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All I can say is look at PDLI. Enough shareholders got together and forced mgmt out and now value is being unlocked. I would love for mgmt to bring home the bacon but I think the free pass and trust us phase is over, at least with me. I also think it's time to light a fire under mgmt to produce. I do know mgmt reads this board, I've discussed issues that have been brought up on this board. Why do you think BOT posts here? So a healthy discussion regarding mgmt's ability to lead, follow or get out of the way is appropiate. I am certainly hoping they are feeling the vibes of the board and I hope they are seeing what is happening to PDLI.
Has anyone ever done business with a doctor? I have and for the most part, they are clueless in business but they do know everything.
Mgmt does not want the PPHM story out until they have "earned" their options thru "milestones" and the lower the stock price when the "milestones" are achieved, the better it is for mgmt. That's the problem with them owning virtually no shares relative to the float. Likewise with the new IB on board. There is no reason to get the story out until all their clients have loaded up on cheap shares. That's why we need a provision in the option granting process that sets a floor on option prices. For example, the option price will not be lower than the previous quarters average price etc. That would end the games that mgmt has allowed to be played. If the company is making the progress it claims it has made, the stock price should reflect it. Part of mgmt's responsibility is to communicate to the investment community. Mgmt has dissed the current shareholders in order to help their new friends, institutions and BP. Have they forgotten who has kept them treading water over the last several years? I think so.
Yea the SEC is really on top of things. Right now the SEC reports to the hedge funds.
As I said earlier, mgmt has until Nov 6 which gives them until the shareholder mtg, R&R show, the liver mtg and some interim trial results to show how they create value and the report card is the share price. If they fail to do so, it's time to get more active in our investment. I think it would be quite possible to rally the troops. Mgmt owns virtually no shares. I think it's quite possible to get a meaningful voice in terms of the amount of shares. If PDLI can rock the boat with less than 5%, we can do it. I'm hoping mgmt gets it together but I think we need to light a fire under their arses. They have dissed the retail shareholder, the same ones that have been keeping them afloat for the last few years.
ANTBETS, I would ask mgmt to do consider what PDLI is doing and sell the company off if mgmt fails to create value within a certain time frame. Current mgmt is not getting the job done and they have lost credibility with shareholders. It's time to light a fire under their arses and shake things up.
This is why I support a mgmt change. Look at PDLI. PPHM mgmt has until Nov 6 to show how they can create value. If they can't do it, it's time to mobilize and effectuate a change. It didn't take but 4.9% of ownership to get something going.
PDLI to sell its assets. Hedge fund forces company to unlock value and forces executives to resign. Pay attention PPHM mgmt cause this is what happens when you fail to create value with the assets you manage. Also note the percentage of ownership of the hedge fund that forced these moves - less than 5%.
http://biz.yahoo.com/ap/071001/pdl_biopharma_strategic_alternatives.html?.v=1
The last pipe was done with R&R and they stated several institutions. Has there been any disclosure on the identity of the institutions and the amount each invested?
Bashing? No. Venting. Yes. Expecting mgmt to follow thru and have the value of the company reflected in stock price is all we want. Question. Do you think you call sell off the parts of PPHM right now and get more than $145 mil less the roughly $30 mil in cash which makes it roughly $115 mil a right now? $115 mil for Cotara, Bavi AC, Bavi AV, Avid and all the compounds in progress? Sounds like a great deal. If you think all the above is a bargain at this price, then by definition mgmt is not performing. Why is that? Throw in all the games with russell, CINN at the bid/ask for months and there you have it. PO'd shareholders.
You can throw out the poison pill cause shareholders would vote for a takeover. It might take some time but it would be worth it.
Because mgmt owns basically no shares and is rewarded by having a low stock price when "milestones" are achieved, it leads to what we're seeing today. And that is a major disconnect between value and current stock price. If stock awards were based on achievement vis a vis price, we'd see a different set of priorties from mgmt. If in fact achievements were happening, we would see it reflected in the price. Mgmt has gotten to cosy with the offshore investors and insiders. Too many strange things have been happening with the Russell, shorts, etc. It's time for a change. Hey mgmt, the meter's ticking so get your act together or start packing your bags.
The overriding question I have is why should mgmt continue to manage. The stock price is the report card and mgmt gets an F. LIke I said earlier, there are enough unhappy campers that if things continue the way they have been, there will be a change (poison pill or no poison pill).
I think mgmt knows it put up time. As for trying an end around with the technology, I don't think they are that stupid. I don't think they want to share bunks with Jeff Skilling. Mgmt knows the eyes are upon them and there are some investors with the ability to call them on the carpet either thru a hostile takeover or thru the courts. Mgmt has a fiduciary responsibility to existing shareholders, not a future partner or future investors.
That run lasted all but 15 minutes at the end of the day and did not amount to a whole lot of shares relative to that days trading. This was part of the smokescreen. The same players that arranged the closing price trade probably arranged the runup. Did nasdaq give any reason for the closing price? Too bad the sec is in the hedge fund's pockets cause they are worthless.
My guess on the russell thing was it was all orchestrated by the ib, mgmt and a large investor such as a hedge fund (for possibly bp). All to give a major player a very low basis. The pr's at the end of the day were smokescreens to give mgmt cover. All imo.
Someone is trying to keep the party to themselves. I just put an order in for 2,000 shares at $.65 when the ask was $.645. The ask was instantly raised to $.6509. They don't want the retail players to buy, only sell.
There are probably dozens of companies working on the same thing. I'm hoping your right cause I've got a big investment in PPHM. Jazz, I appreciate your efforts on the scientific side, I'm from the investment side but I try to understand the science. If you're right, all this potential is incredible. Why is there such a disconnect with the science and its potential and the value of the company?
I didn't see Bavi mentioned nor Thorpe for that matter, not even in the footnotes. Where are you seeing PPHM involvement? How do you know PPHM is involved?
I think the company is vunerable to a takeover due to the lack of institutional ownership and current shareholder disdain for current stock price and mgmt. If someone offered $2 per share right row with shareholders having the right to vote, my guess is it would pass notwithstanding the poison pill (eliminating such would be part of the offer). Is Tustin listening? Low hanging fruit usually gets picked (or rots).
As for Zimmer Lucas, I'm speculating that they are the ones shorting as a hedge. The financing is somewhat old so I don't know if warrants are attached. As for value of the technology, right now PPHM market cap is $148 mil. Take out say $25 mil cash and that leaves you with $123 mil for all technology and Avid. Let's say Avid sales are roughly $10 mil per year (not counting PPHM internal sales) and put a 4 x sales multiplier, Avid is worth $40 mil. That leaves $83 mil for Bavi cancer, Bavi antiviral, Cotara and all the compounds past and in progress. I think it would be safe to say that any one of first three programs could easily be worth $83 mil as is. If Adnexus can get $430 mil for stuff in phase 1, I'd say all the PPHM technology is a bargain at $83 mil. Thus my disappointment in mgmt.
As for how much someone needs to acquire to get mgmt's attention, I don't know. In PDLI situation, I want to say the hedge funds making waves own about 5%. Given PPHM mgmt owns almost nothing relative to the float, it would not take much. Perhaps it's lack of ownership leads to their indifference to share price. The lower the share price when "milestones" are achieved benefits mgmt. As such the option granting formula should include provisions where the option price was not lower than a set level from the previous qtr. This might take away the incentives for the games being played by some of their friendly buyers(shorters). All IMO.
My guess is about 4 million of the shorted shares are related to a pipe whereby Zimmer Lucas Capital was the investor. This was some time ago and Zimmer still owns about 4 million shares.
Here's what could happen to PPHM if the share price continues to falter. The split up value of PPHM with all their irons in the fire is much greater than current market cap. Poison pills won't matter if someone come along and offers to unlock the value.
From WSJ
Another hedge-fund shareholder is trying to force PDL BioPharma Inc. to sell itself.
Highland Capital Management LP sent a letter late yesterday to the Fremont, Calif., biotechnology company's board, calling for an auction and for the chairman, Patrick Gage, to resign.
http://online.wsj.com/article/SB119077524827739654.html?mod=hps_us_whats_news
Looks like a little party was starting up and guess who shows up to put the damper on it? CINN back in action.
IMO it's our IB friend keeping a lid on it while their pals slowly accumulate. Just giving a thumbs up all by its lonesome self doesn't work in this age of enrichment. Not helping a friend make a killing would not be the right thing to do by wall street standards.
I'm with the majority of shareholders and I'm very frustrated with what I see as a major disconnect between value of the company and the share price. IMO management has not defended the share price and has allowed games to be played at the current shareholder's expense. I know that mgmt would prefer a larger institutional base where they don't have to put up with the whining. I would too but let the institutions buy like everyone else. From a financial mgmt standpoint, mgmt would get a D on a report card. Too many rookie blunders such a issuing a PIPE two years ago right before the russell. This was a huge mistake and took the wind out of the sales. Same with missing the russell this year.
When a companies value is not reflected in the share price, several things can happen to correct the situation. One is a hostile takeover where mgmt gets booted. I think it's incumbent on mgmt to show the shareholders how they can create the value. Unfortunately, we've heard the "we're in talks" story too long without any real progress to speak of. IMO, mgmt has til the Dec CC to show us why they should be at the helm.
We're not trying to oust mgmt. We just want the stock price to reflect value. Mgmt either has to produce results consistent with all the bling given in the CC's or tell us they don't have squat. Too date, all hat and no cattle. It's put up or shut up time by the shareholder's meeting. Mgmt knows it so if they have the goods, we'll see glimpses by the shareholder meeting.
R&R analyst gives boost to Imclone. Wonder how they will play PPHM.
http://biz.yahoo.com/ap/070917/imclone_ahead_of_the_bell.html?.v=1
No joke and imclone's market cap is $3.7 bil so the market doesn't think it's a joke either.
Jazz and BOT
Imclone has taken off lately and their drug erbitux is in the same space that PPHM wants to enter, recently small cell lung cancer, colon cancer etc. How does erbitux compare and is there enough room or will the door be closed if erbitux does the job?
Question for BOT
It is my understanding that many institutions won't go near a penny stock. How will R&R overcome that challenge? Is a reverse split the only solution? What about a preferred class which equals 10 shares of regular shares? I've talked to several fund managers and IB's and penny stocks are problematic for many institutions.
If we're talking analogies here, how bout shareholders are tired of 2nd and goal and 7 yards for a score. We've had the ball in the red zone two many times and no TD and no field goal. Penalties in the form of pipes and fumbles, and goal line stands in the form of getting booted of the russell with a suspect trade. It's fourth quarter and were down but two scores. Can mgmt get on the scoreboard?
I think the qualifiers were what was expected to happen between now and the next cc in December. There may be other trials planned but the focus was on what to expect over the next few months. I think SK and crew know the meters ticking and they need to show shareholders how they can create value. Perhaps they figured out that curing mice doesn't cut it.
R&R. IMO he's not going to ask revealing questions for the public when all he has to do is call SK. IMO he's saving all the good stuff for his institutional clients. You'll see the easy set up questions when R&R clients have their plates full.
Let's see if CINN stomps on the rally.
Same old same old. CINN shows up on the bid and ask to squelch the little uprising.
Ever notice when we start to move and volume picks up, CINN steps up on the bid/ask and kills the momentum?
I asked a trader about the CINN exchange. He said it was used quite often by hedge funds and offshore accounts.
We've seen several No Act forms filed. IMO it would be nice to hear an explanation by mgmt as to what these forms mean.
Want not worry.