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Post by u1682002 on Dec 9, 2015 15:59:33 GMT -5
As a long-term MNKD investor, the only answer I am seeking for is whether or not Al will choose to wipe out common shares in order to save the company with his name on it. It will be really nice if Al can say a few words to assure us as we are heading to the holiday season so we can at least a peaceful mind even we did not have "good year" as MNKD investor.
My bet is he will not but I would like hear some analysis about the chance for this to happen. I need this kind of information for me to come up with some protection plan. |
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Post by me on Dec 9, 2015 16:11:25 GMT -5
"Wipe out common shares" as in cancel? Is that what you mean? Or do you mean something other than cancel? Or do you mean to imply something else entirely?
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Post by u1682002 on Dec 9, 2015 16:24:32 GMT -5
"Wipe out common shares" as in cancel? Is that what you mean? Or do you mean something other than cancel? Or do you mean to imply something else entirely? "Wipe out" in my post means MNKD files BK to leave common shares nothing. Al as bond or note holder can still control most of the company. To be honest, I have made a 7-figure profit by trading (long only) this stock but I lost most of my profit after re-investing my profit in DNDN. My analysis is that the chance for this to happen in MNKD is very small for next 6 month but I really like hear more analysis from others so I can have a more balanced mind-set.
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Post by jeremg on Dec 9, 2015 16:29:51 GMT -5
I had thought you were referring to Al taking the company private (which I believe would be a prudent move for Al at this point) but to answer your questions about BK, common shareholders would be completely wiped out in BK. It likely would not get to that point though as it is my belief that Al would auction the company first OR take it private.
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Post by nadathing on Dec 9, 2015 16:34:13 GMT -5
If you don't mind responding, how would Al take it private? Does he make an offer to buy all outstanding shares? Do we then vote to accept or not? If he makes an offer and people refuse to sell at his price what then? Thanks.
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Post by jeremg on Dec 9, 2015 16:49:27 GMT -5
Al and management control a majority interest in the company and have the votes to do most anything. Honestly I don't know "how" a company is taken private as I have never experienced anything like this before but I know Al could finance it at this point if not pay for it out of his own pocket. If he were able to take the company private at these ridiculous valuations, he could turn around and sell it making a LARGE profit for himself and his financiers in a very short period of time. I think of it as: if I were Al, what would I do at this point to make back my investment?
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Post by james on Dec 9, 2015 16:54:02 GMT -5
Bankruptcy is not a topic for consideration until further financing cannot be raised to meet ongoing obligations. At this point, the market cap is above 600M, so the company can likely still raise a large amount through equity sales. The other thing of course is that Al has a big vote, but the board of directors are still legally obligated to represent the shareholders.
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Post by parrerob on Dec 9, 2015 16:58:03 GMT -5
I don't think Al can buy Your share at a "forced price" then sell the company at an higher price.
At least hope no.
Probably He can buy on the market the remaining % (51% total ?) to be able to take out the company from "public" trading.
Just guessing...
If You keep the shares You will become like a small investor in a private company..... Just hoping
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Post by fedakd on Dec 9, 2015 17:01:58 GMT -5
Do you guys every Google this stuff? It's not difficult.
The team taking it private would require 90% of shares tendered to them. Al has 40%. Do you think he's going to get the other 50% by making an offer of $3? 80+% of outstanding shareholders would still be under water. He would have to keep topping up his price until he received 90% of the shares tendered to him.
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Post by daduke38 on Dec 9, 2015 17:09:24 GMT -5
Do you guys every Google this stuff? It's not difficult. The team taking it private would require 90% of shares tendered to them. Al has 40%. Do you think he's going to get the other 50% by making an offer of $3? 80+% of outstanding shareholders would still be under water. He would have to keep topping up his price until he received 90% of the shares tendered to him. Good point! And I just don't see him even entertaining the idea. |
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Post by purge on Dec 9, 2015 17:09:58 GMT -5
It is my belief that management at Mannkind is either incompetent or criminal. Until they stop being evasive and until they stop being opaque and until they stop being dishonest with reatail longs and wall street, I am convinced they are going to hammer us all.
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Post by EveningOfTheDay on Dec 9, 2015 17:14:57 GMT -5
It is my belief that management at Mannkind is either incompetent or criminal. Until they stop being evasive and until they stop being opaque and until they stop being dishonest with reatail longs and wall street, I am convinced they are going to hammer us all. Well, as long as it is your belief we are pretty safe from it being real. |
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Post by EveningOfTheDay on Dec 9, 2015 17:15:59 GMT -5
The short answer to that question, is there any possibility Al chooses to wipe out common shares?, is NO.
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Post by jeremg on Dec 9, 2015 17:18:06 GMT -5
Do you guys every Google this stuff? It's not difficult. The team taking it private would require 90% of shares tendered to them. Al has 40%. Do you think he's going to get the other 50% by making an offer of $3? 80+% of outstanding shareholders would still be under water. He would have to keep topping up his price until he received 90% of the shares tendered to him. I haven't done any "googling" on the topic but I was under the impression that Al taking the company private would be no different than another company putting in a bid which a majority vote could allow to go through(?). Also, $3 is a 200% 100% premium from today's price, if someone offered me $3 today to end this nightmare I would gladly take it. Being offered $3 today considering where we are and what the trajectory looks like is VERY different from MNKD achieving a $3 price tag again on progress and positive material news; $3 today would be a gift. Correction: $3 is a 100% premium from todays closing price. |
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Post by fedakd on Dec 9, 2015 17:35:28 GMT -5
Do you guys every Google this stuff? It's not difficult. The team taking it private would require 90% of shares tendered to them. Al has 40%. Do you think he's going to get the other 50% by making an offer of $3? 80+% of outstanding shareholders would still be under water. He would have to keep topping up his price until he received 90% of the shares tendered to him. I haven't done any "googling" on the topic but I was under the impression that Al taking the company private would be no different than another company putting in a bid which a majority vote could allow to go through(?). Also, $3 is a 200% premium from today's price, if someone offered me $3 today to end this nightmare I would gladly take it. Being offered $3 today considering where we are and what the trajectory looks like is VERY different from MNKD achieving a $3 price tag again on progress and positive material news; $3 today would be a gift. What about the institutions, jeremg? They hold a lot more shares than you. Your 0.0000000001% of shares, and your vote is meaningless. |
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