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Post by orlon on Sept 22, 2016 11:25:41 GMT -5
I suggested last November that delisting was possible in the first quarter of 2016 just looking at the trend...I was off a bit. I still own quite few shares and like many others, I am under water. Still, I think the product is great, the potential for technosphere is great, and still believe it will succeed. Al Mann said once it should not take ten years and a billion dollars to bring a drug to market. He was correct of course, but failed to see the obstacles Afrezza faced in becoming widely used:Big pharmas such as Sanofi and Novo's profits were being threatened, the needle industry etc threatened, and the protectionists attitude of those who control the diabetic industry needed to be preserved. Throw in the short sellers including those who lend their shares to shorts then reinvests their dividends to lend more to shorts, then one has to come up with the situation we have today. The only logical step at this point is a 1/5 or maybe even a 1/10 reverse stock split to make the company's stock attractive. I suggest their are to many shares outstanding as it is, and a reservse stock split might be a good thing. The eternal optimists that post on this board believe the Pinks might not be that bad and that a reverse split would be terrible. I happen to think that thinking is wrong though many might disagree.
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Post by audiomr on Sept 22, 2016 11:44:51 GMT -5
A reverse split would likely do damage, possibly considerable. The share price would be up by the split factor at the time it occurred but most likely would drop from there. Reverse splits are usually a desperation move and thus send a negative signal about the stock. If you're concerned about de-listing, don't be. If we get to the point where that actually is happening (many months from now) it will be because Afrezza has failed in the market and the company is going down.
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Post by cjc04 on Sept 22, 2016 11:53:34 GMT -5
A reverse split would likely do damage, possibly considerable. The share price would be up by the split factor at the time it occurred but most likely would drop from there. Reverse splits are usually a desperation move and thus send a negative signal about the stock. If you're concerned about de-listing, don't be. If we get to the point where that actually is happening (many months from now) it will be because Afrezza has failed in the market and the company is going down. Couldn't have said it better..... Our fate will be known by the time the actual delisting took place. Without anything fundamental to support it, a RS now would raise the sp only to give more room for shorts to knock it back down. |
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Post by Deleted on Sept 22, 2016 12:06:07 GMT -5
A reverse split would likely do damage, possibly considerable. The share price would be up by the split factor at the time it occurred but most likely would drop from there. Reverse splits are usually a desperation move and thus send a negative signal about the stock. If you're concerned about de-listing, don't be. If we get to the point where that actually is happening (many months from now) it will be because Afrezza has failed in the market and the company is going down. Agreed Maybe this is where Nate is getting his $10 price tag |
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Post by surplusvalue on Sept 22, 2016 14:31:34 GMT -5
I suggested last November that delisting was possible in the first quarter of 2016 just looking at the trend...I was off a bit. I still own quite few shares and like many others, I am under water. Still, I think the product is great, the potential for technosphere is great, and still believe it will succeed. Al Mann said once it should not take ten years and a billion dollars to bring a drug to market. He was correct of course, but failed to see the obstacles Afrezza faced in becoming widely used:Big pharmas such as Sanofi and Novo's profits were being threatened, the needle industry etc threatened, and the protectionists attitude of those who control the diabetic industry needed to be preserved. Throw in the short sellers including those who lend their shares to shorts then reinvests their dividends to lend more to shorts, then one has to come up with the situation we have today. The only logical step at this point is a 1/5 or maybe even a 1/10 reverse stock split to make the company's stock attractive. I suggest their are to many shares outstanding as it is, and a reservse stock split might be a good thing. The eternal optimists that post on this board believe the Pinks might not be that bad and that a reverse split would be terrible. I happen to think that thinking is wrong though many might disagree. Actual delisting, if it even happens, is a long way off so your point about the pinks is a bit premature. As for usefullness of a reverse split under the present conditions it's a terrible idea for the reasons I outlined in a previous discussion about a reverse here mnkd.proboards.com/thread/6043/additional-capital. Up to you but it might be worthwhile reading all my posts in that thread as to the reasons why its not a good approach. |
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Post by bosephe on Sept 22, 2016 15:25:10 GMT -5
From today's 8k
"The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider implementing available options to regain compliance with the Minimum Bid Price Requirement under the Nasdaq Listing Rules."
What options other than a RS do they have to regain compliance with the Minimum Bid Price Requirement?
If this company ever makes they need to start paying a dividend.
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Post by orlon on Sept 22, 2016 17:11:22 GMT -5
Surplus...I appreciate your comment and looked over some of your previous posts as you suggested. However, with 478.05 million shares outstanding, short interest at 34.83% (95.64 million shares) and a stock price fluctuating between .68-.70c for the last month. In fact the last time MNKD closed at a dollar was on Aug 16. Look at the share price history for the previous several months...all above/below the dollar by just a few cents. A reverse slit may appear to be a desperate move but IF and it's a big IF, Mike C's strategy pays off and the stock price goes from $6.90 as a result of a 1/10 reverse to $16.90,and continues upward. I understand where you're coming from, but it's not as if MNKD has many options left...more dilution and stock offerings add what, another 20-30 million shares? I know of few small companies that make it with half a billion shares outstanding. These may indeed be desperate times.
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Post by Deleted on Sept 22, 2016 17:53:04 GMT -5
Reverse splits can be a great idea and a bad idea. On the great idea side we're usually talking about companies with huge revs and at least some earnings and in those cases, a reverse split gets rid of the high share count while improving the visual impact of their numbers. Many financial metrics are tied to the number of shares issued. Some examples of how it works out well can be read about here: www.cnbc.com/id/42212417If the company doesn't have earnings or revs, their stock prices are usually low (with exceptions of course) and they are struggling to stay listed and face the situation that mnkd is now facing. One way to get the stock price back over a buck is to? yep, reverse split. The issue will be that unless there are earnings and revs or at least excitement around the possibilities of revs/earnings, the stock will simply drift back down to the lowest level again. Examples here: www.cnet.com/news/reverse-splits-arent-always-reversals-of-fortune/ There are exceptions to this like siri which you can read about here: www.fool.com/investing/general/2012/03/20/reverse-splits-arent-all-bad.aspx but some of the key words to describe siri's situation at the time of this article include "The satellite radio giant is consistently profitable, growing its subscriber base, and generating a ton of cash flow." which goes a long way to support a reverse split and maintain or even grow the new stock price. Barring some other financial influx, for mnkd it could be a tool needed to stay listed on the nasdaq. They have a long runway on this which can be resolved by increased sales or other cash infusion event big enough to move the stock price above a buck. |
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Post by kball on Sept 22, 2016 18:16:41 GMT -5
Surplus...I appreciate your comment and looked over some of your previous posts as you suggested. However, with 478.05 million shares outstanding, short interest at 34.83% (95.64 million shares) and a stock price fluctuating between .68-.70c for the last month. In fact the last time MNKD closed at a dollar was on Aug 16. Look at the share price history for the previous several months...all above/below the dollar by just a few cents. A reverse slit may appear to be a desperate move but IF and it's a big IF, Mike C's strategy pays off and the stock price goes from $6.90 as a result of a 1/10 reverse to $16.90,and continues upward. I understand where you're coming from, but it's not as if MNKD has many options left...more dilution and stock offerings add what, another 20-30 million shares? I know of few small companies that make it with half a billion shares outstanding. These may indeed be desperate times. Wait, a what? |
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Post by surplusvalue on Sept 22, 2016 21:11:14 GMT -5
Surplus...I appreciate your comment and looked over some of your previous posts as you suggested. However, with 478.05 million shares outstanding, short interest at 34.83% (95.64 million shares) and a stock price fluctuating between .68-.70c for the last month. In fact the last time MNKD closed at a dollar was on Aug 16. Look at the share price history for the previous several months...all above/below the dollar by just a few cents. A reverse slit may appear to be a desperate move but IF and it's a big IF, Mike C's strategy pays off and the stock price goes from $6.90 as a result of a 1/10 reverse to $16.90,and continues upward. I understand where you're coming from, but it's not as if MNKD has many options left...more dilution and stock offerings add what, another 20-30 million shares? I know of few small companies that make it with half a billion shares outstanding. These may indeed be desperate times. Wait, a what? It's applied to the wrist of underwater longs after a reverse split; i.e. when a company in desperate straits acts without thinking because everyone wanted them to take action. |
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Post by surplusvalue on Sept 22, 2016 21:38:07 GMT -5
Surplus...I appreciate your comment and looked over some of your previous posts as you suggested. However, with 478.05 million shares outstanding, short interest at 34.83% (95.64 million shares) and a stock price fluctuating between .68-.70c for the last month. In fact the last time MNKD closed at a dollar was on Aug 16. Look at the share price history for the previous several months...all above/below the dollar by just a few cents. A reverse slit may appear to be a desperate move but IF and it's a big IF, Mike C's strategy pays off and the stock price goes from $6.90 as a result of a 1/10 reverse to $16.90,and continues upward. I understand where you're coming from, but it's not as if MNKD has many options left...more dilution and stock offerings add what, another 20-30 million shares? I know of few small companies that make it with half a billion shares outstanding. These may indeed be desperate times. Orlon, Like much of the Dilution thread posted on the board, your idea about the stock price is pure speculation. After a reverse with nothing to hold it up the SP could plummet just as easily and you wouldnt t see $16.90 and perhaps not even recover back to $6.90. Seen it many times before with many companies in the same poor situation; desperate acts beget Wall street vultures bearing gifts and produce more desperation. As for options i have said before that we are on the no need to know end of the spectrum so we have no clue as to what is going on behind what is visible to us or what options are actually available to MNKD. A number of people here are acting like chicken little here screaming the sky is falling but it isn't. Better to wait and see what the direct to patients efforts bring in terms of scripts (which I have stated before probably will not be significantly visible until December anyways) and if successful build the sp organically. Doing a reverse split to "save" MNKD might produce something like this trying to save someone and going the wrong way: www.youtube.com/watch?v=Cy9a0bSCse8 |
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Post by orlon on Sept 23, 2016 13:18:24 GMT -5
Ah...the old Secret Plan that know one needs to know? I think we've all heard this or some version of it before...it was nonsense then as it is now. There are no good options period.
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Post by sluggobear on Sept 23, 2016 14:26:50 GMT -5
I did some Google searching of reverse splits when I bought Lexicon at a dollar because soon after they did a 7 to 1 split. I looked at their clinical data for 2 drugs in phase 2 which seemed good and the data held up in Phase 3 trials for both. So luckily for me Lexicon now sits at about $19. This is such a déjà vu moment, I'm sure I posted this when MNKD was here before. www.cnbc.com/id/42212417Delisting is worse than a reverse split IMO. But I am far from an expert in this matter. |
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Post by tayl5 on Sept 23, 2016 15:18:32 GMT -5
In the end, it's all about performance. A reverse split is a symptom of a stock that's in decline, not the cause of the decline. It sends an unfortunate signal but only matters if the underlying performance problem is not resolved. If we do a 10:1 reverse split and the stock goes up 50X on increasing sales, no one will complain. If we do the split and sales languish, we die either way.
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Post by surplusvalue on Sept 24, 2016 15:10:26 GMT -5
Ah...the old Secret Plan that know one needs to know? I think we've all heard this or some version of it before...it was nonsense then as it is now. There are no good options period. You are misrepresenting what I posted. Never said anything about a secret plan at all. Two points I made, among others , were 1) as retail owners of the stock we have the least access to information " on the no need to know end of the spectrum" and 2) we can speculate and guess but we do not know exactly what options are available to MNKD. Hence the only "nonsense" here is a figment of your imagination. |
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