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Post by Clement on Nov 9, 2023 9:17:18 GMT -5
That's not the same as issuance of stock. |
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Post by standup on Nov 9, 2023 9:48:56 GMT -5
Four million shares added to 265 million is a 1.5% dilution. On a $4 stock it should represent a 6 cent hit. To my mind. From an Enterprise Value standpoint the act of selling shares to pay down an equal amount of debt is a wash. However, the act of selling shares dilutes earnings per share. It then depends upon which metric you value most, EV or EPS. |
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Post by myocat on Nov 9, 2023 16:29:25 GMT -5
I am told if a pps crosses the bottom Bollinger band, it will go further south...
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Post by craig on Nov 10, 2023 2:32:46 GMT -5
Yes, I see that you're correct Clement. The at-the-market stock sales don't affect the income statement--just the statement of cash flows and the balance sheet.
On the balance sheet, cash goes up (asset) and shareholder's equity goes up. Unfortunately shares in circulation also go up, which means dilution.
Dilution is not always bad--it depends on what the cash is used for. If it goes into a great new product e.g., that's one thing. If it just goes to make payroll in a terrible business, that's another thing.
I don't think Mannkind is a terrible business--that was just an example.
Regarding a related but separate issue, issuing stock to employees including the CEO (RSUs etc) can lead to dilution (not sure if that happens immediately or when RSUs e.g. are vested). Sometimes management is just fattening their wallets, sometimes good employees are brought on board or retained due to the stock incentives. It gets concerning when stock compensation is excessive. I don't know enough to say one way or the other re Mannkind. I'll study the matter further.
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Post by peppy on Nov 10, 2023 7:15:59 GMT -5
I am told if a pps crosses the bottom Bollinger band, it will go further south... , I couldn't remember who it was that sold MNKD and bought the moving Nasdaq stocks. Yesterday you reminded us it was you and you had bought AMZN. I looked at AMZN chart and it is back to highs. I doubt the PPS on AMZN has crossed the bottom Bolinger Band. I also missed that you are a chart reader. My bad. MNKD Pre-Market Time (ET) Pre-Market Price Pre-Market Share Volume Pre-Market Volume 2,500 06:08:10 $3.55 500 06:08:08 $3.55 500 06:08:07 $3.55 500 06:07:59 $3.55 500 06:07:58 $3.55 500 Regarding AMZN..... P/E 73. It has been going up since 2009. 14 years of up. Probably due for a break... a consolidation. I wouldn't be surprised now if AMZN does a 13 year consolidation like MSFT did from 2000 to 2013. I'll watch and think of you. |
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Post by BD on Nov 10, 2023 7:49:32 GMT -5
13 years of bad luck... appropriate for the pessimism thread  |
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Post by cretin11 on Nov 10, 2023 9:31:58 GMT -5
Regarding a related but separate issue, issuing stock to employees including the CEO (RSUs etc) can lead to dilution (not sure if that happens immediately or when RSUs e.g. are vested). Sometimes management is just fattening their wallets, sometimes good employees are brought on board or retained due to the stock incentives. It gets concerning when stock compensation is excessive. I don't know enough to say one way or the other re Mannkind. I'll study the matter further. Will be curious what you conclude. Perusing the Schedule 14As are a good research source, here’s one of them: investors.mannkindcorp.com/node/17491/htmlPage 28 is a good place to start. Comparing different years of 14As will give you a flavor for things in this regard, especially the “target” metrics and how they have evolved. |
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Post by myocat on Nov 10, 2023 9:52:25 GMT -5
I am told if a pps crosses the bottom Bollinger band, it will go further south... , I couldn't remember who it was that sold MNKD and bought the moving Nasdaq stocks. Yesterday you reminded us it was you and you had bought AMZN. I looked at AMZN chart and it is back to highs. I doubt the PPS on AMZN has crossed the bottom Bolinger Band. I also missed that you are a chart reader. My bad. MNKD Pre-Market Time (ET) Pre-Market Price Pre-Market Share Volume Pre-Market Volume 2,500 06:08:10 $3.55 500 06:08:08 $3.55 500 06:08:07 $3.55 500 06:07:59 $3.55 500 06:07:58 $3.55 500 Regarding AMZN..... P/E 73. It has been going up since 2009. 14 years of up. Probably due for a break... a consolidation. I wouldn't be surprised now if AMZN does a 13 year consolidation like MSFT did from 2000 to 2013. I'll watch and think of you. You remembered correctly. One can call it bloody nose dump and run, I call it shifting focus. Your investing goal and mine is growth... I don't see it in MNKD anymore. If you look at AMZN pps vs MNKD since March/April, AMZN is ahead. Good luck to all. |
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Post by peppy on Nov 10, 2023 15:01:36 GMT -5
myocat , I couldn't remember who it was that sold MNKD and bought the moving Nasdaq stocks. Yesterday you reminded us it was you and you had bought AMZN. I looked at AMZN chart and it is back to highs. I doubt the PPS on AMZN has crossed the bottom Bolinger Band. I also missed that you are a chart reader. My bad. MNKD Pre-Market Time (ET) Pre-Market Price Pre-Market Share Volume Pre-Market Volume 2,500 06:08:10 $3.55 500 06:08:08 $3.55 500 06:08:07 $3.55 500 06:07:59 $3.55 500 06:07:58 $3.55 500 Regarding AMZN..... P/E 73. It has been going up since 2009. 14 years of up. Probably due for a break... a consolidation. I wouldn't be surprised now if AMZN does a 13 year consolidation like MSFT did from 2000 to 2013. I'll watch and think of you. You remembered correctly. One can call it bloody nose dump and run, I call it shifting focus. Your investing goal and mine is growth... I don't see it in MNKD anymore. If you look at AMZN pps vs MNKD since March/April, AMZN is ahead. Good luck to all. I apologize. I am sorry. I just read the AMAZON 3rd quarter earnings. An amazing quarter. Once again, sorry I was so curt and miss spoken, myocatwhat do I know? I am a MNKD owner. |
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Post by BD on Dec 1, 2023 14:46:01 GMT -5
Had to give this thread some love I cannot unload my January 5.5 calls for .01. What a PITA, I'm just trying to get the loss on the books this year. What kind of frickin' hoops will I now need to jump through, just adding insult to injury? |
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Post by cretin11 on Dec 1, 2023 17:27:25 GMT -5
Feel for you there BD. Never considered such a problem before but there it is. I’d suggest call CEO Mike to thank him for the predicament and ask his advice. But he’d probably tell you to call your brokerage, so perhaps skip the middle man and just do that. Seriously I do think your brokerage can help you close that position.
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Post by BD on Dec 1, 2023 18:05:52 GMT -5
Hey, maybe after a few more up days like this, I'll finally be able to command my penny per call!
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Post by prcgorman2 on Dec 1, 2023 19:40:21 GMT -5
Hey, maybe after a few more up days like this, I'll finally be able to command my penny per call! Shouldn't that post be in the Optimism thread?  |
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Post by BD on Dec 1, 2023 21:04:18 GMT -5
I didn’t say I was expecting that…
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Post by longliner on Dec 4, 2023 1:34:52 GMT -5
For all the pessimists here....sorry, I'm on the wrong thread!  Please sell...soon! We are becoming profitable, the sooner you sell so the tutes can get their allotment the better for me! Buy bye |
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