 19:46:03 GMT -5
As the price rises, I look forward to the day when shorts begin to refer to (us) as greedy longs.😎 I look forward to the day a certain poster under Spencer‘s comment section eats his words and I’m not referring to RisingSkeptic. I don’t read Spencer’s .......... click click click click for dollars drivel.. |
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Post by sportsrancho on Jul 28, 2019 20:07:46 GMT -5
I look forward to the day a certain poster under Spencer‘s comment section eats his words and I’m not referring to RisingSkeptic. I don’t read Spencer’s .......... click click click click for dollars drivel.. Remember matese16? |
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