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Post by mnkdfann on Nov 10, 2015 11:15:25 GMT -5
I have a big investment too in the company. My cost ranges from 10 down to 2.75 I would probably not come out whole if they took it private but that is always the risk we take as investors. I can tell you that Al isn't taking the company private. It would make no sense given the move to TASE and issuing 50 million more shares. Al may not WANT to take the company private, but going to the TASE could be a last ditch effort to avoid having to do so. If things do not go the way he wants with that move, then he may have no choice BUT to take it private.
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Post by BlueCat on Nov 10, 2015 11:26:03 GMT -5
Yes I noticed this too. Instead of saying he wanted to avoid issuing shares that they could short, he stated he wanted to avoid issuing shares that they could purchase to unwind. Not going to lie - that made me really happy haha. Keep in mind too, that its not just that they are suggesting these index funds cannot lend. But also, some of those 50m shares will be coming out of open market - the float. By buying up the float, that will increase pressure. Or at least, make them go even more naked. Does anyone have a sense whether or not the BOFA 9m returned shares will be part of that 50m? That would certainly reduce the pain if it is, and part is open market buy …..
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Post by mnholdem on Nov 10, 2015 12:26:49 GMT -5
I can tell you that Al isn't taking the company private. It would make no sense given the move to TASE and issuing 50 million more shares. Al may not WANT to take the company private, but going to the TASE could be a last ditch effort to avoid having to do so. If things do not go the way he wants with that move, then he may have no choice BUT to take it private. This is far from a last ditch effort. Years ago, MannKind Corporation authorized 550M common shares and 10M preferred shares, of which 414.76M shares are outstanding, give or take a few k's. TASE sale adds another 50M shares (41M treasury +9M BofA returns) = 465M shares outstanding.
Therefore, there are 85M authorized common shares remaining in the treasury that, hopefully, MannKind will never need to sell. Nobody is happy about additional dilution, but I think folks are going to be surprised how quickly this all turns around. Regardless, we have enough cash to postpone this debate for another year or more...
Good fortune all.
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Post by kimi on Nov 10, 2015 12:35:41 GMT -5
This is my take on 50.000.000 shares
1. We know, shares for the indices are related to MCP 2. Shares needed should be around 30 Mill. a few days ago 3. As lower as the pps is on Nov. 12 less shares are needed 4. The difference between 50 Mill shares and needed shares is rising ------------------------------ Who will profit most? The guy who will buy this "difference shares" at a remarkable low price ------------------------------ Absolutely genius strategy, Al! Al let the shorts doing a great job for him.
(It's not of interest whether Mannkind generates $100 Mill or $150 Mill - Al would pay in any dangerous situation)
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