Wall Street Journal

[orlon]

I just looked at the October 13, 2014 copy of the Wall Street Journal section on the top 50 companies that are shorted. I did not find Mannkind in any of the categories, be it increase, decrease, percentage of float, days to cover or anything else. I have noticed a trend in this forum to concentrate of shorting. I myself stay away from things I don't fully understand. The fact that there are hedge funds and individuals shorting MNKD, a company that invested over a billion dollars to develop AFREZZA and Technosphere, receive approval from the FDA, partner with Sanofi and will launch next year somehow did not make a lot of sense to me. I wondered about why people shorting the company were so sure and wondered what I was missing. The PPS should be going up not down. Then one thing occurred  to me: What happens when Dr. Al Mann passes away? Will there be a struggle for control of the company? Will heirs drag the company through the courts? Will greed trump success? It strikes me that those who are short the stock see an easy mark. The founder and leader near ninety, and possibly a very difficult transition after his death. 

[dreamboatcruise]

That seems a little thin of a reason to short a stock. I think the better explanation is simply seen in the huge success the shorts have been having. They have not needed anyone to die in order to push the price down.

[babaoriley]

I'm fairly confident has his affairs in order and that there will be a fairly orderly transition should he pass. And, at 90, not too many are looking for him to be the guy pulling rabbits out of hats. I even have to admit, although I would be in agreement with what OPC thought many moons ago (have no idea what or if he thinks now), Al's passing may facilitate or even enable any eventual sale of the company.

[mannmade]

This has been written about before in several different spaces and I have contributed my own two cents on the subject here previously as well. To briefly recap, I think his affairs are in order at this point. Al has stated he is not leaving anything to his kids as they already have been too spoiled, so doubt there will be any post mortum control struggles. I think Al has several good and productive years ahead and doubt he will not stop until he is physically compelled to or otherwise, but also now with Sanofi in the picture and sales and marketing mostly in their control I think his passing will be very sad but not effect the company itself. Apple seems to have survived (although some might debate this) with the passing of Steve Jobs... And so life goes...

[trenddiver]

Reminds me of the Mark Twain quote:

"The reports of my death have greatly exaggerated"

[mnholdem]

Our Chairman and Chief Executive Officer and principal stockholder can individually control our direction and policies, and his interests may be adverse to the interests of our other stockholders. After his death, his stock will be left to his funding foundations for distribution to various charities, and we cannot assure you of the manner in which those entities will manage their holdings.*

At June 30, 2014, our Chairman and Chief Executive Officer, Alfred E. Mann beneficially owned 38.7% of our outstanding shares of capital stock. By virtue of his holdings, Mr. Mann may be able to continue to effectively control the election of the members of our board of directors, our management and our affairs and prevent corporate transactions such as mergers, consolidations or the sale of all or substantially all of our assets that may be favorable from our standpoint or that of our other stockholders or cause a transaction that we or our other stockholders may view as unfavorable.

Subject to compliance with United States federal and state securities laws, Mr. Mann is free to sell the shares of our stock he holds at any time. Upon his death, we have been advised by Mr. Mann that his shares of our capital stock will be left to the Alfred E. Mann Medical Research Organization, or AEMMRO, and AEM Foundation for Biomedical Engineering, or AEMFBE, not-for-profit medical research foundations that serve as funding organizations for Mr. Mann’s various charities, including the Alfred Mann Foundation, or AMF, and the Alfred Mann Institutes at the University of Southern California, the Technion-Israel Institute of Technology, and Purdue University, and that may serve as funding organizations for any other charities that he may establish. The AEMMRO is a membership foundation consisting of six members, including Mr. Mann, his wife, three of his children and Dr. Joseph Schulman, the chief scientist of the AEMFBE. The AEMFBE is a membership foundation consisting of five members, including Mr. Mann, his wife, and the same three of his children. Although we understand that the members of AEMMRO and AEMFBE have been advised of Mr. Mann’s objectives for these foundations, once Mr. Mann’s shares of our capital stock become the property of the foundations, we cannot assure you as to how those shares will be distributed or how they will be voted.

Source: Form 10-Q For the Quarterly Period Ended June 30, 2014

[rockstarrick]

What a great cause to donate to. It seems to me when you give to charities that help others, it comes back 10 fold. Nobody should discount Al, one of the most dedicated Philantropist of our time, because of his age. Al has signed an agreement with Sanofi that will give us 35% of the profits of Afrezza for the life of the drug. Again I have to go back to Henry Ford, do you think people are still making money on the evolution of the Automobile,(Tesla), we could be watching the same thing with Technosphere as it evolves the way we medicate.
Because of Al Mann, Mankind is evolving, we will see the quality of life improved for millions of people. Al Mann is in good health, I would be more worried about what happens to your shares after you pass. We all need to remember, if it weren't for Al Mann none of us would even be chatting or have this opportunity. Just my thoughts, and I have to chime in when shareholders bring up Al dying. We all knew Al Manns age when we invested in Mannkind.
Very Proud to be MNKD Long. Good Luck To All. RSR

[Deleted]

Oct 13, 2014 18:13:40 GMT -5 orlon said:

  The founder and leader near ninety, and possibly a very difficult transition after his death. 


Oh, so they are shorting Al Mann, not really MNKD.  I always thought there are people who would short their grandmother if they could.  This is close to that.

[mannitrust]

Who is dying bub?