SA: MannKind Investors, Hold On For The Long Haul
Feb 24, 2015 8:31:45 GMT -5
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Post by savzak on Feb 24, 2015 8:31:45 GMT -5
seekingalpha.com/article/2943776-mannkind-investors-hold-on-for-the-long-haul
MannKind Investors, Hold On For The Long Haul
(Author: The Kumquat)
Feb. 24, 2015 8:25 AM ET | About: MannKind Corporation (MNKD)
Disclosure: The author is long MNKD. (More...)
Summary
MannKind has launched its long-awaited inhaled insulin Afrezza this quarter.
Sales numbers and other news could send the stock flying.
MNKD could be a once in a lifetime investment, and not just because of Afrezza.
Hold on to your shares. You'll regret settling for short-term gains.
The time is upon us. If you have been a MannKind (NASDAQ:MNKD) shareholder for a long time like I have, you know what a bumpy ride it has been leading up to this point. But now we are finally here. Afrezza, MNKD's long-awaited inhaled insulin drug, has launched in the U.S. after gaining FDA approval last year on its third attempt. MNKD and its shareholders have been waiting for this moment for a long time and now that it's here, victory seems inevitable. But I urge long time investors and those who have invested in MNKD recently: no matter how high the stock might rocket on good news such as sales numbers, patient feedback or any other positive news, those gains will be peanuts compared to what MNKD can yield over the long run.
MNKD data by YCharts
MannKind reports earnings Tuesday and it's possible, though not probable, that the company might have something to whet investors appetites in terms of how Afrezza has been performing in the market thus far. If this is indeed the case, the stock could react by shooting higher on the positive news. At that point, I know some investors, including myself in other situations, would consider maybe selling a portion or all of their holding in the company to receive a nice gain. However, investors should definitely think twice and then a third time about selling shares no matter how high the stock goes in the short-term.
This is a company with one revolutionary drug on the market and a technology that could potentially spawn more profitable, if not blockbuster, drugs. This technology is the delivery mechanism Afrezza utilizes to deliver insulin into patients bloodstream through the lungs and it's called Technosphere. Many bears (and even some bulls) tend to either completely ignore or lessen the significance of this system, which is the key to MNKD's long-term success. Whether Technosphere is licensed out for other companies to use or used by MNKD itself to create another drug, the technology has the potential to turn MNKD into a biotechnology powerhouse. Call me optimistic, but I think that after Afrezza vindicates the effectiveness Technosphere, we will see the true value of the technology as it produces more commercial applications. A very important reason that Technosphere has flown relatively under the radar is that it has not been validated. Afrezza will do exactly that.
With Afrezza facing low expectations from the market and Technosphere technology capable of opening new sources of revenue in various ways, MNKD could be the recipient of some huge catalysts in the near future and beyond. It is for this reason that I will hold on to my MNKD shares for at least another three years and why I recommend you do the same. The market views MNKD as a one-trick pony even though it still has so much untapped potential.
With an earnings report coming up that may cause a big stock price swing, I thought I should write this article and explain my thought process. If you're on the fence about this particular recommendation, then all I can say is that trying to play MNKD short-term could result in handsome gains, but holding on for the long-term could result in once-in-a-lifetime gains. If you find a trail of gold coins lying on the ground, do you take a few and flee satisfied or do you follow the trail to the treasure chest full of those gold coins? I made this analogy up on the spot so I apologize if it wasn't very eloquent, but my point remains. Don't let this opportunity pass you by.
Conclusion
There is a high probability that any positive news regarding Afrezza's launch could send MNKD's stock price soaring. I recommend that investors hold on to their shares for the foreseeable future as it is my opinion that the company's success is just getting started. Batten down the hatches and hold on for the long haul.
MannKind Investors, Hold On For The Long Haul
(Author: The Kumquat)
Feb. 24, 2015 8:25 AM ET | About: MannKind Corporation (MNKD)
Disclosure: The author is long MNKD. (More...)
Summary
MannKind has launched its long-awaited inhaled insulin Afrezza this quarter.
Sales numbers and other news could send the stock flying.
MNKD could be a once in a lifetime investment, and not just because of Afrezza.
Hold on to your shares. You'll regret settling for short-term gains.
The time is upon us. If you have been a MannKind (NASDAQ:MNKD) shareholder for a long time like I have, you know what a bumpy ride it has been leading up to this point. But now we are finally here. Afrezza, MNKD's long-awaited inhaled insulin drug, has launched in the U.S. after gaining FDA approval last year on its third attempt. MNKD and its shareholders have been waiting for this moment for a long time and now that it's here, victory seems inevitable. But I urge long time investors and those who have invested in MNKD recently: no matter how high the stock might rocket on good news such as sales numbers, patient feedback or any other positive news, those gains will be peanuts compared to what MNKD can yield over the long run.
MNKD data by YCharts
MannKind reports earnings Tuesday and it's possible, though not probable, that the company might have something to whet investors appetites in terms of how Afrezza has been performing in the market thus far. If this is indeed the case, the stock could react by shooting higher on the positive news. At that point, I know some investors, including myself in other situations, would consider maybe selling a portion or all of their holding in the company to receive a nice gain. However, investors should definitely think twice and then a third time about selling shares no matter how high the stock goes in the short-term.
This is a company with one revolutionary drug on the market and a technology that could potentially spawn more profitable, if not blockbuster, drugs. This technology is the delivery mechanism Afrezza utilizes to deliver insulin into patients bloodstream through the lungs and it's called Technosphere. Many bears (and even some bulls) tend to either completely ignore or lessen the significance of this system, which is the key to MNKD's long-term success. Whether Technosphere is licensed out for other companies to use or used by MNKD itself to create another drug, the technology has the potential to turn MNKD into a biotechnology powerhouse. Call me optimistic, but I think that after Afrezza vindicates the effectiveness Technosphere, we will see the true value of the technology as it produces more commercial applications. A very important reason that Technosphere has flown relatively under the radar is that it has not been validated. Afrezza will do exactly that.
With Afrezza facing low expectations from the market and Technosphere technology capable of opening new sources of revenue in various ways, MNKD could be the recipient of some huge catalysts in the near future and beyond. It is for this reason that I will hold on to my MNKD shares for at least another three years and why I recommend you do the same. The market views MNKD as a one-trick pony even though it still has so much untapped potential.
With an earnings report coming up that may cause a big stock price swing, I thought I should write this article and explain my thought process. If you're on the fence about this particular recommendation, then all I can say is that trying to play MNKD short-term could result in handsome gains, but holding on for the long-term could result in once-in-a-lifetime gains. If you find a trail of gold coins lying on the ground, do you take a few and flee satisfied or do you follow the trail to the treasure chest full of those gold coins? I made this analogy up on the spot so I apologize if it wasn't very eloquent, but my point remains. Don't let this opportunity pass you by.
Conclusion
There is a high probability that any positive news regarding Afrezza's launch could send MNKD's stock price soaring. I recommend that investors hold on to their shares for the foreseeable future as it is my opinion that the company's success is just getting started. Batten down the hatches and hold on for the long haul.