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Post by ktim on May 10, 2023 19:09:19 GMT -5
I can not believe in light of how well MNKD is doing, this is the focus. I am going to share my communication with Mike via email on March 30, 2023… “Mike, So, as you can probably well imagine, the pot is already stirring on on line stock forums over the request regarding shares. The concern is dilution to existing shareholders upon eventual issuance of the additional shares requested. 1. To approve an amendment to MannKind’s Amended and Restated Certificate of Incorporation to increase the authorized number of shares of common stock from 400,000,000 shares to 800,000,000 shares (the “Authorized Shares Increase Proposal”); Can you please elaborate as to the reason for the request of an increase in the number of authorized shares… why they are needed, when they might be issued and how they might be used?” MC responded the next day…
“ this is just normal housekeeping I wouldn’t read much more. We went to 400M and didn’t do anything crazy in the last 3 years. We have to think longer term than any given year and the board would have to approve any use of these shares. Negative people will always want to scare retail investors as the boards are filled with people who just short stocks and make money on fear. If people stopped paying attention they would have no audience to generate volume. Why else would the same people post negative comments and bash me and mnkd for 6 years. They have only one goal.”
I agree with him and even prior to yesterdays outstanding conference call, I support the request and will vote “yes”. So many great things to focus on - doing just that. GL I'm voting against the share increase. Recently I've been complementary of Mike and performance. So his portrayal that anyone against this is some kind of bashing short that attacks him personally is totally incorrect. If only shorts are against this then he should be confident in getting 100% support for the share increase since shorts can't vote. There are certainly more than just me that have been long term MNKD shareholders that are against this. I could see where investors that have gotten in more recently and may have only seen upside and no major dilution events might be sanguine about this. |
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Post by ktim on May 10, 2023 19:22:07 GMT -5
I voted yes, but I was uneasy about it. Dilution should be close to a zero sum gain action (assuming stock sold at market price, which is rarely the case), meaning dilution shouldn’t negatively affect stock price, but the reality is, it does. Investors are not happy about dilution. And while it’s not a near-term consideration, and stock buyback is possible, dividends pay less per share when there are more shares to spread the dividends over. I assume most investors know all this, so I’m not at all surprised by the negative reactions on this board. Regardless, I can’t argue with the logic that having some powder in the magazine without requesting an emergency meeting of the Board of Directors and a vote, is prudent. Then they'd have time to come back with a more reasonable proposal if shareholders were to vote it down. We do have some unallocated shares... and as Mike points out using the shares requires board approval regardless of whether the share count has already been increased, and if there were something like an MorA, involving share issuance that would require a special shareholder vote which could simply include the increase in authorized shares to cover the transaction. |
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Post by ktim on May 10, 2023 19:29:48 GMT -5
Correct. Purely a symbolic vote of disapproval. Unfortunately retail investors have no real say in any corporate governance. Just the way our system works where most shares are in ETFs. Vote yes and you will get a chance to have "Philly Steak Hogie" with MC. Retail investors might not have the collective clout of ETF's, but Mike appreciates those retail investors who have his back. I'll buy Mike the Hogie if he withdraws this proposal, LOL Even a Ribeye and lobster tail. I think Mike has done a great job, but this I consider a bit of a slap to the face. He knows what us long term shareholders have been through regarding dilution. Characterizing yet another doubling of shares given the history as simply "housekeeping" doesn't feel like an "Investors, I've got your back." sort of move. |
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Post by phdedieu12 on May 10, 2023 20:48:27 GMT -5
Agreed, but the first part of my comment remains true. The items MNKD is requesting shareholders to vote on are effectively tools the company believes it needs to grow, increase shareholder value, etc. A no vote is simply saying I don't believe you need this because I know better, or I don't trust you to do what you're saying you want to do, or I won't give you the tools to achieve your stated goals. I don't see under any circumstances how this is helpful, and furthermore I can't imagine being a shareholder if this is how I feel about management, JMHO JYHO, ha! You present your HO with condescension which eliminates any humility. I didn't realize that I had to become a sheep or a lemming to earn and retain my rights as a MNKD long. If we were having a face to face annual meeting with the board, I would ask them directly why the need for the bloated share expansion ask on top of the still available shares, and to be specific - it's just the kind of shareholder I am. For those that simply believe they are in good hands, they are entitled to that belief, as I am equally entitled to ask hard questions and demand more transparency and accountability with my $150k on the line. To each their own, this forum is perfect for venting your feelings. You can email MC and ask the very question stockwhisperer and have your answer, instead of telling us what you would do in a public annual meeting. As if you'd get a different response from what MC communicated. Something tells me you wouldn't be satisfied with any response, otherwise, you'd be satisfied like those voted yes. I don't disagree with you that anyone can and should ask questions if they need clarity and understanding from management, and didn't call you a sheep not a lemming for doing so. That said, holding shares in a company when you disagree with what management is doing, is like keeping the girlfriend you don't trust: not something this investor would ever do, but it takes all kinds |
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Post by mytakeonit on May 10, 2023 21:52:50 GMT -5
On those shares ... there is no dilution until something happens to make Mike C and company use them. And I'm sure that it'll be used only if absolutely necessary.
But, that's mytakeonit
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Post by sportsrancho on May 11, 2023 10:04:22 GMT -5
I can not believe in light of how well MNKD is doing, this is the focus. I am going to share my communication with Mike via email on March 30, 2023… “Mike, So, as you can probably well imagine, the pot is already stirring on on line stock forums over the request regarding shares. The concern is dilution to existing shareholders upon eventual issuance of the additional shares requested. 1. To approve an amendment to MannKind’s Amended and Restated Certificate of Incorporation to increase the authorized number of shares of common stock from 400,000,000 shares to 800,000,000 shares (the “Authorized Shares Increase Proposal”); Can you please elaborate as to the reason for the request of an increase in the number of authorized shares… why they are needed, when they might be issued and how they might be used?” MC responded the next day… “ this is just normal housekeeping I wouldn’t read much more. We went to 400M and didn’t do anything crazy in the last 3 years. We have to think longer term than any given year and the board would have to approve any use of these shares. Negative people will always want to scare retail investors as the boards are filled with people who just short stocks and make money on fear. If people stopped paying attention they would have no audience to generate volume. Why else would the same people post negative comments and bash me and mnkd for 6 years. They have only one goal.” I agree with him and even prior to yesterdays outstanding conference call, I support the request and will vote “yes”. So many great things to focus on - doing just that. GL Maybe because of market conditions better to be safe than sorry. |
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Post by sportsrancho on May 11, 2023 10:14:02 GMT -5
In most cases, nobody likes management if the stock is going down, you invest in the company because of the products first.
On the other stock boards I’m on it’s amazing how people flip-flop the minute the stock goes down and then again the minute it goes back up.🤣
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Post by myocat on May 11, 2023 21:10:29 GMT -5
Assume, 400M shares will be issued, what would be the offering price? The current PPS is 4 buckarroo.
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Post by prcgorman2 on May 11, 2023 22:49:05 GMT -5
Assume, 400M shares will be issued, what would be the offering price? The current PPS is 4 buckarroo. It's worth noting the current price per share is $4.25, not $4 dollars. The 25 cents multiplied by 400 million = $100M dollars.
The shares will most likely be authorized. That's not the same as issued. The last tranche was used intermittently. This next authorization may be the same.
MNKD is sitting on close to $200M in cash, and hitting it out of the park with Cash Flow Break Even (CFBE) and profit starting this year or early next (assuming things continue as expected).
The bottom-line is speculating at an offering price is a silly waste of time on multiple levels, and there is unlikely to be a single offering or single price.
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Post by myocat on May 12, 2023 14:22:12 GMT -5
Assume, 400M shares will be issued, what would be the offering price? The current PPS is 4 buckarroo. It's worth noting the current price per share is $4.25, not $4 dollars. The 25 cents multiplied by 400 million = $100M dollars.
The shares will most likely be authorized. That's not the same as issued. The last tranche was used intermittently. This next authorization may be the same.
MNKD is sitting on close to $200M in cash, and hitting it out of the park with Cash Flow Break Even (CFBE) and profit starting this year or early next (assuming things continue as expected).
The bottom-line is speculating at an offering price is a silly waste of time on multiple levels, and there is unlikely to be a single offering or single price.
How is that silly? Would you put $ into something knowing the future volume double but not the value? |
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Post by prcgorman2 on May 12, 2023 16:38:46 GMT -5
It's worth noting the current price per share is $4.25, not $4 dollars. The 25 cents multiplied by 400 million = $100M dollars.
The shares will most likely be authorized. That's not the same as issued. The last tranche was used intermittently. This next authorization may be the same.
MNKD is sitting on close to $200M in cash, and hitting it out of the park with Cash Flow Break Even (CFBE) and profit starting this year or early next (assuming things continue as expected).
The bottom-line is speculating at an offering price is a silly waste of time on multiple levels, and there is unlikely to be a single offering or single price.
How is that silly? Would you put $ into something knowing the future volume double but not the value? Dilution is not my favorite way of raising capital, but the question you asked was too simple, and spending time trying to get to something closer to what is likely is not possible with the information available. I assume analysts are making modeling assumptions, but nothing like what you asked. The question isn’t how much money they can raise, but what is it they will do with the shares and the money? Right now I’m marking it down to prudence based on the explanations they gave in the request. I doubt that explanation but for whatever reasons, that’s all the company felt comfortable sharing. So be it. The management earned my trust based on their results because no matter how anyone tries to spin it, the future outlook is quite good, and that is a dramatic improvement from 2017. |
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