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Post by me on Feb 3, 2017 13:53:31 GMT -5
But, but, but, surplusvalue , you said here, "Youll need $50 to break even. Now go look at what the share price of big pharmas are and tell me that MNKD will get up there with the big boys within a few years?" Heck, if MNKD did a 1:200 R/S, they'd be right there tomorrow! Your very statement here seems to indicate that uvula 's caution about investing in stocks was warranted. Do you really think the value of a company is resident in the absolute dollar price of the share of stock? If not, then why the statement above? If so, then I'd recommend you at least think about uvula 's comment a little more reflectively. (BTW, I personally believe a R/S is almost always a bad sign for a stock. Unlike a lot of posters here, however, I am not equating shareholder approval of a R/S with the actual execution of a R/S.) Read more: mnkd.proboards.com/thread/7203/reverse-stock-split-smoke-mirrors?page=1#ixzz4Xe4phodzDo you really think the share price of the stock has no bearing on the value of the company? See,we can both play the infantile game of using statements in the extreme to bring a posters view in to disrepute by inferring something they never stated. Doesnt accomplish much does it? The share price of an equity, all by itself, provides incomplete information as to the value of a company. One must also know the quantity of shares outstanding. I stand by the implication of my statement highlighted above, that the value of a company is not resident in the absolute dollar price of a share of its stock. |
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Post by wgreystone on Feb 3, 2017 13:55:03 GMT -5
Don't know why people are so against R/S. 450m shares for a small biotech companies are just way too much. I'd like to see a 10/1 split to bring down the share count.
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Post by uvula on Feb 3, 2017 13:56:43 GMT -5
Sweedee,
Sorry you don't like my style. I'm just trying to help. I don't keep track of who says what but I did a quick look at your recent posts and you are one of the people who thinks that the upside potential is worse after a RS so I can see why you might not like what I said.
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Post by mikesmilitaria on Feb 3, 2017 14:01:13 GMT -5
Mikesmilitaria,
Do you really believe that if 1 company acquires another company they just add all the shares together without regard to the relative cost of each share price?
____________________
NO---Amgen at ~$140ps and MNKD at $5ps (post R/S) would not seem to work now would it?
Who knows the perceived value of MNKD by Amgen (or anyone else for that matter) but it is far greater than $5ps and that has probably been determined.
MNKD @ 50mm shares @ $5ps vs. 500mm shares @$0.50ps reestablishes a price to prevent delisting and again opens MNKD to institutional buyers.
The time line for that negotiation has probably been set soon after the R/S....in March.
If they procrastinate much after the R/S the shorts will rip the pps back to under a buck in no time.
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Post by factspls88 on Feb 3, 2017 14:02:26 GMT -5
For the record I am not happy about the RS but I guess it had to be done to remove the threat of delisting. I've been assuming the RS would be nothing but bad and that the new price would likely go down after the RS, but I did find examples of successful RS's. Here's a link. www.cnbc.com/id/42212417 |
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Post by surplusvalue on Feb 3, 2017 14:02:34 GMT -5
Do you really think the share price of the stock has no bearing on the value of the company? See,we can both play the infantile game of using statements in the extreme to bring a posters view in to disrepute by inferring something they never stated. Doesnt accomplish much does it? The share price of an equity, all by itself, provides incomplete information as to the value of a company. One must also know the quantity of shares outstanding. I stand by the implication of my statement highlighted above, that the value of a company is not resident in the absolute dollar price of a share of its stock. Now . now lets not try to misdirect everyone here. The issue was not about the veracity of your statement but rather your implying that I thought that it is resident in the absolute dollar price of the stock. But you and I know i never said any such thing nor did I imply it by any of my statements. You just took an opportunity to distort. Hope you're done now as this isnt productive. |
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Post by Deleted on Feb 3, 2017 14:06:18 GMT -5
Mikesmilitaria, Do you really believe that if 1 company acquires another company they just add all the shares together without regard to the relative cost of each share price? ____________________ NO---Amgen at ~$140ps and MNKD at $5ps (post R/S) would not seem to work now would it? Who knows the perceived value of MNKD by Amgen (or anyone else for that matter) but it is far greater than $5ps and that has probably been determined. MNKD @ 50mm shares @ $5ps vs. 500mm shares @$0.50ps reestablishes a price to prevent delisting and again opens MNKD to institutional buyers. The time line for that negotiation has probably been set soon after the R/S....in March. If they procrastinate much after the R/S the shorts will rip the pps back to under a buck in no time. hate to see some investors sidetracked with such posts. You can choose to write what ever you want , but i hope people here have a rational mind and mentally block such theories. |
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Post by surplusvalue on Feb 3, 2017 14:06:19 GMT -5
Don't know why people are so against R/S. 450m shares for a small biotech companies are just way too much. I'd like to see a 10/1 split to bring down the share count. Its not the RS per se but what it communicates and what usually accompanies it. See my posts in this thread and elsewhere. |
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Post by brotherm1 on Feb 3, 2017 14:06:53 GMT -5
Why is not a 5-1 reverse split an option?
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Post by oldfishtowner on Feb 3, 2017 14:15:23 GMT -5
If the price is .90 you do the split anyway, because the (my) expectation is for more dilution. I don't see any way the scripts could increase enough to negate the cash burn. It's possible MannKind could get an international deal done for Afrezza that gets them cash; but it's also possible I could win the lottery tomorrow. We don't have a record of execution here. We're always projecting a brighter future, but if you look at the Options loses (ending worthless) optimism isn't wise. In the absence of a partnership deal, I expect dilution as well. The point is that the amount of dilution depends on the health of the stock at the time of the equity financing. The R/S will not be disastrous if script growth is good enough to support a pre-R/S stock price of close to $1. I also agree that there is not a good record of script growth, if that is what you mean by execution. However, as I said in another thread, Matt and Mike have made progress on several fronts, not the least of which is insurance coverage. 70% of commercial lives covered and most without a PA is a major accomplishment and a big deal. Also, if nothing else, the new sales team should be able to double the number of weekly calls and double the number of physicians visited. These two accomplishments alone should improve script numbers significantly. Furthermore, if (granted a big "if") the new sample packs and the flex packs improve the patient outcomes and reduce the dropout rate by half, in a few months scripts could very well exceed not only the original relaunch effort, but also Sanofi's best script numbers. While success is not assured, I am encouraged by these developments. Unfortunately, we will not know until the 4Q17 financial report is released in conjunction with the earnings CC in March how much runway MNKD has. So we do not know how long MNKD can wait before raising more cash. And that is the crux of the issue regarding how much dilution we will suffer. It matters whether we are at $0.30 or $1.30 at the time MNKD decides to sell stock. $1.30 is possible but far from a sure thing. We just don't have enough information to say which way it will go. But a continued improvement in scripts would help build a little confidence |
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Post by me on Feb 3, 2017 14:36:47 GMT -5
Why is not a 5-1 reverse split an option? It is an option. The filing is for any range of split between 1:3 and 1:10. |
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Post by brotherm1 on Feb 3, 2017 14:47:00 GMT -5
Thank you for the reiteration. So I assume come February 24 the company will have by then have determined one particular amount of split for us to vote on or vote for no split at all.
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Post by me on Feb 3, 2017 14:48:10 GMT -5
Thank you for the reiteration. So I assume come February 24 the company will have by then have determined one particular amount of split for us to on. We are voting on authorizing the board to determine the actual split. We will not know that split prior to voting. |
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Post by mnholdem on Feb 3, 2017 14:56:25 GMT -5
Excerpt from the SEC filing:
We are holding the meeting for the following purposes, as more fully described in the accompanying proxy statement:
1. To approve an amendment to our Amended and Restated Certificate of Incorporation to (i) effect a reverse stock split of our common stock at a ratio in the range of 1-for-3 to 1-for-10, with such ratio to be determined in the discretion of our board of directors and with such reverse stock split to be effected at such time and date, if at all, as determined by our board of directors in its sole discretion, and (ii) reduce the number of authorized shares of our common stock in a corresponding proportion to the reverse stock split, rounded to the nearest whole share (collectively, the “Reverse Split Proposal”);
2. To authorize an adjournment of the meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of Proposal 1; and
3. To transact any other business that may be properly brought before the meeting or any continuation, adjournment or postponement thereof.
All of our stockholders of record as of February 1, 2017 are entitled to attend and vote at the meeting and at any adjournment or postponement thereof.
Our board of directors recommends that you vote FOR the Reverse Split Proposal as provided in Proposal 1 and FOR the authorization to adjourn the meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of Proposal 1, as provided in Proposal 2.
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Post by surplusvalue on Feb 3, 2017 15:49:26 GMT -5
Thank you for the reiteration. So I assume come February 24 the company will have by then have determined one particular amount of split for us to on. We are voting on authorizing the board to determine the actual split. We will not know that split prior to voting. We would however have a better sense of which end of the spectrum we are more likely facing if management were more transparent and clearly indicated whether or not the split is being considered solely for the issue of delisting or whether its also being considered as a basis for dilution as well. The CEO said that under no circumstance would they let the stock be delisted but that doesnt mean that they will not use this as an occasion to provide a basis for dilution. |
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