|
|
Post by sportsrancho on Jan 30, 2018 15:34:10 GMT -5
Didn’t he say no plans for dilution, and we aren’t going bankrupt. I believe he was referring to certain people in certain articles:-) And the pediatric trials are moved forward! Yes:-)) Sports, thoughts on non-dilutive financing? What was cash balance on 12-31-17? Burn rate is how much / mo? I don’t know what the burn rate is now because I don’t know how much they are using for the extra commercials. Great question for compound:-))) |
|
|
|
Post by buyitonsale on Jan 30, 2018 15:35:46 GMT -5
Mike said Mannkind will file in Mexico, Canada and Europe this year without a partner.
Mexico and Canada make sense logistically.
Europe is probably more difficult to find a partner for, so they will just file to move it forward on their own...
|
|
|
|
Post by mnholdem on Jan 30, 2018 15:45:58 GMT -5
Exactly, Sports. If you're going to throw in raw materials why not add the plant and other manufacturing expense under the guise of "debt"? Purchases are a part of COGS and not near- or long-term debt.
|
|
|
|
Post by dreamboatcruise on Jan 30, 2018 15:46:07 GMT -5
Good points, But he knows what kind of dilution they’re talking about in the articles and he knows what we mean when we say it. But yes, sounds like it’s going to be used for the debt and the dept didn’t seem anywhere near what’s been posted on this board. Even if expanding beyond what precisely was said and trying to read more into it, which might be unwise... the Motley Fool article I believe he was referring to with regard to amount of dilution merely says "The company is thus bound to continue diluting shareholders ad infinitum." So given that they engaged in hyperbole, Mike actually could then truthfully say he has no such plans, i.e. no plans for infinite dilution, even if he felt moderate/meaningful/significant (with no particular definition for any of these terms) dilution was still likely. |
|
|
|
Post by dreamboatcruise on Jan 30, 2018 15:51:20 GMT -5
Mike said Mannkind will file in Mexico, Canada and Europe this year without a partner. Mexico and Canada make sense logistically. Europe is probably more difficult to find a partner for, so they will just file to move it forward on their own... There was a "potentially" attached to Europe. With regard to those countries' filings he said "plans are on the docket to get off the ground this year". Does that mean actually filing by end of year or just working on the process this year? |
|
|
|
Post by dreamboatcruise on Jan 30, 2018 15:57:16 GMT -5
Exactly, Sports. If you're going to throw in raw materials why not add the plant and other manufacturing expense under the guise of "debt"? Purchases are a part of COGS and not near- or long-term debt. These obligations aren't quite like expenses that are constant from quarter to quarter. There is no need to conflate the two, but certainly talking about these LARGE upcoming purchase obligations makes sense when talking about similar balance sheet obligations such as debt. And given that we are no where near needing all the insulin that is obligated, much of it would not be COGS. It is only COGS sold to the extent it is actually used in sold product. |
|
|
|
Post by mnholdem on Jan 30, 2018 15:57:21 GMT -5
DBC, aren't YOU reading a bit too much into Mike's comments?
|
|
|
|
Post by jred on Jan 30, 2018 16:09:09 GMT -5
Didn’t he say no plans for dilution, and we aren’t going bankrupt. I believe he was referring to certain people in certain articles:-) And the pediatric trials are moved forward! Yes:-)) I went back to that section on finance. Here are things I heard. He talks about cutting expenses saying "we can slow down hiring, we can slow down marketing... so we have a little bit of control over our own destiny". Immediately followed by "There's a Motley Fool article saying the company is going to go bankrupt and dilute everybody... that's just no where in our plans, so we can put the rumors to rest, and rest assured we've got a plan for success not failure." The last part is kinda a silly fluff statement. No company plans to fail. As for the dilution it appears all he is saying if one looks at the actual sentence as delivered is that dilution through bankruptcy is not in the current plan. It would be going beyond the sentence to assume no future dilution. It would seem dilution for debt conversion and working capital is very likely, both from what can be seen that they are doing and from the share authorization. And he also gave us another notable MNKD quote... he looks at the outstanding debt not as overhangs but as possibilities... that quote I'd certainly rank as having eye roll possibility. Sorry... half joking, but only half... think it's pushing it a bit to go beyond "I can handle this" to "I'm tickled pink by having such a damaged balance sheet". I believe Mike was referencing a Motley Fool article from 1/18. We've seen blindly bullish articles and overly negative hit pieces. Motley's article was clearly the latter. IMO Mike was addressing the authors claim to know that "Mannkind is about to dilute the heck out of its current shareholder base" or that the company is "bound to continue diluting shareholders ad infinitum." As they have demonstrated in the recent recapitalization moves, I would expect similar dilutive measures going forward - potentially additional private placements and/or incremental debt payments retired with equity shares. Although few may agree with me here, I am encouraged by these moves for both the runway and flexibility they provided, but also for the financial acumen to get them done on reasonable terms. And DBC - I had a very different take on your last notable quote. As I heard it Mike was addressing near term debt payments "not as an overhangs, but as possibilities to continue push out to give us the runway we need". As in push outside of the 3 year window he was trying to clear for operations to grow. But in no way was it a good thing or that he was "tickled pink" to have them. |
|
|
|
Post by dreamboatcruise on Jan 30, 2018 16:26:15 GMT -5
And DBC - I had a very different take on your last notable quote. As I heard it Mike was addressing near term debt payments "not as an overhangs, but as possibilities to continue push out to give us the runway we need". As in push outside of the 3 year window he was trying to clear for operations to grow. But in no way was it a good thing or that he was "tickled pink" to have them. Yes, that was what was said. But that's like someone that has maxed out all of their credit cards and has little income blithely saying that they view each new credit card bill as a great possibility to improve the situation, possibly renegotiating payment terms. Yeah, from a self help perspective, it's good to make the best of any bad situation and stay positive, but debt is bad not good, and it is an overhang financially speaking. Getting hit by a car is a possibility to heal... hopefully a possibility, like having a company with such burdensome debt load needing constant renegotiation, that I shall never experience [sorry, I need some anti-sarcastic pills today  ] |
|
|
|
Post by sportsrancho on Jan 30, 2018 16:29:53 GMT -5
Good points, But he knows what kind of dilution they’re talking about in the articles and he knows what we mean when we say it. But yes, sounds like it’s going to be used for the debt and the dept didn’t seem anywhere near what’s been posted on this board. Even if expanding beyond what precisely was said and trying to read more into it, which might be unwise... the Motley Fool article I believe he was referring to with regard to amount of dilution merely says "The company is thus bound to continue diluting shareholders ad infinitum." So given that they engaged in hyperbole, Mike actually could then truthfully say he has no such plans, i.e. no plans for infinite dilution, even if he felt moderate/meaningful/significant (with no particular definition for any of these terms) dilution was still likely. Could be, he’s obviously trying everything he can not to do it. |
|
|
|
Post by brentie on Jan 30, 2018 16:35:57 GMT -5
Good points, But he knows what kind of dilution they’re talking about in the articles and he knows what we mean when we say it. But yes, sounds like it’s going to be used for the debt and the dept didn’t seem anywhere near what’s been posted on this board. Even if expanding beyond what precisely was said and trying to read more into it, which might be unwise... the Motley Fool article I believe he was referring to with regard to amount of dilution merely says "The company is thus bound to continue diluting shareholders ad infinitum." So given that they engaged in hyperbole, Mike actually could then truthfully say he has no such plans, i.e. no plans for infinite dilution, even if he felt moderate/meaningful/significant (with no particular definition for any of these terms) dilution was still likely. What the Fools actually said was... Now what With the sales of its inhaled insulin product, Afrezza, failing to pick up in a financially meaningful way after a favorable label change last year, MannKind appears to be a dead man walking at this point. To stave off bankruptcy, the company really has no other option but to continually dilute shareholders -- potentially making yet another reverse split necessary in order to meet the Nasdaq's minimum bid requirement later this year. Put simply, there is no viable route for MannKind to recapitalize without wiping out current shareholders. And that's why long-term investors may want to cut their losses now, before the company starts issuing shares like crazy to put off the inevitable bankruptcy filing. finance.yahoo.com/news/why-mannkind-corporation-stock-falling-170900648.html |
|
|
|
Post by dreamboatcruise on Jan 30, 2018 16:38:36 GMT -5
Even if expanding beyond what precisely was said and trying to read more into it, which might be unwise... the Motley Fool article I believe he was referring to with regard to amount of dilution merely says "The company is thus bound to continue diluting shareholders ad infinitum." So given that they engaged in hyperbole, Mike actually could then truthfully say he has no such plans, i.e. no plans for infinite dilution, even if he felt moderate/meaningful/significant (with no particular definition for any of these terms) dilution was still likely. Could be, he’s obviously trying everything he can not to do it. I don't even think it's necessarily bad. He is increasing spending on marketing. That will only hasten the need for raising funds, but there comes a time you have to spend money to avoid simply dying from stagnation. Other than the one recent thing that I'm sure everyone knows I believe was a misstep, I think Mike will do his best to maintain shareholder value. Though, we're not out of the woods, and I think there is likelihood for a bad surprise if people are thinking dilution is not probable. |
|
|
|
Post by jred on Jan 30, 2018 16:43:42 GMT -5
I hear what you are saying, but again I had a different take on it. I, in no way, took it as he was saying the debt was a positive. My impression is that he is trying to clear a multi-year window to allow all the operational points he covered to come into fruition and drive sales up. Those near term debt payments are clearly major hurdles on making that happen, but he feels there are possibilities to move the bulk of them out in time. If scripts don't pick up before then clearly we are toast. I think he is staying positive on scripts growth not on debt. In fact he makes a point to mention how difficult it is to deal with quarterly debt payments in their current financial state.
|
|
|
|
Post by therealisaching on Jan 30, 2018 16:43:53 GMT -5
I was hoping for a slide on the impact they have seen from TV commercials. They must have data.
|
|
|
|
Post by sportsrancho on Jan 30, 2018 16:58:52 GMT -5
Didn’t he say no plans for dilution, and we aren’t going bankrupt. I believe he was referring to certain people in certain articles:-) And the pediatric trials are moved forward! Yes:-)) I went back to that section on finance. Here are things I heard. He talks about cutting expenses saying "we can slow down hiring, we can slow down marketing... so we have a little bit of control over our own destiny". Immediately followed by "There's a Motley Fool article saying the company is going to go bankrupt and dilute everybody... that's just no where in our plans, so we can put the rumors to rest, and rest assured we've got a plan for success not failure." The last part is kinda a silly fluff statement. No company plans to fail. As for the dilution it appears all he is saying if one looks at the actual sentence as delivered is that dilution through bankruptcy is not in the current plan. It would be going beyond the sentence to assume no future dilution. It would seem dilution for debt conversion and working capital is very likely, both from what can be seen that they are doing and from the share authorization. And he also gave us another notable MNKD quote... he looks at the outstanding debt not as overhangs but as possibilities... that quote I'd certainly rank as having eye roll possibility. Sorry... half joking, but only half... think it's pushing it a bit to go beyond "I can handle this" to "I'm tickled pink by having such a damaged balance sheet". “As for the dilution it appears all he is saying if one looks at the actual sentence as delivered is that dilution through bankruptcy is not in the current plan. It would be going beyond the sentence to assume no future dilution.” That’s not at all what I get out of that. Dilution through bankruptcy? No that’s your own spin you put on there. Lol |
|
]
