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Post by gamblerjag on Sept 29, 2021 21:59:13 GMT -5
“You don’t sell your manufacturing plant unless you’re in distress…” On the surface that’s how it looks, have to see how the market reacts in the morning. Hopefully there could be any number of positive reasons this was done. Most of us thought it wouldn’t be needed. . I don’t know it appears over the last two years everything has been calculated for a reason and for the better. Remember back in 2013 2014 when mankind stock was much higher, everyone got upset that they never bought back shares when the price was high. Well They Now have extra money and my guess is it’s for a very good reason and not due to being n distress in any way 😎 |
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Post by golfeveryday on Sept 29, 2021 22:20:18 GMT -5
“You don’t sell your manufacturing plant unless you’re in distress…” On the surface that’s how it looks, have to see how the market reacts in the morning. Hopefully there could be any number of positive reasons this was done. Most of us thought it wouldn’t be needed. they are not in distress. Many companies raise money via selling shares prior to big binary decisions like an FDA ruling, which is a hedge in case the ruling is unfavorable. They sold the manufacturing facility to free up capital. I don’t think MNKD thinks the fda decision will be negative. I think they have finally been executing on a plan behind the scenes and this is for something specific. |
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Post by buyitonsale on Sept 30, 2021 1:23:47 GMT -5
I’m glad to see they entered into agreement on September 23rd, before the Cantor conference, where MC said that Tyvaso DPI was on track…
If this was done after , I would be worried a bit.
Why is Mannkind responsible for real estate taxes and insurance, is that common ?
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Post by letitride on Sept 30, 2021 1:51:48 GMT -5
In my mind the sale leaseback deal is good business. Furthermore it de-risked any possible delay in Tyvasso DPI. I like it!
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Post by sportsrancho on Sept 30, 2021 3:55:38 GMT -5
“You don’t sell your manufacturing plant unless you’re in distress…” On the surface that’s how it looks, have to see how the market reacts in the morning. Hopefully there could be any number of positive reasons this was done. Most of us thought it wouldn’t be needed. they are not in distress. Many companies raise money via selling shares prior to big binary decisions like an FDA ruling, which is a hedge in case the ruling is unfavorable. They sold the manufacturing facility to free up capital. I don’t think MNKD thinks the fda decision will be negative. I think they have finally been executing on a plan behind the scenes and this is for something specific. Yeah that crossed my mind. The hedge. On another note.. there’s people on this board, ( not you ) that are saying “great news” when they were saying great news when we were not going to sell it🤷🏼♀️ |
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Post by akemp3000 on Sept 30, 2021 4:58:00 GMT -5
Re-post from February 28 back when there was some speculation UTHR might be involved..."I recall the argument that the plant wasn't worth much. The basis for this was that the facility is a specialty plant and who would be interested in buying if a fire sale had to occur. Potential bankruptcy still lingered at the time at least from the bashing perspective. That thinking ignored that a sale lease back would be a real estate financial transaction with the new owner having no serious interest in actually owning the plant but big interest in the rental income and tax implications. There's a huge market in the U.S. for groups buying rental houses to rent. For the lack of a better example, this is somewhat similar to a reverse mortgage on a house where the occupant retains the right to stay and even payoff the loan at a later date and retire the reverse mortgage. With the plant being ultra modern and success for Mannkind now looming strong, the timing was right for both buyer and seller to make this deal. IMO, those claiming the plant would not be worth much were simply dead wrong as has now been proven."
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Post by hellodolly on Sept 30, 2021 5:41:22 GMT -5
I'm so glad I waited 12 hours to chime in. It gave me a chance to look and read all the comments from our corporate and finance experts in the group. I read each one and honestly....I didn't see anyone post the MNKD cost benefit analysis from the board room and accounting. Anyone here have access?
Since we don't, I'm just going to fall into the new category on this thread called, "I'll just STFU and let Mike run his biz!" That's about all I got to say on the matter but, I enjoy watching you all beat each other up with wild speculations on the cost/benefit analysis you've tried to imagine in your heads. Just saying...I'm getting sassy before 7am.
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Post by Clement on Sept 30, 2021 6:18:26 GMT -5
How much money is the peds trial going to cost? ( -- a reason mnkd might need money within 2 years.)
I'm reminded of that George Harrison song: "It's gonna take some money. A whole lot of spendin' money."
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Post by sportsrancho on Sept 30, 2021 6:52:21 GMT -5
Re-post from February 28 back when there was some speculation UTHR might be involved..."I recall the argument that the plant wasn't worth much. The basis for this was that the facility is a specialty plant and who would be interested in buying if a fire sale had to occur. Potential bankruptcy still lingered at the time at least from the bashing perspective. That thinking ignored that a sale lease back would be a real estate financial transaction with the new owner having no serious interest in actually owning the plant but big interest in the rental income and tax implications. There's a huge market in the U.S. for groups buying rental houses to rent. For the lack of a better example, this is somewhat similar to a reverse mortgage on a house where the occupant retains the right to stay and even payoff the loan at a later date and retire the reverse mortgage. With the plant being ultra modern and success for Mannkind now looming strong, the timing was right for both buyer and seller to make this deal. IMO, those claiming the plant would not be worth much were simply dead wrong as has now been proven." Reverse mortgages I can understand. Thanks for all your input! On another note I don’t think anybody’s beating anybody up. I think it’s been a good discussion. That’s what the board is for. Lets see how the market votes on it. |
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Post by prcgorman2 on Sept 30, 2021 7:25:58 GMT -5
I think you mean, “Let’s see how the DOWN market votes on it.”
My company has used sale and lease-back to free up capital. It was 100% corporate finance idea to extract liquid value from fixed asset exactly like a reverse mortgage. I kind of hope it’s because we’re going to need a bigger boat. :-)
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Post by uvula on Sept 30, 2021 7:36:26 GMT -5
Most people using reverse mortgages are old. They never intend to buy their house back at the end of a specified time period and are not required to do so.
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Post by georgethenight2 on Sept 30, 2021 8:26:29 GMT -5
I’m glad to see they entered into agreement on September 23rd, before the Cantor conference, where MC said that Tyvaso DPI was on track… If this was done after , I would be worried a bit. Why is Mannkind responsible for real estate taxes and insurance, is that common ? A triple net is very common. |
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Post by sportsrancho on Sept 30, 2021 9:07:24 GMT -5
👻 Casper:-)
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Post by cjm18 on Sept 30, 2021 9:29:12 GMT -5
Not liking this share price action since the leaseback. Guessing it’s sending signals that royalties will come in slower than anticipated and or they need more Afrezza trials - peds wasn’t enough and won’t prove superiority.
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Post by cedafuntennis on Sept 30, 2021 9:42:59 GMT -5
Not liking this share price action since the leaseback. Guessing it’s sending signals that royalties will come in slower than anticipated and or they need more Afrezza trials - peds wasn’t enough and won’t prove superiority. i think you're making things up so I'm ignoring you. Wish there was an ignore button on this site though to makes it easier. |
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