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Post by sportsrancho on Nov 5, 2020 17:06:08 GMT -5
From StockTwits  Well this is the best post of the day:-) |
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Post by pat on Nov 5, 2020 17:12:26 GMT -5
From StockTwits Well this is the best post of the day:-) This would seem to run counter to what Matt just posted - ie. that the plant is security for the Midcap borrowing. I don’t know the answer myself. But surely Matt must be right as he said it as a matter of fact? |
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Post by mnkdfann on Nov 5, 2020 17:27:47 GMT -5
From StockTwits Isn't Mike just paraphrasing what he said the other day in the earnings call? " The next question we always get is around capital expectations ... we continue to be very prudent and reducing our cash burn, managing it very tightly and we have not had any major fundraisers in three years. .... We are exploring a sale leaseback at the Danbury facility. We will retain the facility but sell it to an investor and then we lease it back. The early stages -- this is in early stages, but feedback has been very positive." |
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Post by cjm18 on Nov 5, 2020 18:00:52 GMT -5
From StockTwits Isn't Mike just paraphrasing what he said the other day in the earnings call? " The next question we always get is around capital expectations ... we continue to be very prudent and reducing our cash burn, managing it very tightly and we have not had any major fundraisers in three years. .... We are exploring a sale leaseback at the Danbury facility. We will retain the facility but sell it to an investor and then we lease it back. The early stages -- this is in early stages, but feedback has been very positive." Yes but the part about non dilutive financing is extra and sounds good . How much can the building be valued at? Enough to avoid a $30m round of dilution? The stock price loved the call. Shorts have been leaving. It’s time to back up the truck. |
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Post by brotherm1 on Nov 5, 2020 18:11:36 GMT -5
You can back your truck up, mine is staying in the garage for now
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Post by mytakeonit on Nov 5, 2020 18:22:34 GMT -5
I will need a second truck if I'm to buy any more shares.
But, that's mytakeonit
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Post by sportsrancho on Nov 5, 2020 18:36:31 GMT -5
Well this is the best post of the day:-) This would seem to run counter to what Matt just posted - ie. that the plant is security for the Midcap borrowing. I don’t know the answer myself. But surely Matt must be right as he said it as a matter of fact? Right.. I even posted on Stocktwits that it wasn’t possible because of Midcap but it sounds like Mike has figured out a way to negotiate with them about it. There was a conversation with Spencer a couple years ago when he brought up the same idea and at that time Deerfield held the cards. Although I did not see Mike’s exact words on paper... but from what I get out of that it sounds like it. |
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Post by mnkdfann on Nov 5, 2020 18:39:42 GMT -5
Isn't Mike just paraphrasing what he said the other day in the earnings call? " The next question we always get is around capital expectations ... we continue to be very prudent and reducing our cash burn, managing it very tightly and we have not had any major fundraisers in three years. .... We are exploring a sale leaseback at the Danbury facility. We will retain the facility but sell it to an investor and then we lease it back. The early stages -- this is in early stages, but feedback has been very positive." Yes but the part about non dilutive financing is extra and sounds good . How much can the building be valued at? Enough to avoid a $30m round of dilution? The stock price loved the call. Shorts have been leaving. It’s time to back up the truck. The part I had emboldened seemed to me to be Mike saying the same thing about non dilutive financing. I suppose he said it in plainer language this time around. |
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Post by prcgorman2 on Nov 5, 2020 19:53:13 GMT -5
Well this is the best post of the day:-) This would seem to run counter to what Matt just posted - ie. that the plant is security for the Midcap borrowing. I don’t know the answer myself. But surely Matt must be right as he said it as a matter of fact? Matt did also say it could be MidCap was in favor of the sale and lease-back and therefore MidCap would be cooperative as part of a debt renegotiation. The capital from the sale might go in whole or in part to MidCap. Someone else asked how much the facility might be worth. I’ll guess more than $10M but less than $100M but that’s complete speculation on my part. I don’t know what commercial real estate is worth in the Danbury area. |
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Post by tingtongtung on Nov 6, 2020 0:10:03 GMT -5
This would seem to run counter to what Matt just posted - ie. that the plant is security for the Midcap borrowing. I don’t know the answer myself. But surely Matt must be right as he said it as a matter of fact? Matt did also say it could be MidCap was in favor of the sale and lease-back and therefore MidCap would be cooperative as part of a debt renegotiation. The capital from the sale might go in whole or in part to MidCap. Someone else asked how much the facility might be worth. I’ll guess more than $10M but less than $100M but that’s complete speculation on my part. I don’t know what commercial real estate is worth in the Danbury area. Even though matt seems forever negative (nothing wrong with it!), he is very knowledgeable as per his posts. From his views on depreciation of the plant (and the insides being almost worthless for others - my understanding), it could be barely enough to satisfy the $30-35 million for Midcap? May be that's why they are pushing this sell and lease back? Assuming, the sale is done, MNKD will have new recurring lease payment. Not sure how much would that be.. I'm not an accountant. But, I think you can write off profit against depreciated assets? I just remember reading somewhere - no idea.. |
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Post by prcgorman2 on Nov 6, 2020 7:30:24 GMT -5
Matt did also say it could be MidCap was in favor of the sale and lease-back and therefore MidCap would be cooperative as part of a debt renegotiation. The capital from the sale might go in whole or in part to MidCap. Someone else asked how much the facility might be worth. I’ll guess more than $10M but less than $100M but that’s complete speculation on my part. I don’t know what commercial real estate is worth in the Danbury area. Even though matt seems forever negative (nothing wrong with it!), he is very knowledgeable as per his posts. From his views on depreciation of the plant (and the insides being almost worthless for others - my understanding), it could be barely enough to satisfy the $30-35 million for Midcap? May be that's why they are pushing this sell and lease back? Assuming, the sale is done, MNKD will have new recurring lease payment. Not sure how much would that be.. I'm not an accountant. But, I think you can write off profit against depreciated assets? I just remember reading somewhere - no idea.. Selling the plant and leasing it back extracts capital from the sale of the asset. Depreciation is a non-cash transaction counted as a liability which is then used to decrease profit for tax purposes on the income statement. It’s allowed because manufacturing facilities and buildings do in fact wear out over time so their value depreciates as an asset and the depreciation schedule allows the company to account for the deterioration over time. I don’t know what the schedules would be for the building and the machinery but I’ll speculate the machinery has a much shorter schedule such as 5 to 10 years whereas the building is probably more like 20 years. At this point in time, the machinery may be fully depreciated and the building well along in it’s schedule where they no longer provide much tax benefit. That full or nearly full depreciation doesn’t mean that Mannkind should automatically choose to sell and lease back. They can retrofit or replace the machinery which may well be where the majority of the depreciation was coming from. But from a longer term view, I don’t know that it was ever in Mannkind’s strategy to be the sole manufacturer of Afrezza, or for that matter TreT and so from that perspective, it’s important to have some facilities where they can do TS product development and baseline manufacturing, but scale manufacturing can optionally be done using 3rd party production facilities. One of my concerns as a shareholder has been what happens to the TS supply line if Danbury suffers a disaster? I’m sure there is a disaster recovery plan and I remember reading about it here years ago but I don’t remember what it was and having been in a company that has had to actually use it’s recovery plan (designed for earthquakes and floods, not pandemics) the plans tend to be a way to help be more organized as you stagger towards recovery from the disaster. I’ll speculate in Mannkind’s case the plan is to store several months supply of Afrezza and pay a stipend to a potential 3rd party manufacturer who promises to implement manufacturing capability in the event of a disaster. You can imagine there could be flaws in and problems with execution of the plan. The bottom-line is sale and lease-back is on the table and probably does make some sense. |
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Post by barnstormer on Nov 6, 2020 7:51:40 GMT -5
Yes but the part about non dilutive financing is extra and sounds good . How much can the building be valued at? Enough to avoid a $30m round of dilution? The stock price loved the call. Shorts have been leaving. It’s time to back up the truck. The part I had emboldened seemed to me to be Mike saying the same thing about non dilutive financing. I suppose he said it in plainer language this time around. Apparently now that Mike and teams option shares are vesting he is suddenly interested in avioding dillution. Hell, let's just sell the plant, we don;t want our shares dilluted. If he was truly creative and effective, this option wouldn't need to be considered. Al's life work is slowly being unravelled by amature CEOs |
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Post by cjm18 on Nov 6, 2020 8:29:18 GMT -5
The part I had emboldened seemed to me to be Mike saying the same thing about non dilutive financing. I suppose he said it in plainer language this time around. Apparently now that Mike and teams option shares are vesting he is suddenly interested in avioding dillution. Hell, let's just sell the plant, we don;t want our shares dilluted. If he was truly creative and effective, this option wouldn't need to be considered. Al's life work is slowly being unravelled by amature CEOs Lol. Blows my mind why some people stay invested when they have similar opinions. This amateur ceo is going to make us a lot of money. |
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Post by rfogel on Nov 6, 2020 8:42:58 GMT -5
I noticed they said they didn't have any international revenues -- a disappointment since it was the Brazil deal that brought me to the stock in the first place.
I do have one question about this: "Please note that a reduction of point $0.3 million in wholesale inventory has occurred between June 30th and September 30, 2020, adversely impacting our volume growth."
I don't quite understand what that means. How does a reduction of wholesale inventory adversely impact volume growth? Are they saying they weren't weren't stocking supplies adequate to meet demand?
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Post by pat on Nov 6, 2020 8:47:12 GMT -5
Matt did also say it could be MidCap was in favor of the sale and lease-back and therefore MidCap would be cooperative as part of a debt renegotiation. The capital from the sale might go in whole or in part to MidCap. Someone else asked how much the facility might be worth. I’ll guess more than $10M but less than $100M but that’s complete speculation on my part. I don’t know what commercial real estate is worth in the Danbury area. Even though matt seems forever negative (nothing wrong with it!), he is very knowledgeable as per his posts. From his views on depreciation of the plant (and the insides being almost worthless for others - my understanding), it could be barely enough to satisfy the $30-35 million for Midcap? May be that's why they are pushing this sell and lease back? Assuming, the sale is done, MNKD will have new recurring lease payment. Not sure how much would that be.. I'm not an accountant. But, I think you can write off profit against depreciated assets? I just remember reading somewhere - no idea.. Yes, he is. My post was a bit tongue in cheek. Very soon I think we’ll be hearing more about MidCap default!!!! Sale and leaseback is a great idea, if it is allowed. Depreciation basically reduces net income and, thus, taxes. But we don’t have any (of meaning anyway) so.... |
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